The following sets forth the procedures for the procurement of goods and services by the district:
I. Definitions
Best value: optimizing quality, cost and efficiency. The basis for best value shall reflect, whenever possible, objective and quantifiable analysis, and may also take into consideration small businesses or certified minority or women owned business as defined in State Finance Law § 163.
Purchase 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 $20,000 and public work contracts involving an expenditure of more than $35,000 will be awarded only after responsible bids have been received in response to a public advertisement soliciting formal bids.
Similar procurements to be made in a fiscal year will be grouped together for the purpose of determining whether a particular item must be bid.
III. Competitive Bidding Required
A. Method of Determining Whether Procurement is Subject to Competitive Bidding
- The Purchasing Agent will first determine if the proposed procurement is a purchase contract or a contract for public work.
- If the procurement is either a purchase contract or a contract for public work, the Purchasing Agent will then determine whether the amount of the procurement is above the applicable monetary threshold as set forth above.
- The district Purchasing Agent will also determine whether any exceptions to the competitive bidding requirements (as set forth below) exist.
- All advertised bids shall include the following statement required by General Municipal Law 103-g: “By submission of this bid, each bidder and each person signing on behalf of any bidder certifies, and in the case of a joint bid each party thereto certifies as to its own organization, under penalty of perjury, that to the best of its knowledge and belief that each bidder is not on the list created pursuant to paragraph (b) of subdivision 3 of section 165-a of the state finance law.”
In order to be considered a responsible bidder, entities must certify that they are not on the list created and maintained by the State Office of General Services cataloging significant investment in the Iranian energy sector. Such statement may be submitted electronically pursuant to General Municipal Law §103(1). Entities that cannot make this certification may only be awarded the bid if:
1. The entity’s investment activities in Iran were made before April 12, 2012; the investment activities in Iran have not been expanded or renewed after that date; and the entity has adopted, publicized, and is implementing a formal plan to cease the investment activities in Iran and to refrain from engaging in any new investments in Iran; or
2. The district makes a determination, in writing, that the goods or services are necessary for the district to perform its functions and that, absent such an exemption, the district would be unable to obtain the goods or services for which the contract is offered.
B. Contract Combining Professional Services and Purchase
In the event that a contract combines the provision of professional services and a purchase, the Purchasing Agent, 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.
C. Opening and Recording Bids; Awarding Contracts
The Purchasing Agent, or his/her designee, will be authorized to open and record bids. Contracts will be awarded to the lowest responsible bidder (as recommended by the Purchasing Agent), or to the vendor offering best value (as determined by the Purchasing Agent), who has furnished the required security after responding to an advertisement for sealed bids.
D. Documentation of Competitive Bids
The Purchasing Agent will maintain proper written documentation which will set forth 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 104-b of the General Municipal Law. The Purchasing Agent will provide justification and documentation of any such contract awarded.
E. 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 Purchasing Agent 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 Bidding Requirements
The district will not be subject to competitive bidding requirements when the Board of Education, faces an emergency situation, as defined under General Municipal Law Section 103(4), where time is a crucial factor as determined by the Board of Education (or its designee).
A. Emergency situations are defined as:
- a situation that arises out of an accident or unforeseen occurrence or condition;
- a district building, property, or the life, health, or safety of an individual on district property is affected; or
- the situation requires immediate action which cannot await competitive bidding.
However if the Board passes a resolution that an emergency situation exists, the Purchasing Agent will make purchases in accordance with existing board policy.
Documentation: The Purchasing Agent will maintain records of verbal (or written) quotes when;
B. the purchase of surplus or second-hand supplies, materials or equipment from the federal or State governments or from any other political subdivision or public benefit corporation within the State.
Documentation: The Purchasing Agent will maintain market price comparisons (verbal or written quotes) and the name of the government entity;
C. the purchase of eggs, livestock, fish and dairy products (other than milk), juice, grains and species of fresh fruits and vegetables directly from New York State producers or growers, or associations of producers and growers, subject to the requirements of General Municipal Law § 103(9) and Commissioner’s Regulations §114.3. The amount expended in any fiscal year by the district may not exceed an amount equal to twenty-five cents multiplied by the number of days in the school year multiplied by the total enrollment of the district.
Documentation: The Purchasing Agent will maintain documentation consistent with sections 114.3 and 114.4 of the Regulations of the Commissioner of Education;
D. the purchase of goods, supplies and services from municipal hospitals under joint contracts and arrangements entered into pursuant to section 2803-a of the Public Health Law.
Documentation: the Purchasing Agent will maintain the legal authorization, board authorization and market price comparisons;
E. the purchase of milk directly from licensed milk processors employing less than forty (40) people. The amount expended in any fiscal year by the district may not exceed an amount equal to twenty-five cents multiplied by the number of days in the school year multiplied by the total enrollment of the district or exceed the current market price.
Documentation: the Purchasing Agent will maintain documentation consistent with section 114.4 of the Regulations of the Commissioner of Education;
F. the purchase of only one possible source from which to procure goods or services required in the public interest.
Documentation: The Purchasing Agent 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 reasonable, when compared to conventional methods. In addition, the documentation will provide that there is no possibility of competition for the procurement of the goods.
G. the purchase of goods or services through the contracts of (or “piggybacks” onto) other governmental entities as authorized by law, for certain goods and services permitted by law. Factors relevant to the decision to “piggyback” may include cost, staff time, delivery arrangements, quality of goods and services, and suitability of such goods and services to the district’s needs.
