ARTICLE 10. SCHOOL DISTRICT PROCUREMENT

R7-2-1001. Definitions

In this Article, unless the context otherwise requires:

1. 'Advantageous to the school district' means in the best interest of the school district; does not necessarily mean lowest bid/cost.

2. 'Affiliate' means any person whose governing instruments require it to be bound by the decision of another person or whose governing board includes enough voting representatives of the other person to cause or prevent action, whether or not the power is exercised. It also may include persons doing business under a variety of names, or where there is a parent-subsidiary relationship between persons.

3. 'Application benefit' means a quantified assessment of the benefits to be achieved in school district program and support areas by the information systems or telecommunications systems proposed by the vendor, including reasonably projected reductions in program costs and increases in productivity of school district personnel.

4. 'Architect services,' 'engineer services,' 'land surveying services,' 'assayer services,' 'geologist services' and 'landscape architect services' means those professional services within the scope of the practice of those services as provided in A.R.S. Title 32, Chapter 1, Article 1.

5. 'Bid sample' means an item furnished by a bidder to show the characteristics of the item offered in the bid.

6. 'Bidder prequalification' means determining in accordance with this Article that a prospective bidder or offeror satisfies the criteria for being included on the bidders' list.

7. 'Brand name or equal specification' means a specification that uses one or more manufacturers' names or catalogue numbers to describe the standard of quality, performance, and other characteristics needed to meet school district requirements, and that provides for the submission of equivalent products.

8. 'Brand name specification' means a specification limited to one or more items by manufacturers' names or catalogue numbers.

9. 'Business' means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture or any other private legal entity.

10. 'Capability' means capability at the time of contract award.

11. 'Change order' means a written order which directs the contractor to make changes that the changes clause of the contract authorizes the governing board to order.

12. 'Clergy' means a minister of a religion.

13. 'Construction' means the process of building, altering, repairing, improving or demolishing any public structure or building, or other public improvements of any kind to any public real property. Construction does not include the routine operation, routine repair or routine maintenance of existing structures, buildings or real property.

14. 'Contract' means all types of agreements, including purchase orders, regardless of what they may be called, for the procurement of materials, services or construction or the disposal of materials.

15. 'Contract modification' means any written alteration in the terms and conditions of any contract accomplished by mutual action of the parties to the contract.

16. 'Contractor' means any person who has a contract with a school district.

17. 'Cooperative purchasing' means procurement conducted by, or on behalf of, more than one public procurement unit.

18. 'Cost' means the aggregate cost of all materials and services, including labor performed by force account.

19. 'Cost analysis' means the evaluation of cost data.

20. 'Cost data' means information concerning the actual or estimated cost of labor, material, overhead and other cost elements that have been actually incurred or that are expected to be incurred by the contractor in performing the contract.

21. 'Cost-plus-a-percentage-of-cost contract' means a contract that, prior to completion of the work, the parties agree that the fee will be a predetermined percentage of the total cost of the work.

22. 'Cost-reimbursement contract' means a contract under which a contractor is reimbursed for costs which are reasonable, allowable and allocable in accordance with the contract terms and the provisions of this Article, and a fee, if provided for in the contract.

23. 'Data' means documented information, regardless of form or characteristic.

24. 'Days' means calendar days and shall be computed pursuant to A.R.S. § 1-243.

25. 'Debarment' means an action taken under R7-2-1161 et seq., to prohibit a person from participating in school district procurements.

26. 'Defective data' means data that is inaccurate, incomplete or noncurrent.

27. 'Dentist' means a person defined in A.R.S. § 32-1202 who also is licensed pursuant to A.R.S. Title 32, Chapter 11.

28. 'Descriptive literature' means information available in the ordinary course of business that shows the characteristics, construction or operation of an item offered in a bid or proposal.

29. 'Designee' means the governing board member or school district employee who has been delegated procurement authority by the governing board as specified by board action.

30. 'Detailed record' means minutes, which shall include the date, time, place, persons in attendance and a summary of what was said by whom and the decisions made. The minutes may be made either in writing or by a recording.

31. 'Discussions' means an exchange of information or any form of negotiation.

32. 'District representative' shall be a district employee who has been most closely involved in the procurement being protested or shall be the governing board. There may be more than one appointed for different purposes and different procurements.

33. 'Earth-moving, material-handling, road maintenance and construction equipment' means a track-type tractor, motor grader, excavator, landfill compactor, wheel tractor scraper, off-highway truck, wheel leader or track loader having a published manufacturer's minimum unit list price of $50,000 or more and a minimum expected life cycle of three years.

34. 'Eligible procurement unit' means a public procurement unit or a nonprofit educational or public health institution.

35. 'Employee' means an individual drawing a salary from a school district and any noncompensated individual performing personal services for any school district.

36. 'Excess materials' means any materials which have a remaining useful life but which are no longer required by the using district in possession of the materials.

37. 'Expendable materials' means all tangible materials other than nonexpendable materials.

38. 'Fair market value' means the price at which sales have been consummated for assets of like type, quality, and quantity in a particular market at the time of acquisition.

39. 'Filed' means delivery to the district representative, school district or its hearing officer, whichever is applicable. A time/date stamp affixed to a document by the school district shall be determinative of the time or delivery for purposes of filing.

40. 'Finished goods' means units of manufactured product awaiting sale.

41. 'Force account' means work performed by the school district's regularly employed personnel.

42. 'Governing board' has the meaning defined in A.R.S. § 15-101(7).

43. 'Incremental award' means an award of portions of a definite quantity requirement to more than one contractor. Each portion is for a definite quantity and the sum of the portions is the total definite quantity required.

44. 'Information systems' means a system of hardware, software or vendor support costing more than $100,000 that processes information or data by electronic data processing methods and devices.

45. 'Interested party' means an actual or prospective bidder or offeror whose economic interest may be affected substantially and directly by the issuance of a solicitation, the award of a contract or by the failure to award a contract. Whether an actual or prospective bidder of offeror has an economic interest will depend upon the circumstances of each case.

46. 'Invitation for bids' means all documents, whether attached or incorporated by reference, which are used for soliciting bids in accordance with the procedures prescribed in R7-2-1024.

47. 'Legal counsel' means a person licensed as an attorney pursuant to rules of the Arizona Supreme Court, Vol. 17A, A.R.S.

48. 'Life cycle' means the useful life of the information systems, telecommunications systems or equipment to the original using school district to perform the application for which it was initially procured.

49. 'Local public procurement unit' means any political subdivision and any agency, board, department, or other instrumentality of such political subdivision.

50. 'Materials' means all property, including equipment, supplies, printing, insurance and leases of property, but does not include land, a permanent interest in land or real property or leasing space.

51. 'May' denotes the permissive.

52. 'Minor informality' means mistakes, excluding judgmental errors, that have negligible effect on price, quantity, quality, delivery or other contractual terms and the waiver or correction of such mistake does not prejudice other bidders or offerors.

53. 'Multiple award' means an award of an indefinite quantity contract for one or more similar materials or services to more than one bidder or offeror.

54. 'Multistep sealed bidding' means a two-phase process consisting of a technical first phase composed of one or more steps in which bidders submit unpriced technical offers to be evaluated by the school district and a second phase in which those bidders whose technical offers are determined to be acceptable during the first phase have their price bids considered.

