Skip to main content

Personal Service Contract

Personal Service Contract - a contract with specific requirements mandated by Kentucky law. PSC's are needed when fees for acquiring professional services are in excess of $1,000. For purposes of PSCs, certain categories are excluded from the PSC process such as speakers, entertainers and teaching faculty.

Forms Needed: Personal Service Contract, Proof of Necessity (PON) and Tax Identification.

Review and Approval Process: PSCs are usually overseen by University Purchases and Stores. The Official University Procedures are located on their website and should be reviewed each time a PSC is prepared. As mentioned earlier, PSC requirements are mandated in statutes with specific requirements to be followed.

  • Amount - The first item to review prior to completing any form is to check the amount proposed to be paid. Different thresholds trigger different requirements. These triggers are $10,000 or less, $10,001 to $40,000 and above $40,000.
    • $10,000 or less - These are considered small puchases and are typically the easiest to complete. The PSC, the PON and a valid vendor in Banner (through a current tax identification form on record) are required. The Contractor may begin work immediately upon signature and the PSC must be filed within thirty (30) days of the start date but only if the TOTAL COST of the contract is less than $10,000. With the thirty day submission guideline in mind, it is necessary for the contract...
      • to be received in the Purchasing Office with enough lead time to allow for reviewing of the contract.
      • to be reviewed and approved by the Office of University Counsel.
      • secure the signatures of the Associate Vice President of Finance and the Associate Vice President for Planning and Assessment.
      • making necessary copies and forwarding to the Legislative Review Committee (LRC) in Frankfort.
    • $10,000 to $40,000 - These PSCs are handled differently because they have different filing requirements. Unlike PSCs under $10,000, work by the contractor should:
      • not begin until the PSC documents are FILED with Frankfort.
      • The Government Contract Review Committee (LRC) must REVIEW and APPROVE the contract at their monthly meeting, which is, at this time, the second Tuesday of the following month the contract is filed.
      • In order for the contract to be placed on the meeting agenda, the fully executed contract, accompanied by a completed PON form must be received in the LRC office in Frankfort from the Purchasing Office prior to the close of business on the last day of the preceeding month.
      • Also, preparers should have evidence that multiple contractors were considered and be prepared to explain how a selection of a contractor was made.
      • In rare cases, the contractor may be the only one able to provide such needed services. These rare cases would be considered "sole source providers."
      • In these cases, preparer must provide a summary of why they believe a contractor is a sole source provider and provide such summary to the Purchasing Office for a determination. ONLY the Purchasing Office is authorized to make such a determination and the determination must be memorialized in writing.
      • With this in mind, it is necessary for the contract, and accompanying PON to be received in the Purchasing Office with enough lead time to:
        1. allow for the reviewing of the documents and to make any necessary determination.
        2. reviewed and approved by University Counsel.
        3. get signatures secured by the Associate Vice President of Finance and the Associate Vice President for Planning and Assessment.
        4. make any necessary copies and forward to the LRC in Frankfort.
    • $40,000 and over - Contracts above $40,000 are required to be awarded through a competitive process. If a need arises for such a contract, it must be coordinated through the Purchasing Office.
Open /*deleted href=#openmobile*/