Procuring Professional Services
Two different forms, the Personal/Professional Services Contract (PSC) and the Personal Services Invoice (PSI), are used to procure personal/professional services from contractors. These forms should be used for infrequent, technical, and unique services performed by contractors with specialized expertise of a technical, scientific, or artistic nature. The selection criteria for these services may include but are not limited to the contractor’s skill, knowledge, reputation, and/or creativity. The cost of the service may be a secondary factor in the selection of the specific contractor. Neither form can not be used for trade services. Trade services are those services that involve the application of manual or mechanical labor such as work performed by plumbers, electricians, or locksmiths.
The PSI MAY be used:
- For services costing less than $5,000
- If total payments paid to the contractor by your department in the calendar year does not exceed $5,000
- When a single payment will be made
- When a contract end date extends less than three weeks into the future or the services have already been performed
The PSI cannot be used to procure services from a Non-Resident Alien or Foreign Entity.
The PSC MUST be used:
- For services costing more than $5,000
- If total payments paid to the contractor by your department in the calendar year exceeds $5,000
- When multiple payments will be made
- When a contract end date extends more than three weeks into the future
The PSC must be used to procure services from a Non-Resident Alien and Foreign Entity.
A person performing services under a PSC or PSI must be an Independent Contractor, not a PSU Employee.
An Independent Contractor is an individual/firm that is not subject to PSU direction and control. Independent Contractors hire or dismiss their own associates, provide their own tools and equipment, advertise their services to other clients, are free to choose work methods, and carry their own insurance. An Independent Contractor’s services are terminated upon expiration or termination of the PSC.
An Employee is an individual who is subject to PSU direction and control. An Employee can be dismissed or terminated “at will.” An Employee is provided a workplace and tools by PSU, and is covered by PSU Workers’ Compensation and Liability Insurance. PSU has the right to control and direct an Employee’s performance of the work, not only as to the result to be accomplished but also as to the details and means by which that result is accomplished.
Former PSU Employees
Generally, a former PSU employee cannot perform services for PSU under a PSC or PSI during the same calendar (tax) year that they were paid on payroll as an Employee. A prior employee should NEVER perform services under a PSC or PSI that are the same, or significantly similar to the work they performed while an Employee.