55. 'Nonexpendable materials' means all tangible materials which have an original acquisition cost over an amount set by regulation and a probable useful life of more than one year.

56. 'Nonprofit educational or public health institution' means any educational or public health institution, no part of the income of which is distributable to its members, directors, or officers.

57. 'Outright purchase' means the initial cost to the school district for the earth-moving, material-handling, road maintenance and construction equipment or any other equipment, including all vendor charges and financing costs.

58. 'Paper' means newspaper, high-grade office paper, fine paper, bond paper, offset paper, xerographic paper, duplicator paper and related types of cellulosic material containing not more than 10% by weight or volume of noncellulosic material such as laminates, binders, coatings or saturants.

59. 'Paper product' means paper items or commodities, including paper napkins, towels, corrugated paper and related types of cellulosic products containing not more than 10% by weight or volume of noncellulosic material such as laminates, binders, coatings or saturates.

60. 'Person' means any corporation, business, individual, union, committee, club, other organization or group of individuals.

61. 'Physician' means a person licensed pursuant to A.R.S. Title 32, Chapter 13 or 17.

62. 'Post-consumer material' means a discard generated by a business or residence that has fulfilled its useful life. Post-consumer material does not include discards from industrial or manufacturing processes.

63. 'Posted prices' means the sale price determined by the school district to be fair market value.

64. 'Price analysis' means the evaluation of price data.

65. 'Price data' means information concerning prices, including profit, for materials, services or construction substantially similar to those being procured under a contract or subcontract. In this definition, 'prices' refers to offered or proposed selling prices, historical selling prices or current selling prices of the items being purchased.

66. 'Procurement' means buying, purchasing, renting, leasing or otherwise acquiring any materials, services or construction. Procurement also includes all functions that pertain to the obtaining of any material, service, or construction, including description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration.

67. 'Proprietary specification' means a specification that describes a material made and marketed by a person having the exclusive right to manufacture and sell such material and excludes other material with similar quality, performance or functional characteristics from being responsive to the solicitation.

68. 'Public procurement unit' means either a local public procurement unit, the Arizona Department of Administration, or any other state or an agency of the United States.

69. 'Purchase description' means the words used in a solicitation to describe the materials, services or construction for purchase and includes specifications attached to, or made a part of, the solicitation.

70. 'Purchase request' or 'purchase requisition' means that document, or electronic transmission, whereby a school district requests that a contract be entered into for a specific need, and may include, but is not limited to, the description of the requested item, delivery schedule, transportation data, criteria for evaluation, suggested source of supply and information supplied for the making of any written determination required by this Article.

71. 'Qualified products list' means an approved list of materials described by model or catalogue numbers that, prior to competitive solicitation, the governing board has determined will meet the applicable specification requirement.

72. 'Recycled paper' means paper products which have been manufactured from materials otherwise destined for the waste stream and which contain at least 40% recovered wastepaper with 10% of that being post-consumer material.

73. 'Request for proposals' means all documents, whether attached or incorporated by reference, which are used for soliciting proposals in accordance with procedures prescribed in R7-2-1042.

74. 'Residual value' means the guaranteed minimum market value of the earth-moving, material-handling, road maintenance and construction equipment or any other equipment at the end of the life cycle of the equipment being procured, as determined by a guaranteed minimum value offered by the vendor or other parties in its bid.

75. 'Responsible bidder or offeror' means a person who has the capability to perform the contract requirements and the integrity and reliability which will assure good faith performance.

76. 'Responsive bidder or offeror' means a person who submits a bid which conforms in all material respects to the invitation for bids or request for proposals.

77. 'School district' has the meaning defined in A.R.S. § 15-101(15), whose authority is exercised by the governing board or its designee.

78. 'Shall' denotes the imperative.

79. 'Services' means the furnishing of labor, time or effort by a contractor which does not involve the delivery of a specific end product other than required reports and performance. 'Services' does not include employment agreements or collective bargaining agreements.

80. 'Solicitation' means an invitation for bids, a request for technical offers, a request for proposals, a request for quotations or any other invitation or request by which the school district invites a person to participate in a procurement.

81. 'Specification' means any description of the physical or functional characteristics, or of the nature of a material, service or construction item. Specification may include a description of any requirement for inspecting, testing or preparing a material, service or construction item for delivery.

82. 'Specification for a common or general use item' means a specification that has been developed and approved for repeated use in procurements pursuant to R7-2-1102(A).

83. 'Specified professional services' means services of an architect, engineer, land surveyor, assayer, geologist and landscape architect.

84. 'Standard commercial material' means material that, in the normal course of business, is customarily maintained in stock or readily available by a manufacturer, distributor or dealer for the marketing of such material.

85. 'Surplus materials' means any materials that no longer have any use to the school district or materials acquired from the United States government. This includes obsolete materials, scrap materials and nonexpendable materials that have completed their useful life cycle.

86. 'Suspension' means an action taken by the governing board under R7-2-1168 temporarily disqualifying a person from participating in school district procurements.

87. 'Technical offer' means unpriced written information from a prospective contractor stating the manner in which the prospective contractor intends to perform certain work, its qualifications and its terms and conditions.

88. 'Telecommunications systems' means systems costing more than $100,000, including but not limited to all instrumentalities, facilities, apparatus and services, for the transmission and reception of messages, impressions, signs, signals, pictures, sounds or any other symbols by wire, radio, optical cable, electromagnetic or other similar means.

89. 'Total cost' means total cost as defined in A.R.S. § 15-213(F).

90. 'Total life cycle cost' means vendor costs, total school district costs and financing costs throughout the life cycle of the information systems or telecommunications systems being purchased or any other equipment purchased less residual value.

91. 'Total school district costs' means costs to the school district for the information systems or telecommunications systems including energy, facilities, repair costs, present value of monies, vendor charges, personnel costs and all other identifiable school district costs.

92. 'Vendor charges' means costs of all vendor support, materials, transportation and all other identifiable costs associated with the vendor's proposal or bid.

93. 'Vendor costs' means costs of all hardware, materials, software, transportation, vendor support and all other identifiable costs associated with the vendor's proposal or bid.

94. 'Vendor support' means services provided by the vendor for items such as consulting, education, training, management of the information systems or telecommunications systems or any other systems purchased, systems planning, development, integration and maintenance and training.

95. 'Wastepaper' means recyclable paper and paperboard, including high-grade office paper, computer paper, fine paper, bond paper, offset paper, xerographic paper, duplicator paper and corrugated paper.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4). Amended effective March 21, 1991 (Supp. 91-1). Amended effective October 22, 1992 (Supp. 92-4).

R7-2-1002. Applicability

A. This Article applies to every expenditure of public monies, including federal assistance monies, by a school district as specified in A.R.S. § 15-213(A) for the procurement of all construction, materials and services when the total procurement cost exceeds the maximum amount specified in A.R.S. § 15-213(A)(1), as adjusted by the State Board of Education by April 1 of each year, in accordance with A.R.S. § 15-213(F). If procurement involves the expenditure of federal assistance or contract monies, the school district shall comply with federal law and authorized regulations which are mandatorily applicable and which are not presently reflected in this Article. This Article does not apply to agreements pursuant to A.R.S. § 15-789 or grants or contracts between governing boards, except as provided in Sections R7-2-1191 through R7-2-1195. This Article also applies to the disposal of school district materials regardless of value. Nothing in this Article shall prevent any governing board from complying with the terms and conditions of any grant, gift, bequest or cooperative agreement. (A.R.S. § 15-271(C)(3) requires the Auditor General in the Uniform System of Financial Records to prescribe guidelines applicable to procurement practices for use by school districts for amounts less than those prescribed in A.R.S. § 15-213(A) and (F), as described in this subsection.)

