Davis School District Policy and Procedures: 6F-103 Purchasing Policy

Davis School District Policy and Procedures

Subject: 6F-103 Purchasing Policy

Index: Finance

Revised: February 3, 2008

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1. PURPOSE & PHILOSOPHY

1.1. General Purpose and Philosophy. This policy has been adopted to enable the school

District to purchase, establish contracts and generally carry on its procurement functions

in a manner that deals equitably with all vendors and provides for efficient management

and proper expenditure of public monies.

1.2 Applicable Laws and Rules. This policy complies with the Utah State Procurement

Code (UPC) Title 63G Chapter 6 and adopts Utah State Procurement Rule R33. In

accordance with the UPC, the Board may adopt its own District procurement rules. The

adoption of District rules shall be set forth in this policy, otherwise Rule R33 applies,

Accordingly, the Director of Purchasing shall implement purchasing procedures.

2. AUTHORITY

2.1 Chief Procurement Officer. The Director of Purchasing is the chief procurement officer

for the District. The Director of Purchasing is delegated authority by the Davis 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 Director

may delegate, in writing, purchasing authority to other District employees as necessary to

fulfill the purpose and philosophy of this policy. The Director is also given authority to

withdraw delegated authority. Refer to Purchasing Procedures for greater detail than

provided in this Policy.

2.2 Audits. Subdivisions (i.e., schools, departments, programs, etc.) receiving delegated

authority are subject to Purchasing department audit.

3. SCOPE

3.1 Applicable Purchases and Funding Sources. This policy applies to all purchases

made by the District or any of its subdivisions. The policy applies regardless of the source

of the money to be expended, including but not restricted to:

3.1.1 tax money

3.1.2 state and federal grants

3.1.3 donations

3.1.4 all types of fees

3.1.5 revenue generated by programs, schools, departments, etc.

3.2 Applicable Documents and Instruments. This policy shall apply to all purchases made

through approved purchase orders, expenditure requests and purchasing/travel cards.

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This policy prohibits purchases by the District, its subdivisions and entities through other

purchasing instruments which include revolving credit purchase instruments.

3.3 Applicable Commodities. This policy applies to all purchases of supplies, equipment,

materials, construction, real property, and services. Refer to the Purchasing Procedures

for greater detail than provided in this Policy .

4. REQUISITION CREATION AND PURCHASE APPROVAL

4.1 Prior Approval Required to Commit Funds. All anticipated transactions that could

result in a commitment of District funds shall be approved by the applicable budget

manager prior to making any purchasing arrangements.

4.2 Procurement Methods for Low Value Transactions. Purchases of goods and services

totaling less than $1,000 per transaction may be made using purchasing card

transactions or $30,000 for travel card transactions. The District Business Administrator

may also grant higher limits to individuals expected to respond to wide-spread emergency

conditions.

4.2.1 Purchases of goods and services, not executed by purchasing/travel card

transactions shall be executed by first submitting a requisition, which after budget

manager approval, results in the creation of a purchase order.

4.3 Refunds of Tuition and Reimbursements. Refunds of tuition or other reimbursements

to students, parents and employees shall be documented and maintained in accordance

with District procedures.

4.4 Exceptions. Exceptions to this policy shall apply to emergency procurements, as

identified by the budget manager, provided a requisition is approved subsequent to the

purchase. See section 9 for information on emergency procurements. The Director of

Purchasing is authorized to grant exceptions on card limits for temporary situations when

no other reasonable means to conclude the transaction(s) is available.

5. COMPETITIVE SOLICITATIONS

5.1 Small Purchase Definition. District policy defines small purchases as those purchases

less than$10,000; except that:

5.1.1 Small purchases for small capital outlay (SCO) projects, construction or architect-

engineer services shall be less than $50,000;

5.1.2 Small purchases for construction or architect-engineer services pertaining to

Career and Technology Education’s (CTE) Student Home Building program shall

be less than $20,000; and

5.1.3 Small purchases for services of professionals, health care providers, and

consultants shall be less than $20,000.

