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Contracts or Fee for Service Agreements

In keeping with the institutional mission to engage the community at large in scholarly inquiry, creative activity, and the application of knowledge, faculty and staff are encouraged to pursue research and training opportunities in the business or private sector.

The Office of Sponsored Research and Programs, in consultation with Contracts and Business Services, will negotiate the terms of Contract or Fee for Services Agreements. Agreements may include the following as defined:

  • Cost Reimbursable Contracts - The institution (contractor) is reimbursed for actual costs plus the preapproved negotiated facilities and administrative cost rate.
  • Fixed Price Contracts - Contract stipulates the exact amount to be paid for the services or products being purchased.
  • Time and Materials Agreement - Contract provides for acquiring supplies or services on the basis of:
    • Direct labor hours at fixed hourly rates that include wages, overhead, general and administrative expenses [loaded labor rates] and
    • Material at cost, including, if applicable, material handling costs as part of material costs

The total amount of the agreement will be in keeping with institutional policies which govern extra duty pay and sponsored activities. A copy of the contract or fee for service agreement must be submitted for review and approval by the Department Chair, Dean, and Provost prior to performance of the work.

To qualify for consideration, the contract or fee for service agreement should demonstrably benefit student learning, faculty teaching and advising, community service, and other university educational initiatives. Specifically for time and materials agreements, the institution will assess a ten percent (10%) administrative fee to be incorporated with the loaded labor rate.

Recommendations for faculty reassigned time and extra duty pay on contracts and fee for services agreements must specify:

  • The assignment - this should include a specific description of the temporary work, desired outcomes, time and effort reports required, documented evidence that the work is not part of the employee's regular duties, and evidence that the additional duties are not so burdensome as to interfere with the employee's performance of regular full time duties
  • A termination date for the assignment not to exceed one (1) year

All agreements to work on grant- and contract-funded reassigned time and extra duty pay will incorporate the standards of time and effort reporting necessary to comply with the terms of the grant or contract. 


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