VIII-27: Purchasing and Procedure Policy
North Sanpete School District
|Policy Number: VIII-27
Effective Date: 10/15/2013
Revised Date: 01/19/2016
Revised Date: 06/18/2019
Subject: Purchasing and Procedure Policy
PURPOSE & PHILOSOPHY
This policy has been adopted to enable the District to purchase, establish contracts, and generally carry on its procurement functions; to ensure the fair and equitable treatment of all persons who deal with the procurement system of the District; to foster broad-based competition within the free enterprise system; and to properly account for the expenditures of public monies.
The District Business Administrator is the delegated authority by the North Sanpete School District Board to carry out the procurement functions of the District and to ensure such functions are in accordance with established policies and written procedures. The Business Administrator may delegate purchasing authority to other District employees as necessary to fulfill the purpose and philosophy of this policy. The Business Administrator is also given authority to withdraw delegated authority.
- This policy applies to all purchases made by the District or any of its subdivisions; i.e. schools, departments, programs, etc. The policy applies regardless of the source of the money to be expended, including, but not restricted to:
1.1 tax money
1.2 state and federal grants
1.4 all types of fees
1.5 revenue generated by programs, schools, departments, etc. (However, where a donor is to donate the entire cost of a supply, service or construction item, and has conditioned the donation on award to a specific supplier, service provider, or contractor, this policy does not apply.)
- This policy shall apply to all purchases made through District approved purchase orders, school generated purchase orders, expenditure requests, P-cards and District requisitions. This policy prohibits purchases by the District, its subdivisions and entities through other purchasing instruments, which include revolving credit purchase instruments unless prior approval has been granted.
- This policy applies to all purchases of supplies, equipment, materials, construction, real property, and services.
REQUISITION CREATION AND PURCHASE APPROVAL
- All transactions that result in a commitment of District/School funds shall be approved by the applicable District/school administrator prior to making any purchasing arrangements.
1.1 Purchases of goods and services except those following the P-Card procedures, shall be executed by submitting a requisition, which (after the appropriate administrative and program approval) results in the creation of a District or school purchase order.
1.2 Refunds of tuition or other reimbursements to students, parents, and employees shall be documented by receipts, registration/withdrawal forms, sales slips, etc., which are submitted prior to the issuance of a check.
- Exceptions to this policy shall apply to emergency procurements as identified by the Business Administrator, provided a requisition is approved subsequent to the purchase.
- All purchases over $50,000 must be board approved.
- District policy defines small purchases as those purchases less than $10,000 except small purchases for construction or architect-engineer services shall be less than $50,000. The State procurement policy further subdivides small purchases into categories dependent upon the amount of the purchase. Competitive pricing shall be obtained for all purchases. Purchase requirements may not be divided into smaller units to avoid using the proper purchasing procedure based on the dollar volume, nor are purchases to be made prior to obtaining a purchase order number except for purchases made with a P-Card according to policy VIII-35 and supporting procedures.
1.1 Purchases less than $1,000. For purchases less than $1,000, entities are encouraged to seek the best possible sources of supply based on factors such as price, prior vendor performance, and delivery; and to utilize the warehouse and other contracts as established by the District Purchasing Department or the State of Utah. The signatures of the requestor and the immediate supervisor are required on the requisition when submitting for a purchase order.
1.2 Purchases between $1,000 and $5,000. No fewer than three vendors shall be contacted by the requesting entity for verbal, e-mail, or written price quotes. Quotations shall include a complete description of the product or service to be purchased, the quantity, the vendor name, address, name of the person providing the quote, quote date, unit and extended price, shipping charges if applicable, and delivery and payment terms. When a vendor is selected, a brief comment should accompany the documentation explaining the rationale for that vendor selection. Documentation shall be retained by the purchasing entity and shall be subject to Purchasing Department review/approval prior to any commitment to a vendor and be subject to audit by the District’s auditors. Purchasing entities are encouraged to consult with and utilize the services available from the District Purchasing Department.
