Getting to Know Purchasing and Contracting Services Office of the General Counsel – Employee vs. Independent Contractor Goals: Who is Purchasing and Contracting • Services? Who are we? • What do we do? • What changes have we made? • What changes do we continue to make? • What can we do for you? • Employees vs. Independent Contracts • The (other guy from) Office of the General • Counsel Employees vs. Independent Contractors • How do we implement this as an • institution?
Who is PCS? • 13 Full-time Employees Director • I’m not counted, I can’t keep up • Associate Director • Contract Managers • Contract Officers • Contract Technicians • Operations Manager • Staff • • 10+ Student Employees Undergraduate Students • Law Students • What changes have we made? • What changes do we continue to make? • What can we do for you? •
Who is PCS? Who is assigned to do contracts for Human Resources? Lynne Harrell Craig Ashford Purchasing Technician Assistant General Counsel 6-3220 Director, PCS Laura Harris You are here… Contracts Officer PCS 6-1448 Greg Shabram Associate Director, PCS
What does PCS do? Our mission is three-fold: • Facilit cilitate the University’s business operations • Add v value through our expertise in negotiation, bid processes, and leveraging the University’s buying power • Ensure c comp mpliance with the law and ethical standards • Coordinate with other compliance stakeholders on campus
What does PCS do? FY17 Employee Accomplishments 4,470 matters received in FY17 • 3,349 contracts • 32 GC matters (I can’t keep up with the others) • 821 POs (this includes both banner and paper POs) • 110 procurements • 5 golden rings • 1 partridge 13 full-time employees = 344 matters for each employee Countless hours on the phone helping campus Countless SciQuest employees humbled by John • • Countless collaborative discussions in the office Countless compliments I’ve received from coworkers around • • Countless quotes of the day (with accompanying artwork) campus about Mark and Lynne (seriously… it was a LOT ) • Countless long-winded speeches by me Countless times everyone was wrong about the quality of the • • Countless curses I’ve uttered (or yelled) strawberry peanut M&Ms put out by Isla (they were amazing, • Countless vendors that Greg has put in their place folks!) • Countless rejected ideas for an office motto Countless hours spent prepping and running the reverse vendor • • Countless Taylor Swift references made by Laura and Derek fair • Countless Hard Rock café guitar lapel pins worn by Michael Countless ice cream cakes ordered (1 this year since we aren’t • • Countless awards won by Wil counting the cake from last fiscal year) • Countless PCard purchases facilitated by Isla Countless confused looks when I mentioned something new I • • wanted to try in the office without running it by anyone first
What changes have we made? *A differ eren ent p perspec ective o e of who we a are* PCard • Don’t hide it in your %*&# drawer or safe • Pay for services using PCard (still need a contract) For example, utilities! • • Higher credit / transaction limits • Saving billing information on websites • Off-the-shelf goods • Availability of online statements Duck Depot • $1.65 million already spent • Automatic JV process and multi-JV process • Separate PCards • 11 vendors and counting (e.g., ThermoFisher Scientific, Dell, OfficeDepot, CDW-G, etc.) Automatic Insurance Waivers Intake Portal • Assigned PCS employees • Transparent contract status information MORE… but I can’t remember! (clearly my memory is not improved) QUESTION: What else do we need to do? What would you like us to do?
Changes yet to come? • eSignature • Ability to sign contracts via email/online • Cradle to grave contract management system • Strategic Purchasing • Managed copier services and managed print services already approved • CRM – Customer relationship management • Comprehensive moving services • What else? • Duck Store contract relationship • Discounts / Rebates • Central funding opportunities from campus-wide relationship agreements QUE QUESTION: What else do we need to do?
Independent Contractor vs Employee • What if the person is a contractor? Self-employment tax – No employee benefits (from the company that contracts you) – Not covered by UO liability insurance – Not covered by UO workers’ compensation – Form 1099 reporting requirements – “Less expensive” – • What if the person is an employee? Employment tax – Employee benefits (health insurance, retirement, etc.) – Form W-2 reporting requirements – “More expensive” – • Determining the difference ORS 670.600 – Economic Reality Test – Right-to-Control Test (aka Direction and Control) – Nature-of-the-Work Test – Does not apply to purchasing goods •
Independent Contractor vs Employee State Description of Tests
Independent Contractor vs Employee ORS 670.600 An independent contractor : Is free f from d direction a and c control over the means and manner of providing the services, subject only to the right of the person for whom the services are provided to specify the desired results; Is customarily e eng ngaged i d in a an inde depe pende ndent ntly e establ blished b d busine ness; Has a licen ense t e to provi vide t the s e servi vices es, if required; and Is responsible for obta taining a any o other necessary l licenses or certi tificates. A person is customarily engaged in an independently established business if at least three of the following are true: The person’s business is headquartered or operates at a location: That’s separate from the business who hired the person; or • That’s in the person’s house and that portion of the house is used primarily for the business. • The person bears the risk of losses or excessive costs related to the services. This can include: The person enters into fixed-price contracts; • The person is required to correct defective work; • The person warrants the services provided; or • The person negotiates indemnification agreements or purchases liability insurance, performance bonds or errors and omissions insurance. • The person does at least one of the following: I have provided these services for at least two different clients (this can include the University) within the past year; or • I advertise or market the same or similar services that I will perform for the University to promote my business and get new clients. • The person makes a significant investment in the business, through means such as: Purchasing tools or equipment necessary to provide the services; • Paying for the location where the person works; or • Paying for licenses, certificates or special training required to provide the services. • The person has the authority to hire other persons to provide or to assist in providing the services and has the authority to fire those persons. Rememb mber: operating through registered business, such as an LLC or a corporation, does not, by itself, establish an independent contractor relationship
New PCS Forms Revised independent contractor certification • Personal services contract Attachment F • Revised to better track ORS 670.600 • Revised to incorporate portions of the IRS and DOL tests • Revised to use plain language • Revised accompanying internal PCS procedure document
So What? Enforcement Agencies • U.S. Department of Labor (DOL) • Internal Revenue Service (IRS) • Oregon Bureau of Labor and Industries (BOLI) What if we get it wrong? • Enforcement penalties (DOL, BOLI) • Back taxes, penalties, and interest (IRS) • Potentia ial p personal l liabili lity (Trust Fund Recovery Penalty) • We didn’t do right by the University, the employee/contractor, and ourselves • BUT UT……
Relax General Counsel wants to work with you • PCS wants to work with you • We will make sure that the University can get its business • done It might need to happen in a different way or with • some extra steps, but we can get it done Use the phone • We’re all in this together • When there’s a mistake, we can work together to get • things get ironed out
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