5.2 Small Purchase Categories. The State procurement Rule further subdivides small

purchases into categories dependent upon the amount of the purchase. Competitive

pricing shall be obtained for all purchases, except those made from the District’s Materials

Distribution Center (MDC) and District or State contracts. 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 the District purchasing/travel card according to

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section 4.1. See section 5.2.1 below for purchase requirements involving

contracts/agreements/leases with recurring payments over a fixed period.

5.2.1 Purchases Involving Contracts, Agreements or Leases. For purchases

involving recurring payments (monthly, quarterly, annually, etc.) over a fixed

period, the method for determining the amount of the purchase and, therefore, the

proper purchasing procedures to be used is: recurring payment amount x number

of maximum recurring payments = amount of purchase. Calculating the

maximum number of recurring payments shall include all potential options to

renew the contract/agreement/lease beyond the initial contractual period.

Contracts/agreements/leases that:

[a] contain an automatic renewal clause are prohibited;

[b] extend beyond the current fiscal year must contain a “no Non-Payment

Default” clause; or

[c] are anticipated to be equal to or greater than $10,000 must be approved

by the Business Administrator prior to initiating the formal bid process.

5.2.2 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 MDC and District

or State contracts.

5.2.3 Purchases between $1,000 and $5,000. No fewer than two vendors shall be

contacted by the requesting entity for verbal 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. A brief comment should accompany the documentation

explaining the rationale for 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.

5.2.4 Purchases between $5,000 and $10,000. The same policy applies as in 5.2.3

except that three written 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. (See section 5.1 for

exceptions.)

5.3 Purchases over $10,000. Purchases over $10,000 shall 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 $20,000 or $50,000 for SCO projects, construction and

architect/engineer services 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 approval from

the Business Administrator except that SCO, construction and architect/engineering

services shall be approved by the Capital Planning committee. The Purchasing

Department further shall coordinate the receipt, opening, review and awarding of all

solicitations in accordance with the policy.

5.4 Use of the Materials Distribution Center (MDC) and Contracts. Utilization of the MDC

and contracts established by the District and the State are strongly encouraged. Refer to

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the Purchasing Procedures for greater detail on how to utilize these tools.

5.5 Use of Other Contracts. No other contract established by a political subdivision of the

State of Utah; any other state and its political subdivisions; the federal government and its

political subdivisions, including GSA contracts, or other third-party cooperative

procurement organizations shall be used or used as the basis for not seeking appropriate

competition without first obtaining Purchasing department approval.

6. OTHER PURCHASES

Authorization Required. Purchases made through any means other than those described above

shall be authorized by the District Business Administrator. Anyone violating this policy shall be

subject to disciplinary action.

7. INCREASING PURCHASE ORDER QUANTITY AND PRICE

Budgetary Re-Approval. An approved purchase order quantity or price can be increased only by

budgetary re-approval of the document. Such re-approval shall require increasing the document

order quantities and price.

8. EXCEPTIONS TO SMALL PURCHASE AND BID PROCEDURES

8.1 Sole or Single Source Procurements. Sole or single source procurements 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. All sole source

requests, at the Purchasing department’s discretion, are subject to being published for

public comment for at least five (5) working days. Requests of $50,000 or greater must

be published. The Purchasing Department shall make the determination as to whether

the procurement shall be made as a sole or single source procurement.

8.1.1 Negotiations Required. The procurement officer or designee shall conduct

negotiations, as appropriate, as to price, delivery, and terms whenever a sole or

single source approval has been granted.

8.2 Other Exceptions. The Director of Purchasing or designee may utilize alternative

procurement methods to purchase certain items when determined to be more practical or

advantageous to the District. Alternative procurement methods including informal price

quotations and direct negotiations may be used for the following:

8.2.1 Used vehicles including used material handling equipment, heavy equipment,

grounds/facilities maintenance equipment, etc.;

8.2.2 Hotel conference facilities and services;

8.2.3 Food/catering services for approved events and training/instructional programs;

8.2.4 Honorariums for speakers and professional trainers/instructors;

8.2.5 School fundraising activities including book fairs; and

8.2.6 Products purchased for re-sell.

8.3 Documentation. Documentation of the alternative procurement method utilized shall be

part of the contract file.

