Contracting with State Employees or Relatives of State Employees

University Policy 603.2, Contracting with State Employees or Relatives of State Employees

Executive Summary: 

The University will not solicit or culminate a contractual procurement relationship with the immediate family member of any employee of the University. However, this does not prohibit such person from acting as a subcontractor or as a supplier to the successful bidder of a project or purchasing action.

I. Policy Statement and Purpose

In order to assure public confidence in the integrity of the University, it is of critical importance that decisions made on behalf of the University be in the best interest of the University and not influenced by any potential personal financial gain of its employees.  At the same time, the University should be able to take advantage of procurement contracts representing the best value to the University and the citizens of North Carolina.  To accomplish these goals, UNC Charlotte fosters open and complete competition in its procurement activities.

To assist in achieving fair and open competition during procurement activities, the University’s Purchasing Office will review every proposed contractual procurement relationship that involves a University employee, state of North Carolina employee, or their immediate family members. These requests will be evaluated on a case-by-case basis to determine if it is a sound business decision and makes the most financial sense for the expenditure of University funds, regardless of the source of the funds.  The University will not enter into a contractual procurement relationship with a current University or state of North Carolina employee without approval from the University’s Director of Materials Management or the State Purchasing Officer (SPO). 

II. Procedures

1. Employee Procedures

Except as noted below, University employees must submit documentation for any purchases that involve a University employee, state of North Carolina employee, or their immediate family members to the UNC Charlotte Purchasing Office for evaluation. 

Contracts and/or purchases for academically-oriented research services from or through individuals who are also University or State of North Carolina employees or their immediate family member(s) must be coordinated through the Conflict of Interest Manager under University Policy 101.24 Conflicts of Interest and Commitment and its Supplemental Procedures.  Upon appropriate review and approval under University Policy 101.24, the Conflict of Interest Manager should submit the purchase documentation to the UNC Charlotte Purchasing Office, which will review the documentation as provided below.

2. Purchasing Office Procedures

The Purchasing Office will either approve or deny the request, or in special circumstances, forward the documentation to the SPO for review.  In deciding whether to grant approval, the Purchasing Office will consider the type of item or service, the prevailing market conditions, the cost involved, and the effects of doing business with the employee or immediate family member. 

As it evaluates a case, the Purchasing Office must consider North Carolina law, which provides that any University employee involved in making or administering a contract on behalf of the University, who may derive a direct benefit from the contract, may be guilty of a misdemeanor pursuant to NCGS § 14-234.  Moreover, this statute provides that any University employee who will derive a direct benefit from a contract entered with the University shall not attempt to influence any other person who is involved in making or administering the contract.  Under this statute, a University employee derives a direct benefit from a contract if the individual or a spouse has a substantial ownership interest in an entity that is a party to the contract, or if they derive any income directly from the contract.  See NCGS § 14-234.

III. Applicability

This policy applies to all UNC Charlotte employees who undertake any purchases that involve a University employee, state of North Carolina employee, or their immediate family members.

IV. Roles and Responsibilities

The Vice Chancellor for Business Affairs, through the Director of Materials Management, has prime responsibility for implementation of this policy.

 

Revision History: 

Authority: Chancellor

Responsible Office: Business Affairs

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