Overview: Purchases Requiring a Bilateral Contract

There are special considerations, government regulations and University policies that pertain to hiring services providers, contractors, and consultants.

On this page:

• When Is a Contract Issued?
• Get Your Contract Processed in 21 Days
• How Are Stanford Contracts Processed?
  • For New Requisitions Less Than $25,000
  • For New Requisitions $25,000 and Greater
• Hiring Service Providers, Contractors and Consultants

When Is a Contract Issued?

A Stanford Contract must be issued by the Contracts Group for all construction-related projects (including architectural services) of any dollar amount, and for other projects performed by contractors, consultants and service providers that meet certain conditions.

Get Your Contract Processed in 21 Days

If your requisition is for a service or construction, the Procurement Contracts Team ensures a turnaround time of no more than 21 business days––and often less––if the information outlined below is included in the requisition.

Note:  Occasionally, certain contracts may require review by other departments (e.g., the Office of General Counsel, Global Business Services, or Office of Technology Licensing) or pose unique circumstances, which may affect processing time.

Click each block to see more details: (View as PDF)

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How Are Stanford Contracts Processed?

Stanford Contracts are executed between the Contracts Group and the supplier, and in general, follow this process:

For New Requisitions Less Than $25,000

Click each block to navigate through details for each step:

For New Requisitions $25,000 and Greater

Click each block to navigate through details for each step:

Hiring Service Providers, Contractors and Consultants

University policy requires that acquisition of products or services be by competition between potential suppliers, to the maximum practical extent subject to the requirements of quality, price and performance. When a department needs to use a single or sole source in the acquisition of a product or service with a cost of $5,000 or more, a written source justification is required. ("Single source" means other sources are available but the requisitioner chooses to use only one particular source. "Sole source" means that no other sources, other than the one recommended are available.) The source justification should include the following information:

• A specific description of the supplies or services required to meet needs, and a statement of fact that shows the unique qualifications of the services or items selected to satisfy those needs.
• A description of efforts made to locate other sources of supply.
• Documentation that the anticipated cost is fair and reasonable. This can be a comparison of prices when the item is generally available or, when the item is to be specially fabricated, an analysis of the manufacturer's cost.

For assistance with the preparation of a Request for Proposal "RFP"* packet, or an Invitation for Bid "IFB"** packet, please contact your assigned Contract Specialist in the Contracts Group.

For Bid / Proposal solicitations managed by the department, without assistance from the Contracts Department, please know that there are special considerations, government regulations and University policies that pertain to hiring contractors and consultants. Please provide all bidders / proposers the following contract documents, as part of your Request for Proposal "RFP"* or Invitation for Bid "IFB"**, as applicable.

* A Request for Proposal (RFP) is needed when the vendor selection will be based on important factors in addition to cost.
** An Invitation for Bid (IFB) is needed when the vendor selection will be based solely on the lowest Bid received.

Additional Information

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 Minimum Insurance Requirements (Applied to: All)

Service providers to the University must carry insurance policies that meet or exceed the University's minimum insurance requirements.

 Living Wage and Benefit Guidelines (Applied to: All)

For information about Stanford's current Living Wage and Benefit Guidelines please read Policies and Initiatives:  Living Wage and Benefit Guidelines:

Please inform all contractors and consultants under consideration by your department that the University performs random audits to ensure that Stanford's Living Wage and Benefit Guidelines are adhered to by "applicable" contractors and consultant, and that non-compliant contractors and consultants will be deemed in default of their agreement with the University and subject to immediate termination, unless the matter is fully rectified retroactively.

 Affirmative Action Special Conditions (Applied to: All)

The Affirmative Action Special Conditions flows down anti-discrimination provisions from the Federal Acquisition Regulations "FARs" to the contractors.

 IRS Qualification as Independent Contractor or Consultant (Applied to: Individuals / Sole owners)

The IRS requires that independent contractors and consultants qualify as such. When an individual does not qualify, they must be treated as employees or hired through a temp agency. Please see the Independent Consultants and Contractors Checklist.

An individual qualifies as an independent consultant or contractor when the individual:

• provides similar services to other clients and/or businesses outside of the University
• engages in entrepreneurial activities in an established business, at risk for profit or loss
• receives little or no training, supervision or instruction from the University, other than conveying the scope of services desired
• currently does not receive a paycheck from nor is an employee of Stanford University
• will be responsible to determine means and methods to use to perform services
• will provide his/her own supplies, equipment, forms, etc., necessary to perform services and cost for such will be included in rate or total fee
• will maintain sufficient insurance to protect against work related injuries and damage to University property
• will set his/her own priorities on time, amount of effort, and hours of work to accomplish services within stated time frame
• services to be provided are not similar to those currently being provided by Stanford employee(s)
• time period, maximum fee, scope of services are not intended to be modified at a later date

For more information:

• Visit the IRS web page on Independent Contractor (Self-Employed) or Employee?
• See Administrative Guide Policy 2.2.3, University Payroll
• Contact the Contracts Group in the Purchasing & Contracts department

 EH&S Notifications for Consultants (Applied to: Consultants)

In accordance with Proposition 65, please advise all consultants that provide consulting services to the University that they must read the Environmental Health & Safety Consultant Notifications, and must present these Notifications to their employees that are providing consulting services on the Stanford University campus.

