2.  All contracts shall be entered into, not by individuals, but rather by the Board.  Staff with purchasing authority are encouraged to acquire goods, services or construction through local bids, cooperative bids or state price contracts. This is the most efficient method of procurement.  If these methods are not feasible, non-competitive negotiations or small purchase policy may be used. NOTE: there are different levels of documentation required for these alternative procurement methods.

3.  1. $0 - $249.99 requires purchase order signed by the Superintendent or designee.  2. $250 - $1,999.99 requires signed purchase order and documented three telephone quotes or three prices from competitive catalogs.  3. $2,000 - $19,999.99 requires signed purchase order and three written quotes from competitive vendors or suppliers.  4. $20,000 and over requires formal bidding by the Office of the superintendent or use of existing cooperative bid with three written quotes

4. There are 5 general methods of procurement: 1. Competitive sealed bidding (Invitation for Bids – IFB) 2. Competitive negotiations (Request for Proposals – RFP) 3. Noncompetitive negotiations (Sole Source/Not practical to bid) 4. Small purchase process 5. Cooperative purchasing 4

5. 1. Statutory Authority KRS 45A.365 2. General Practice  This type of solicitation is commonly referred to as an Invitation For Bids (IFB).  Specifications are easily determined upfront and very concise.  Public notice of at least 7 days before bid opening – Internet or local newspaper of general circulation. KRS 45A.365(3) 5

6. 2. General Practice cont.  Bids opened publically at a time and a place identified in the solicitation.  Names of bidders and prices announced.  Evaluation typically conducted by procurement officer or committee in accordance with tight specifications and criteria established in the solicitation.  A contract shall be awarded with reasonable promptness by written notice to the responsive and responsible bidder whose bid is either the lowest bid price or the lowest evaluated bid price after the application of any reciprocal preference for resident bidders required by KRS 45A.494. 6

7.  Responsible bidder - a person or an entity which has the capability in all respects to perform fully the contract requirements, and the integrity and reliability which will assure good faith performance.  Responsive bidder - person who has submitted a bid under KRS 45A.365 which conforms in all material respects to the invitation for bids, so that all bidders may stand on equal footing with respect to the method and timeliness of submission and as to the substance of any resulting contract. 7

8. 1. Statutory Authority KRS 45A.370 2. General Practice  This type of solicitation is commonly referred to as a Request for Proposals (RFP).  Timeframe is generally a more lengthy process than a competitive sealed bid.  General specifications are identified upfront, but vendors have the flexibility to propose solutions which meet the needs of bidding agency.  Bids are not opened publically.  Evaluation typically conducted by an evaluation team, guided by a procurement officer, in accordance with general specifications and criteria established in the solicitation.  May include discussions with bidders during the evaluation process. 8

9. Written Determination that competition is not feasible AND at least one of the following: 1. An emergency exists 2. Item is available from only one source (manufacturer or copyright holder) 3. The services of a licensed professional (attorney, physician, educational specialist, etc.) 4. Perishable items published on a weekly basis 5. Replacement parts available only from the manufacturer 9

10. Written Determination that competition is not feasible AND at least one of the following: 1. Proprietary items for resale 2. Authorized trips outside the boundaries of the district 3. Supplies sold at public auction 4. Contracts for life, health, accident, liability, workers compensation, or unemployment insurance 5. Buying or selling by students as part of the educational experience 6. Purchases that will afford savings to the local public agency 10

11. General Practice  Determination that competition is not feasible must be in writing  Should be used as a last resort only.  Requires strong justification.  Approved contract period should be time-limited to allow for periodic re-evaluation.  Agency should still, as a best practice, attempt to engage in normal competitive practices as much as possible, under the circumstances (for example obtain multiple quotes in lieu of a bid, if it is not practical or feasible to bid in an emergency, because time is of the essence). 11

12.  For the procurement of necessary supplies, service or construction, the cost and quality of which are such that any possible savings of public funds realized through the practice of other procurement procedures would not justify the administrative time and expense necessary for the conduct of competitive sealed bidding.  You must check all other procurement options before authorizing the use of the small purchase procedure

13.  Aggregate amount doesn’t exceed $20,000. › Aggregate amount - the total dollar amount during a fiscal year of items of a like nature, function and use, which can be reasonably determined at the beginning of the fiscal year. › The $20,000 amount is that amount purchased by the total district (including activity funds) in a fiscal year, not just the purchases of one location.  Cannot artificially split or divide purchases.  If a bid vendor offers the item, it must be purchased from the bid vendor unless the item meets applicable criteria. 13

14. Documentation Requirements: 1. Copy of purchase order form 2. Written justification (may be written on the purchase order if purchase is less than $249.99) 3. Attach price quotes to purchase order 4. Attach any additional documentation that justifies the purchase 5. Attach a copy of any board approved contract if available 14

15. Documentation Requirements cont. 6. Schools shall maintain a small purchase file for purchases from school activity account. 7. All other staff members authorized to make small purchases shall maintain a small purchase file at their office of operation or the central office. 8. Documentation must be kept on file for five years

16. Example: Plastic storage bins are available through VIRCO (state master agreement) and School Specialty (KPC contract) at a cost of $3.00 to $4.00. Similar storage bins can be purchased locally for $1.00. Where should you purchase?

17. Example: USB memory sticks are available form Office Depot (KPC Contract) for $10.00. The price from a local discount store is $9.77. Where should you purchase?

18.  If obtaining phone quotes, advise vendors you’re obtaining quotes from several vendors. You cannot share the names of other vendors from whom quotes are being obtained.  For email/fax quotes, have vendor email/fax his quote, terms, etc. to you, complete with a signature.  Always give a complete address for the “Ship To” location. Don’t use P.O. Box Numbers.  If possible, always make freight terms F.O.B. Destination, not F.O.B. Factory. 18

19.  Contact the manufacturer if a Brand Name is required to determine authorized dealers to promote competition.  Consider establishing an acceptable brands list when soliciting. ADVANTAGE Promotes Competition DISADVANTAGE Requires research and hands on evaluation of products. Can be time consuming. 19

20. Any local public agency may enter into an agreement for cooperative purchasing with any other local public agency. When the contracting local public agency contracts for supplies, services or construction pursuant to KRS 45A.365, 45A.370, 45A.375, or 45A.380, all other parties to the agreement shall be deemed to have complied with the provisions of those sections.

21. Cooperative Agreement – KPC Master Agreement – State Price Contract Great “first choice.” Bidding and awarding already done. Items/services ready for purchase. Expedite the normal purchasing process. 21

22.  Catalog and Store Shelf Contracts › Percentage Discount Bids for Commodities › Do not meet the requirements for use in construction  Preferred Contracts › Contracts awarded based on line item IFBs or RFPs for goods and services › Categories range from Fresh Dairy to Online Speech and Occupational Therapy › Some of these contracts meet the requirements for use in construction