1.3 Purchases between $5,000 and $9,999. The same policy applies as in 5.1.2, except that written or e-mail quotations are required. Written quotes and award justification must be submitted to the Purchasing Department for final approval and shall be retained by the Purchasing Department and be subject to audit. Purchasing entities are encouraged to consult with and utilize the services available from the District Purchasing Department.
1.4 Purchases over $10,000 or for construction or architect-engineer services over $50,000. All purchases anticipated to be in excess of $10,000 or for construction or architect-engineer services over $50,000 should be formally bid by the Purchasing Department in accordance with adopted bidding policies and procedures. Requesting entities shall provide the Purchasing Department with complete descriptions, specifications, and suggested sources for the goods/services requested. Those purchases in excess of $10,000 or for construction over $50,000 shall be formally bid with public notice given in accordance with adopted bidding policies and procedures. All of the solicitations and advertisements to be bid shall be issued from the Purchasing Department after receiving approved requisitions from the Business Administrator. The Purchasing Department further shall coordinate the receipt, opening, review, and awarding of all bids in accordance with the policy.
1.5 Purchases are authorized after budgetary approval using a vendor and price established by a state awarded procurement contract without going through the competitive solicitation process.
USE OF COMPETITIVE SEALED PROPOSALS IN LIEU OF BIDS
- When the purchasing agent determines in writing that the use of competitive sealed bidding is either not practicable or not advantageous to the District, a contract may be entered into by competitive sealed proposals. Competitive sealed proposals are most appropriately used for professional service-type contracts, consultants, or other service providers.
- Proposals shall be solicited through a request for proposals. Public notice of the request for proposals shall be given at least ten (10) days prior to the advertised date of the opening of the proposals.
- Proposals shall be opened so as to avoid disclosure of contents to competing bidders during the process of negotiation. A register of proposals shall be prepared and shall be open for public inspection after the contract is awarded.
- The request for proposals shall state the relative importance of price and other evaluating factors.
- As provided in the request for proposals, discussions may be conducted with responsible bidders who submit proposals for the purpose of assuring full understanding of, and responsiveness to, solicitation requirements, if any questions arise. Bidders shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and revisions may be permitted after submissions, but prior to any disclosure of information submitted by competing bidder in any format, and before the contract is awarded for the purpose of obtaining best and final offers. In conducting discussions, there shall be no disclosure of any information derived from proposals submitted by competing bidder. It is the responsibility of the bidder to ensure their proposal is accurate and complete.
- Award shall be made to the responsible bidder whose proposal is determined in writing to be the most advantageous to the District, taking into consideration price and the evaluation factors set forth in the request for proposals. No other factors or criteria shall be used in the evaluation. The contract file shall contain the basis on which the award is made.
- It is the policy of the District to publicly announce all requirements for architect-engineer services and to negotiate contracts for architect-engineer services on the basis of demonstrated competence and qualification for the type of services required, and at fair and reasonable prices. Architect-engineer services shall be procured as provided in this part except as authorized by Sections 63G-6-409 through 63G-6-411 of the State Procurement Code. This part does not affect the authority of, and does not apply to procedures undertaken by the District to obtain the services of architects or engineers in the capacity of employees of such unit.
- In the procurement of architect-engineer services, the District Business Administrator shall encourage firms engaged in the lawful practice of their profession to submit periodically a statement of qualifications and performance data. A selection committee for architect-engineer services shall be established in accordance with rules and regulations promulgated by the policy board. Selection committees shall evaluate current statements of qualifications and performance data on file with the state, together with those that may be submitted by other firms in response to the announcement of the proposed contract. Selection committees shall consider no less than three firms and then shall select there from, based upon criteria established and published by the selection committees, no less than three of the firms considered to be the most highly qualified to provide the services required. The District, upon a recommendation from the selection committee, may award a multi-year contract for professional services from an architect-engineer. The contract can be for a period of three years with an option by the District to renew for an additional two years.