B. The provisions of this Article are not applicable to contracts for professional witnesses if the purpose of such contracts is to provide for professional services or testimony relating to an existing or probable judicial or administrative proceeding in which the school district is or may become a party.

C. Agreements negotiated by legal counsel representing the school district in settlement of litigation or threatened litigation are exempt from the provisions of this Article.

D. Unless displaced by the particular provisions of this Article, the principles of law and equity, including the Uniform Commercial Code of this state, the common law of contracts as applied in this state and law relative to agency, fraud, misrepresentation, duress, coercion, and mistake supplement the provisions of this Article.

E. Expenditures from student activity monies as defined in A.R.S. § 15-1121, if no district funds are involved, are exempt from this Article.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4). Amended effective March 21, 1991 (Supp. 91-1). Amended effective March 6, 1997 (Supp. 97-1). Amended effective December 4, 1998 (Supp. 98-4).

R7-2-1003. General provisions

A. A school district shall not award a contract or incur an obligation if sufficient funds are not available for budgeting.

B. Any bid or proposal that is conditioned upon award to the bidder or offeror of both the particular contract being solicited and another school district contract shall be deemed nonresponsive or unacceptable.

C. Except by mutual consent of the parties to the contract, no rule in this Article may change any commitment, right or obligation of a school district or of a contractor under a contract in existence on the effective date of the rule.

D. Rights and duties arising from a school district contract may only be transferred, waived or assigned upon the express written consent of both parties.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4). Amended effective March 21, 1991 (Supp. 91-1).

R7-2-1004. Written determinations

A. Written determinations required by this Article shall be retained by the school district and shall specify the reasons for the determination.

B. The school district is authorized to prescribe methods and operational procedures to be used in preparing written determinations.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1005. Confidential information

A. If a person believes that a bid, proposal, offer, specification, or protest contains trade secrets or other proprietary data that should remain confidential and should not be disclosed as otherwise required by A.R.S. § 39-121, a statement advising the school district of this fact shall accompany the submission and the information shall be so identified wherever it appears.

B. The information identified by the person as confidential shall not be disclosed until the school district makes a determination, as provided in subsection (C) of this Section.

C. The school district shall review the statement and information and shall determine prior to the contract award, whether the information shall be withheld.

D. If the school district determines to disclose the information, the school district shall inform the bidder in writing of such determination.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1006. Delegation of procurement authority

A. The governing board may, in a public meeting held in conformity with A.R.S. Title 38, Article 3.1, delegate procurement authority to a designee. Any delegation shall be accomplished by adopting a governing board policy for this purpose.

B. Any delegation shall specify:

1. The title of the employee or employees of the school district to whom authority is delegated;

2. The activity or function authorized;

3. Any limits or restrictions on the exercise of the delegated authority, including the maximum total cost of any procurement;

4. Whether the authority may be further delegated;

5. The duration of the delegation; and

6. The conditions and procedures for revocation and modification of the delegation.

C. No person delegated such authority may participate in any aspect of a specific procurement if he would receive any benefit directly or indirectly from a contract for such procurement. Violation of this prohibition may result in termination or other disciplinary action.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4). Amended effective March 21, 1991 (Supp. 91-1).

R7-2-1007. Procurement advisors

A. The school district may appoint an advisor or advisors to assist with respect to specifications or procurement in specific areas.

B. Advisors are not eligible to receive compensation but are eligible for reimbursement of expenses consistent with A.R.S. Title 38, Chapter 4, Article 2.

C. A procurement advisor who participates in any aspect of a specific procurement shall be prohibited from receiving any benefit directly or indirectly from a contract for such procurement. For the purpose of this Section a vendor who provides a set of specifications is not an advisor.

D. Specifications prepared by a procurement advisor shall comply with Sections R7-2-1101 through R7-2-1105.

E. The school district shall not delegate to a procurement advisor the authority for the award or administration of any particular contract, or over any dispute, claim or litigation pertaining thereto.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1008. Change order percentage

A change order which increases the contract amount in excess of $15,000 or 5% of the contract amount, whichever is greater, may be executed if the governing board determines in writing that the change order is advantageous to the school district.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1009. Proprietary specifications

The school district shall not use specifications in any way proprietary to one supplier unless the specification includes a statement of the reasons why no other specification is practicable, a description of the essential characteristics of the specified product and a statement specifically permitting an acceptable alternative product to be supplied.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1010. Recycled Products Use

A. If the price of a recycled paper product which conforms to specifications is within 5% of a low bid product which is not recycled and the recycled product bidder is otherwise the lowest responsible and responsive bidder, the award shall be made to the bidder offering the recycled product.

B. Specifications shall emphasize functional or performance criteria which, to the extent practicable, do not discriminate against the use of recycled materials.

Historical Note

Adopted effective October 22, 1992 (Supp. 92-4).

COMPETITIVE SEALED BIDDING

R7-2-1021. Method of Source Selection

Unless otherwise authorized by law, or as specified in A.R.S. § 15-213(A)(1) exempting the requirement to competitively bid the decision to participate in programs pursuant to A.R.S. § 15-382 for purchase of health and accident insurance and related employee benefits when such programs comply with bidding requirements for the subsequent purchase of reinsurance or the joint purchase of insurance or reinsurance, all school district contracts shall be awarded by competitive sealed bidding as provided in Sections R7-2-1021 through R7-2-1032, except as provided in Sections R7-2-1041 through R7-2-1068 and Sections R7-2-1117 through R7-2-1125.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4). Amended effective October 22, 1992 (Supp. 92-4).

R7-2-1022. Notice of competitive sealed bidding

A. Adequate public notice of the invitation for bids shall be given as provided in subsection (B) of this rule or in R7-2-1024(C). If notice is given pursuant to R7-2-1024(C), notice also may be given as provided in subsection (B). In the event there are four or fewer prospective bidders on the bidders' list, then notice also shall be given as provided in subsection (B). If the invitation for bids is for the procurement of services other than those described in Sections R7-2-1061 through R7-2-1068 and R7-2-1117 through R7-2-1123. Specified Professional Services, notice also shall be given as provided in subsection (B).

B. In the event there are four or fewer prospective bidders on the bidders' list, the notice shall include publication in the official newspaper of the county as defined in A.R.S. § 11-255 within which the school district is located for two publications which are not less than six nor more than 10 days apart. The second publication shall not be less than two weeks before bid opening. The time of publication may be altered if deemed necessary pursuant to R7-2-1024(A).

C. In addition to the notice provided in subsections (A) and (B), the school district may give such additional notice as the school district deems appropriate.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1023. Prospective bidders' lists

A. The school district shall compile and maintain a prospective bidders' list. Inclusion of the name of a person shall not indicate whether the person is responsible concerning a particular procurement or otherwise capable of successfully performing a district contract.

