DJE-R ©

REGULATION

BIDDING / PURCHASING  PROCEDURES

All District purchases shall be in accordance with the relevant sections of the Arizona Revised Statutes (including, but not limited to 15-213, 15-323, and  23-214 subsection A, 38-503, and 41-4401), and the Arizona school district procurement rules set out in the Arizona Administrative Code (A.A.C.) R7-2-1001 through 1195, and with the following..  District purchases shall also be in accordance with 2 CFR 200.214 (Code of Federal Regulations Title 2).

Requesting  Quotations

Requests for price quotations are to include adequate details and be issued with sufficient lead time to enable vendors to effectively respond.  When a contract is to be awarded on the basis of price and additional factors those factors are to be included in the request for quotations.  Such factors should include, but are not limited to, the following:

A.  Submittal requirements including:

1.  Date and time due;

2.  Type and manner by which quotations may be received (e.g., telephone, written, fax, e-mail, prepared form);

3.  Physical or digital address to which quotations are to be delivered.

B.  Specific information the quotation must include.

C.  Whether or not negotiations may be held.

D.  Options that may be made pursuant to a purchase contract, i.e., extensions and renewals.

E.  Contracts for job-order-contracting services shall be limited to no more than five (5) years unless the Board determines that a contract of longer duration would be advantageous to the District and has provided for such duration as a part of bid documents and conditions of renewal or extension within contract language.  Such determination should be memorialized in writing and kept in the meeting minutes and contract/bid file.

F.  Uniform terms and conditions included in the request by text or reference.

G.  Such additional terms, conditions, and instructions as are applicable to the purchase under consideration.

All requests for written quotations shall be at the direction of the Superintendent or a person designated by the Superintendent.

When a vendor is selected on the basis of factors other than lowest price, the reasons shall be documented and filed with the price quotations.  Documentation of the quotations process and details including vendor names, persons contacted, telephone numbers and identification of other communication procedures, price results, and determinations are to be documented and retained by the District in a procurement file that includes the pertinent requisition form and purchase order. 

A written contract or purchase order must be approved prior to a purchase being made.

Cumulative  and  Like
Item  Purchases

An analysis shall be performed annually to determine the extent of the District need to purchase like items.  Prior year purchases and applicable demographic, program, and planning data are to be utilized for projecting quantity and cost of like items to fulfill the anticipated need.  The outcomes of calculating the projected quantity and cost factors to acquire like items shall inform the determinations as to the appropriate procurement processes to be applied.  The proper competitive purchasing strategies must be applied to assure District compliance with the procurement laws and rules.  Splitting of orders or other purchasing practices devised to circumvent allowable procurement practices are prohibited.  The cumulative costs of purchasing like items by any and all means of acquisition are to be tracked to assure that no purchases are permitted that will result in violation of Governing Board policies and lawful procurement practices.

Multiple  Year  Purchases  Totaling  Less
Than  One  Hundred  Thousand  Dollars

The District may enter into contracts of less than one hundred thousand dollars ($100,000) for a period up to five (5) years, as follows:

A.  When the terms and conditions of renewal or extension are included in the solicitation for bids;

B.  When monies are available for the first fiscal year at the time of contracting;

C.  When the competitive purchasing method is appropriate to the projected cumulative cost over the term of the multiple year contract.

Multiple  Year  Purchases  Totaling  More
Than  One  Hundred  Thousand  Dollars

The District may enter into contracts for more than one hundred thousand dollars ($100,000) for a period up to five (5) years, as follows:

A.  The Governing Board has determined in writing that:

1.  The estimated requirements cover the contract period and are reasonable and continuing;

2.  A multi-term contract will serve the District's best interest by encouraging competition or promoting economies in procurement;

3.  If monies are not appropriated or available in future years the contract will be cancelled.

If multiple-year quotations are used, the District shall:

A.  Document the time period that the pricing is valid;

B.  Determine the vendor will honor the pricing for the multi-year period;

C.  Secure and maintain written affirmation with the vendor that, although it is the District's intent to purchase certain quantities, all purchases are subject to the availability of funds.

Multiple  Awards  to  More
Than  One  Contractor

Generally, the District should not use multiple awards allowing more than one (1) vendor to supply the same goods or service.  However, there are instances in which the District may make multiple awards.  If that instance arises, the request for proposals or invitation for bids should clearly state whether multiple awards may be used so bidders can consider that information when pricing their proposals or bids.

A multiple award to more than one (1) vendor should be made only when the District has determined and documented in writing that a single award is not advantageous to the District.  The award should also be limited to the least number of suppliers necessary to meet the District's requirements.

Bidding  Methods

Sealed bids or proposals will be requested when an award is to be made for a transaction to purchase construction, materials, or services costing more than one hundred thousand dollars ($100,000).  The Superintendent must review the expenditure and make a recommendation to the Board for final action.  The Board reserves the right to waive any informality in, or reject, any or all bids or any part of any bid.  Any bid may be withdrawn prior to the scheduled time for the opening of bids.

