HPCSD BOE Policy 6700-R : Purchasing Regulation

The following sets forth the procedures for the procurement of goods and services by the district:

I. Definitions

Purchasing Contract: a contract involving the acquisition of commodities, materials, supplies or equipment.

Public Work Contract: a contract involving services, labor or construction.

II. General Municipal Law

The General Municipal Law requires that purchase contracts for materials, equipment and supplies involving an estimated annual expenditure exceeding $10,000 and public work contracts involving an expenditure of more than $20,000 will be awarded to the lowest responsible, responsive bidder after bids have been received in response to a public advertisement soliciting formal bids. Similar procurements to be made in a fiscal year will be groped together for the purpose of determining whether a particular item must be bid.

III. Competitive Bidding Required

1. Method of Determining Whether Procurement is Subject to Competitive Bidding
   1. The district will first determine if the proposed procurement is a purchase contract or a contract for public work,
   2. If the procurement is either a purchase contract or a contract for public work, the district will then determine whether the amount of the procurement is above the applicable monetary threshold as set forth above.
   3. The district will also determine whether any exceptions to the competitive bidding requirements (as set form below) exist.
2. Contract Combining Professional Services and Purchase
   
   In the event that a contract combines the provision of professional services and a purchaser, the district, in determining the appropriate monetary threshold criteria to apply to the contract will determine whether the professional service or the purchase is the predominant part of the transaction.
   
   
3. Opening and Recording Bids: Awarding Contracts
   
   The Purchasing Agent will be authorized to open an records bids. Contracts will be awarded to the lowest responsible bidder (as recommended by the Purchasing Agent), who has furnished the required security after responding to an advertisement for sealed bids.
   
   
4. Documentation of Competitive Bids and Sealed Proposals
   
   The district will maintain proper written documentation which will set for the method in which it determined whether the procurement is a purchase or a public work contract. Proper written documentation will also be required when a contract is not awarded to the vendor submitting the lowest quote, setting forth the reasons therefore. A quote which exceeds the bid limit will be awarded only when such award is in the best interests of the district and otherwise furthers the purposes of section 1040-b of the General Municipal Law. The district will provide justification and documentation of any such contract awarded.
   
   
5. Leases of Personal Property


In addition to the above-mentioned competitive bidding requirements, section 1725 of the Education Law requires that the district will be subject to competitive bidding requirements for purchase contracts when it enters into a lease of personal property.

Documentation: The district will maintain written documentation such as quotes, cost-benefit analysis of leasing versus purchasing, etc.

Any legal issues regarding the applicability of competitive bidding requirements will be presented to the school attorney for review.

IV. Exceptions to Competitive Biddjng Requirements.

The district will not be subject to competitive bidding requirements when the Board, in its discretion, determines mat one of the following situations exists:

1. emergency situations where:
1. the situation arises out of in accident or unforeseen occurrence or condition;
2. a district building, property, and the life, health, or safety of an individual on district property is affected; or
3. the situation requires immediate action which cannot await competitive bidding.

However, when the Board passes a resolution that an emergency situation exists, the district will make purchases at the lowest possible costs, seeking competition by informal solicitation of quotes or otherwise, to the extent practicable under the circumstances.

Documentation: The district will maintain record written quotes;


2. when the district purchases surplus or second-hand supplies, materials or equipment from the federal or state governments or from any other political subdivision or public benefits corporation within the state.


Documentation: The district will maintain market price comparisons (verbal or written quotes) and the name of the government entity;


3. when the Board separately purchases eggs, livestock, fish and dairy products (other than milk), juice, grains and species of fresh fruits and vegetables directly from producers and growers. The amount expended in any fiscal year by the district may not exceed an amount equal to fifteen cents multiplied by the number of days in the school year multiplied by the total enrollment of the district.


Document: The district will maintain documentation consistent with sections 114.3 and 114.4 of the Regulation of the Commissioner of Education.


4. when the district purchase goods, supplies and services form municipal hospitals under joint contract and arrangements entered into pursuant to §2803-a of the Public Health Law.


Documentation: The district will maintain the legal authorization, board authorization and market price comparison; or


5. when there is only one possible source form which to procure goods or services required in the public interest


Document: The district will maintain written documentation of the unique benefits of the item or service purchased as compared to other items or services available in the marketplace; that no other item or service provides substantially equivalent or similar benefits; and that, considering the benefits received, the cost of the item or service is responsible, when compared to conventional methods. In addition, the documentation will provide that there is no possibility of competition for the procurement of the goods.

V. Quotes When Competitive Bidding Not Required

Goods and services which are not required by law to be procured by the district through competitive bidding will be procured in a manner so as to ensure the prudent and economical use of public monies in the best interests of the taxpayers. Alternative proposals or quotations will be secured by requests for proposals, written or verbal quotations or any other appropriate method of procurement, as set forth below.