B. Persons desiring to be included on the prospective bidders' list shall notify the school district. Upon notification, the school district shall mail or otherwise provide the person with the school district procedures for inclusion on the bidders' list. Within 30 days after receiving the required information, the school district shall add the person to the prospective bidders' list unless the school district makes a determination that inclusion is not advantageous to the school district.

C. Persons who fail to respond to invitations for bids for two consecutive procurements of similar items may be removed from the applicable bidders' list after mailing a notice to the person. This notice shall not be required if the two invitations for bids which were not responded to both contained the notice that bidders' names may be removed from the bidders' list if they fail to respond to invitations for bids for two consecutive procurements of similar items. Persons may be reinstated upon request.

D. Prospective bidders' lists shall be available for public inspection, unless the school district makes a written determination that it is in the best interest of the school district that they should be confidential or private and should not be open for inspection pursuant to A.R.S. § 39-121.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1024. Invitation for Bids

A. Invitation for bids shall be issued at least 14 days before the time and date set for bid opening in the invitation for bids unless a shorter time is deemed necessary for a particular procurement as determined by the school district.

B. Content.

1. The invitation for bids shall include the following:

a. Notice that all information and bids submitted by bidders will be made available for public inspection following the award of the contract;

b. Instructions and information to bidders concerning the bid submission requirements, including the time and date set for bid opening, the address of the office at which bids are to be received, the period during which bids shall be accepted, and any other special information;

c. Procurement of information systems and telecommunications systems shall include as price evaluation criteria the total life cycle cost and application benefits of the information systems or telecommunication systems.

d. Procurement of earth-moving, material-handling, road maintenance and construction equipment shall include as price evaluation criteria the total life cycle cost including residual value of the earth-moving, material-handling, road maintenance and construction equipment.

e. The purchase description, specifications, delivery or performance schedule, and inspection and acceptance requirements;

f. The factors to be used in bid evaluations;

g. The contract terms and conditions, including warranty and bonding or other security requirements, as applicable; and

h. The name of the district representative or district representatives.

2. If the invitation for bids incorporates documents by reference, the invitation for bids shall specify where such documents may be obtained.

3. An invitation for bids may require the submission of bid samples, descriptive literature and technical data and may require inspection or testing of a product before award.

C. The school district shall mail or otherwise furnish invitation for bids or notices of the availability of invitation for bids to all prospective bidders registered with the school district for the specific material, service or construction being bid.

D. A copy of the invitation for bids shall be made available for public inspection at the school district office.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4). Amended effective October 22, 1992 (Supp. 92-4).

R7-2-1025. Pre-bid conferences

The school district may conduct a pre-bid conference to explain the procurement requirements within a reasonable time before bid opening.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1026. Amendments to invitation for bids

A. An amendment to an invitation for bids shall be issued if necessary to:

1. Make changes in the invitation for bids;

2. Correct defects or ambiguities; or

3. Furnish to other bidders information given to one bidder if the information will assist the other bidders in submitting bids or if the lack of the information will prejudice the other bidders.

B. Amendments to invitation for bids shall be so identified and shall be distributed to all persons to whom the original invitation for bids was distributed by the school district.

C. Amendments to invitation for bids shall be issued within a reasonable time before bid opening to allow prospective bidders to consider them in preparing their bids. If the school district determines that the time and date set for bid opening does not permit sufficient time for bid preparation, the time and date for bid opening shall be extended in the amendment or, if necessary, by telegram or telephone and confirmed in the amendment.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1027. Pre-opening modification or withdrawal of bids

A. A bidder may modify or withdraw his bid at any time before bid opening if the modification or withdrawal is received before the time and date set for bid opening at the location designated in the invitation for bids for receipt of bids.

B. All documents concerning a modification or withdrawal of a bid shall be retained in the official records of the school district.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1028. Late bids, late withdrawals and late modifications

A. A bid, modification or withdrawal is late if it is received at the location designated in the invitation for bids for receipt of bids after the time and date set for bid opening.

B. A late bid, late modification, or late withdrawal shall be rejected, unless the bid, modification, or withdrawal would have been timely received but for the action or inaction of school district personnel and is received before contract award.

C. Bidders submitting bids, modifications or withdrawals that are rejected as late shall be so notified as soon as practicable.

D. All documents concerning acceptance of a late bid, late modification, or late withdrawal shall be retained in the official records of the school district.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1029. Receipt, opening and recording of bids

A. Each bid and modification shall be time and date stamped upon receipt and stored unopened in a secure place until the time and date set for bid opening.

B. Bids and modifications shall be opened publicly at the date, time and place designated in the invitation for bids and in the presence of one or more witnesses. The name of each bidder, the amount of each bid, and other relevant information deemed appropriate by the school district shall be recorded. The record shall be available for public inspection.

C. After contract award, the bids shall be available for public inspection, except that any portion of a bid that was designated as confidential pursuant to R7-2-1005 shall remain confidential from and after the time of bid opening.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1030. Mistakes in bids

A. After bid opening, a bid mistake based on an error in judgment may not be corrected or withdrawn. Other bid mistakes may be corrected or withdrawn pursuant to subsections (B) through (E) of this Section.

B. After bid opening, the school district shall either waive minor informalities in a bid or allow the bidder to correct them if correction is advantageous to the school district.

C. After bid opening, the bid may not be withdrawn and shall be corrected to the intended bid if a bid mistake and the intended bid are evident on the face of the bid.

D. After bid opening, the school district may permit a bidder to withdraw a bid if:

1. A nonjudgmental mistake is evident on the face of the bid but the intended bid is not evident; or

2. The bidder establishes by clear and convincing evidence that a nonjudgmental mistake was made.

E. Mistakes shall not be corrected after award of the contract except where the school district makes a written determination that it would be unconscionable not to allow the mistake to be corrected.

F. If correction or withdrawal of a bid after bid opening is permitted or denied under subsections (C) and (D) of this Section, the school district shall prepare a written determination showing that the relief was permitted or denied under this Article.

G. Notwithstanding other provisions of this Section, after bid opening, no corrections in bid prices or other provisions of bids prejudicial to the interest of the school district or fair competition shall be permitted.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1031. Bid Evaluation and Award

A. The contract shall be awarded to the lowest responsible and responsive bidder whose bid conforms in all material respects to the requirements and evaluation criteria set forth in the invitation for bids. No criteria may be used in bid evaluation that are not set forth in the invitation for bids. The amount of any applicable transaction privilege or use tax of a political subdivision of this state is not a factor in determining the lowest bidder, if a competing bidder located outside of this state is not subject to a transaction privilege or use tax of a political subdivision of this state.

B. Awards for procurement of information systems and telecommunications systems shall include as evaluation factors the total life cycle cost and application benefits of the information systems or telecommunications systems.

C. Awards for procurement of earth-moving, material-handling, road maintenance and construction equipment shall include as evaluation factors the total life cycle cost including residual value of the earth-moving, material-handling, road maintenance and construction equipment.

D. If all bids for a construction project exceed available monies as certified by the school district, and the low responsive and responsible bid does not exceed such monies by more than 5%, the school district may in situations in which time or economic considerations preclude resolicitation of work of a reduced scope, negotiate an adjustment of the bid price, including changes in the bid requirements, with the low responsive and responsible bidder, to bring the bid within the amount of available monies.

