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203.1 - Contracting Authority Policy

Contracting Authority

1. Purpose

Board Policy 300.1 addresses the delegation of authority to execute contracts on behalf of the Board of Trustees, including contracts for the benefit of a campus, division, or unit of the University of Arkansas. This policy provides additional requirements for contract review and delegation of authority.

2. Contract Requirements

2.1 Forms of Contracts

A “contract” includes any agreement binding the Board or a campus, including leases, licenses, purchase orders, memoranda of understanding, letters of intent, term sheets, or similar documents. All contracts must be in writing.

Contracts must:

  • Be in the name of the Board of Trustees
  • Identify the applicable campus
  • Not be executed solely in the name of a campus unless approved by the General Counsel

Prior to execution of agreements involving University facilities, the Vice Chancellor for Finance or appropriate administrator must confirm compliance with tax-exempt bond restrictions.

3. Legal Review Requirement

3.1 General Requirement

All contracts must be reviewed by the Office of General Counsel or designated attorney prior to execution.

3.2 Exceptions

  • Approved standard contract forms
  • Inter-campus agreements
  • Routine purchase orders with approved terms
  • Service contracts under $1,000
  • Goods under $10,000 (excluding software)
  • Goods under $20,000 with approved addendum
  • Hotel contracts under $10,000 with approved addendum
  • Event space rentals under $10,000 with approved addendum

Additional exceptions may be granted by the President for contracts under $75,000.

3.3 Legal Review Process

  1. Submit contract with legal review form and supporting documents
  2. Incorporate or resolve suggested legal changes
  3. Ensure campus procedures for submission are followed
  4. Provide executed copies if requested

4. Delegation of Authority

4.1 Absence of Leadership

In the absence of the President and Chief Financial Officer, authority may be exercised by the General Counsel or designated Vice Presidents.

4.2 General Delegation

Chancellors and Vice Chancellors for Finance are authorized to execute contracts within limits.

4.3 Procurement Officials

Routine purchase contracts may be signed by designated procurement officials under approved terms.

4.4 Exceptions

Delegated authority does not apply to:

  • Contracts exceeding $2,500,000
  • New academic programs
  • Post-contract financial commitments
  • Athletic contracts over $100,000 or >3 years
  • Real property transactions
  • Research contracts over 5 years
  • Banking or financial accounts
  • Real estate leases beyond limits
  • Documents requiring President/CFO signature

4.5 Restriction of Authority

Only individuals with delegated authority may execute contracts. Unauthorized contracts are not binding.

5. Delegation by Chancellors

5.1 Limits

  • Construction contracts > $1,000,000
  • Contracts > $250,000
  • Finance methods > $1,000,000
  • Research contracts > $1,000,000

5.2 Sub-Delegation

Delegation requires written approval from the President and documentation.

5.3 Research and Sponsorship

Authority may be delegated for research contracts and certifications.

6. Legislative Review

Campuses are responsible for submitting service contracts for legislative review when required.

7. Miscellaneous Documents

Certain documents require President or CFO signature, including:

  • Powers of attorney
  • Probate-related documents

Attachments

Attachment A – Legal Review Form

Includes required fields for contract review submission, including contract type, amount, and approval signatures.

Attachment B – Request to Delegate Contracting Authority

Form used to request delegation of contracting authority, including justification and approval.

Last Revised: March 14, 2025