CANCELLATION AND REJECTION OF BIDS/PROPOSALS
An invitation for bids, a request for proposals, or other solicitation may be cancelled, or any or all bids or proposals may be rejected, in whole or in part, as may be specified in the solicitation, when it is in the best interests of the District in accordance with rules and regulations. The reasons shall be made part of the contract file.
The District Business Administrator shall authorize purchases made through any means other than those described above. Anyone violating this policy shall be subject to disciplinary action.
EXCEPTIONS TO SMALL PURCHASE AND BID PROCEDURES
Procurement from a sole source provider shall be used only if the goods or services are reasonably available from a single supplier. Any request that the procurement be restricted to one potential contractor or vendor shall be accompanied by an explanation as to why no other will be suitable or acceptable to meet the need. In cases of reasonable doubt, competition shall be solicited. The Purchasing Department shall make the determination as to whether the procurement shall be made as a sole source.
Emergency procurements using other than normal bid or price quotation procedures may be made only by the Purchasing Department. Procurement shall be made according to policy as near as possible and still assure that the required supplies, services, or construction items are procured in time to meet the emergency. Given this constraint, such competition as is practicable shall be obtained.
Specifications shall be drafted by the school, department, etc. or the appropriate supervisor and submitted with the requisition. All specifications shall seek to promote overall economy and best use for the purposes intended and to encourage competition. Specifications should be drafted with the objective of clearly describing the requirements for which the goods or services will be used by the District. Procedures for specification are determined specifically by Title 63G Chapter 56 Part 3 of the State Procurement Code.
- Prospective Bidder File. The Purchasing Department shall maintain a list of prospective vendors for the various categories of products and services procured by the District. This list shall incorporate those who request to receive bids as well as those added through the Purchasing Departments effort to solicit all available sources. All schools or departments should refer prospective vendors to the Purchasing Department for inclusion in the bidder file.
- Solicitation File. A file shall be maintained in the Purchasing Department of all solicitations currently pending.
- Completed Solicitation File. After the opening of bids, they become public information except that the winning proposal(s) is/are public information for a period of ninety (90) days following notice of intent to award. A file shall be maintained retaining the solicitations, solicitation comparison sheets, other submittals, and rationale in awarding.
- Definition: As used herein, “credit cards” mean purchasing instruments provided by a financial institution designated by the Superintendent’s office for the purpose of making purchases of predetermined amounts and to secure travel reservations, so that personnel efficiency and financial resources are maximized. Credit cards balances will be paid as statements are received. This policy prohibits the practice of revolving credit instruments, which allow unpaid balances to be carried forward as revolving credit balances upon which interest is calculated and becomes due and payable in addition to the original purchase amount. Credit cards shall be used for pre-approved travel expenses limited to airfare, hotel, car rental, gas stations, eating establishments and other approved travel expenses. They may also be used in a limited fashion with the cardholders approval for approved online or phone orders of goods or services.
- To maximize the use of educational funding while providing necessary controls.
- To designate the District Business Administrator as the person responsible to oversee the establishment and operation of the credit and P-card programs within the District and schools.
- To designate the Principal in each school as the P-Card Administrator, who is responsible to oversee the establishment and operation of the credit card programs within his or her school.
- To ensure federal, state, and District financial policies are observed in relation to use of credit cards, P-cards, and credit instruments.
- To establish reasonable controls, limits, and procedures in regard to credit and P-card usage.
- To establish disciplinary measures relative to the credit and P-card programs.
- District Credit and P-Card Administration - The credit card programs shall be administered under the direction of the District Business Administrator, who is responsible for the following:
- To oversee the issuance, maintenance, and cancellation of credit and P-cards.
- To establish card spending and product limits based upon purchasing requirements associated with the cardholderʼs employment responsibilities.
- To create an agreement, which shall be signed by each cardholder. The agreement shall set forth the terms and conditions under which the cardholder will receive and maintain use of the credit card(s).
