Outsourcing for Covered Services

A University of California policy implemented in November 2019 protects against excessive outsourcing.

The University of California is committed to maintaining a strong in-house workforce and supporting living wages and benefits for employees, as is evidenced in Article 5 of the University Collective Bargaining Agreement. To reinforce this commitment, in November 2019, the UC Board of Regents approved Regents Policy 5402, which generally prohibits contracting for services and ensures equitable treatment for any allowable contract workers.

Program Announcement

The process for initiating contracting services is no longer conducted via paper submitted through DocuSign. All new contracting out requests must be initiated via the Human Resources Management System Contract Out module. Contact our Department SAA to request access.

Resources

HRMS Process Guide

HRMS Request Checklist

Concept Approval Checklist

Program Announcement

HRMS

Policy Summary/Guiding Values and Principles

There shall be a general prohibition on contracting out for services and functions that can be performed by University staff. Under exigent and limited circumstances when an outside contract is a solution of last resort, the following shall apply:

UC Must Value and Protect Its Employees

The University shall prioritize the use of its employees to perform functions and services whenever possible and the use of outside contractors will not cause or facilitate the displacement of university employees.

Equal Pay for Equal Work

The labor conditions of contract workers shall be protected by ensuring they receive wages and benefits equivalent to what the University provides to its employees, and providing those who have performed services to the University on a long-term and continuous basis the opportunity to become University employees.

UC Must Be a Model Employer

Requirements governing state agencies and departments under California Government Code Section 19130 shall serve as minimum standards and, whenever reasonable, shall be exceeded.

Since its founding, the University's public mission has always been to unlock the doors of economic opportunity, uplift the human condition, and serve as an antidote to poverty. This begins from within.

UC's employment and contracting practices for all individuals working on its campuses, medical centers, and laboratories must model what it demands of other employers. In particular, this means the University must remain vigilant in ensuring its use of contract workers does not contribute to the rise of poverty-level jobs, thereby exacerbating growing economic inequality and reliance on taxpayer-funded "safety-net" services. Contracting out should be used sparingly and treated as an option of last resort to address temporary needs, not as a means to replace employees with lower-wage contractors.

As a public trust and one of the largest employers in California, the University is committed to protecting and valuing the lives of those it serves, educates, and employs.

Outsourcing Resources

Reemployment of UC Retired Employees Image

Outsourcing Policy & Procedures

The University of California is committed to maintaining a strong in-house workforce and supporting living wages and benefits for employees. To reinforce this commitment, the UC Board of Regents approved Regents Policy 5402 in the fall of 2019, which generally prohibits contracting for ‘Covered Services’.

‘Covered Services’ is work customarily performed by bargaining unit employees at the University including but not necessarily limited to the following services: cleaning, custodial, janitorial, or housekeeping services; food services; laundry services; grounds keeping; building maintenance (excluding skilled crafts); transportation and parking services; security services, billing and coding services, sterile processing, hospital or nursing assistant services, and medical imaging or other medical technician services.

UC Policy 5402 & Catering at UCR

UC Policy 5402
- Video - UC Policy 5402: (Policy generally prohibiting contracting for services) & Catering at UCR - Coming Soon
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Catering Labor Estimate Letter – This letter should be provided to your prospective supplier that explains the difference between Caterer and Food Source. If your prospective supplier wishes to service UCR, they can sign and return this document to agree to the policy.

Outsourcing Policy Carve Outs

UC Riverside is committed to bringing in-house all covered services as defined by Article 5 of the University Collective Bargaining Agreement and Regents Policy 5402. As such, contracts that include covered services will only be allowed sparingly and will require demonstration that all other options to utilize or create career UC positions have been exhausted.

Exemptions to the policy will be rarely granted. Reduced cost is not an acceptable justification. By requiring wage and benefit parity in any contract for covered services, there will be no cost advantage to using contracted services in lieu of services provided by a UC Riverside employee.

Article 5 of the Collective Bargaining Agreement provided guidance for the Regents Policy 5402 that explains that contracting for covered services is only permitted when:

Required by law, grants and/or court decisions.
Needed to address an emergency.
Not available at the location in sufficient quantity or expertise level.
Incidental to a leased property.
Urgent, temporary or occasional.
Securing equipment, material or services the campus cannot feasibly provide, this can include work beyond 10 miles of campus.
Performed in clinical operations to address short-term needs.

Contracting Out Requests

If you believe that your situation merits a carve out, you can request one by following the process outlined in the Contracting Out Process and submitting a request via the Human Resources Management System (HRMS). Please contact your Department SAA to request access to the HRMS.

Transitioning & Amending Current Contracts

UC is committed to protecting employees by insourcing functions and services whenever possible. In support of that goal, UC Riverside has identified a number of services that will be insourced. All outside supplier contracts authorized to continue must be amended to include the policy’s wage and benefit parity provisions. Parity is defined as the cost equivalent of the following:

Annual and hourly salary at Step 1 of the salary range for the entry level of the comparable UC classification (or if not entry, the most junior classification)
UC benefits for health, dental, vision, life insurance, disability insurance, and retirement that a UC employee performing the same duties would receive (applied as a percentage of salary)

Employment standards must be applied to contractors

If departments are given authority to contract for covered services, then the contractor must provide its employees with wages and benefits equivalent to those provided by the university.