1. Business and Financial Bulletin (BFB)

   BUS-43

   Material Management

2. UCSD Policy and Procedure Manual (PPM)

   200-13	Conflicts of Interest
   523-10.1	Independent Consultants
   523-10.2	Retainment of Individuals as Independent Contractors

POLICY

It is University policy to separate an employee's University and private interests and to safeguard the University and it's employees against charges of favoritism in the purchase of goods and services.

This PPM section sets forth special limitations and requirements covering acquisition of goods or services, including independent consultation services and independent contractor services, when the transaction involves an employee-vendor relationship; not an employee-employer relationship. The latter is governed by appropriate personnel rules.

DEFINITIONS

1. Employee

   Any individual who is presently employed by the University or whose separation from the University occurred within two years of the date of the proposed transaction.

2. Near Relative

   Spouse, child, parent, brother , sister, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, sister-in-law, and step-relatives in the same relationship.

3. Employee-Vendor Relationship

   A relationship in which an employee, or near relative, acts as an independent contractor for the purpose of renting or selling goods or providing services to the University.

4. Employee-Employer Relationship

   A relationship in which the University has the right (whether or not it exercises the right) to supervise and control the manner of performance of services, as well as the result of the service.

PROCEDURE

1. Employee

   A University employee shall submit an Employee Report, Exhibit A, when making an oral or written quotation or proposal, or upon learning that one has been made, and any of the following circumstances exists:

   1. The employee, acting alone, proposes for a consideration to rent or sell goods or to provide services to the University.

   2. The employee owns or controls more that 10% interest in any business which proposes for a consideration to rent or sell goods or to provide services to the University.

   3. A near relative of the employee, acting alone, or under the direct or indirect suggestion of the employee, proposes for a consideration to rent or sell goods or to provide services to the University.

   4. A near relative of the employee owns or controls more than 10% interest in any business which proposed for a consideration to rent or sell goods or to provides services to the University.

   The Employee Report shall be in the format set forth in Exhibit A and shall be submitted to the Department requesting such goods or services (Requestor Department) via employee's department chair or designee.

2. Requestor Department

   1. Submit Purchase Requisition to the Purchasing Division or Material Management, together with the approved Employee Report.

   2. Staff Personnel Management Office or Hospital Personnel Department may be consulted if in doubt concerning possible employee-employer relationship.

3. Purchasing Division

   1. Review Purchase Requisition and accompanying Employee Report for completeness.

   2. Verify that goods and/or services are available from commercial sources or campus facilities.

   3. Resolve minor differences with the Requestor Department.

   4. Forward package to Material Manager for approval / disapproval. Transmit with buyer's recommendations and determination of price reasonableness.

   5. Issue Purchase Order in the usual manner after Material Manager has approved the Employee Report

4. Staff Personnel Management Office/Hospital Personnel Department

   1. Upon request of the Purchasing Division or Requestor Department, render determination whether the proposed procurement would involve and employee-employer relationship with the University or would, in fact, be an independent contractor relationship.

5. Material Manager

   1. Approve / disapprove proposed purchase as good judgement and business acumen dictates.

   2. Fully explain reasons for any disapproval actions the Requestor Department.

RESPONSIBILITIES

1.  Employee is responsible for submission of the required Employee Report and obtaining the approval of the Department Chair.

2.  The Requestor Department is responsible for endorsing the Employee Report and submitting it to the Purchasing Division as an attachment to the Purchase Requisition.

3.  Purchasing Division is responsible foe reviewing document(s) submitted by Requestor Department for completeness. Process Purchase Requisition according to established purchasing procedures.

4.  Staff Personnel Management Office or Hospital Personnel Department renders employee-employer determinations upon request.

5.  Material Manager is responsible for making a final determination of the propriety of the proposed transaction.