Office of Sponsored Programs and Research (SPAR)

Independent Contract Agreements Under $5,000

Note: These agreements are processed by OTPS

• When the total cost of personal services from a vendor is under $5,000, complete a standard Memorandum of Understanding Form RF 804. Memoranda of Understanding do not require review by the Office of Legal Affairs. The Memorandum of Understanding must be signed by the Project Director and the independent contractor. 
• Attach the following documentation to the Memorandum of Understanding Form:

-- Scope of Work. -- The Contractor's List of Clients and/or a public notice of their offerings. -- The Contractor's Original Invoice, bearing Contractor's signature. -- A completed RF Payment Request Form. -- If the Contractor is a non-resident alien, include a copy of his/her J1 visa and IRS Form 8233. -- Completed W-9 form. IRS regulations require that this form be on file before payment may be effected.

• Forward the entire package to the OTPS team for processing.
• In instances where a specific deliverable such as a manuscript, photographs, etc, is being developed by the contractor, the Small Order Form (RF 201) can be used, provided the total cost for services does not exceed $300.
• As a general rule, payment will not be issued until after services have been completed.

Please keep in mind:

• As with all payments from RF funds, payments to independent contractors must have fiscal approval before a check may be issued.
• Missing documentation will result in a delay in payment.