Contract+

Important: Please review the IT procurement, security standards, and software guidelines

Adhering to these policies ensures we maximize university buying power and maintain a secure digital environment.

With the update of the Vendor Contract Initiatives, the benefits include:

• Contract and PO Guidance - Clear guidelines have been introduced to specify when a written and signed contract is required during the Procure-to-Pay process
   
• IT Contract Assessment and Approval - Capture relevant information within the contract request form for IT related contracts, enabling faster routing to the appropriate IT teams
   
• Contract Template Expansion - Enhanced templates simplify the creation and approval of routine contracts, making processes quicker and more efficient for low-risk transactions
   
• Risk Assessment of Contract Review - Established new Vendor Contract Risk Matrix to help Tandon identify risk levels, enabling faster processing of low-risk contracts and ensuring proper compliance for high-risk agreements
   
• Update COI Collection Process - COI (Certificate of Insurance) are now limited to high-risk and select medium-risk contracts, eliminating unnecessary steps and simplifying supplier onboarding
   
• Contract Request Form Update - Updated forms now capture more relevant details upfront, helping streamline decision-making, reduce approval times, and accelerate contract processing overall

The following guidelines are designed to assist staff with submitting contract requests through Contract+ (formerly Total Contract Management). Please review each section carefully to ensure your contract request is complete, accurately prepared, and routed to the correct approvers.

A threshold with defined specialty exceptions has been established to determine when a contract is required. Except for the specialty exceptions, a contract is not required, and a department may proceed with a Purchase Order (PO) for:

• Service engagements valued at less than $10,000
• Goods/Equipment purchases valued at less than $100,000

Examples of PO Only engagements include:

General Goods and Services

• Costume Designer
• Editor / Editing Services (ex: literary, video, audio, sound, text, etc.)
• Expert Advisors
• Gallery / Exhibit Coordinator
• Graphic Designer
• Indexing / Cataloging Services
• Marketing / Promotional Services
• Piano Tuners
• Printing Services
• Professional Coaching
• Production Manager
• Proofreader
• Prop Artisan
• Research - Reviewing Articles
• Set Designers
• Stage Managers
• Translation / Native Speakers
• Training Services
• Writers
• Goods & Equipment w/ no installation

Travel, Events, and Entertainment

• < 20 attendees, no alcohol, no rooftop venue or boat charter
• Restaurant reservation and NYU is not renting space

IT Software and Hardware

• Peripheral devices/hardware (e.g., desktops,, standard laptops)
• AV equipment, no installation
• NYU IT approved software solutions

A contract is always required, regardless of dollar value, when a contract involves a medium or high-risk element. Insurance may be required for medium-risk and is always required for high-risk. Examples of medium and high-risk elements below:

General Goods and Services

• Artist [painting, sculpting, etc.]
• Acting / Dance Coaches
• Interim/Temp Staffing
• Legal / Litigation Support
• Media Producer [television, film, digital, media, live events]
• Curriculum Development
• Executive Search Services
• Campus Safety Services
• Equipment Leases

Travel, Events, and Entertainment

• Entertainer or Performer
• Caterer
• DJ/Band, or Musicians
• Space / Venue Rental
• Boat Cruise / Charter
• Rooftop Event
• 100 + Attendees
• Minors or Undergrad Students involved
• Event outside the U.S.

IT Software and Hardware

• Cloud Service Agreements
• Cybersecurity Services
• Enterprise-wide Agreement
• SaaS Agreements
• Web Hosting Services
• Telecom and Network Agreements
• AV Equipment w/ installation
• Hardware integrated with existing systems or networks
• Integration to campus-wide network

Facilities and Construction

• Architect
• Debris Removal
• Electrical and Lighting Services
• Elevator Work / Maintenance
• Engineer
• Emergency Repair Services
• HVAC Services / Maintenance
• Janitorial and Cleaning Services
• Moving Services
• Painting Services
• Transportation / Fleet Mgmt

Good/Service Involves

• Data is collected, accessed, shared, or transferred
• Environmental Health and Safety
• Non U.S. Supplier / Services performed outside the U.S.
• University Intellectual Property
• Use of NYU Name / Trademark
• Direct contact with minors and/or students
• Supplier working with NYU infrastructure
• Delivery w/ installation & assembly
• Building/Space Leases

While the Procurement and Payables (P2P) team manages a wide range of contracts, there are specific types of agreements that fall outside their scope and are handled by other departments or offices. These include contracts related to:

Office of Sponsored Programs (OSP)

• Subawards

Office of General Counsel (OGC)

• Real Estate Contracts (including Building Leases)
• Finance or Employment Contracts
• Agreements with Accounting Firms (non-consulting)
• Settlements of Contract Disputes / Litigation
• Research (Non-Sponsored)
• Agreements with Federal, State, or Local Governments

Capital Projects and Facilities

• Construction, Renovation, Engineering, Brokerage

Technology Opportunities and Ventures

• Research Funded by Industrial Partners

University Development Alumni Relations (UDAR)

• Monetary and Other Donations

With the update of the Vendor Contract Initiatives, a new Vendor Contract Risk Matrix has been established to help the campus better understand contract risk levels and required reviews. This matrix facilitates quicker processing of low-risk contracts while ensuring compliance for high-risk engagements.