 Environmental Health & Safety Document (Long Form) (Applied to: All construction-related work and services involving pollutants, hazardous materials, contaminants, chemicals, toxins, and all other "harmful-to-the-environment" materials)

All construction-related work and services involving pollutants, hazardous materials, contaminants, chemicals, toxins, and all other "harmful-to-the-environment" materials

The multi-page Environmental Health & Safety document intended for construction contractors must be included in all RFP's and IFBs for construction-related projects. This document should also be presented to contractors involved in projects where any of the following might be used, disposed of, or cause a disturbance or risk to the environment or the Stanford community:

• Asbestos, or Asbestos-Containing Materials
• Lead-Containing Paints and Other Surface Coatings
• Urea-Formaldehyde Products
• Volatile Organic Compound (VOC) used indoors
• Potentially Toxic or Odor Producing Products with Material Safety Data Sheets (MSDS)
• Excessive Noise, Vibration, and Dust
• Pest Control
• Hazardous and Flammable Materials
• Hazardous Material Spills
• Explosives
• Mercury-Containing Devices
• Batteries
• Electronic Devices
• Treated Wood Waste
• PCBs (Fluorescent Light Ballasts, Insulating Oils)
• Lead Metal (Plumbing Components, Lead Bricks, Counterweights, Drain Pans)
• Mechanical System Fluids
• Refrigerants
• Radioactive Materials
• Mold

 California State Requirements for Contractors (For Construction Trades) (Applied to: Construction / Janitorial / Security)

In addition to IRS requirements, the state of California has further requirements for contractors. Contractors must:

• be licensed by the Contractors State License Board (CSLB).
• be bonded.
• carry Worker's Comp insurance if they have one or more employees.

For more information, go to the Contractors State License Board web site and select "Hire a contractor" under the Consumer tab.

For contractors providing construction, janitorial, or security guard services, the following additional state requirement applies:

• Unless the contractor's employees are represented by a bargaining unit, the contractor must provide all of the information solicited by the state in the CLC2810 Questionnaire, which is in accordance with the California Labor Code Section 2810.

 Tree and Shrub Protection (Applied to: Construction / Trade work)

Section 01532 of the Facilities Design Guidelines - Tree and Shrub Protection must be included in all RFPs and IFBs for construction-related projects, and other projects, where there might be danger of injury to trees and shrubs nearby.

 General Conditions for Construction Projects (Applied to: Construction / Trade work)

The General Conditions for Construction Projects apply, and should be included in all RFPs and IFBs for construction projects on campus.

 Storm Water Special Conditions (Applied to: Construction / Trade work / Landscape work / when solvents or detergents used)

To keep pollution out of storm drains, it is important to include the Storm Water Special Conditions document in all RFPs, IFBs, and contracts where a contractor might be in charge of a project (whether construction, trade work, or other) where pollutants might end up in surface water runoff.

 Stanford Truck Routes Map (Applied to: All services)

The Stanford Truck – Routes Map should be included in all RFPs and IFBs for contracted work / services.

 EH&S Notifications for Non-Construction Contractors (Applied to: Non-construction services)

In accordance with Proposition 65, please advise all contractors that supply the University with non-construction related services that they must read the Environmental Health & Safety Contractor Notifications, and must present these Notifications to their employees that are performing work on the Stanford University campus.

 Payment & Performance Bonds (Applied to: As required; see below)

Even though Stanford's current policy (per Risk Management) is that Stanford departments must request Payment & Performance Bonds for construction-related Projects that cost $50,000 or more, a department may request a waiver of those requirements provided that such waivers are authorized by that department's Executive Director, and the authorization is based on the fact that the contractor selected for the Project is well known to the University, has an excellent track record with the University, and is in good financial standing.

Notwithstanding a department's request to waive the P & P Bonds, the Contracts Group may determine that P & P Bonds be required from any contractor.

 LBRE Facilities Project Initiation Policy (Form 1) (Applied to: Facilities and infrastructure projects)

All requests for Stanford University campus and off-campus academic facilities and infrastructure projects are required to be submitted electronically on a Form 1 prior to the project's commencement.

Investment, Hospital and Stanford Linear Accelerator Center projects typically do not require a Form 1 unless University funding or facilities are involved.

 Facility Design Guidelines (FDG) (Applied to: Architectural and landscape design services)

The University's Facility Design Guidelines shall apply to any Project that includes Design Services.

The Facility Design Guidelines (FDG) is a set of guideline design documents, technical specifications, and detail drawings to be used by architects, consultants, and contractors in the design and construction of new buildings, infrastructure, and remodeling projects on the Stanford campus. Stanford University's intent is to build cost-effectively without restricting the consultant's latitude for innovation.

To review the Campus Guidelines, please go to http://maps.stanford.edu/fdg_available.