Contracts

Policies & Procedures

DUAL SERVICE CONTRACT PROCESS FLOWCHART

PURPOSE AND SCOPE

This procedure governs dual service arrangements in which:

An employee of another State of Tennessee agency performs services for Nashville State Community College (“NSCC”); or
An NSCC employee performs services for another State of Tennessee agency.

It applies to all NSCC divisions and departments participating in these arrangements. It does not apply to temporary employees assigned to NSCC by another State of Tennessee agency.

DEFINITIONS

Dual Service Contract: An agreement under which an employee of one State of Tennessee agency performs services for another. Payment is made between the agencies rather than directly to the employee.

Type 1: An employee of another State of Tennessee agency performs services for NSCC.

Type 2: An NSCC employee performs services for another State of Tennessee agency.

Requesting Agency: The agency requesting and receiving the services.

Vendor Party: The agency employing the individual performing the services.

Procuring Party: The Requesting Agency when that term is used in the contract template.

Sponsoring NSCC Division: The NSCC division or department responsible for initiating and administering the arrangement.

GENERAL REQUIREMENTS

The contract must be between NSCC and the other State of Tennessee agency, not between an agency and the individual employee.
The Requesting Agency initiates the arrangement.
When NSCC is the Requesting Agency, the Sponsoring NSCC Division initiates the request, and Purchasing and Contracts prepares or coordinates preparation of the agreement.
When another agency is the Requesting Agency, that agency prepares the initial agreement and submits it to NSCC.
Purchasing and Contracts coordinates NSCC’s review, approval, execution, amendment, and distribution of the agreement.
The employing agency pays its employee through its normal payroll process.
The responsible supervisor or authorized NSCC representative determines whether the services were satisfactorily completed.
Payment must not exceed the maximum liability in the executed agreement.

The contract and supporting documentation must collectively identify:

Parties and employee;
Scope and dates of service;
Base compensation;
Employer-related costs;
Total reimbursement and maximum liability;
Funding source;
Invoicing and payment requirements;
Responsible contacts;
Termination provisions; and
Required approvals and signatures.

REQUIRED DOCUMENTATION

A. Contract Analysis Form

The Sponsoring NSCC Division must complete a Contract Analysis Form (“CAF”) and obtain all required approvals.

B. Supporting Documentation

The Sponsoring NSCC Division must provide Purchasing and Contracts with the information needed to prepare or review the agreement, including:

Employee and employing agency;
Vendor Party and Requesting Agency;
Scope and dates of service;
Compensation and employer-related costs;
Total reimbursement and maximum liability;
Funding source;
Responsible NSCC representative;
Invoicing and payment requirements;
Confirmation of employment;
Work Made for Hire Agreement, when applicable; and
Other information requested by a reviewing office.

The last four digits of the employee’s Social Security number shall be included only when required by the approved contract template or a reviewing office. The information must be entered in the designated contract field and must not be included in routine departmental email or unnecessary correspondence.

C. Request for Extra Compensation

A Request for Extra Compensation is required for a Type 2 arrangement when an NSCC employee will receive additional compensation.

After the contract has been fully executed and the base compensation and employer-related costs have been finalized, the Sponsoring NSCC Division must submit the request through Dynamic Forms.

The amount entered as “Total Compensation” is the employee’s approved base compensation. NSCC Payroll calculates the applicable employer-related costs.

Approval of the request does not authorize payment until:

All services have been satisfactorily completed;
NSCC has received reimbursement from the Requesting Agency; and
Applicable Payroll requirements have been satisfied.

The approved request authorizes payment of the employee’s base compensation but does not replace the dual service contract.

D. Document Consistency

The CAF, contract, Request for Extra Compensation, and supporting records must be consistent concerning the employee, employing agency, services, dates, compensation, employer-related costs, reimbursement, maximum liability, funding, and payment terms. Any inconsistency must be resolved before final processing.

TYPE 1 PROCEDURE: ANOTHER AGENCY EMPLOYEE SERVES NSCC

Under a Type 1 arrangement, NSCC is the Requesting Agency and the other State of Tennessee agency is the Vendor Party.

Initiate the request. The Sponsoring NSCC Division submits the CAF, required information, supporting documentation, and approvals to Purchasing and Contracts.
Prepare the contract. Purchasing and Contracts prepares or coordinates preparation of the agreement.
Verify compensation. The Vendor Party provides a payroll-verified calculation of base compensation, employer-related costs, total reimbursement, and maximum liability.
Establish the purchase order. The Sponsoring NSCC Division submits the SciQuest requisition, and Purchasing issues the purchase order.
Complete the services. The employee performs the services specified in the agreement. Partial, monthly, recurring, or progress payments are not permitted unless Purchasing and Contracts approves a written exception.
Confirm completion. After all services have been satisfactorily completed, an authorized NSCC employee who did not initiate the transaction shall email CentralReceiving@nscc.edu. The confirmation must identify the provider, contract or purchase order, service period, satisfactory completion, and authorization to process payment.
Process payment. The Vendor Party submits a proper invoice to AccountsPayable@nscc.edu. NSCC pays the Vendor Party after Central Receiving receives the completion confirmation and Accounts Payable receives the invoice.

NSCC shall not pay the individual employee directly. The Vendor Party is responsible for paying its employee through its payroll process

TYPE 2 PROCEDURE: NSCC EMPLOYEE SERVES ANOTHER AGENCY

Under a Type 2 arrangement, the other State of Tennessee agency is the Requesting Agency and NSCC is the Vendor Party.

