Processing a Service Agreement

This document outlines the step-by-step process for handling service agreements under the 'Contractual' grant budget line, including vendor setup and requisition creation.

Brittany Bruce
12 steps
2 seconds

**Important:** This document is for those service agreements that are under the “Contractual” grant budget line that are reviewed by your Pre-Award Grants Officer (if applicable) and Kristen Webb, Associate Director of Subaward and Contract Compliance. If you have an agreement for the purchase of software, software licenses, rental/hotel agreements, equipment, or maintenance agreements, this process does not apply and will need to work with your Grants Compliance Administrator.

**Step 1**\ \ Determine if you are working with a Service Agreement or a Subaward. The [subaward vs. contract checklist](http://www.marshall.edu/murc/files/subrecipent_vs_contractor_checklist.pdf) can be used to help make the determination (this is not a required document).

**Step 2**\ \ Determine if you are working with a Service Agreement with Terms or if a [MURC Service Agreement](https://www.marshall.edu/murc/files/Service-Agreement-Template-Fillable-v8-1.pdf) is needed.

**Step 3** Work to complete the [Vendor Checklist](https://www.marshall.edu/murc/files/Vendor-Checklist-06242025.pdf) and additional documents if needed depending on the service agreement amount. Your assigned Pre-award Grants Officer is available to assist if needed. Vendor Checklist Note: If the vendor was named in the agency-approved budget, select “yes” on the checklist and disregard the other questions. **Agreements Between $0 and $24,999** - The Service Agreement - [MURC Addendum](https://www.marshall.edu/murc/files/MURC-Addendum-07062026.pdf), when the agreement contains terms and conditions. **Agreements Between $25,000 and $49,999** - Vendor Checklist is required. - If the vender was named\ in the agency-approved budget, select “yes” on the checklist and disregard the other questions. - Choose one of the following: - 3 Quotes from different vendors - The department may gather their own quotes. - Select the vendor with the lowest reasonable price. - [Direct Award Form](https://www.marshall.edu/procurement-services/files/Marshall-University-Direct-Award-Request-02092026.pdf) - Used when there is only one qualified vendor (e.g., a sole-source provider or specialized expertise). - The Service Agreement - [MURC Addendum](https://www.marshall.edu/murc/files/MURC-Addendum-07062026.pdf), when the agreement contains terms and conditions. **Agreements $50,000 and over** - Vendor Checklist is required. - If the vender was named in the agency-approved budget, select “yes” on the checklist and disregard the other questions. - Choose one of the following: - Formal Bidding Process\ Conducted by MU Procurement Services (departments are not allowed to collect their own quotes at this level). - [Direct Award Form](https://www.marshall.edu/procurement-services/files/Marshall-University-Direct-Award-Request-02092026.pdf) - Used when there is only one qualified vendor (e.g., a sole-source provider or specialized expertise). - The Service Agreement - [MURC Addendum](https://www.marshall.edu/murc/files/MURC-Addendum-07062026.pdf), when the agreement contains terms and conditions.

Agreements over $25,000 requires Pre-Award Grant Officer Approval

**Step 4** Send the service agreement and MURC Addendum to the vendor for signature. The \*MURC Service Agreement Invoice should also be sent at this time so that the vendor can invoice once the agreement has been set up. While awaiting vendor signature, proceed to Step 5 for vendor setup. \*Please note - [The MURC Service Agreement Invoice](https://www.marshall.edu/murc/files/MURC-Service-Agreement-Template-Fillable.pdf) is required to be completed by the vendor when invoicing against a Purchase Order (PO) to ensure standardized and compliant documentation of services provided. This ensures all required information is captured for auditing and financial reporting, streamlining the payment process. Invoices should not be submitted with the signed Service Agreement.

Step 5 Determine if the vendor has been set up by using the **FTIIDEN** screen in [Banner.](https://mubanapp.marshall.edu/applicationNavigator/seamless) You can also use Banner screen **FTMVEND** to view the vendors address to ensure you are working with the correct vendor. **If not set up in Banner:** Email the vendor and provide them with this [link](https://www.marshall.edu/purchasing/resources/vendor-registration/) to complete registration to get set up in the Banner payment system. See the email template to send to the vendor here. It is the PI/PD responsibility to check back in Banner to see if the vendor has been set up.

**Step 6** Once the vendor has signed the agreement, create a Requisition using screen **FPAREQN** in [Banner.](https://mubanapp.marshall.edu/applicationNavigator/seamless) A full list of account codes with descriptions can be found [here](https://www.marshall.edu/murc/files/Expense-Code-List.pdf) to use when creating the requisition. You can reach out to your Grants Compliance Administrator with questions.

**Note:** Once requisition is complete in Banner, it will need to be approved in the Banner department queue FOAUAPP.

**Step 7** Include the requisition number, fund number and org number on the top right of the service agreement and MURC Addendum (if applicable).

**Step 8**\ \ Email the service agreement, required documents and vendor checklist in separate .pdfs to your Pre-Award Grants Officer. who will sign and send an approval emailed to Kristen Webb.

**Step 9**\ \ Kristen Webb will review and send to Dr. Pillay for final signature. \ *If the requisition number was not created/provided, Kristen will flag for you to provide.*

**Step 10**\ \ [[Once signed, Kristen Webb will take the information and submit a ticket in the procurement case management system.]]

**Step 11**\ \ Once the Purchasing Office has created the PO, a copy of the fully executed agreement will be sent to the vendor, PI and/or the department administrator for their records. If you need to check the status of a PO please email Kristen Webb, [**kristen.webb@marshall.edu**](mailto:kristen.webb@marshall.edu)

**Next Step**\ \ Once the PO has been set up the vendor can begin invoicing. Invoicing should not take place until the Purchase Order has been created.