1. Utah Association of Special Districts Procurement Training April 29 and April 30 at Central Utah Water Conservancy District

2. The Procurement Code revisions resulting from Senate Bill 190 take effect on May 1, 2013

3. Application of the Procurement Code Every “procurement unit”, which includes:  Various state divisions and educational units  Local districts  Special service districts  Conservation districts  Public transit districts Reference: UCA 63G-6a-105(2)

4. Many important defined terms Utah Procurement Code Part 1: General Procurement Provisions Agenda Item No. 3

5. (32)(a) “procure” or “procurement” means buying, purchasing, renting, leasing, leasing with an option to purchase, or otherwise acquiring a procurement item. (32)(b) “procure” or “procurement” includes all functions that pertain to the obtaining of a procurement item, including: (i)description of requirements; (ii)selection process; (iii)solicitation of sources; (iv)preparation for soliciting a procurement item; (v)award of a contract; and (vi)all phases of contract administration (33) “procurement item” means a supply, a service, construction, or technology. Agenda Item No. 3 Part 1: General Procurement Provisions (63G-6a-103) Definitions Reference: UCA 63G-6a-103(32) & (33)

6. “Head of procurement unit” means:  as it relates to a local district, the board of trustees or a designee of the board of trustees  as it relates to a special service district, the governing board or a designee of the governing board  as it relates to a conservation district, the board of supervisors or a designee of the board of supervisors Part 1: General Procurement Provisions (63G-6a-103) Definitions Agenda Item No. 3 Reference: UCA 63G-6a-103 (21)

7. (34) “Procurement officer” means: (a) as it relates to a procurement unit with independent procurement authority (local district, special service district or conservation district): (i) the head of the procurement unit (the governing board) (ii)a designee of the head (the board); or (iii) a person designated by rule (5)“Chief procurement officer” means the director of the State Division of Purchasing (there is now only one Chief Procurement Officer in the state – Kent Beers) It is recommended that each district identify who the procurement officer is in its policy. Agenda Item No. 3 Part 1: General Procurement Provisions (63G-6a-103) Definitions Reference: UCA 63G-6a-103(34) & (5)

8. A local district, special service district or conservation district fall within the following defined entities: Procurement unit Public entity Issuing procurement unit Procurement unit with independent procurement authority Part 1: General Procurement Provisions (63G-6a-103) Definitions Agenda Item No. 3

9. Many types of procurement contracts other than a firm fixed price contract are defined, including: (11)“Cost-plus-a-percentage-of-cost contract” (14)“Definite quantity contract” (18)“Fixed price contract” (19)“Fixed price contract with price adjustment” (22)“Indefinite quantity contract” (26)“Labor hour contract” (39)“Requirements contract” (50) “Time and materials contract” Authorized uses of these contract types, together with procurement officer findings, will be presented later by Mark Anderson. Reference: UCA 63G-6a-103(11) (14) (18) (19) (22) (26) (39) & (50) Agenda Item No. 3 Part 1: General Procurement Provisions (63G-6a-103) Definitions

10. (46) “State cooperative contract” means a contract awarded by the Division of Purchasing and General Services. This is an important type of contract available to local districts, special service districts and conservation districts. Districts can procure under a state cooperative contract and know that the entire procurement process has been followed. Reference: UCA 63G-6a-103(46) Agenda Item No. 3 Part 1: General Procurement Provisions (63G-6a-103) Definitions (con’t.)

11. “Professional service” means a service that requires a high degree of specialized knowledge and discretion, including: Legal services Consultation services Architectural services Engineering Design Underwriting Bond counsel Financial advice Construction management Reference: UCA 63G-6a-103 (35) Agenda Item No. 3 Part 1: General Procurement Provisions (63G-6a-103) Definitions

12. Rulemaking Authority “Applicable rulemaking authority”, as it relates to a local district or a special service district, means the board of trustees: An applicable rulemaking authority must “initiate rulemaking proceedings” by May 13, 2014 to comply with the new procurement code (For districts, this means adopting policies). After May 13, 2014, a district’s rules may describe an applicable rulemaking authority other than the board of trustees. There are many sections that include mandatory or optional rulemaking obligations or authority for districts. Adopting a policy will be an important effort for each district by May 2014. District policies may be submitted to the Utah State Procurement Policy Board for approval as complying with the revised Procurement Code. Reference: UCA 63G-6a-104 (1) Agenda Item No. 3 Part 1: General Procurement Provisions (63G-6a-104) Definitions

13. (45) “Standard Procurement Process” means one of the following methods of obtaining a procurement item: (a) bidding (b) request for proposals (c) small purchases These methods will be described by Gene Shawcroft. Agenda Item No. 4 Part 1: General Procurement Provisions (63G-6a-103) Definitions Reference: UCA 63G-6a-103(45)

14. A district may not obtain a procurement item unless it uses a “standard procurement process” described in Part 4 or “an exception to a standard procurement process” described in Part 8. Part 4: General Procurement Provisions 63G-6a-402 Reference: UCA 63G-6a-402(1) Agenda Item No. 4

15. Part 8: Exceptions to Procurement Requirements The following four procurement methods are available to districts, under certain conditions described in Part 8, as alternate approaches to use of a “standard procurement process”: Sole source procurement Emergency procurement Purchase of prison industry goods Purchase from community rehabilitation programs