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Outsourcing for Covered Services

Overview

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, the UC Board of Regents approved Regents Policy 5402 in November 2019, which generally prohibits contracting for services and ensures equitable treatment for any allowable contract workers.

NOTE: For UCLA Health details, visit the UCLA Health: Outsourcing for Covered Services and UCLA Health: Outsourcing for Covered Services FAQs web pages. You must be logged into your AD account to access this content.

Details

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 1) ensuring they receive wages and benefits equivalent to what the University provides to its employees and 2) 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.

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 UCLA 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

The limited allowances for contracting out for covered services are outlined in Article 5. If you believe the service you are requesting falls under one or more of those allowances and have exhausted all other options to utilize or create career UC positions, you may request a carve out. Please contact UCLA Labor Relations for additional information. 

UC is committed to protecting employees by insourcing functions and services whenever possible. In support of that goal, UCLA 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 (if not entry level, 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)

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

FAQs

General

The scope of Regents Policy 5402: Regents Policy Generally Prohibiting Contracting for Services applies to all existing and new contracts for covered services.

A "covered service" is work customarily performed by SX (service) and EX (patient care technical) bargaining unit employees at the university. This can include but is not limited to: 
 

•  Cleaning, custodial, janitorial, or housekeeping services

•  Food services

•  Laundry services

•  Groundskeeping

•  Building maintenance

•  Transportation and parking services

•  Security services

•  Billing and coding services

•  Sterile processing

•  Hospital or nursing assistant services

•  Medical imaging or other medical technician services

Visit the Title Code Search (TCS) website for information on job titles and pay to determine whether the service(s) you are requesting falls into this category.

Several University service providers include:
 

UCLA Mail, Document & Distribution Services (MDDS): print, copy, design, and promotional needs 

Facilities Management: custodial services 

UCLA Catering: on-campus catering



The policy establishes standards for contracts for:
 

•  Cleaning, custodial, janitorial, or housekeeping services

•  Food services

•  Laundry services

•  Groundskeeping

•  Building maintenance

•  Transportation and parking services

•  Security services

•  Billing and coding services

•  Sterile processing

•  Hospital or nursing assistant services

•  Medical imaging or other medical technician services

Please contact UCLA Labor Relations for additional information. 

Please send your request details to UCLA Outsourcing Escalations.

As outlined in Article 5, Section D of the Collective Bargaining Agreement, the university will provide notice to AFSCME 3299 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.
In general, contracts for covered services require the contractor to provide its employees working at university locations wages and benefits equivalent to those provided to university employees performing the same work. "Benefits" includes health, dental, vision, and retirement as well as vacation, sick leave, and holiday pay. More details can be found in Regents Policy 5402, Section C: Employment Standards.

Specific Services

Catering is defined as food and/or beverage service that includes on-campus service or on-campus food preparation provided at an on-campus event or function.

Departments should go to UCLA Conferences & Catering before seeking outside caterers. 

If a restaurant or catering service is simply dropping food off on campus and will not have staff on site to set up, serve, prepare food/beverages, or clean-up afterwards, it is not considered a covered service. Similarly, when students, faculty and staff pick up food from a restaurant and bring it to campus, that is not a covered service.
Seated service in an off-campus restaurant is not considered a covered service.

All chartered bus services need to be routed through UCLA Fleet and Transit. Review the BruinBus web page to access the request form and additional information.