- To receive monthly reports from the card provider, which enumerate the purchasing activity of each cardholder and to ensure each cardholder reconciles all charges with receipts and documentation.
- To detect unauthorized card use and take appropriate corrective action. When warranted, the Business Administrator is authorized to seek reimbursement for unauthorized card use by wage withholding, wage garnishment, or civil litigation.
- School P-Card Administration – See P-Card policy VIII-35 & procedure. The School Credit Card Administrator is responsible for the following:
- To oversee the implementation and operation of the P-card(s) within their school, to include budget allocation and approval of purchasing requests.
- To oversee the distribution, proper use and return of P-cards issued to employees within their school along with purchase documentation cards issued to employees within their school.
- To review the purchasing activity each month of all cardholder(s) at their location.
- To allocate all purchases at their location to the appropriate financial accounts.
- Cardholders are responsible for the following:
- To sign purchasing and travel cardholder agreements between themselves and the District prior to having a card(s) issued to them. These agreements shall set forth the terms and conditions under which the cardholder will be issued and maintain use of their card(s).
- To be confined to the product and expenditure limits associated with the individual P-card provided to the cardholder and the terms of the cardholder agreement.
- To receive approval for all purchases from their School/Department Purchasing Card Administrator or designee before executing P-card transactions.
- To provide to their School/Department Purchasing/Credit Card Administrator, copies of all purchase documents the business day following the purchase. Failure to do this shall constitute unauthorized use.
- To be personally responsible for unauthorized charges made with the credit card. If unauthorized expenditures are excessive, flagrant or unresolved, the District shall cancel the employees P-card(s), withhold wages for full reimbursement of unauthorized charges and associated costs, and administer disciplinary action up to and including termination for cause.
- To acknowledge that using the P-cards for personal items or cash advances is strictly prohibited.
DISPOSITION OF SURPLUS PROPERTY
Refer all questions regarding surplus property to the Purchasing Department. District property will not be sold to employees except through an auction or other public sale.
1.1 Any person acting as a procurement officer for the North Sanpete School District, or who in any official capacity participates in the procurement of supplies, services, construction, real property, or insurance for any such political unit is guilty of a felony if the person asks, receives, or offers to receive any emolument, gratuity, contribution, loan, or reward, or any promise thereof, either for the person's own use or the use or benefit of any other person or organization from any person interested in the sale of such supplies, construction, real property, or insurance.
1.2 Any person using their employment position or influence at the North Sanpete School District for the purpose of obtaining goods or services for personal benefit or the personal benefit of others shall be subject to disciplinary action up to and including dismissal and possible criminal charges. Such activities shall include, but are not limited to:
- Purchases at discounted rates not available to the general public; or
- Acceptance of goods and services at no or reduced cost; or
- Purchases with the intent of avoiding sales taxes.
1.3 It is permissible to obtain goods and services for personal use at discounted rates where suppliers typically offer educational discounts to all employees of the District. Such discounts are characterized by being made available to all employees regardless of position or influence. Employees are responsible for the payment of sales tax and purchase arrangements and shall not be made through the use of District or School purchase orders or purchasing/travel cards.
- Vendors - A person who is interested in any way in the sale of any supplies, services, construction, real property, or insurance to the North Sanpete School District is guilty of a felony if the person gives or offers to give any emolument, gratuity, contribution, loan, or reward, or any promise thereof to any person acting as a procurement officer, or who in any official capacity participates in the procurement of such supplies, services, construction, real property, or insurance, whether it is given for his own use or for the use or benefit of any person or organization.
Utah Code Annotated Title 63G, Chapter 6 Utah Procurement Code - State law establishes procurement policy for all agencies of Utah State government and the Rules, Regulations promulgated by the North Sanpete School District Board of Education are as directed by the statute and are complementary to the provisions therein. The complete text of the Utah Code, Title 63, Chapter 56 is incorporated by reference into this policy. These documents are available at the Purchasing Department.