1. Methods of Documentation
1. Verbal Quotations: the telephone log or other record will set forth, at a minimum, the date, item or service desired, price quoted, name of vendor, name of vendor's representative;
2. Written Quotations: vendors will provide, at a minimum, the date, description of the item or details of the service to be provided, price quoted, name of contact For example, with regard to insurance, the district will maintain documentation that will include bid advertisements, specifications and the awarding resolution. Alternatively, written or verbal quotation forms will serve as documentation if formal bidding is not required. "Request for Proposals" (RFPs"), documented in the same manner as described herein, may also be used; services required in the public interest.
3. Requests for Proposals: the district will contact a number of professionals (e.g., architects, engineers, accountants, lawyers, underwriters, fiscal consultants, etc.) and request that they submit written proposals. The RFPs may include negotiations on a fair and equal basis. The RFPs and evaluation of such proposals will consider price plus other factors such as:
1. the special knowledge or expertise of the professional or consultants service;
2. the quality of the service to be provided;
3. the staffing of the service; and
4. the suitability for the district's needs.


The district will first locate prospective qualified firms by:
1. advertising in trade journals;
2. checking listings of professional; or
3. making inquiries of other district or other appropriate sources.


The district will then prepare a well-planned RFP which contain critical details of the engagement, including the method which it will use in selecting the service.


2. Purchases/Public Work: Methods of Competition to be Used for Non-Bid Procurements: Documentation to be Maintained


The district will require the following methods of competition be used and sources of documentation maintained when soliciting non-bid procurements in the most cost-effective manner possible:
1. Purchase Contract up to $10,000:
1. Contracts from $1 to $999: Verbal quotes


Documentation will include notations of verbal quotes.
2. Contracts from $1,000 to $10,000: Written quotes



2. Public Work Contracts up to $20,000:
1. Contracts form $1 to $9,999: Verbal quotes


Documentation will include notations of verbal quotes.
2. Contracts from $10,000 to $20,000: Written quotes
3. Emergencies: Verbal quotes
4. Insurance: Written quotes


Documentation will include bid advertisements, specifications and the awarding resolution. Alternatively, written or verbal quotation forms will serve as documentation if formal bidding is not required. "Requests for Proposals" (RFPs), documented in the same manner as described herein, may also be used.
5. Professional Services: RFP


Documentation will include written proposals.
6. Leases of Personal Property: Written quotes


Documentation will include written quotes, cost-benefits analysis of leasing versus purchasing, etc. The district will note that the contract is a true lease and not an installment purchase contract.
7. Second Hand Equipment from Other Governments: Written quotes Documentation will include market price comparisons (verbal or written quotes) and the name of the government.
8. Certain Food and Milk Purchases: Written quotes Documentation will be consistent with" §§114.3 and 114.4 of the Regulations of the Commissioner of Education.
9. Certain Municipal Hospital Purchase: RFP


Documentation will include the legal authorization, Board authorization, and market price comparisons.
10. Sole Source: Written quotes


Documentation will include, among other things, the unique benefits of the patented item as compared to other items available in the marketplace; that no other item provides substantially equivalent or similar benefits; and that considering the benefits received, the cost of the item is reasonable, when compared to conventional methods. Notations of verbal quotes will be maintained by the district. In addition, the district will document that there is no possibility of competition for the procurement of the goods.
11. Under a County Contract.
12. Under a State Contract.
13. Of articles manufactured in state correctional institutions; or
14. from Agencies for the blind and severally disabled.

VI. Quotes Not Required When Competitive Bidding Not Required

In addition, the district will not be required to secure such alternative proposals or quotations for:

1. during emergencies where circumstances affecting public buildings, public property or the life, health, safety or property of the inhabitants of the district require immediate action.
2. procurements for which there is no possibility of competition (sole source items);
3. procurements of professional services, which, because of the confidential nature of the services, do not lend themselves to procurement through solicitations; or
4. very small procurements when solicitations of competition would not be cost-effective.

VII. Procurements from Other than the "Lowest Responsible Dollar Offeror"

The district will provide justification and documentation of any contract awarded to an offer other than the lowest responsible dollar offerer, setting forth the reasons why such award is in the best interests of the district and otherwise further the purposes of section 104B of the General Municipal Law.

VIII. Internal Control

The Board authorizes the Superintendent of Schools, with the assistance of the Purchasing Agent, to establish and maintain an internal control structure to ensure, to the best of their ability, that the district's assets will be safeguarded against loss from unauthorized use or disposition, that transactions will be executed in accordance with the law and district polices and regulations, and recorded properly in the financial records of the district

Comments will be solicited from those administrators involved in the procurement process before enactment of the district's regulations regarding purchasing and from time to time thereafter. The regulations must then be adopted by Board resolution. All district regulations regarding the procurement process will be reviewed by the Board at least annually.

The unintentional failure to fully comply with the provisions of §104B of the General Municipal Law or the district's regulations regarding procurement will not be grounds to void action taken or give rise to a cause of action against the district or any officer or employee of the district.

Reference

Adoption date

January 27,2000

Policies are presented here for convenience only and may not be complete, current or correct. Please contact the District Clerk for the current version of any policy.

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