I agree with Kathy as we handle these pretty much the same way as she
described.  We do a little of these types of services in the academic
departments but we also have research institutes within the university that
do a lot of "testing" or "analytical" work.  Internally we require the same
paperwork as any other sponsored program.  The projects are quoted as a firm
fixed price agreement and usually quoted as per test or service, but we
require an internal budget that details how funds will actually be expended
within the account such as salaries, supplies, equipment use, etc.  We have
developed a special contractual document that we use called a Confirming
Order that looks pretty much like a purchase order, we describe the service
to be performed and the rate and is signed by a university official as a
legal offer (a quote), the sponsor signs an acceptance line and returns it.
We have a bare minimum of terms and conditions on the reverse side as opposed
to a purchase order in which we need a magnifying glass to read. It is
clearly only used on project that we can consider pure testing with no
concerns involving "development" that would require us to address
intellectual property issues.

Mike

--------------------------------------------------------
Mike Gilles <xxxxxx@mtu.edu>
Sponsored Programs Administrator
Research Services
Michigan Technological University
Houghton, MI 49931
Phone (906) 487-2225 Fx. (906) 487-2245
Date: 05/11/99  Time: 10:05:40
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