Utilized interchangeably alongside the QI Workforce Program, UC Regents Policy 5402 and Article 5 of our Collective Bargaining Agreement with AFSCME define how UC handles contracting out for certain services, known as Covered Services.
Additionally, UC must track the hours each supplier-employee spends providing a Covered Service at a UC location. If that supplier-employee meets the criteria in Policy 5402 and Article 5, they become a Qualified Individual (QI) with the right to convert to career employment with UC.
In Summary:
A “Covered Service” is work customarily performed by University staff whether in whole or in part, including but not necessarily limited to the following services: cleaning, custodial, janitorial, or housekeeping services; security services; billing and coding services, sterile processing, hospital and nursing assistant services and medical imaging services.”
Visit the Title Code Search (TCS) website for information on job titles and pay associated with SX (service) and EX (patient care technical) bargaining units to determine whether the service(s) requested fall into this category. If you are unsure or cannot find the title, reach out to Labor Relations for assistance.
Covered services include work customarily performed by bargaining unit employees, whether in whole or in part, including but not necessarily limited to the following services:
For Campus service providers, please follow the links below. For Medical Center staffing assistance, please click here.
It is the Department’s responsibility to project staffing needs and hire part-time or full-time employees accordingly, as it is a priority for UC to align with fair work for UC employees and allow the opportunity to have services sourced in-house first. Departments shall explore all options for completing work with UCSD staff before requesting to contract out with a third-party supplier. Staffing options include per diem pools, overtime, creation of additional FTEs, and temporary reassignment of work. Employee and Labor Relations can assist with exploring alternatives to contracting out.
Should temporary staffing for Covered Services be required to meet an immediate need, Departments must submit a contracting out exception form to Labor Relations and Procurement for review and approval. The form must contain a clear and detailed insourcing plan and justification for contracting out. AFSCME must receive notice of a new or extended Covered Services contract with a value of $100,000 or more 30 days in advance of the start date. Therefore, sufficient notice to Labor Relations and Procurement is required.
If the contract is approved, Procurement and Contracts is responsible for drafting the contract to UC standards and ensuring the current Wage and Benefit Parity rates are acknowledged and agreed upon by the supplier. The contract is then handed off to Labor Relations, along with all other supporting documentation, so Labor Relations can track the contract and notify AFSCME if and when required.
Labor Relations will assist Departments seeking to contract out services to determine whether the services are Covered Services within the meaning of Article 5.
Additional resources are available from UCOP:
A Department may only proceed with contracting out for SX or EX-covered services work after all staffing options have been determined to not be feasible and approval has been granted by the local Labor Relations Office. The Contracting Out Request Form should be submitted to and approved by Labor Relations before requesting a requisition with Procurement. This form is used to collect specific information from the department regarding their service needs. This includes:
The Department must first reach out to the department that normally performs these requested services to see if they can accommodate your request. If they are unable to assist, you will begin the process of Contracting out by reaching out to Labor Relations. If Labor Relations approves your request, submit the requisition form through Oracle (Campus & Health Sciences) or ServiceNow (Health) with all the following documents
Please note exceptions to the policy will be rarely granted. Reduced cost is NOT an acceptable justification.
Not all clinical services are paid for by UC San Diego Health (“Health”). All departments are responsible for goods and services necessary for their operations and must use their own budget to cover those costs.
If your cost center is with Health, you will communicate with Health Labor Relations, Health Procurement, and submit a requisition through ServiceNow.
If your cost center is with Campus or Health Sciences, you will communicate with Campus Labor Relations, Campus Procurement, and submit a requisition through Oracle.
Once you have identified the need, we highly recommend starting the process 3 months in advance or ASAP. There are many steps in the process including approval from Labor Relations, notification to the union, drafting and executing a contract or PO, agreement with the supplier to compensate their staff the appropriate wage, and registration with AgileOne to track staff. Should the services include technology or the exchange of sensitive data, including PHI, further assessments may be necessary that could cause additional delays.
Contracting out for work normally performed by SX or EX-covered employees is only allowed if the circumstances meet one of the rigid exceptions contained in Article 5 of the AFSCME Collective Bargaining Agreements.
1. The services are needed to address an actual emergency
Depends on the statement of work, quantity of hours, and total needed.Services that require ongoing regular payments that vary in value may be placed on a blanket PO. Services used on an ad hoc basis or that have recurring equal payments may be placed on a regular PO.
Consult with your Procurement Department to determine the best option for your request.