How to Use the Vendor Contract Risk Matrix to Evaluate Contract Requirements?

• Identify the Category
  
  Find the category of the good or service in the matrix to determine its general risk level.

• Check for Specific Risk Components
  
  Look for higher-risk elements within the contract, such as handling sensitive data, safety issues, or regulatory compliance.

  • High-risk components can elevate the overall contract risk level and may require additional oversight or mitigation.
  • For example, a low-risk service may include high-risk elements, such as managing highly sensitive data, that warrant extra attention.

• Confirm if a Written and Signed Contract is Required

  • General Rule for Contracts:

    • A written and signed contract is always required for:
      • Service engagements over $10,000.
      • Goods purchases over $100,000.

  • Specialty Scenarios (Regardless of Dollar Value):

    • In certain cases (referenced in Column B of the Contract Risk Matrix), a contract is required regardless of the total contract value.
    • Example: If a specific good or service is categorized as "> $0" in the matrix, a contract request must be submitted and executed before issuing a Purchase Order (PO).

  • Low-Value Transactions Without Risk:

    • If the good/service:
      • Has a total value less than $10,000, and
      • The contract components only require a contract above $10,000 (per the matrix),
      • Then no contract is needed, and you may proceed by issuing a PO.

  • Supplier-Requested Contracts:

    • If a supplier requires a signed contract, a contract request must be submitted and executed before issuing a PO, regardless of the contract value.

Contract Risk Levels and Review Timeframes

Understanding the risk level of a contract is crucial in determining the appropriate review process and timeline. Contracts are categorized into three risk levels—Low, Moderate, and High—based on the potential for financial, operational, or reputational risk to NYU. For PO-Only contracts, no additional review is required; however, contracts with varying risk levels require careful evaluation and validation to ensure compliance and risk mitigation.

Below are the defined risk levels and corresponding review timeframes:

• Level 1 – Low Risk Contracts (Including PO-Only Contracts):

  • These contracts pose minimal financial, operational, or reputational risk and typically require less oversight.
  • Review Time: 1–5 Business Days (when review is required).

• Level 2 – Moderate Risk Contracts:

  • These contracts involve a moderate level of risk and require validation to ensure appropriate terms and conditions are included.
  • Review Time: 5–15 Business Days.

• Level 3 – High Risk Contracts:

  • These contracts carry significant potential for financial loss, reputational damage, or operational disruption. Additional review and authorization from specialty groups (e.g., OGC, Risk Management, NYU IT) may be required.
  • Review Time: 15–25 Business Days.

Note: If a vendor’s contract template is used instead of NYU’s, add 5–7 business days to the stated review times.

Insurance Requirements have been updated to streamline processes, reduce administrative burden, and ensure more efficient vendor engagement. Key changes include retiring the previous waiver request process via ServiceLink, expanding the list of services exempt from insurance requirements, and removing the need for COI collection during supplier onboarding. These updates aim to simplify workflows while maintaining compliance and addressing high-risk scenarios effectively.

Key Updates to NYU’s Insurance Policy

1. Retirement of the Waiver Request Process via ServiceLink:

• Previous Policy: Insurance waiver requests were required for certain vendors and had to be submitted through ServiceLink, along with supporting documents, before the start of the contract.
• Updated Policy: The waiver request process has been integrated into the contracting process. Insurance waivers are now granted during contract review, streamlining the workflow.

2. Expanded List of Services with No Insurance Requirements:

• Previous Policy: The Insurance Waiver Eligibility Matrix was used to determine whether certain services were eligible for insurance waivers.
• Updated Policy: Over 15 additional service areas (e.g., artists, editors, graphic designers) are now exempt from insurance requirements altogether.

3. No COI Collection During Supplier Onboarding:

• Previous Policy: Vendors were required to submit proof of insurance (COI) during the onboarding process, and waiver requests were necessary before engagement.
• Updated Policy: COI collection is no longer part of supplier onboarding. If insurance is required, a third-party service (Ebix) contacts vendors directly on NYU’s behalf.