E. A product acceptability evaluation shall be conducted solely to determine whether a bidder's product is acceptable as set forth in the invitation for bids and not whether one bidder's product is superior to another bidder's product. Any bidder's offering that does not meet the acceptability requirements shall be rejected as nonresponsive.

F. Bids shall be evaluated to determine which bidder offers the lowest cost to the school district in accordance with the evaluation criteria set forth in the invitation for bids. Only objectively measurable criteria that are set forth in the invitation for bids shall be applied in determining the lowest bidder. Examples of such criteria include, but are not limited to, transportation cost, energy cost, ownership cost and other identifiable costs or life cycle cost formulae. Evaluation factors need not be precise predictors of actual future costs, but to the extent possible the evaluation factors shall be reasonable estimates based upon information the governing board has available concerning future use.

G. A contract may not be awarded to a bidder submitting a higher quality item than that designated in the invitation for bids unless the bidder is also the lowest bidder as determined under subsection (D) of this Section. This Section does not permit negotiations with any bidder, except as provided in subsection (B).

H. If there are two or more low responsive bids from responsible bidders that are identical in price and that meet all the requirements and criteria set forth in the invitation for bids, award may be made by drawing lots.

I. A record showing the basis for determining the successful bidder shall be retained in the official records of the school district.

J. A written notice of award shall be sent to the successful bidder. Unsuccessful bidders may be notified in writing of the award. Notice of award shall be made available to the public.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4). Amended effective October 22, 1992 (Supp. 92-4).

R7-2-1032. Only One bid received

If only one responsive bid is received in response to an invitation for bids, an award may be made to the single bidder if the school district determines that the price submitted is fair and reasonable, and that either other prospective bidders had reasonable opportunity to respond, or there is not adequate time for resolicitation. Otherwise the bid may be rejected in whole or in part as may be specified in the solicitation if it is advantageous to the school district. The reasons for cancellation or rejection shall be made part of the procurement file and:

1. New bids may be solicited; or

2. The proposed procurement may be canceled; or

3. If the school district determines that the need for the material or service continues and the acceptance of the one bid is not advantageous to the school district, the procurement may then be conducted as follows:

a. The school district may follow the sole source procurement procedure if R7-2-1053 applies.

b. Notwithstanding any other provision of this Article, the school district may make emergency procurements pursuant to R7-2-1056 and R7-2-1057 if an emergency condition exists pursuant to R7-2-1056.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1033. Simplified School Construction Procurement Program

A. The Simplified School Construction Procurement Program is applicable to construction projects which do not exceed the maximum amount specified in A.R.S. § 15-213(A)(2).

B. To participate in the Simplified School Construction Procurement Program:

1. Each county school superintendent must maintain a list of persons who desire to receive solicitations to bid on construction projects within the county, and additions to the list shall be permitted throughout the year;

2. The list of persons developed pursuant to subsection (B)(1) shall be available for public inspection;

3. A performance bond and a payment bond, as required by A.R.S. § 34-222, shall be provided for contracts for construction by contractors;

4. All bids for construction shall be opened at a public opening and the bids shall remain confidential until the public opening;

5. All persons desiring to submit bids shall be treated equitably and the information related to each project shall be available to all eligible persons; and

6. Competition for construction projects under the Simplified School Construction Procurement Program shall be encouraged to the maximum extent possible. School districts shall submit information on each project to all persons listed with the county school superintendent by any school district within that county.

Historical Note

Adopted effective December 4, 1998 (Supp. 98-4).

MULTISTEP SEALED BIDDING

R7-2-1035. Multistep sealed bidding

A. The multistep sealed bidding method may be used if the governing board determines that:

1. Available specifications or purchase descriptions are not sufficiently complete to permit full competition without technical evaluations and discussions to ensure mutual understanding between each bidder and the school district;

2. Definite criteria exist for evaluation of technical offers;

3. More than one technically qualified source is expected to be available; and

4. A fixed-price contract will be used.

B. The school district may hold a conference with bidders before submission or at any time during the evaluation of the unpriced technical offers.

C. The multistep sealed bidding method may not be used for construction contracts.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1036. Phase 1 of multistep sealed bidding

A. Multistep sealed bidding shall be initiated by the issuance of an invitation to submit technical offers. The invitation to submit technical offers shall be issued according to R7-2-1024(A).

B. Content. The invitation to submit technical offers shall include the following information:

1. Notice that the procurement shall be conducted in two phases;

2. The best description of the material or services desired;

3. A statement that unpriced technical offers only shall be considered in phase 1;

4. The requirements for the technical offers, such as drawings and descriptive literature;

5. The criteria for evaluating technical offers;

6. The closing date and time for receipt of technical offers and the location where offers should be delivered or mailed;

7. A statement that discussions may be held;

8. A statement that only bids based on technical offers determined to be acceptable in phase 1 shall be considered for award; and

9. The name of the district representative or district representatives.

C. The invitation to submit technical offers may be amended after the submission of the unpriced technical offers.

1. The amendment shall be so identified and distributed to those persons notified pursuant to R7-2-1023 and to other persons who requested the original invitation to submit technical offers, all of whom shall be permitted to submit new unpriced technical offers or to amend the offers already submitted.

2. Amendments shall be issued within a reasonable time before bid opening to allow prospective bidders to consider them in preparing their bids. If the school district determines that the time and date set for bid opening does not permit sufficient time for bid preparation, the time and date for bid opening shall be extended in the amendment or, if necessary, by telegram or telephone and confirmed in the amendment.

D. Unpriced technical offers shall not be opened publicly, but shall be opened in the presence of two or more district officials designated by the school district. The contents of unpriced technical offers shall not be disclosed to unauthorized persons.

E. Unpriced technical offers shall be evaluated solely in accordance with the criteria set forth in the invitation to submit technical offers and shall be determined to be either acceptable for further consideration or unacceptable. A determination that an unpriced technical offer is unacceptable shall be in writing, state the basis of the determination and be retained in the procurement file. If the school district determines a bidder's unpriced technical offer is unacceptable, the school district shall notify that bidder of the determination and that the bidder shall not be afforded an opportunity to amend its technical offer.

F. The school district may conduct discussions with any bidder who submits an acceptable or potentially acceptable technical offer. During discussions, the school district shall not disclose any information derived from one unpriced technical offer to any other bidder. After discussions, the school district shall establish a closing date for receipt of final technical offers and shall notify, in writing, bidders submitting acceptable or potentially acceptable offers of the closing date. The school district shall keep a detailed record of all discussions.

G. At any time during phase 1, offers may be withdrawn.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1037. Phase 2 of multistep sealed bidding

A. Upon completion of phase 1, the school district shall issue an invitation for bids and conduct phase 2 under Sections R7-2-1024 through R7-2-1032 as a competitive sealed bidding procurement, except that the invitation for bids shall be issued only to bidders whose technical offers were determined to be acceptable in phase 1.

B. Unpriced technical offers of unsuccessful bidders shall be open to public inspection except to the extent set forth in R7-2-1029(C).