Documentation: The Purchasing Agent will keep documentation indicating why “piggybacking” is in the best interests of the district, and that the originating contract was let in a manner consistent with applicable competitive bidding requirements.
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.
(See Exhibit 6700-E.1)
A. Methods of Documentation
- 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; (See Exhibit 6700-E.1)
- Written Quotations: vendors will provide, at a minimum, the date, description of the item or details of 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 verbalquotation 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;
- Requests for Proposals: the district will contact a number of professionals (e.g., architects, engineers, accountants, lawyers, underwriters, fiscal consultants, etc.) and requestthat they submit written proposals. The RFPs may includenegotiations on a fair and equal basis. The RFPs and evaluation of such proposals will consider price plus other factors such as the:
- special knowledge or expertise of the professional or consultant service;
- quality of the service to be provided;
- staffing of the service; and
- suitability for the district’s needs.
The Purchasing Agent will first locate prospective qualified firms by:
- checking listings of professionals; or
- making inquiries of other districts or other appropriate sources.
The Purchasing Agent will then prepare a well-planned RFP which will contain critical details of the engagement, including the methods which it will use in selecting the service.
B. Purchases/Public Work; Methods of Competition to be Used for Non-Bid Procurements; Documentation to be Maintained
The Purchasing Agent 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:
- Purchase Contracts up to $19,999a.
Contracts from $1 to $19,999: Verbal/Written/Other Quotes - Public Work Contracts up to $34,999a.
Contracts from $1 to $34,999: Verbal/Written Quotes - Emergencies: Verbal Quotes
Documentation will include notations of verbal quotes - 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. - Professional Services: RFP
The solicitation of competitive quotes will be completed on an individual basis by the Purchasing Agent. - Leases of Personal Property: Written Quotes
Documentation will include written quotes, cost-benefit analysis of leasing versus purchasing, etc. The Purchasing Agent will note that the contract is a true lease and not an installment purchase contract. - Second Hand Equipment from Other Governments: Written quotes Documentation will include market price comparisons (verbal or written quotes) and the name of the government.
- Certain Food and Milk Purchases: Written Quotes Documentation will be consistent with sections 114.3 and114.4 of the Regulations of the Commissioner of Education.
- Certain Municipal Hospital Purchases: RFP Documentation will include the legal authorization, Board authorization, and market price comparisons.
- Sole Source: Written or verbal quotes
Documentation will include, the unique benefits of the patented item as compared to other items available in the marketplace; that no other item provide 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 Purchasing Agent
In addition, the Purchasing Agent will document that there is no possibility of competition for the procurement of the goods.
VI. Quotes Not Required When Competitive Bidding Not Required
The Purchasing Agent will not be required to secure alternative proposals or quotations for those procurements:
- through the use of a contract issued by the United States of America or any agency thereof, any state or any other county or political subdivision or district therein if such contract was issued in a manner that constitutes competitive bidding consistent with state law and made available for use by other governmental entities; or(See Exhibit 6700-E.1)
- of articles manufactured in State correctional institutions; or
- from agencies for the blind and severely disabled.
(Note: The Board will be apprised of purchases in excess of $10,000 for items procured under one of these contracts)
In addition, the Purchasing Agent will not be required to secure such alternative proposals or quotations for:
- emergencies, as defined under General Municipal Law Section 103(4), where time is a crucial factor as determined by the Board of Education (or its designee);
- procurements for which there is no possibility of competition (sole source items);
- procurements of professional services, which, because of the confidential nature of the services, do not lend themselves to procurement through solicitation; or
very small procurements when solicitations of competition would not be cost effective.
The Board of Education may from time to time appoint an Ad Hoc Committee to secure proposals for professional services such as internal auditor, financial auditor, and lawyers due to the confidential nature of their services, especially those services that report to the Board of Education.
The Purchasing Agent may from time to time establish an informal committee to solicit professional services such as banking, insurance, architecture or technical services but not of a confidential nature.
VII. Professional Services when not Taking Dollar Offer
The Purchasing Agent will provide justification and documentation of any contract awarded to a professional service provider other than the lowest responsible dollar offer, setting forth the reasons why such award is in the best interests of the district and otherwise furthers the purposes of section 104-b of the General Municipal Law.
VII. Internal Control
The Board authorizes the Superintendent, with the assistance of the Purchasing Agent, to establish and maintain an internal control structure whereby, to the best of their ability, all transactions will be executed in accordance with the law and district policies and regulations, and recorded properly in the financial records of the district.
It should be recognized that, from time to time, some degree of professional judgement will need to be exercised in adhering to these guidelines.
The unintentional failure to fully comply with the provisions of section 104-b 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.
Ref:
Education Law §§305(14); 1709(9)(14)(22)
General Municipal Law §100-a, 102; 103; 104-b; 109-a; 800 et seq.
8 NYCRR §§114.3; 114.4; 170.2
Note: Prior regulation, Purchasing, 3320(a)-(f)
June 29, 1992
June 22, 1998
October 26, 2009
April 22, 2010
Amended: August 25, 2014
Amended: October 24, 2016
Documentation: The Purchasing Agent will maintain records of verbal (or written) quotes when;
B. the purchase of surplus or second-hand supplies, materials or equipment from the federal or State governments or from any other political subdivision or public benefit corporation within the State.
Documentation: The Purchasing Agent will maintain market price comparisons (verbal or written quotes) and the name of the government entity;