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Public Service Contracts are an alternative form of revenue generation at public universities, which involve leveraging intellectual and property assets for departmental revenue generation as traditional state revenue sources diminish.

Since 1990, the University of California, Berkeley has been expanding revenue-based non-research public service contracts throughout the world by contracting with a wide variety of federal, state, county and local organizations, non-profits, foreign institutions and governments. The non-research services include: technical, scientific, educational consulting, executive education, licensing of business applications, and third party testing.

Public Service Contracts have been proposed as a solution to the University of California's budget problems, particularly in light of recent tuition costs, which have risen more than 30% since 2008. Between 1997 and 2012 the University of California, Berkeley alone generated excess of $1 billion in revenue for departments.

Examples at UC Berkeley
 * UC Berkeley’s School of Public Health provided consulting services to Alameda County in infectious disease planning. $100,000 generated in revenue.
 * UC Berkeley’s Haas School of Business provided executive education for an oil company in excess of $10 million over several years.
 * UC Berkeley’s Lawrence Hall of Science created math and science curriculum for middle school students around the world. Revenue generated through royalties.
 * UC Berkeley’s College of Engineering licensed software to design safer power plants.
 * The Marvell Nanofabrication Lab entered into an agreement with UC Berkeley for an electron beam nanolithography tool (electron-beam nanowriter) at a deep discount in exchange for regular vendor access to the equipment. The electroy-beam nanowriter is used for drawing the finest line features possible (down to 10 nanometers) in semiconductor substrates. Theis technology is used by a wide range of nanotechnology research and specifically enables development of next generation transistor technology. The tool of all supplied option retail for approximately $2 million. The contract enabled tool delivery for a total price of $750,000 with only a $300,000 down payment and payment period of five years for the remaining balance.

Citation http://www.spiritoffiatlux.net/v/vspfiles/assets/pdfs/WhitePaperBDsigned10-17-11.pdf