Prepare the initial contract. The Requesting Agency prepares the agreement. The Sponsoring NSCC Division submits the agreement, CAF, and supporting documentation to Purchasing and Contracts.
Finalize compensation. NSCC Payroll calculates employer-related costs. The contract identifies the employee’s base compensation, employer-related costs, total reimbursement, maximum liability, and payment terms.
Execute the contract. Purchasing and Contracts coordinates NSCC’s review, approval, execution, and distribution of the agreement.
Complete the Extra Compensation request. After the contract is fully executed and compensation is finalized, the Sponsoring NSCC Division submits the Request for Extra Compensation through Dynamic Forms. “Total Compensation” must equal the employee’s approved base compensation.
Complete and confirm the services. After all services have been satisfactorily completed, the Sponsoring NSCC Division provides written confirmation to Accounting and Payroll identifying the employee, Requesting Agency, agreement, service period, approved Extra Compensation request, and satisfactory completion.
Invoice the Requesting Agency. Accounting invoices the Requesting Agency for the approved base compensation and employer-related costs and monitors receipt of reimbursement.
Pay the employee. After NSCC receives reimbursement, Payroll pays the approved base compensation through the normal payroll process, subject to applicable Payroll requirements.

Partial, recurring, or progress payments are not permitted unless expressly provided for in the executed agreement and supported by approved documentation.

The payment month entered in Dynamic Forms is anticipated only. The actual payment date depends on completion of services, receipt of reimbursement, and Payroll processing deadlines.

RESPONSIBILITY SUMMARY

Responsibility	Type 1	Type 2
Requesting Agency	NSCC	Other state agency
Vendor Party	Other state agency	NSCC
Employee’s employer	Other state agency	NSCC
Initiates arrangement	Sponsoring NSCC Division	Other state agency
Prepares initial contract	Purchasing and Contracts prepares or coordinates	Other state agency
Verifies compensation	Vendor Party’s payroll office	NSCC Payroll
Extra Compensation request	Not applicable	Required after contract execution
Requisition and purchase order	Required	Generally not applicable
Completion confirmation	Authorized NSCC employee submits to Central Receiving	Sponsoring NSCC Division submits to Accounting and Payroll
Agency invoice	Vendor Party invoices NSCC	NSCC invoices other agency
Employee payment	Vendor Party’s payroll process	NSCC Payroll after reimbursement

AMENDMENTS, TERMINATION, AND FISCAL-YEAR AGREEMENTS

A. Amendments

Changes to the service period, scope, compensation, employer-related costs, reimbursement, maximum liability, employing agency, invoicing requirements, or other material terms require an executed amendment.

The Sponsoring NSCC Division must submit the proposed change and supporting documentation to Purchasing and Contracts. Purchasing and Contracts coordinates the amendment’s preparation, review, approval, execution, and distribution.

The amendment must identify the original agreement and prior amendments, state the provisions being changed, use terminology consistent with the original agreement, and confirm that all unchanged provisions remain in effect.

An amendment may not become effective after the agreement has expired. Informal communications do not modify an executed agreement.

A change to Type 2 compensation also requires a revised or additional Request for Extra Compensation approved through Dynamic Forms. All compensation amounts and related documents must be reconciled before revised compensation is processed.

B. Cancellation or Early Termination

The Sponsoring NSCC Division must immediately notify Purchasing and Contracts if services are canceled or the agreement ends before completion.

Purchasing and Contracts coordinates any required notice or amendment. The Sponsoring NSCC Division must notify Accounting, Accounts Payable, Central Receiving, Payroll, and other affected offices, as applicable.

Payment for services performed before termination shall be handled according to the executed agreement.

C. Fiscal-Year Agreements

When an agreement crosses fiscal years, the Sponsoring NSCC Division must:

Identify funding for each fiscal year;
Obtain any required fiscal-year approvals; and

Ensure funding is consistent across the CAF, contract, requisition, Request for Extra Compensation, and supporting records, as applicable.

RECORDS, QUESTIONS, EXCEPTIONS, AND COMPLIANCE

A. Records

Purchasing and Contracts maintains the official contract record in accordance with applicable records-retention requirements. The record must include, as applicable:

Executed contract and amendments;
CAF and supporting documentation;
Compensation calculations and payroll verification;
Required approvals; and
Approved Request for Extra Compensation or evidence of approval.

The Sponsoring NSCC Division and participating administrative offices must retain their respective funding, purchasing, completion, invoicing, reimbursement, payroll, Work Made for Hire, and supporting records.

B. Questions

Contracts, documentation, amendments, expired agreements, or exceptions: Purchasing and Contracts

Compensation, employer-related costs, or employee payment: Payroll

Agency invoicing or reimbursement: Accounting

Purchase orders or vendor invoices: Purchasing or Accounts Payable, as applicable

C. Exceptions and Compliance

Exceptions require approval from the responsible institutional office.

No NSCC division, department, or employee may:

Authorize an exception without required approval;
Modify an agreement through informal communication;
Pay an employee of another State of Tennessee agency directly; or
Process employee compensation outside the applicable payroll process.

Failure to comply may result in disciplinary action, tax-related penalties, audit findings, repayment obligations, or other consequences under applicable laws, regulations, policies, and Human Resources procedures.