Services

What You Need to Know

Services are specific tasks and other defined services to a client or organization. Service contracts are often performed by independent contractors or consultants who are engaged to provide services specified in an agreement that includes a clear description of the activities, services, reports, and deliverables to be provided. An independent contractor must perform services that are clearly differentiated from those of an Employee. UMB’s definitions and applications of these two categories govern IO’s procurement of non-US consultants through MGIC.

• International Operations may be able to procure independent contractor services through MGIC if the provider is paid to a bank account outside the U.S.

• International Operations will issue an Independent Contractor Services Agreement following MGIC policies and MGIC’s standard terms and conditions. The MGIC Agreement template complies with applicable laws and taxation requirements of the jurisdiction under which the agreement is made, and has been reviewed by legal counsel. The agreement also includes clauses related to intellectual property, confidentiality, and conflict of interest. No changes to the MGIC template may be made without approval. Any special provisions or requirements by the UMB source of funds for the procured service must be communicated to International Operations in advance.

• International Operations executes and administers the agreement and any required modifications. The UMB requesting unit develops the scope of work and deliverables, directly manages the work of the independent contractor, and authorizes payment upon satisfactory performance.

• Incorrectly utilizing an independent contractor for work that should be performed by an employee may result in liability by UMB for fines and for retroactive payment of benefits, compensation, tax withholdings, and other legally required contributions, both in the contractor’s country of tax residence and in the United States.

• International Operations must follow UMB’s differentiation of independent contractors and employees when procuring services through MGIC. UMB units contemplating the engagement of a consultant or independent contractor for work outside the US should utilize the UMB checklist and consult their school’s finance and administration team to ensure adherence to UMB’s classifications.

• Independent contractors are responsible for paying their own country’s income taxes and other statutory payments required by their country of tax residency.

• Independent contractors who are foreign nationals may additionally be subject to US income tax withholdings, depending on their tax residency and the place of performance of their scope of work. US income taxes applicable to foreign nationals are paid through MGIC and are charged to the UMB requesting unit at the prevailing tax rate. Requesting units should contact International Operations well in advance to discuss the applicability and rate of US taxes required to be withheld, and should include this cost in project budgets.

• International Operations must screen selected vendors against foreign sanctions watch lists and will not issue a PO to a vendor with a positive match.

• All purchases of independent contractor services through MGIC require a competitive procurement process or a sole-source justification.

• All purchases of independent contractor services above US $25,000 through MGIC require a Request for Proposals and Competitive Bid Committee or a sole-source justification.

If you have any questions, please contact International Operations.

Requesting Unit’s Responsibilities with MGIC Procurement Process

1. Contact International Operations to request procurement services. Provide as much information as possible including the services needed, location and estimated date, estimated cost, and existing scope of work if available.

2. Complete the offline Purchase Requisition Form.

3. Develop the scope of work, deliverables, payment schedule, and other inputs for a competitive RFP or a sole-source procurement, in consultation with International Operations.

4. Assist in identifying viable service providers through industry/academic/research networks.

5. Participate in a Bid Committee if applicable.

6. Contribute inputs to Sole-Source Justification Form, if applicable.

7. Assist International Operations in obtaining the following additional forms required to execute the agreement, when the contractor is known to the requesting unit and has an existing business relationship:

   • Payee Bank Details Verification Form (must be a bank account outside the US) if the payment details are not provided on the invoice.

   • Applicable IRS taxpayer form

     • If Contractor is not a US citizen or resident alien, the contractor shall provide a completed W-8BEN Form (non - US citizen) (individuals) or W8-BEN E Form (vendors). In certain cases, International Operations may authorize a non-resident alien to submit a Foreign Source Statement (FSS) in lieu of this form if the services are performed outside the United States.

     • If the contractor is a US resident for tax purposes, the contractor shall provide a W-9 Tax Form regardless of where the services are performed.

8. Manage and supervise contractors, to ensure deliverables are completed timely and at expected quality, and confirm satisfactory completion of contract terms when requesting International Operations to make payment.

Required Documents

1. Purchase Requisition Form

2. Scope of work

3. Supporting documents

4. Sole-Source Justification Form (if applicable)

To protect sensitive information, all documents must be sent securely. Please include “[Secure]” in the subject line of your email when sending documents. This ensures that all data transmitted to us is encrypted and compliant with UMB policy.