Procurement & Contracting Services

Business & Revenue Contracts

Successor Agreements

In  2002,  the  Governor  of California signed  SB  1467  that  made  significant changes  in  state  contracting  law.  SB  1467,  which  became  effective  on  July  1,  2003,  adds Article  4  to  Chapter  2.5  of  Part  2,  Sections  10515  through  10524,  of  the  Public  Contract Code.  It applies standard California state agency conflict of interest and penalty provisions to procurements by the UC system.  Before the passage of SB 1467, UC was exempt from those provisions.  The  language  of  the  statute  results  in  restrictions  to  the  way  UC  does  business  with consultants,  employees,  former  employees  and  independent  contractors.    It  primarily impacts the following business practices of Business & Revenue Contracts:

  • Awarding successor contracts or follow- on agreements to entities providing consulting to the University

The statute requires that any person or business entity awarded a consulting services agreement by UC shall not bid on or be awarded a successor contract after July 1, 2003 to provide goods or services required, suggested, or otherwise deemed appropriate in the end product of the original consulting services agreement.  In simple terms, consultants who have performed work for the University cannot participate in subsequent projects relating to the consultant's findings.

If a multi-phase project is contemplated, such as a pilot or prototype to be followed by fullimplementation,  any  agreement  should  cover  all  potential  phases  of  the  project  with appropriate  language  reserving  final  cost  figures  and  the  University's  sole  discretion  to proceed (or not) with full implementation.

Supplemental content

Procurement & Contracting Services Menu