The bidder to whom the award is made may be required to enter into a written contract with the District.

Pursuant to the procurement code, contracts can be let for a period not to exceed five (5) years.

Definitions

The definition of a term used in this regulation shall be interpreted as being synonymous with the definition of that term listed at R7-2-1001.

Prospective  Bidders'  Lists

The 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.

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

Persons who fail to respond to invitations for bids for two (2) 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 (2) 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 (2) consecutive procurements of similar items.  Persons may be reinstated upon request.

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

Competitive  Sealed  Bidding

If the intended procurement is for construction to cost less than one hundred fifty thousand dollars ($150,000), the rules established for the simplified school construction procurement program described at R7-2-1033 may be followed.  In all other cases, adequate public notice of the invitation for bids shall be given as provided in R7-2-1022 or as provided in R7-2-1024, which are outlined below, and shall indicate that any bid protest shall be filed with the District representative, who shall be named therein.

If notice is given pursuant to R7-2-1024, notice also may be given as provided in R7-2-1022.  If fewer than five (5) prospective bidders are included on the bidders list, the notice must also be given as provided in R7-2-1022.  When the invitation for bids is for the procurement of services other than those described in 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 R7-2-1022.

R7-2-1022:

In the event there are four (4) or less prospective bidders on the bidders' list, the notice shall include publication in the official newspaper of the county within which the school district is located for two (2) publications which are not less than six (6) nor more than ten (10) days apart.  The second publication shall not be less than two (2) weeks before bid opening.  The time of publication may be altered if deemed necessary pursuant to R7-2-1024.A.

R7-2-1024:

Invitation for bids shall be issued at least fourteen (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.

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.

The time and date at which a bid is called due shall be during regular working hours at a regular place of school business or during a public meeting of the Governing Board at its regular meeting place.

Invitations to bid will be sent to all vendors who have requested to bid or who have applied to be placed on a bid list appropriate to the items being sought.

A bid call relating to "construction projects" must describe the nature of the work to be performed and where complete plans, if necessary, may be obtained.  Deposits may be required for plans and specifications in good order.  A certified check, cashier's check, or surety bond for ten percent (10%) of the bid must accompany each bid, but will be returned to unsuccessful bidders.  The successful bidder must present performance and payment bonds for one hundred percent (100%) of the bid within five (5) working days after notification of the award.

Each sealed bid must be submitted in a sealed envelope, addressed to the District, clearly marked on the outside of the envelope, "Sealed Bid for ________________."  The bids shall be opened publicly and read aloud at the time and place stated in the invitation.  Awards shall be made with reasonable promptness to the lowest responsible, qualified vendor, taking into consideration all factors set forth in policy.  Price shall not be the sole factor in making the bid award.  When out-of-state bidders are not to pay sales/use tax, the amount of such tax shall not be a consideration in determining the low bidder.  All proposed contracts for outside professional services in excess of the amount calculated by the State Board of Education and made applicable for the year in which the transaction will occur, may be reviewed by the attorney for the District prior to entering into the contract.  The policies relating to outside professional services apply only to services required by law to be placed on bid, and even those policies may be set aside if a state of emergency is declared.  If a state of emergency is declared, a memorandum will be issued justifying such a declaration, which will be filed in the District's records.

The use of bidding, contracting, or purchasing specifications that are in any way proprietary to one (1) supplier, distributor, or manufacturer is prohibited unless no other resource is practical for the protection of the public interest.

The Board reserves the right to reject any or all bids and to accept the bid that appears to be in the best interest of the District.  The Board reserves the right to waive informalities in any bid or to reject any bid, all bids, or any part of any bid.  Any bids may be withdrawn prior to the scheduled time for the opening of the bids.  Any bids received after the opening begins shall not be accepted.  Opening of bids shall not be delayed to accommodate late bid responses.  Submitted bids shall be honored for at least thirty (30) days or as otherwise stated in the invitation.  All information relating to a bid shall be retained and made available for public inspection after the bids are awarded, and prospective bidders shall be notified of this in the invitation or specifications relating to the bid call.

Multistep  Sealed  Bidding

The multistep sealed bidding method may be used if the Governing Board determines that:

A.  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 District;

B.  Definite criteria exist for evaluation of technical offers;

C.  More than one (1) technically qualified source is expected to be available; and

D.  A fixed-price contract will be used.

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

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

When the multistep sealed bidding method is determined to be advantageous to the District, the procedures set out in R7-2-1036 and 1037 shall be followed.

Competitive  Sealed  Proposals

If, pursuant to R7-2-1041, the Governing Board determines in writing that the use of competitive sealed bidding is either not practicable or not advantageous to the 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 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.

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

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

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

C.  Afford offerors an opportunity to revise their proposals;

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

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

Procedures to be applied subsequent to the issuance of an invitation for bids are to be consistent with the requirements set out in R7-2-1025 through 1032.