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

COMPETITIVE SEALED PROPOSALS

R7-2-1041. Competitive sealed proposals

A. If, under this Section, the governing board determines in writing that the use of competitive sealed bidding is either not practicable or not advantageous to the school district, a contract may be entered into by competitive sealed proposals. The governing board may make a class determination that it is either not practicable or not advantageous to the school district to procure specified types of materials or services by competitive sealed bidding. The competitive sealed proposal method may not be used for construction contracts. The governing board may modify or revoke a class determination at any time.

B. If competitive sealed bidding is neither practicable or advantageous, then competitive sealed proposals may be used if it is necessary to:

1. Use a contract other than a fixed-price type;

2. Conduct oral or written discussions with offerors concerning technical and price aspects of their proposals;

3. Afford offerors an opportunity to revise their proposals;

4. Compare the different price, quality, and contractual factors of the proposals submitted; or

5. Award a contract in which price is not the determining factor.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4). Amended effective March 21, 1991 (Supp. 91-1).

R7-2-1042. Request for Proposals

A. Competitive sealed proposals shall be solicited through a request for proposals. A request for proposals shall set forth those factors listed in R7-2-1024(B) that are applicable and shall also state:

1. The type of services required and a description of the work involved;

2. The type of contract to be used;

3. An estimated duration that the service will be required;

4. That cost or pricing data is required;

5. That offerors may designate as proprietary portions of the proposals;

6. That discussions may be conducted with offerors who submit proposals determined to be reasonably susceptible of being selected for award;

7. The minimum information that the proposal shall contain;

8. The closing date and time of receipt of proposals; and

9. The relative importance of price and other evaluation factors.

10. Procurement of information systems and telecommunications systems shall include, as criteria in the request for proposal, evaluation factors of the total life cycle cost and application benefits of the information systems or telecommunication systems.

11. Procurement of earth-moving, material-handling, road maintenance and construction equipment shall include, as criteria in the request for proposal, evaluation factors of the total life cycle cost including residual value of the earth-moving, material-handling, road maintenance and construction equipment.

B. A request for proposals shall be issued at least 14 days before the closing date and time for receipt of proposals unless a shorter time is determined necessary by the school district.

C. Notice of the request for proposals shall be issued in accordance with R7-2-1022.

D. Before submission of initial proposals, amendments to requests for proposals shall be made in accordance with R7-2-1026. After submission of proposals, amendments may be made in accordance with R7-2-1036(C).

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4). Amended effective October 22, 1992 (Supp. 92-4).

R7-2-1043. Pre-proposal conferences

Pre-proposal conferences may be convened in accordance with R7-2-1025.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1044. Late proposals, modifications or withdrawals

A. A proposal received after the closing date and time for receipt of proposals is late and shall not be considered except under the circumstances set forth in R7-2-1028(B). A best and final offer received after the closing date and time for receipt of best and final offers is late and shall not be considered except under the circumstances set forth in R7-2-1028(B).

B. A modification of a proposal received after the closing date and time for receipt of proposals is late and shall not be considered except under the circumstances set forth in R7-2-1028(B).

C. A modification of a proposal resulting from an amendment issued after the closing date and time for receipt of proposals or a modification or a proposal resulting from discussions during negotiations shall be considered if received by the closing date and time set forth in the amendment or by the closing date and time for submission of best and final offers, whichever is applicable. If the modifications described in this subsection are received after the respective date and time described in this subsection, the modifications are late and shall not be considered except under the circumstances set forth in R7-2-1028(B).

D. A proposal may be withdrawn at any time before the closing date and time for receipt of best and final offers. Withdrawal of a proposal after submission of best and final offers is permissible only in accordance with R7-2-1049.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1045. Receipt of proposals

A. Each proposal received shall be stamped with the time and date received and retained in a secure place until the closing date and time for receipt of proposals.

B. Proposals shall be opened publicly at the time and place designated in the request for proposals in the presence of witnesses. The name of each offeror shall be publicly read and recorded, which record shall be retained by the school district. All other information contained in the proposals shall be confidential so as to avoid disclosure of contents prejudicial to competing offerors during the process of negotiation. Proposals and modifications shall be shown only to school district personnel having a legitimate interest in them or persons assisting the school district in evaluation.

C. If only one proposal is received in response to a request for proposals, the school district shall follow R7-2-1032.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1046. Evaluation of proposals

A. Proposals shall be based on the evaluation factors set forth in the request for proposals. Specific numerical weighting can be used.

B. For the purpose of conducting discussions, the school district shall determine that proposals are either acceptable for further consideration or unacceptable. A determination that a proposal is unacceptable shall be in writing, state the basis of the determination and be retained in the procurement file. If the school district determines an offeror's proposal is unacceptable, the school district shall notify that offeror of the determination and that the offeror shall not be afforded an opportunity to amend its offer.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1047. Discussions with individual offerors

Discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. Offerors shall be accorded fair treatment with respect to any opportunity for discussion and revision of proposals, and such revisions may be permitted after submissions and before award for the purpose of obtaining best and final offers. The school district shall establish procedures and schedules for conducting discussions. Disclosure of one offeror's price to another and any information derived from competing proposals is prohibited. Any clarification of a proposal by the offeror shall be in writing. The school district shall keep a detailed record of all discussions.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1048. Best and final offers

If discussions are conducted pursuant to R7-2-1047, the school district shall issue a written request for best and final offers. The request shall set forth the date, time and place for the submission of best and final offers. Best and final offers shall be requested only once, unless the school district makes a determination that it is advantageous to the school district to conduct further discussions or change the school district's requirements. The request for best and final offers shall inform offerors that, if they do not submit a notice of withdrawal or a best and final offer, their immediate previous offer will be construed as their best and final offer.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1049. Mistakes in proposals

A. Prior to the time and date set for receipt of best and final offers, any offeror may withdraw the proposal or correct any mistake by modifying the proposal.

B. After receipt of best and final offers, an offeror may withdraw a proposal or correct a mistake in accordance with R7-2-1030(A) through R7-2-1030(F).

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1050. Contract Award

A. The school district shall award a contract to the offeror whose proposal is determined in writing to be most advantageous to the school district based on the factors set forth in the request for proposals. No other factors or criteria may be used in the evaluation. The amount of any applicable transaction privilege or use tax of a political subdivision of this state is not a factor in determining the most advantageous proposal if a competing offeror located outside this state is not subject to a transaction privilege or use tax of a political subdivision of this state. The procurement file shall contain the basis on which the award is made.

B. Awards for procurement of information systems and telecommunications systems shall include as evaluation factors the total life cycle cost and application benefits of the information systems or telecommunications systems.

C. Awards for procurement of earth-moving, material-handling, road maintenance and construction equipment shall include as evaluation factors the total life cycle cost including residual value of the earth-moving, material-handling, road maintenance and construction equipment.

D. Unsuccessful offerors may be notified in writing of the award.

E. After contract award the proposals shall be open for public inspection, except to the extent that the withholding of information is permitted or required by law. If the offeror designates a portion of its proposal as confidential, it shall isolate and identify in writing the confidential portions in accordance with R7-2-1005.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4). Amended effective October 22, 1992 (Supp. 92-4).