This form is used by:
Contracted service workers must be provided wages and benefits of equivalent value to those provided to SX and EX bargaining unit employees performing the same or similar work at the location where the work is being performed or the nearest University location if there are no bargaining unit employees performing the same or similar work at UC San Diego.
A Wage Benefit Parity (WBP) form or appendix is a document that both UC and the supplier must acknowledge and sign that lists the minimum WBP rate for the services being provided. This helps to ensure supplier staff are being paid at least the required compensation
WBP = hourly pay rate + all supplier offered benefits (e.g., medical and dental insurance).
Rates can either be embedded in the PO or they can be attached separately in a WBP Appendix. However, it is recommended that the WBP Appendix is used in order to ensure suppliers are fully aware of the rates and so that UC has a counter-signed document. If a supplier has a WBP form on file it is possible that we can reuse it.
If the Appendix is not used, the department must ensure that WBP rates are formatted within the PO to be prominently displayed and communicated. Please keep in mind that the rate of pay is subject to change based on what the University is paying its staff at the time. It is also recommended that departments follow up with suppliers in writing, separately, and obtain acknowledgment of the new rates, in case of future contract compliance issues.
UC Office of the President provides the wage and benefits parity rates for all SX and EX job titles annually in the Spring. The relevant wage and benefit parity rates are determined during the contracting out approval process. During the procurement process, the supplier is required to sign a Wage & Benefits Parity Appendix which contains the minimum compensation they must pay their employee.
Normally new WBP rates comes out sometime in April with an effective date of June 1. All active contracts/PO will be updated prior to June 1.
1. Compensation Notice: Vendors must provide employees assigned to perform covered services for the University with written notice of their total compensation rate, hourly pay rate, and the hourly value of employer-provided benefits. This notice must be given at various times, including upon assignment, annually in January, and within seven days of any changes to the employee's hourly pay rate.
2. Basic Payroll Information: Vendors are required to provide UC with basic payroll information for all vendor supplied employees who have performed services for the University in the preceding six-month period. This information includes employee names, job titles, contact information, hourly pay rates, and benefits values. This information must be shared with the University and joint labor-management committees twice a year, in January and July. Employees must be informed that this information will be shared.
3. Audits and Findings: Vendors must comply with audits, verifications, notices, reports, or findings related to employee compensation and compliance with the total compensation rate required by contracts or university policies. These audits or findings must be shared with the University and joint labor-management committees.
4. Unlawful Compensation: Vendors are prohibited from accepting payment from the University if they pay employees less than the total compensation rate specified in their contracts with the University or as required by university policy.
**See Senate Bill 27 (SB27) for more information on required supplier compliance. The summary above is a general statement and does not include all supplier obligations under SB27. It is highly recommended that suppliers review SB27 thoroughly with their independent legal counsel.
The vendor will need to provide a retroactive payment to the employee to match UC requirements.
If the contractor refuses to meet the requirements of the policy, then the contract must be terminated and a notice sent to UCOP that no other location may do business with this supplier until they comply with all UC policies and standards, and make all affected workers whole.
Utilizing a deactivated supplier may cause more issues. If the non-compliance aspects are not addressed and remedied by the supplier, UC may not contract with the supplier.
Failure to comply with Article 5 and Regent Policy 5402 may cause the University to be subjected to unnecessary grievances, arbitrations, and Requests for Information. UC Employees who fail to follow these guidelines may be subject to disciplinary action.
Departments must secure Procurement and Labor Relations approval to contract out for Covered Services (SX & EX) work PRIOR TO issuing or executing an RFP, purchase order, change order, P-Card payment, Non-PO Payment request or master services agreement. Otherwise, this is considered an unauthorized/after-the-fact purchase.
Procurement will not be able to issue a Purchase Order without proper documentation. We understand that missteps can happen and, in this instance, we still recommend following the “Contracting Out” procedures, so that proper documentation and notification can be obtained to issue a Purchase order.
If an unauthorized purchase for covered services is not approved by Labor Relations and Procurement, the cost of the services may be the responsibility of the UC employee who made the unauthorized purchase, without reimbursement by UC.
As outlined in Section D of Article 5, the Collective Bargaining Agreement, UC must provide notice to AFSCME before entering into, extending, or renewing a contract that includes covered services valued at more than $100,000. The notice must specify the duration, scope of work, wage/benefit parity information, dollar value, and work location(s) if known.
Notice is due at least 30 days prior to the start of the services. AFSCME has the right to refuse a covered services carve-out request, so the more lead time you can provide, the better for your operations.