Covered Services Guidance for Low Dollar Purchases

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January 28, 2025

The UC Workforce Compliance Office (WCO), in collaboration with UC Systemwide Procurement (SWP), have created standard practice guidance for low value purchasing and retail transactions to meet AFSCME Article 5 and Regents Policy 5402 requirements. (UC staff: see guidance memorequires Portal login.)

This guidance is not meant to replace or contradict the language that is contained in the applicable collective bargaining agreements or Regents Policy. This guidance will be interpreted as consistent with those collective bargaining agreements and, in the event of a conflict, the language of the collective bargaining agreements or policy will control.

Covered Services Requirements:

Each UC location is responsible for meeting Covered Services requirements. This guidance reinforces the University’s obligation to adhere to Contracting Out requirements. It applies to all purchases, regardless of purchase method, including low dollar purchases using any of these methods: Purchase Orders, P-Cards, Travel & Expense (T&E), except for retail transactions. (See guidance memo for definition of retail transactions.)

  • All departments are required to use University employees for covered services unless there is an approved exception request based upon allowable rationale, regardless of purchase value and purchase method.

  • Exceptions to the Covered Services policy must be pre-approved by your UC location’s Labor Employee Relations team (LER) through a formal exception request process, regardless of payment method.

  • Covered Services include, but are not necessarily limited to, these services: cleaning, custodial, janitorial, or housekeeping services; food services; laundry services; groundskeeping; 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. Consult with your location’s LER team to confirm which covered service applies. 

Thank you for ensuring compliance with UC’s Covered Services policy. For questions or more information, please contact your UC location’s LER team.

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