To ensure the proper handling of payments for individuals contributing to university events, it is essential to determine whether an Honorarium Form or a Guest Speaker Agreement is appropriate.

When to use an Honorarium Form:

An honorarium is a one-time gratuitous payment made as a gesture of goodwill and expression of appreciation for individuals who are contributors in University events (e.g., symposia, lecture series, or professional conventions). Honorarium payments do not involve contractual obligations, and a contract request is not required for such payments. Honorarium forms should continue to be attached to the honorarium payment request in iBuy.

A threshold for honorarium payments of $2,500 per occurrence. If an honorarium is greater than $2,500, the Fiscal Officer is required to sign the Honorarium Form.

When to use a Guest Speaker Agreement:

When engaging an individual who is obligated to perform speaking services, such as delivering a lecture, keynote, or presentation where the individual is committed to providing the specified services on a particular date and time at an agreed upon rate.

Please get familiar with the contract process in order to understand the overall workflow of creating the contract. The process is divided into two key phases: Contract Request and Contract Execution. Below is the detailed flow of these phases:

Contract Request Phase

1. Submit Contract Request

   • The end user submits a Contract Request Form to initiate the process.

2. Fiscal Officer Review and Approve

   • Fiscal Officer will review and approve the contract request.

3. Specialty Reviews

   • If required, the request undergoes additional reviews by specialty teams (e.g., NYU IT, OGC, Risk Management) based on the nature of the contract.

4. Procurement Review

   • The Procurement team reviews and approves the contract request.

Contract Execution Phase

5. Contract Record and Negotiations

   • Procurement creates the contract record and coordinates negotiations with the supplier, as needed.

6. Finalize Terms

   • Procurement finalizes the contract terms with the supplier.

7. Contract Signing

   • The contract is signed by all required parties and becomes fully executed.

PLEASE NOTE:

1. Contracts request approvers vary by fund:

   • Fund 10, 16 & 21 – Reviewed and approved by Finance Department

   • Fund 20, 22, 24 & 25 – Reviewed and approved by Office of Sponsored Research

2. Tandon designated signatory for all contracts is the Fiscal Officer: Pat Bowers pab2006@nyu.edu

New and updated contract templates have been introduced to streamline the procurement process and enhance efficiency across campus. The Services Agreement Template (formerly known as the Independent Contractor Agreement, MSA) will now be prepared by Procurement. The University’s preference is to use contract templates drafted by New York University. However, if a supplier insists on using their own contract template, you must submit a contract request in Contracts+ and attach an editable Word version of the vendor’s contract to your request.

The following are the available contract templates:

• PO Scope of Services:
  
  For use when requesting non-TE&E services on a PO to define the scope, deliverables, timelines, and terms of a specific engagement.

• Statement of Work (SOW):
  
  For use when requesting non-TE&E services on a contract to define the scope, deliverables, timelines, and terms of a specific engagement.

• Guest Speaker Agreement:
  
  For engaging an individual or business to speak, lecture, or present on one or more topics.

• Entertainer Agreement:
  
  For engagements with musicians, bands, DJs, and other performers.

• Honorarium Agreement:
  
  For one-time, gratuitous payments made as a gesture of goodwill and appreciation for individuals who are speakers or contributors at University events (e.g., symposia, lecture series, or professional conventions). Departments can obtain signatures and proceed with submitting the Honorarium Request alongside their payment request form in iBuy.

These templates are available on Google Drive (NYUHome login required). To use them, download the template as a Word document, complete it, and attach it when filling out the corresponding form in iBuy.

The iBuy system has been updated to streamline the process of managing contract amendments and renewals. These updates include:

• Enhanced visibility into contract modifications and improved tracking of contract history within the Contracts+ system.
• The retirement of the existing Contract, Amendment, and Termination Request Form.
• Allowing Contract Requesters to request amendments and renewals through the same process used to request a new contract.

Contract Amendment

A contract amendment is a formal change to an already signed and executed contract that modifies, adds, or removes specific terms or provisions. Examples of amendments include:

• Scope of Service Changes
• Price Adjustments
• Timeline Modifications
• Personnel Changes

Note: Adding a Statement of Work (SOW) to an existing services agreement is not considered an amendment. A new Contract Request Form must be submitted to add a SOW.

Contract Renewal

A contract renewal extends an existing agreement without negotiating new contract terms. The right to renew, including the fee during the renewal term, must already be specified in the original agreement.

• Important: A request for a contract renewal is not automatic or guaranteed. If the existing contract does not include renewal provisions, Procurement may determine that a competitive bid process is required.
• Any changes to the existing contract terms must be handled through an amendment, not a renewal.