Doing Business with UC Berkeley

Purchasing, Sale of Equipment, Independent Consultants

The State of California Political Reform Act of 1974 prohibits University employees from participating in University decisions when personal financial interests may be affected by those decisions. You must not make a decision or attempt to influence a decision if you have an economic interest in the entity doing business with the University. As such, the Political Reform Act requires that all University employees, including inventors, disqualify themselves from participating in or attempting to influence business decisions if they have a personal economic interest in the business entity. The Act provides administrative, civil, and criminal penalties for violation.

Employees doing business with the University

Restrictions on Purchases/Leases/Contracts. The following rules apply to any purchase or lease of goods or contract for services made with a University employee, former employee, or the near relative of an employee.

Employee

No purchase or lease of goods or contract for services may be made with a University employee who has an employee-vendor relationship, as defined in BUS 43  Section (5) b.3 However, the University may enter into a contract for goods or services with an employee who has teaching or research responsibilities, provided that the Materiel Manager or designee has made a specific determination that the goods or services are not available either from commercial sources or from within the University.

STUDENT-EMPLOYEE

Student employees may be paid as vendors for additional campus activities or engagements outside the scope of their primary university employment.  This is an amendment to the California Public Contract Code, Section #10516, effective January 1, 2011.

 Former Employee

The University may not purchase or lease goods from or contract for services with any former employee who has an employee-vendor relationship as defined in BUS 43 (7) Section I, including one who has had teaching or research responsibilities, when:

a. Less than two years’ time has elapsed since the individual separated from University employment, and the individual had been engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to the contract during the period of employment; or

b. Less than one year’s time has elapsed since the individual separated from University employment, and the individual had been employed by a department in a policy-making position in the same general subject area as the proposed contract.

The University may enter into a contract for services with a retiree immediately following retirement if the retiree did not participate in any way while serving as an employee in the making of the contract for services. The post-employment restrictions in paragraphs a. and b., however, apply to any former University employee, including a retiree, who proposes to sell or lease goods to the University.

Near Relative

The University may purchase or lease goods from or contract for services with the near relative of any employee, provided that the head of Procurment has made a specific determination that the goods and services are not available either from commercial sources or from within the University.

Further information on this issue can be reviewed in BUS-43, Part 7.

Personal Purchases and Use of University Facilities and Equipment

University credit, purchasing power, and facilities shall not be used to purchase goods or services for individuals or for non-University activities. For further information see BUS-43, Part 3, Section X.

University facilities may be used only for University-related purposes or in furtherance of such purposes. University employees may not use University materiel or property in the care and custody of the University for personal purposes, except with the approval of the Chancellor. See BUS-29, Section N.

Sale of Excess Material/Equipment to University Employees

The University has specific limitations and requirements covering sales to employees and their near relatives of excess materials / equipment.

  1. No one employed having procurement responsibilities, or a near relative of such employee, may buy excess material directly from the University.
  2. No one employed in a department originating excess material, or a near relative of such employee, may buy any excess material originating in that department directly from the University.
  3. The principal driver of a University-owned motor vehicle, or a near relative of such employee, may not buy said motor vehicle directly from the University.
  4. Near relative is defined as husband, wife, mother, father, daughter, son, sister, brother, and step-relatives and in-laws in the same relationships.

Exceptions to these provisions must be approved by the Chancellor.

Further information on this is topic can be reviewed in Business and Finance Bulletin G-38.

Independent Consultants

A University employee may not be retained by any campus as an independent contractor. A near relative of an employee (as defined in Business and Finance Bulletin BUS-43) may only be retained as an independent contractor after a specific determination is made by Materiel Management that the services to be provided by the employee-vendor are not available from other commercial sources.

Proposals from independent consultants shall include the name and University position of any officer, faculty member or other employee of the University who holds a position of director, officer, partner, trustee, manager or employee in the consultant organization. Selection of the independent consultant shall be made on the basis of demonstrated qualifications, resources, experience, and needs of the University, and on cost to the University. Any officer or employee participating in the decision to engage the consultant must adhere to the disqualification requirements for financial conflict of interest of the State of California Political Reform Act of 1974 (See Conflict of Interest Overview).