APPROVED BY THE PRESIDENT 1 AUGUST 1991
 
  I.   Policy
 
   The mission of UMCP is to serve the public as a comprehensive
   institution of higher education through instruction, research,
   service, and related educational functions and activities.  In
   carrying out this mission, the University provides its
   constituents with a variety of goods and services that are both
   necessary and integral to the fulfillment of this mission.  The
   provision of these goods and services requires that the
   University engage in certain business activities.  These
   activities will in some instances offer the same goods and
   services that may otherwise be available to the campus community
   through private entrepreneurs.  When the University engages in
   business activities, it is understood that the University must
   address its inherent concern for availability of necessary goods
   and services, for convenience, and for the interdependence of
   each business activity with the major elements of its mission.
   In addition, the University must give careful consideration to
   the impact its business activities may have on the local
   community, and especially on those private businesses that are
   strategically located near the campus and whose economic
   fortunes may depend heavily on constituents of the campus.  Some
   business activities may be identified as unrelated business
   income activities and require the University's compliance with
   applicable laws and regulations pertaining to such activities.
   The purpose of this policy is to assist in the decisions about
   future business activities in which the University may engage.
 
  II.  Educational Business Activities
 
   A.  Definition
 
       Educational business activities are those that are necessary
       either to enhance, promote, or support the University's
       instructional, research, public service, and other
       educational functions, or to meet the instructional,
       research, public service, and other educational needs of the
       students, faculty, staff, and members of the public
       participating in institutional events.
 
   B.  Conditions
 
       An educational business activity may be established and
       carried on by the University when consistent with the     following condit
  ions outlined in the University of Maryland
       System Policy:
 
       1. The activity is deemed to be an integral part in the
          fulfillment of the institution's educational, research,
          and public service mission as well as institutional
          support functions and other educational and support
          activities, without regard to profit.
 
       2. The activity is needed to provide an integral good or
          service at a reasonable price, on reasonable terms, and
          at a convenient location and time.
 
       3. The activity is carried out for the primary benefit of
          the institution community but with sensitivity to the
          total community.
 
     C.   Examples
 
       Sales of the following types of goods or services are
       examples of educational business activities:
 
       1. Goods or services which are the products of the
          University's laboratories, research facilities, academic
          programs or workshops.
 
       2. Fee-based programs or services offering a substantial
          instruction or other educational experience or applied
          research, development or testing services.
 
       3. Programs or services including recreational, cultural,
          and athletic events; student housing and dining services;
          community enhancing activities; health services and
          medical treatment; public service radio and television
          broadcasting; events or functions which have as their
          principal purposes the improvement of relations between
          the University and the general public; or the sales of
          contributed services if related to fund raising
          activities.
 
       4. Academic programs teaching and promoting
          entrepreneurship, and student-run cooperatives, provided
          that the programs or cooperatives are self-supporting or
          otherwise do not receive unfair subsidies from the
          University.
 
       5. Dispositions of the University's surplus property.
 
  III. Other Business Activities
 
   The University will normally engage in business activities that
   are necessary and directly and substantively related to
   fulfilling its primary mission as described above; however,
   there are certain exceptions to this presumption.  In those
   instances there will need to be a reasoned balancing of factors
   to determine whether the University should or should not
   undertake such activities.  Among the factors to be considered
   should be:
 
   Contribution to teaching, research, and public service mission
   of the University.
 
       Student demand.
 
       Accommodation of the needs of students, faculty, and staff
       for daily life on campus/convenience.
 
       Enhancement of the quality of life on the campus.
 
       Tax consequences, including both local property tax and need
       to report as Unrelated Business Income.
 
       Necessary revenue generating potential.
 
       Degree of adverse or beneficial impact on the private
       sector.
 
       Whether it involves the sale of goods or services that are
       either not commonly available in or not of general use to
       the community.
 
       Prices are reflective of the regional private sector market.
 
   To this end, the University will participate in an appropriate
   forum for dialogue with the local business community to discuss
   issues of mutual concern and to promote cooperative
   communication between the local community and the institution.
 
  IV.  Contract and Franchised Services
 
   The foregoing policies and procedures do not apply to sales by
   independent contractors which contract with the University to
   provide goods and services on campus, provided that:
 
       1. the contract is with a person or vendor who is not
          affiliated with the University,
 
       2. the contract was let through the University's normal
          procurement regulations with a full opportunity given to
          the local community to participate,
 
       3. the contract provides for rents and other terms that
          would be applicable in the private marketplace,
 
       4. the University does not participate in the daily
          management of the activity except to act as landlord, and
 
       5. due regard weight is given in project design and bid
          solicitation to knowledge of and the concerns of the
          local community.
 
   The sale of goods and services by outside contractors must, in
   all cases be approved by the Director of Procurement and Supply
   or his or her designee.