Utah Code Ann §§53A-20-101 (1)(7), 103 and 105 -
Except as set forth in this policy, an officer or employee of a school District may not make a purchase or incur indebtedness on behalf of the District without the approval of the Board. A licensed architect must prepare plans for construction or alteration of any school if the total estimated accumulated costs exceed $80,000. It shall be the policy to publicly announce all requirements for architect/engineering services and to negotiate contracts on the basis of demonstrated competence, qualification, and reasonable price.
Utah Administrative Code R23-1-20 - Procurement for Construction - Small purchases $100,000.00 or less.
Utah Administrative Code R33-5-530 - Construction & Architect-Engineer Selection – Small purchases $50,000.00 or less.
North Sanpete School District complies with the principle that minority and women business enterprises must be given a fair opportunity to compete for all procurement administered by the North Sanpete School District.
REQUISITION / EXPENDITURE and QUOTATION SHEET: GENERAL INFORMATION
Requisition / Expenditure Request forms (with Quotation sheet on the back) are available from the school or district office (and online https://www.nsanpete.org/images/DO/Forms/BusinessForms/Requisition-Expenditure-Form.pdf).
When requesting a purchase, complete the front (requisition / expenditure request) form by completing the following:
- Circle state bid (if the item is listed on the state bid site) or sole source (if there is no other place to purchase the item).
- Check District account (ALIO) or School Account.
- Fill-in the information blocks (do not forget shipping).
- Sign as requestor and take to your supervisor for approval.
If the purchase is over $1,000, Complete the Quotation Sheet on the back of the requisition / expenditure request form as follows.
Schools and departments are authorized to obtain telephone quotes for purchasing under $5,000.00 without the involvement of the District Purchasing provided that:
- At least two, preferably three, telephone quotations are obtained. Requesting email quote from the vendor to verify a phone quote is best practice, but not required by law.
- Award is made to the vendor submitting 1) the lowest quote, 2) while meeting minimum specifications, and 3) required delivery date established by the bid request.
- The specifications and delivery date established must be reasonable and not restrictive.
- The “Telephone Quotation Sheet” is completed and the sheet maintained in a file with all procurement information for five years, for auditing purposes.
NOTE: Contact District Purchasing if assistance in identifying potential vendors is required.
During the process of obtaining telephone quotes DO NOT disclose any information of other quotes obtained (including price, delivery, brand, etc.). This violates the competitive nature of receiving quotes and is unfair to other vendors quoting. After the procurement is complete, prices are public information.
The proper procedure for obtaining telephone quotes is as follows:
- Using the Telephone Quotation Sheet, write down all pertinent information pertaining to items(s) or service(s) required by the agency. Outline specifications, features, functions or services required. Brand Name/Model can be used, however, approved equals must be considered in making award.
- Call the vendor. Identify the district or school you represent.
- Indicate that you are asking for a formal quote that may result in a binding contract. Give them the shipping destination and required delivery date.
- Using the description written during in step 1 above, inform the vendor of the item(s) or service(s) required. Write down all pertinent information pertaining to items(s) or service(s) being quoted by vendors, including any deviations from specifications.
- Ask for unit price (including shipping) to supply the required item. (Unit price is the price of the item purchased including all shipping charges.)
- Ask for the number of days required for delivery after the receipt of the order.
- Ask for Warranty terms (if applicable).
- Ask for acceptance of Terms and Conditions required by the State of Utah, (which are found at purchasing.utah.gov and click “Purchasing Forms” link located under DAS SERVICES. The “Purchase Order Contract Terms and Conditions” are located under the STATE COOPERATIVE CONTRACT FORMS.)
- After obtaining telephone quotes, determine which is the lowest meeting minimum specifications and required delivery date.
- When the internal approval process is complete, notify the successful vendor of the award.
- Telephone Quotations Sheet, correspondence, quotes, receipts, email, award decision, invoices, other paperwork, etc. must be filed together. File must be maintained for five years for audit purposes.