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9. EMERGENCY PROCUREMENTS

9.1 Emergency Condition Defined. An emergency condition is a situation which creates a

threat to public health, welfare, or safety as may arise by reason of floods, epidemics,

riots, equipment failures, or other reason as may be determined by the Director of

Purchasing or designee. The existence of this condition creates an immediate and

serious need for supplies, services, or construction that cannot be met through normal

procurement methods.

9.2 Authority to Make Emergency Procurements. Emergency procurements using other

than normal bid or price quotation procedures may be made only by the Purchasing

Department, except that, local school/district administrators confronted with an emergency

condition occurring after normal business hours, on weekends or District holidays are

authorized to make the necessary purchase(s) to meet the emergency. The Purchasing

department shall be notified promptly or as reasonably practical. 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.

10. SPECIFICATION DEVELOPMENT

Responsibility. Specifications shall be drafted by the school, department, etc. or the appropriate

supervisor and submitted with the requisition. Specifications shall be drafted with the objective of

clearly describing the requirements and of encouraging competition by identifying satisfactory

alternate descriptions, use of standard specification, and use of brand name, but only as a means

of defining the standard of quality, function and performance characteristics desired. Procedures

for specification development are determined specifically by Title 63G Chapter 6 Part 3 of the

State Procurement Code and District Purchasing procedure. Refer to those sources for greater

detail than is provided in this policy.

11. PURCHASING FILES

11.1 Prospective Bidder File. The Purchasing Department shall maintain or cause a third-

party service provider to 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 Department’s

effort to solicit all available sources. All schools or departments should refer prospective

vendors to the Purchasing Department for inclusion on the prospective bidder file.

11.2 Solicitation File. A file shall be maintained in the Purchasing Department of all

solicitations currently pending.

11.3 Completed Solicitation File. After the opening of solicitations, they become public

information except for information protected under the Governmental Records Access

and Management Act (GRAMA) Title 63, Chapter 2 of the Utah Code. A file shall be

maintained retaining the solicitations, solicitation comparison sheets, other submittals,

and rationale in awarding.

12. PURCHASING AND TRAVEL CARDS

12.1 Definition. As used herein, purchasing/travel cards, mean purchasing instruments

provided by a financial institution designated by the Superintendent’s Office for the

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purpose of making purchases of predetermined amounts, so that personnel efficiency and

financial resources are maximized. Purchasing/travel card use is limited to the type of

credit instrument which is fully due and payable each thirty (30) days. This policy

prohibits use 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. Purchasing/Travel

cards shall

have pre-approved spending and product limitations and shall be used only for purchases

of less than $1,000 and $30,000 respectively or as otherwise authorized in section 4.2 of

this policy. Travel cards shall be used for pre-approved travel expenses limited to airfare,

hotel, car rental, gas stations, and eating establishments.

12.2 Purpose.

12.2.1 To maximize the use of educational funding while providing necessary controls;

12.2.2 To provide a reasonable and orderly system for use of purchasing/travel cards

and credit instruments within the District;

12.2.3 To insure federal, state and District financial policies are observed in relation to

use of purchasing/travel cards and credit instruments;

12.2.4 To establish reasonable controls, limits and procedures in regard to

purchasing/travel card use; and

12.2.5 To establish disciplinary measures relative to the purchasing/travel card

programs.

12.3 Responsibility.

The purchasing/travel card programs shall be administered under the direction of the

District Business Administrator. Principals and District Office department budget

managers are responsible for the oversight and proper functioning of the card programs at

their respective locations as defined in this policy and in District procedures. Cardholders

must accept and abide by the terms of the User Agreement. Use of purchasing/travel

cards for personal items or cash advances is prohibited. The cardholder is personally

responsible for their intentional unauthorized use of this privilege, excessive, flagrant or

unresolved charges are causes for card cancellation and/or disciplinary action up to the

including termination. The budget manager is authorized to request suspension or

cancellation of card privileges.