Competitive sealed proposals shall be solicited through a request for proposals.  The request for proposals shall set forth those factors listed above for competitive sealed bids that are applicable and shall also state:

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

B.  The type of contract to be used;

C.  An estimate of the duration the service will be required;

D.  That cost or pricing data is required;

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

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

G.  The minimum information that the proposal shall contain;

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

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

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.

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.

A request for proposals shall be issued at least fourteen (14) days before the closing date and time for receipt of proposals unless a shorter time is determined necessary by the District.

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

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).

Specified  Professional  Services
and  Construction  Services

When the procurement of construction services or services to be provided by certain professionals are under consideration, designated District personnel shall become fully familiar with and informed on the requirements established in Arizona Revised Statutes Title 34.  The assigned District personnel are to seek assistance from qualified consultants, attorneys, and bond counsel as is necessary and applicable to the projects being considered, including but not limited to determinations of the training, qualifications, experience, fitness, licensure, prior performance, and bonding of potential providers.  Procurement activities, including securing the services of persons to assist District personnel as referenced above shall be in accordance with all relevant requirements prescribed by federal and state law and the rules of federal, state, county, and municipal agencies for the acquisition, performance and reporting of the services being sought and acquired.

Procurement  of  Services  by  Certain
Other  Classes  of  Providers

The purchase of services to be provided by clergy, certified public accountants, physicians, dentists, and legal counsel shall be as specified in R7-2-1061 through R7-2-1068.  The procurement of services by an architect, engineer, land surveyor, assayer, geologist, or landscape architect is to be accomplished in compliance with R7-2-1117 and 1118.  Procurement procedures related to purchasing services from the professional providers are to conform to R7-2-1119 through 1122.

Contract  Requirements

Care is to be exercised to assure the District's procurement practices conform to the general contract requirements set out at R7-2-1068 through 1086 and the accompanying conditions described in R7-2-1091 through 1093.

Preparation  of  Specifications

Specifications for goods, services, and construction items are to be prepared in the manner prescribed by rules R7-2-1101 through 1105.

Construction  Procurement  Procedures

Preparation for inviting bids for construction and the steps to be followed in the construction procurement process shall be guided by and consistent with R7-2-1109 through 1116.

Emergency  Purchases

An exception to the above procedures for price competition may be made in the event of an emergency involving the health, safety, or welfare of school personnel or students.  In such an emergency, declared by the Superintendent, emergency purchase action may be taken without price competition, if necessary.  Even under emergency conditions, price competition should be sought if it will not unacceptably delay the correction of the condition requiring emergency procedures.  If emergency purchases are made without price competition, a complete written description of the circumstances pursuant to A.A.C. R7-2-1055 shall be included in the procurement file and maintained in the District office.

Sole-Source  Procurements

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 (1) source for the required material, service, or construction item.  The District may require the submission of cost or pricing data in connection with an award pursuant to A.A.C. R7-2-1053.  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 District.

The District shall, to the extent practicable, negotiate with the single supplier a contract advantageous to the District.

Cooperative  Purchasing  Agreements

Procurements in accordance with intergovernmental agreements and contracts between the District and other governing bodies as authorized by A.R.S. 15-952 are Arizona Revised Statute are exempt from competitive bidding requirements under A.R.S. 15-213.  Inspection of and payment for materials and services acquired under a cooperative purchasing agreement are the obligation of the District.

Due  Diligence

The District is responsible for ensuring that all procurements are done in accordance with school district procurement rules whether the procurement is done independently or through a cooperative purchasing agreement.  The District shall develop and follow a clear plan prescribing the purchasing practices to be followed.  The plan will describe the elements of internal control and auditing to assure the District's procedures are sufficient to confirm the adequacy of the procurements practices and that the accountability of all personnel engaged in procurement practices is regularly evaluated and corrective measures taken when necessary.  The due diligence activities shall include the use of the applicable sections of the Uniform System of Financial Records (USFR) Compliance Questionnaire for school districts when assessing the quality of the procurements procedures and the competence of the persons performing the procedures.  Day-to-day and periodic formal checks of due diligence performance are to be documented and retained in a procurement file.

Federal  Regulations  for  Suspension

and  Debarment  Verification

If a requisition involves the expenditure of funds received from Federal assistance, these procedures must include a process that confirms and documents verification of vendor suspension and debarment, per 2 CFR § 200.214 (Code of Federal Regulations Title 2).  This verification can be done by accessing www.sam.gov/sam/ where names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or other regulatory authority can be found.  Federal regulations restrict awards, sub-awards, and contracts with certain parties that are debarred, suspended or otherwise excluded from or ineligible for participation in Federal assistance programs and activities.  A covered transaction includes a contract for audit services (that is federally required) and contracts for goods or services in the amount of at least, twenty-five thousand dollars ($25,000), including subcontracts.  Evidence and documentation of this verification process should be maintained by the Superintendent