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Best Practice Purchasing for School Districts Red River TASBO Region 9 ESC January 9, 2008

Best Practice Purchasing for School Districts Red River TASBO Region 9 ESC January 9, 2008. Wichita Falls ISD Janet Powell – Director of Purchasing jpowell@wfisd.net New Phone Number - 940-235-1017 x13002 Randy Montgomery – Purchasing Buyer rmontgomery@wfisd.net

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Best Practice Purchasing for School Districts Red River TASBO Region 9 ESC January 9, 2008

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  1. Best Practice Purchasing for School DistrictsRed River TASBORegion 9 ESCJanuary 9, 2008 Wichita Falls ISD Janet Powell – Director of Purchasing jpowell@wfisd.net New Phone Number - 940-235-1017 x13002 Randy Montgomery – Purchasing Buyer rmontgomery@wfisd.net New Phone Number - 940-235-1017 x13004

  2. Texas Education CodeProcurement Threshold • $20,000 School Bus Lease/Purchase • $25,000 Public Works Contract Real Property • $25,000 Personal Property • $25,000 Nonprofessional Services • $25,000 Energy Management Systems • $10,000-$25,000 – Competitive Quotes Texas Education Code, Section 44.031

  3. Athletics Custodial Food Service Instructional-Capital Instructional-Supplies Maintenance Transportation Bank Depository Printed Forms Non-Professional Services Real Property Insurance Competitive Procurement Categories…in the aggregate for a 12 month period. TEC 44.031 (a) Reference: Texas Education Agency – Financial Accountability System Resource Guide http://www.tea.state.tx.us/school.finance/audit/resguide12/purchase/

  4. TexasEducation Code 44.031 • Competitive Bidding • Request for Proposals, other than construction • Inter-Local Contracts*** • Design-Build Contracts • Contract to Construct, construction manager • Competitive Sealed Proposals • Contract Purchases, (DIR, TCPN, BuyBoard, etc***) • Job Order Contract • Reverse Auction • Formation of a political subdivision corporation*** ***Do not require advertisement.

  5. Advertisement • Name of District • Description & Term of Bid • Run ad once a week, for two (2) weeks • Should not open bid earlier than ten (10) days from last advertising date • Ad in newspaper in which District’s Administrative Offices located or in nearest county. • Date, Time and Location Bids are received • Address and Telephone number for location where bid documents may be obtained • Date, Time, and Location - Bids will be opened and read • Bid Documents should be ready for distribution the first day of advertisement Texas Local Government Code, 271.025

  6. Bid or Proposal Process • Define the task to be performed by vendor or define item(s) to be purchased • Establish criteria for selection of bid or proposal • Determine relative importance of criteria • Identify potential vendors • Set timelines • Advertise • Pre-Proposal conference (optional) • Receipt of bid or proposal (Establish a procedure ++) • Bid or proposal evaluation • Negotiation with vendor(s) • Award of contract • Contract monitoring

  7. Bid OpeningTEA Recommends: 1) Two District employees at the opening with one being directly involved in procurement 2) No waiving technicality for late bids 3) Time stamp bids and establish bid log procedure that verifies all bids accounted for 4) Verify Documents: SIGNED Bid, Executed Bid Bond/Cashier’s Check & any other forms required in Bid 5) Other statutory procedures Texas Local Government Code, Section 271.06

  8. Interlocal Contracts • First, BOT Resolution • Examples: Department of Information Resources (DIR), BuyBoard (TASB), The Cooperative Purchasing Network (TCPN), other school districts, Regional Education Service Centers. • Follow procedure defined by Co-Op • Strive to obtain “Best Value”

  9. BEST VALUEEvaluation / Recommendation As of September 1, 2007, wording changed from MAYinclude to SHALL include weights for: • _____% Purchase Price • _____% Reputation of vendor & their goods or services • _____% Quality of goods or services • _____% Meet the District needs • _____% Vendor’s past relationship with the District • _____% Comply with HUB requirements • _____% Long-term cost to the District • _____% Any other relevant factor listed in Request for Bid or Proposal 100%Total Texas Education Code, Sections 44.035, 44.039 & 44.040

  10. Construction Requirements Before you bid, the Board of Trustees: • MUST determine method of construction procurement that will provide the best value for the District (before bidding). • MAY adopt a policy designating one of the methods as a default best value method (Resolution?) Texas Education Code, Section 44.031

  11. Architect’s seal Required: New Buildings – Costing $100,000+ Alterations or Additions – Costing $50,000+ Texas Revised Civil Statutes, Article 249A Engineer’s Seal Required: Projects involving structural, electrical or mechanical engineering costing $8,000+ Projects NOT involving structural, electrical or mechanical engineeringcosting $20,000+ Texas Revised Civil Statutes, Article 3271a, Title 52A Selection of an Architect or Engineer Two Step Process 1) Issue Request for Qualifications 2) Negotiate with the most qualified. Texas Government Code, Chapter 2254.001 Additional Specifics Regarding Architects & Engineers

  12. Payment/Performance Bonds, Insurance, Change Orders • Payment Bond - Construction $25,000+ • Performance Bond – Construction $100,000+ • Bonds at $100,000+ must hold a certificate of authority from the U.S. Secretary of Treasury or reinsurance for any liability in excess of $100,000 • Worker’s Compensation as required by statute • Insurance - General Liability, Automobile Liability, Builders Risk Texas Government Code, Section 2253.021 Change Orders • Only increase/decrease up to 25% of project costs • Cannot redefine or make a major change of the project scope. No statute in regards to Districts; however, the statute that covers this area in connection with county governments illustrates legislative intent.

  13. Catalog PurchasesTexas Comptroller of Public Accounts (TCPA) Texas Administrative Code 113.19 • CISV repealed as of September 1, 2007 • Technology procurement contracts transferred from TBPC (Texas Building & Procurement Commission) to DIR (Department of Information Resources) http://www.dir.state.tx.us/servlet/dirStore#searchcisv • Follow Best Practice guidelines: • Obtain minimum of 3 quotes if purchase exceeds spot-purchase limit of $5,000 • Verify that vendors are currently active contract holders • Retain documentation

  14. Catalog Purchases(continued)Texas Comptroller of Public Accounts (TCPA) Texas Administrative Code 113.19 • Contracts for products or services other than automation (computer equipment) or telecommunication systems, including hardware, software, programming, maintenance, repair, installation of systems, etc. may be found here: http://www2.cpa.state.tx.us/cat_page/

  15. Job Order ContractsTEC 44.041 • A School District may award Job Order Contracts for the minor construction, repair, rehabilitation, or alteration of a facility by: • Establishing Rates by trade • Specify contract period (9-1-07 to 8-31-08) • Award trade by rank, may award multiple vendors • Request & receive estimate before requesting PO • Work does not begin until authorized • Changes must be approved in advance by District • Invoice submitted upon completion for payment

  16. HB914 - Conflict of Interest • New Requirement • District to provide information to vendors • Vendor responsible for compliance • Post on web-site (all) • Include in all procurement documents

  17. RESOURCES • TASBO Membership Directory • TASBO Membership Communities • TASBO Purchasing Committee E-Mail List kerbowg@cfbisd.edu • Local Purchasing Organizations • Internet • TEA - http://www.tea.state.tx.us/ • TCPA - http://www.window.state.tx.us/procurement/

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