SOLE SOURCE PROCUREMENTS

R7-2-1053. Sole source procurements

A. A contract may be awarded for a material, service or construction item without competition if the governing board determines in writing that there is only one source for the required material, service or construction item. The school district may require the submission of cost or pricing data in connection with an award under this Section. Sole source procurement shall be avoided, except when no reasonable alternative source exists. A copy of the written evidence and determination of the basis for the sole source procurement shall be retained in the procurement file by the school district.

B. The school district shall, to the extent practicable, negotiate with the single supplier a contract advantageous to the school district.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

EMERGENCY PROCUREMENTS

R7-2-1056. Emergency procurements

A. An emergency condition creates an immediate and serious need for materials, services, or construction that cannot be met through normal procurement methods and seriously threatens the functioning of the school district, the preservation or protection of property or the public health, welfare or safety. Some examples of emergency conditions are floods, epidemics, or other natural disasters, riots, fire or equipment failures.

B. An emergency procurement shall be limited to the materials, services, or construction necessary to satisfy the emergency need.

C. The governing board shall designate a board member or members or school district official or officials authorized to make emergency procurements, and may prescribe limiting factors including maximum spending limits with regard to emergency procurements.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1061. Competitive election procedures for clergy, certified public accountants, physicians, dentists and legal counsel

A. The services of clergy, certified public accountants, physicians, dentists, or legal counsel shall be procured in accordance with Sections R7-2-1061 through R7-2-1068, except as authorized pursuant to R7-2-1002, R7-2-1053 or R7-2-1056.

B. Price shall be an evaluation factor in the procurements of the services specified in subsection (A) unless the school district determines that price as an evaluation factor is either not practicable or not advantageous to the school district.

[A.R.S. § 15-914(B) requires that contracts for financial and compliance audits and completed audits shall be approved by the Auditor General as provided in A.R.S. § 41-1279(21)].

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1062. Statement of qualifications

A. If the services specified in R7-2-1061 are needed on a recurring basis, persons may submit and the school district may solicit persons engaged in providing the services to submit annual statements of qualifications on a prescribed form that shall include the following information:

1. Technical education and training;

2. General or special experience, certifications, licenses, and memberships in professional associations, societies, or boards;

3. An expression of interest in providing a particular service; and

4. Any other pertinent information requested by the school district.

B. Persons who have submitted statements of qualifications may amend those statements at any time by filing a new statement.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1063. Request for proposals

Adequate notice of the need for services specified in R7-2-1061 shall be given by the school district through a request for proposals. The request for proposals shall be in accordance with R7-2-1042. The requests for proposals also shall be distributed to persons who have submitted statements of qualifications under R7-2-1062 for the particular services sought.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1064. Receipt of proposals

Proposals shall be received and opened in accordance with R7-2-1045. Late proposals, modifications, or withdrawals shall be considered in accordance with R7-2-1044.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1065. Evaluation of proposals

Proposals shall be evaluated in accordance with R7-2-1046.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1066. Discussions with individual offerors

The school district may conduct discussions with any offeror to determine the offeror's qualifications for further consideration. Discussions shall be conducted in accordance with R7-2-1047.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1067. Evaluation and contract award where price is an evaluation factor

If price is one of the evaluation factors for contract award set forth in the request for proposals, the school district shall evaluate proposals and award the contract in accordance with Sections R7-2-1048 through R7-2-1050, and after the school district makes a written determination that the compensation is fair and reasonable. If price is one of the evaluation factors, no contract may be awarded solely on the basis of price.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1068. Selection and contract where price is not an evaluation factor

A. If price is not a factor, the school district shall evaluate the proposal submitted. After evaluation, the school district shall determine in writing the acceptable proposals and rank the three most qualified offerors.

B. The offeror determined to be best qualified shall submit cost or pricing data to the school district.

C. The school district shall negotiate a contract with the best qualified offeror at compensation determined in writing to be fair and reasonable.

D. If the school district and the best qualified offeror fail to negotiate a contract, the school district shall notify the offeror in writing of the termination of negotiations. The school district may then enter into negotiations with the next most qualified offeror. If negotiations fail, they shall be terminated, the offeror given notice and negotiations commenced with the next most qualified offeror.

E. If the school district is unable to negotiate a contract with any of the offerors initially selected as the best qualified offerors, proposals may be resolicited or additional offerors may be selected based on original, acceptable proposals in the order of their qualification ranking. Negotiations may continue until a contract is awarded.

F. A written record of the ranking, a detailed record of the negotiations and related activities shall be retained by the school district.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

GENERAL CONTRACT REQUIREMENTS

R7-2-1072. Cancellation of solicitations; rejection of bids and proposals

Each solicitation issued by the school district shall state that the solicitation may be canceled or bids or proposals rejected if it is advantageous to the school district.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1073. Cancellation of solicitation before receipt of bids and proposals

Before receipt of bids or proposals, a solicitation may be canceled in whole or in part if the school district determines that cancellation is advantageous to the school district. The reasons for the cancellation or rejection shall be made part of the procurement file.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1074. Cancellation of solicitation after receipt of bids and proposals

After receipt of bids or proposals but before award, a solicitation may be canceled and all bids or proposals may be rejected in whole or in part if the school district determines that cancellation and rejection are advantageous to the school district. The reasons for the cancellation or rejection shall be made part of the procurement file.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1075. Rejection of individual bids and proposals

A. A written determination of nonresponsibility of a bidder or offeror shall be made by the school district if:

1. The bidder is determined to be nonresponsible pursuant to R7-2-1076; or

2. The bid is nonresponsive in accordance with R7-2-1003(B), R7-2-1031 or R7-2-1046. A finding of nonresponsibility shall not be construed as a violation of the rights of any person.

B. A proposal or quotation may be rejected if:

1. The person responding to the solicitation is determined to be nonresponsible pursuant to R7-2-1076;

2. It is unacceptable;

3. The proposed price is unreasonable; or

4. It is otherwise not advantageous to the school district.

C. Bidders or offerors whose bids or proposals are rejected shall be notified. A record of the rejection shall be retained by the school district.

D. If a solicitation is canceled after receipt of bids or proposals, the bids or proposals that have been opened shall be retained. Unopened bids or proposals shall be returned to bidders or offerors upon request.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1076. Responsibility of bidders and offerors

A. The school district shall make a determination that a bidder or offeror is responsible before awarding a contract to that bidder or offeror.

B. Factors to be considered in determining if a prospective contractor is responsible may include:

1. The proposed contractor's financial, material, personnel or other resources, including subcontracts;

2. The proposed contractor's record of performance and integrity;

3. Whether the proposed contractor is qualified legally to contract with the school district; and

4. Whether the proposed contractor supplied all necessary information concerning its responsibility.

C. The school district may establish specific responsibility criteria for a particular procurement. Any specific responsibility criteria shall be set forth in the solicitation.

D. As required by A.R.S. § 41-2540(B), information furnished by a bidder or offeror pursuant to this Section which results in a written determination of nonresponsibility of a bidder or offeror shall not be disclosed outside of the office of the school district without prior written consent by the bidder or offeror except to law enforcement agencies.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1077. Prequalification of contractors for materials, services and construction

A. Prospective contractors may be prequalified for particular types of materials, services and construction. Prospective contractors have a continuing duty to provide the school district with information on any material change affecting the basis of prequalification. Solicitation mailing lists of potential contractors shall include the prequalified contractors.