12.4 Requesting Cards. Requests for cards shall be submitted electronically via the Encore

system and be pre-approved prior to issuance.

13. GIFT CARDS

Documentation. The acquisition of gift cards with District funds and purchasing instruments is

prohibited unless the gift cards are controlled by gift card inventories and issuance records.

14. DISPOSITION OF EXCESS AND SURPLUS PROPERTY

14.1 Definitions.

14.1.1 Under this section, the term “property” means all tangible assets such as

equipment, materials, supplies, furniture, textbooks, etc. The “property”

specifically excludes real property (land) holdings. The disposition of surplus

property is authorized under Utah Code Ann. §63A-9-801 and §53A-12-207.

14.1.2 Under this section, the term “excess property” means property no longer in use or

needed at a specific location, regardless of condition, is considered excess

property when, in all likelihood, it can be used to satisfy an existing need at other

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District locations. School/department administrators shall make arrangements

with the MDC to facilitate the transfer/removal of excess property in accordance

with District procedures.

14.1.3 Under this section, the term “surplus property” means properties transferred to the

MDC when no other internal use of the property can be established.

14.2 All Property is District Property. Existing property and property acquired by schools or

departments, excluding leased or loaned, regardless of funding source; whether by

transfer, gift, grant or by donation is District property. The District Business Administrator

or designee determines the disposition of all excess and surplus property.

14.3 Authority of Schools/Departments in the Disposition of Property. No school or

department may give, donate, sale, barter, trade, advertise or post for sale District

property, regardless of condition, to any person, group, organization or District employee

except as may be authorized by the District Business Administrator. All proceeds

acquired as a result of the District’s Business Administrator’s authorization belong to the

District.

14.4 Pick Up and Delivery Fees. The MDC is authorized to charge schools/departments a

pick-up and delivery fee to cover additional labor, fuel and vehicle operating expenses

incurred beyond its control as a result of the requestor’s controllable actions or inactions.

Examples of conditions that may warranty a fee are found in the department’s procedures.

14.5 Authority of Director of Purchasing in the Disposition of Property. The Director of

Purchasing is authorized to oversee the use, storage and final disposition of all excess

and surplus properties and is authorized to delegate responsibility to others to help make

such determinations.

14.6 Inspection of Excess Property Prior to Request for New. District administrators are

strongly encouraged to first inspect available excess property and utilize that which would

satisfy business needs before submitting a requisition to purchase new.

14.7 Disposal of Surplus Property.

14.7.1 The Director of Purchasing shall dispose of the surplus in the most cost effective

and efficient manner attempting to recoup the maximum value. Whenever

possible and practical, attempts to dispose of the surplus might include the

following before disposing as trash or refuse:

[a] Return the property to the original supplier for credit;

[b] Issue a competitive request for offers;

[c] Hold a public auction or surplus sale; or

[d] Sell as recyclable scrap material.

14.7.2 District Employee Preference. District employees shall not be afforded special

privileges or preferences in acquiring surplus property not already provided to the

general public. Employees may respond to a competitive bid solicitation or

participate in a public sale or auction. Items sold to employees shall be at the

same rate sold to the general public.

14.7.3 Authority to Establish Pricing. The Director of Purchasing or designee shall

enable staff to set and establish market pricing and give authority to negotiate a

fair and reasonable price with the public. The primary intent of establishing

pricing is to recoup the cost of storage, handling, sale/auction expenses and any

anticipated disposal costs.

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14.8 Use of Third-Party Software Tools. This policy authorizes the Director of Purchasing &

Materials Distribution the option to utilize third-party eProcurement or eSurplus software

solution tools and services to efficiently and effectively manage the storage, sale and

disposition of excess and surplus District property as an alternative to or in addition to a

public auction or sale.

14.9 Computers, Cell Phones and Textbooks. The disposition of surplus computers, cell

phones and textbooks shall be treated the same as with any other surplus item with

certain exceptions. Textbook disposal is subject to Utah Code Ann. §53A-12-207, Utah

Administrative Rule R277-433 and District policy 4I-001. Refer to the Purchasing

Procedures for exceptions and proper handling.

