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.
The Department is responsible for projecting staffing needs and hiring part-time or full-time employees accordingly, as UC prioritizes fair work for UC employees and gives departments the opportunity to source services in-house first. Departments shall explore all options to complete work with UCSD staff before requesting to contract out to 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 help explore alternatives to contracting out.
If Departments need temporary staffing for Covered Services to meet an immediate need, they must submit a contracting-out exception form to Labor Relations for review and approval. The form must include a clear, 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, Labor Relations and Procurement must receive sufficient notice.
Labor Relations will assist Departments seeking to contract out services in determining whether the services are Covered Services under Article 5.
Additional resources are available from UCOP:
A Department may proceed with contracting out for SX or EX-covered services work only after all staffing options have been determined to be infeasible and approval has been granted by the local Labor Relations Office.
Submit a contracting-out rationale form for approval before services. Food and Bar Services using Concur or a Travel and Entertainment card must follow these instructions. The system includes workflows to avoid external forms.
If a PO is needed, we have a Kuali Form available via the Contracting Out Request Form (Login required) that Labor Relations must approve before you request a requisition with Procurement. This form collects specific information from the department about their service needs. This includes:
The requesting Department must contact the in-house department to see if they can accommodate your request. If the in-house department cannot service your request, it should provide written notice of Declined Service. 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 that exceptions to the policy will be rarely granted. Reduced cost is NOT an acceptable justification.
Instructions for completing a Contracting Out Rationale form and uploading it to Oracle Procurement are available on ScribeHow under "How to Complete a Contracting Out Rationale Form."
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 identify the need, we recommend starting the process 3 months in advance or ASAP.
The process includes several steps, including approval from Labor Relations, notifying the union, drafting and executing a contract or PO, agreeing with the supplier to compensate their staff at the appropriate wage, and registering 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, the number of hours, and the total needed. Services that require ongoing, regular payments that vary in value may be placed on a blanket PO in Oracle Procurement. Services used on an ad hoc basis or with recurring, equal payments may be placed on a regular PO.
Consult with your Procurement Department to determine the best option for your request.
This is the Contracting Out Rational form (Log in required) used to document the approval process and reason for utilizing an outside supplier on a purchase order via Oracle Procurement.
This form tracks which covered services UC is contracting out, the justification for contracting out, and the plan to insource the services.
It also includes fields to identify which vendors are WBP-compliant to reduce the administrative burden.
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, listing 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, we recommend using the WBP Appendix to ensure suppliers are fully aware of the rates and that UC has a countersigned document. If a supplier has a WBP form on file, we may be able to reuse it.
If the Appendix is not used, the department must ensure WBP rates are formatted in the PO so they are prominently displayed and communicated. Please keep in mind that the rate of pay may change based on what the University pays its staff at the time.
Departments should also 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 must sign a Wage & Benefits Parity Appendix that contains the minimum compensation they must pay their employees.
Normally, new WBP rates are released in April, effective June 1. All active contracts/POs will be updated before June 1. This is subject to change based on negotiations and timing.
**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. Suppliers should review SB27 thoroughly with their independent legal counsel.
The vendor must provide a retroactive payment to the employee to meet UC requirements.
If the contractor refuses to meet the policy requirements, terminate the contract and notify 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. The vendor may be barred for 5 years for noncompliance.
Utilizing a deactivated supplier may cause more issues. If the supplier does not address and remedy the non-compliance issues, UC may not contract with the supplier.
Failure to comply with Article 5 and Regent Policy 5402 may subject the University to unnecessary grievances, arbitrations, and Requests for Information. UC Employees who fail to follow these guidelines may face disciplinary action.
Departments must obtain Procurement and Labor Relations approval to contract out for Covered Services (SX & EX) work before issuing or executing an RFP, purchase order, change order, P-Card payment, non-PO payment, or master services agreement. Otherwise, this is considered an unauthorized/after-the-fact purchase.
Procurement cannot 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 to obtain proper documentation and notification needed 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 requires UC to notify 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.
The notice is due at least 30 days before the services start. 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.