B. A prospective contractor need not be prequalified to be awarded a contract. Prequalification does not represent a determination of responsibility.

C. The existence of a qualified product list pursuant to R7-2-1102(D), does not constitute prequalification of any prospective supplier of that product.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1078. Bid and contract security

A. Bid and performance bonds or other security may be required for material or service contracts to guarantee faithful bid and contract performance if the governing board determines that such requirement is advantageous. In determining the amount and type of security required for each contract, the governing board shall consider the nature of the performance and the need for future protection to the school district. The requirement for bonds or other security shall be included in the solicitation.

B. Bid or performance bonds shall not be used as a substitute for a determination of bidder responsibility.

C. If a bid is withdrawn at any time before bid opening, any bid security shall be returned to the bidder.

D. After the bid is awarded, any bid security shall be returned to the unsuccessful bidders.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1079. Cost or pricing data

A. The submission of current cost or pricing data may be required in connection with an award in situations in which analysis or the proposed price is essential to determine that the price is reasonable and fair. A contractor shall, except as provided in subsection (C), submit current cost or pricing data and shall certify that, to the best of the contractor's knowledge and belief, the cost or pricing data submitted was accurate, complete and current as of a mutually determined specified date before the date of either:

1. The pricing of any contract awarded by competitive sealed proposals or pursuant to the sole source procurement authority, if the total contract price is expected to exceed an amount of $100,000.

2. The pricing of any change order or contract modification which is expected to increase the total contract price which will then exceed an amount of $100,000.

B. Any contract, change order or contract modification under which a certificate is required shall contain a provision that the price to the school district shall be adjusted to exclude any significant amounts by which the school district finds that the price was increased because the contractor-furnished cost or pricing data was inaccurate, incomplete or not current as of the date agreed on between the parties. Such adjustment by the school district may include profit or fee. The school district may reduce the contract price pursuant to R7-2-1081.

C. The requirements of this Section may be waived if any of the following apply:

1. The contract price is based on adequate price competition.

2. The contract price is based on established catalogue prices or market prices.

3. Contract prices are set by law or regulation.

4. It is determined in writing by the school district that the waiver is advantageous to the school district. The determination shall include the reasons why the waiver is advantageous to the school district.

D. The solicitation shall include a notice that certified cost or pricing data must be submitted.

E. In an emergency, cost or pricing data may be submitted at a reasonable time after the contract is awarded.

F. A copy of all determinations by the school district that pertain to the submission of cost or pricing data shall be retained.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1080. Refusal to submit cost or pricing data

A. If the offeror fails to submit cost or pricing data in the required form, the school district may reject the offer.

B. If a contractor fails to submit data to support a price adjustment in the form required, the school district may:

1. Reject the price adjustment; or

2. Set the amount of the price adjustment subject to the contractor's rights under Sections R7-2-1141 through R7-2-1185.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1081. Defective cost or pricing data

A. The school district may reduce the contract price if, upon determination, the cost or pricing data are defective.

B. The contract price shall be reduced in the amount of the defect plus related overhead and profit or fee if the school district relied upon the defective data in awarding the contract.

C. Any dispute as to the existence of defective cost or pricing data or the amount of an adjustment due to defective cost or pricing data may be appealed as a contract controversy under Sections R7-2-1141 through R7-2-1185. Pending appeal, the adjusted contract price shall remain in effect.

D. If certification of either current cost or pricing data is required, the awarded contract shall include notice of the right of the school district to a reduction in price if certified cost or pricing data are subsequently determined to be defective.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1082. Right to inspect plant

The school district may at reasonable times inspect the part of the plant or place of business of a contractor or any subcontractor which is related to the performance of any contract awarded or to be awarded by the school district.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1083. Right to audit records

A. The school district may, at reasonable times and places, audit the books and records of any person who submits cost or pricing data as provided in R7-2-1079 to the extent that the books and records relate to the cost or pricing data. Any person who receives a contract, change order or contract modification for which cost or pricing data is required shall maintain the books and records that relate to the cost or pricing data for three years from the date of final payment under the contract, unless a shorter period is otherwise authorized in writing by the governing board.

B. The school district is entitled to audit the books and records of a contractor or any subcontractor under any contract or subcontract to the extent that the books and records relate to the performance of the contract or subcontract. The books and records shall be maintained by the contractor for a period of three years from the date of final payment under the prime contract and by the subcontractor for a period of three years from the date of final payment under the subcontract, unless a shorter period is otherwise authorized in writing by the governing board.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1084. Anticompetitive practices

A. If for any reason collusion or other anticompetitive practices are suspected among any bidders or offerors, a notice or the relevant facts shall be transmitted to the governing board and the attorney general. This Section does not require a law enforcement agency conducting an investigation into such practices to convey such notice to the school district.

B. Upon submitting a bid or offer, the bidder or offeror must certify on a form prescribed by the school district that the submission of the bid or offer did not involve collusion or other anticompetitive practices.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1085. Retention of procurement records

All procurement records shall be retained and disposed of in accordance with records retention requirements prescribed in the Uniform System of Financial Records.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1086. Record of procurement actions

A. The school district shall maintain a record listing all contracts made under R7-2-1053. Sole source procurements, or R7-2-1056. Emergency procurements, for a minimum of five years. The record shall contain:

1. Each contractor's name.

2. The amount and type of each contract.

3. A listing of the materials, services or construction procured under each contract.

B. The record shall be available for public inspection.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

CONTRACT TYPES

R7-2-1091. Authority to use contract types

A. Subject to the limitations of this Section, any type of contract which will promote the best interests of the school district may be used, except that the use of a cost-plus-a-percentage-of-cost contract is prohibited.

B. A cost-reimbursement contract may be used only if the school district determines in writing prior to solicitation that such contract is likely to be less costly to the school district than any other type or that it is impracticable to obtain the materials, services or construction required except under such a contract.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1092. Approval of accounting system

Before the award of any contract, except a firm fixed-price contract, the school district shall determine in writing that the proposed contractor's accounting system will permit timely development of all necessary cost data in the form required by the specific contract type contemplated and is adequate to allocate costs pursuant to R7-2-1125. Such determinations may be made through a contractor's certification in the proposed contractor's response to a solicitation, that the proposed contractor's accounting system complies with this Section.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

R7-2-1093. Multiterm contracts

A. Unless otherwise provided by law, a contract for materials or services may be entered into for a period of time up to five years, as deemed to be advantageous to the school district, if the term of the contract and conditions of renewal or extension, if any, are included in the solicitation and monies are available for the first fiscal period at the time of contracting. Payment and performance obligations for succeeding fiscal periods are subject to the availability and appropriation of monies.

B. Before the use of a multiterm contract, it shall be determined in writing by the governing board that:

1. Estimated requirements cover the period of the contract and are reasonable and continuing.

2. Such a contract will serve the best interests of the school district by encouraging effective competition or otherwise promoting economies in school district procurement.

3. If monies are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the contract shall be canceled and the contractor may only be reimbursed for the reasonable value of any nonrecurring costs incurred but not amortized in the price of the materials or services delivered under the contract or which are otherwise not recoverable. The cost of cancellation may be paid from any appropriations available for such purposes.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).