Business Contracts Office

Procurement Contracts Defined

Generally Defined:

Procurement contracts are defined in general terms as formal agreements with a business entity to secure specific goods and/or services that are subject to compliance with procurement policies (e.g. technology, hotels & resorts, marketing, maintenance services, temporary personnel, leases, and auxiliary contracts such as bookstore services, vending machines, or food service agreements).

Defining competitive requirements:

It is important to note that competitive purchasing requirements are not necessarily dictated by a vendor payment. In fact, many procurement contracts do not include a University payment to a vendor. Extended Education or Auxiliary contracts, for instance, actually involve a vendor payment to UTSA. Competitive requirements, rather, can be dictated by statutory provisions, UT System polices, Best Value Procedures, and appropriate business relations (multiple vendors may request and/or deserve an opportunity). In defining whether a contract is subject to competitive procurement requirements, one needs to ask whether procurement competition could ever reasonably be viewed as applicable.

NOTE: If the service requires a sole source justification, then the goods and/or services probably fall within the definition of a procurement contract. If the non-existence of purchasing competition must be justified, then it follows that the contract was subject to compliance with purchasing policies.