14.10 Referral of Questions. Refer all questions regarding excess or surplus property to the

Purchasing Department.

15. ILLEGAL ACTIVITIES

15.1 Employee Acting in Official Capacity. Any person acting as a procurement officer for

the Davis 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.

15.2 Employee Use of Employment Position or Influence. Any person using their

employment position or influence at the Davis 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:

15.2.1 Purchases at discounted rates not available to the general public;

15.2.2 Acceptance of goods and services at no or reduced cost; or

15.2.3 Purchases with the intent of avoiding sales taxes.

15.3 Permissible Employee Exception. It is permissible to obtain goods and services for

personal use at discounted rates where suppliers typically offer educational discounts to

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 shall not be made through the use of

District purchase orders or purchasing/travel cards.

15.4 Vendor Actions. A person who is interested in any way in the sale of any supplies,

services, construction, real property, or insurance to the Davis 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.

15.5 Permissible Vendor Exception. A person who is interested in expressing tangible

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appreciation to the District and wishes to remain compliant with this section; is

encouraged to donate directly to the Davis School District Foundation which has been

specifically established for the purpose of accepting contributions and donations from

patrons and friends of education, and as an established 501(c)(3) non-profit organization,

qualifies the donor for possible tax advantages. Otherwise, donor commitments to always

strive to be responsible and responsive to District needs and to provide quality products

and services at fair prices in a reasonable time frame is an adequate and sufficient

expression of appreciation.

16. LEGAL AND CONTRACTUAL REMEDIES

16.1 Protesting Procurement Actions. Any actual or prospective bidder, offeror, or

contractor who is aggrieved in connection with the solicitation or award of a contract may

protest to the Director of Purchasing. A protest with respect to an invitation for bids or a

request for proposals shall be submitted in writing prior to the opening of bids or the

closing date for proposals, unless the aggrieved person did not know and should not have

known of the facts giving rise to the protest prior to bid opening or the closing date of

proposals. The protest shall be submitted in writing with five (5) working days after the

aggrieved person knows or should have known of the facts giving rise thereto. The

Director of Purchasing shall have the authority, prior to the commencement of an action in

court concerning the controversy, to settle and resolve the protest.

16.2 Jurisdiction and Appeal. Unless an action has been initiated previously in district courts

for essentially the same cause of action, the Davis School District Board of Education

shall have jurisdiction to review and determine de novo:

16.2.1 Any protest of a solicitation or award of a contract addressed, in writing, to the

District’s Business Administrator by an aggrieved actual or prospective bidder or

offeror, or a contractor; and

16.2.2 Any appeal by an aggrieved party from a decision rendered or considered to have

been rendered pursuant to section 16.1 above.

6F-103 Purchasing Policy

Document History:

Adopted: July 1, 1982

Adopted: July 1, 1994 - Updated to comply with subsequent legislative changes through March 1994.

Revised: April 18, 1995

Revised: June 16, 1998 - purchasing card added

Revised: October 17, 2000 - took out procedure; added travel card

Revised: September 23, 2003 - changes to requisition creation and purchase approval; added small purchases for

construction less than $50,000

Revised: August 17, 2004 - added small purchases for architect-engineer services less than $50,000

Revised: December 19, 2008 - increased purchase card transaction limit per purchase from $250 to $1,000

Revised: February 3, 2009 - Increased travel card transaction limit per purchase to $30,000. Made technical changes to

take into account changes in the District purchasing procedure which removed the ability of schools to issue checks.

Added sections for disposition of excess and surplus property and legal and contractual remedies.

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REFERENCES

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 Davis School District Board of Education are as directed by the statute and are complimentary

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), 101.5, 103 and 105 -

An officer or employee of a school District may not make a purchase or encumber 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 $50,000.00 or

less.

Utah Administrative Code R33-5-530

- Construction & Architect-Engineer Selection - Small

purchases $50,000.00 or less.

Davis 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 Davis School District.

FORMS

Expenditure Request Authorization Form

Cardholder Disciplinary Warning/Termination Notice

Single/Sole Source Request Form

Emergency Procurement Justification Form