Purchasing Best Practices Purchasing Training 093008 100208 Purchasing

Purchasing Best Practices Purchasing Training 09/30/08; 10/02/08 Purchasing Department – 235 -1017 Randy Montgomery Anna Rogers rmontgomery@wfisd. net amrogers@wfisd. net Joan Jimenez Courtney Reames jjimenez@wfisd. net creames@wfisd. net Purchasing Agent x 13004 Associate Buyer x 13001 Purchasing Buyer x 13003 Purchasing/Records Clerk x 13007

District Policies & Regulations n CH Legal n n Lists legal requirements, laws, and codes Methods, penalties, exceptions, and rules for specific products n n Bid over $25 k Formal quote process $10 k-25 k http: //www. tasb. org/policy/pol/private/243905/pol. cfm? Display. Page=CH(LEGAL). html

District Policies & Regulations n CH Local n BOT approval requirements n n If purchase exceeds $100 k If awarded to other than low bidder Contracts not in the current budget All contracts that state law requires the BOT to approve. http: //www. tasb. org/policy/pol/private/243905/pol. cfm? Display. Page=CH(LOCAL). html

District Policies & Regulations n CH Regulation n Quote all orders over $1 k (Maintenance - $2 k) District Funds: Purchase order required for $40 and above Activity Funds: Purchase order required for purchases $500 and above; payment of personal / professional services where a 1099 is required

Texas Education Code Procurement Annual Threshold n n n $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

Texas Education Code 44. 031 (Methods) n n n n n Competitive Bidding Request for Proposals, other than construction Inter-Local Contracts*** Design-Build Contracts Contract to Construct, construction manager Competitive Sealed Proposals Catalog Purchases, (CPA) DIR Vendors*** Job Order Contract Reverse Auction Formation of a political subdivision corporation*** ***Do not require advertisement.

Competitive Procurement Categories …in the aggregate for a 12 month period. TEC 44. 031 (a) n n n Athletics Custodial Food Service Instructional-Capital Instructional. Supplies Maintenance n n n Transportation Bank Depository Printed Forms Non-Professional Services Real Property Insurance Reference: Texas Education Agency – Financial Accountability System Resource Guide http: //www. tea. state. tx. us/school. finance/audit/resguide 12/purchase/

Bid, Proposal, or Quote Process (Information provided by end user) n Define the task to be performed by vendor or define item(s) to be purchased n Establish criteria for selection of bid or proposal n Determine relative importance of criteria n Identify potential vendors

Bid, Proposal or Quote Process (Purchasing) n n n n n Set timelines (mutually developed) Advertise (if required) Pre-Proposal conference (optional) Define required criteria percentages (requires input from end user) Receipt of bid or proposal Bid or proposal evaluation (requires input from end user) Negotiation with vendor(s) Award of contract Contract monitoring (requires input from end user)

BEST VALUE Evaluation/Recommendation BIDS MUST INCLUDE PERCENTAGES FOR: n Purchase Price n Reputation of Vendor & their goods or services n Quality of goods or services n Meet the District needs n Vendor’s relationship with District n Comply with laws/policies HUB n Long-term cost to the District n Any other relevant factor listed in request for bid or proposal (Total = 100%) Texas Education Code, Sections 44. 035, 44. 039 & 44. 040

Interlocal Contracts n n Requires BOT resolution prior to agreement Examples: Texas Comptroller of Public Accounts (CPA), TASB Buy. Board, The Cooperative Purchasing Network (TCPN), Texas Department of Information Resources (DIR), another school district, Education Service Centers. Follow procedure defined by Co-Op Strive to obtain “Best Value”

Catalog Purchases: Texas Department of Information Resources (DIR) Texas Administrative Code 113. 19 http: //www. dir. state. tx. us/servlet/dir. Store#searchcisv n Products or services that are associated with automation (computers) or telecommunication systems. Includes hardware, software, programming, maintenance, repair, and installation of systems. (Computers, printers, network services, etc. )

Catalog Purchases: Texas Department of Information Resources (DIR) Texas Administrative Code 113. 19 Best Practice: n Obtain minimum of 3 quotes n Verify that vendors are currently active members of Department of Information Resources (DIR) n Retain documentation

Other Funding Sources n Booster Clubs n n Follow UIL rules for all purchases Direct to Purchasing if: n Fixed asset n Item already on bid n facility improvements n Activity Funds n Direct to Purchasing if: n Item already on bid $500 & above n Personal / Professional Service requiring 1099 n

RESOURCES n n n Purchasing Department Finance Department Internal Auditor Campus Secretary Internet (Purchasing Manual) n WFISD - wfisd. net/departments/purchasing Texas Education Agency (FASRG) - n DIR - n http: //www. tea. state. tx. us/school. finance/audit/resguide 12/purchase / http: //www. dir. state. tx. us/servlet/dir. Store#searchcisv Revised 9/29/08 rm