Sponsored Funds Defined
The Sponsored Projects Office(link is external) (SPO) processes awards made to UC Berkeley from government and non-profit sponsors to support research, instruction, and/or other service related activities with the intent to carry out a public purpose. The Industry Alliances Office(link is external) (IAO) manages similar award transactions from industry and for-profit sponsors. The Office of Business Contracts and Brand Protection(link is external) (BCBP) manages incoming funds intended to benefit the outside sponsor, i.e., a work for hire.
When it is necessary to involve an outside entity in an important or significant portion of a sponsored project that has been processed by SPO or IAO, the Berkeley PI can direct SPO/IAO to issue a subagreement to the outside organization.
SPO/IAO will develop and issue a subagreement to the outside entity that includes a scope or work, budget and all appropriate sponsor and University terms and conditions.
However, not all outgoing sponsored project funds should be issued as a subagreement. When it is necessary to use sponsored project funds to purchase goods and services offered to the public at large by a supplier, Supply Chain Management (SCM) should manage the transaction. If you are not sure how to distinguish a subrecipient from a supplier, please consult this determination guide.
If you are still unsure after consulting the guide, please contact the SCM Procurement Manager to trigger a review of the services with SPO/IAO. Consult with your Buyer for any services over $100,000 as they may require competition by law.
Funds from Additional Sources
Unrestricted gift funds may be used to work in partnership on a research project with collaborating institution of higher education or a tax-exempt organization under section 501(c)(3). Such transactions require the use of a special Research Collaboration Template and must be processed by Supply Chain Management following the review of Campus Legal Counsel. For more information on how to initiate this type of transaction contact your SCM Buyer. Questions about the status of a gift fund should be directed to University Development and Alumni Relations (UDAR).
Note: No gifts funds may be transferred to an outside entity without campus counsel review and SCM oversight.
Please reference the Sponsored Funds - Goods & Services orders that support research.
- The Department needs to create a requisition in Bear Buy to alert the SCM Buyer that your department would like to engage in a collaborative research project. See below - How to Hire a Supplier - Independent Contractor.
- Detailed SOW (Statement of Work) articulating the nature of the services, IP ownership, and description of data being shared.
- The Department needs to complete the applicable Required PO Documents and identify the Fund Source on the Source Justification / Price Reasonableness form. Gift funds will need a legal review.
- The SCM Buyer will conduct a review with campus SME's (Subject Matter Experts) based on the details in the SOW; IAO, Legal, Risk, Privacy, IT
- If Institution / Supplier / Sub-recipient takes exception to any of the UC terms, the SCM Buyer will need to negotiate the agreement.
- Once the Agreement is fully executed, the SCM Buyer will process the Purchase Order allowing the Institution / Sub-recipient to submit invoices for payments to be made when deliverables are completed.
Note: No gifts funds may be transferred to an outside entity without Legal performing a review.
Independent Contractor Defined: An individual or entity that performs a specific service for the UC based on a set price, pursuant to a scope of work and deliverables set by the UC.
Consult with your Buyer for any services over $99,999.99 as they may require competition by law.
Examples of Independent Contractor services:
- Secretarial, drafting, technical editing, and technical appraisals
- Medicine and medical arts, architectural and engineering services
- Printing services, translation, and web design
How to hire a Supplier - Independent Contractor:
- Use the following Form in BearBuy: “Service Order Form”.
- The department should attach the following Required PO Documents to the Form as directed in BearBuy:
Required documents from the Department:
- UCOP Source Selection and Price Reasonableness (SSPR) Justification form
- Classification Worksheet for Federal Tax Purposes
- Statement of Work - Detailing the nature of the services; who will own IP, if there is any open source software, what data is being shared. The SCM Buyer will conduct a review with campus SME's (Subject Matter Experts) based on the details in the SOW; IAO, Legal, Risk, Privacy, IT.
- Conflict of Interest
- Supplier’s proposal
The Buyer will use the above documentation to create an Independent Contractor Agreement, which will be signed by the Buyer and the Independent Contractor.
- Services Performed on UC Property: Determine the number of services that will be performed by the Supplier on campus.
- See Special Considerations for additional potential issues.The Buyer will use the above documentation to create an Independent Contractor Agreement, which will be signed by the Buyer and the Independent Contractor.
For more information, see Finance Bulletin: BFB-BUS-43 Purchases of Goods and Services; Supply Chain Management