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BIDDING AND PROCUREMENT

2. School Districts are Permitted to Purchase Goods and Services Governed by Two Kentucky Statutes:KRS 424.260The Bid LawORKRS 45AModel Procurement. 3. HIGHLIGHTS of the BID LAW:Available Methods of Procurement:Competitive Sealed BidsState/Federal Price ContractsDeclaration of Emer

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BIDDING AND PROCUREMENT

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    1. 1 BIDDING AND PROCUREMENT

    2. 2 School Districts are Permitted to Purchase Goods and Services Governed by Two Kentucky Statutes: KRS 424.260 The Bid Law OR KRS 45A Model Procurement

    3. 3 HIGHLIGHTS of the BID LAW: Available Methods of Procurement: Competitive Sealed Bids State/Federal Price Contracts Declaration of Emergency

    4. 4 HIGHLIGHTS of MODEL PROCUREMENT: Available Methods of Procurement: Competitive Sealed Bids Competitive Negotiations Noncompetitive Negotiations Small Purchase Procedures State/Federal Price Contracts Declaration of Emergency

    5. 5 Competitive Sealed Bids: Bid Law: Must advertise for bids for purchases exceeding $20,000. Model Procurement: Must advertise for bids for purchases exceeding $20,000 Both apply to 1 item or a group of items

    6. 6 State/Federal Price Contracts: Under both laws, School Districts may purchase from Kentucky State Price Contracts or GSA (Federal) Price Contracts. The Division of Finance Website contains links to both contract listings. Under both laws, School Districts may purchase from other vendors if the price is equal to or less than the contract price AND the product specifications are the same.

    7. 7 State/Federal price Contracts Continued: Under Model Procurement, the purchasing agency may negotiate a lower price than the state price contract.

    8. 8 Declaration of Emergency: A local school district may forego the bidding procedures when a written determination is made that an emergency exists which will cause public harm as a result of the delay in competitive procedures. If the service being provided to students is interrupted, for example a boiler explosion or waterline break, it is safe to say that an emergency declaration could be used.

    9. 9 Competitive Negotiations: Used by Model Procurement when Specifications are too broad Sources of supply are limited Bid prices are unreasonable This option is not available with Bid Law Procurement

    10. 10 Noncompetitive Negotiations: Can be used when a written determination has been made that the following conditions exist: The vendor is a single source The vendor is a licensed professional The contract is for perishable items The contract is for replacement parts The contract is for proprietary items for resale The contract is for student enterprise The purchase is for items sold at public auction or sealed bids Expenditures outside the boundaries of the school district

    11. 11 Noncompetitive Negotiations Continued: The contract is for group life, health, liability, worker’s comp, or unemployment insurance Contract is for purchases that result in a savings to the district Districts purchasing by Bid Law methods may use the noncompetitive negotiations process only for purchases of perishable items and licensed professionals.

    12. 12 Small purchase: Small purchase procedures may be used for any contract for which it is determined that the aggregate amount of the contract will not exceed $10,000, provided such small purchase procedures are in writing and available to the public.

    13. 13 Other Items of Interest: Model Procurement districts are permitted to to award bids to multiple vendors. Discount Store bids: A bid form returned to the district stating no bid is exactly that. A bid form returned to the district with a zero percentage discount offered is considered a valid bid.

    14. 14 FINALLY: If in doubt about the bidding procedures to use… BID !!!

    15. 15 HOW DOES ALL THIS RELATE TO ME

    16. 16 IMPORTANT DEFINITIONS District Purchasing Policy Purchase Request Purchase Order Invoice Packing Slip Account Payable

    17. 17 DISTRICT PURCHASING POLICY Defines what procurement method is used Defines levels of responsibility and the approval process which may be implemented through Munis permissions Defines the various activities of individual positions

    18. 18 CAUSE & EFFECT ** CHAIN OF EVENTS Decision for necessity of a purchase Begging with integrity. Locate vender and establish price while being mindful of District Purchasing policy Purchase request Budget review Approval – Purchase Order Receipt of goods Account Payable

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