purchasing procedures and policies handbook · 2015-07-01 · contracts: contracts for services,...

LANCASTER INDEPENDENT SCHOOL DISTRICT

PURCHASING PROCEDURES AND POLICIES

HANDBOOK

Revised July, 2012

Lancaster ISD Purchasing Manual 2

Lancaster Independent School District

Purchasing Policies and Procedures Handbook

Table of Contents

Introduction 3

The Procurement Cycle 4

Purchasing Overview 5

Purchasing Functions and Roles 5

Maximizing Efficiency 6

General Purchasing Procedures 7

Lancaster ISD Purchasing Policies and Procedures 8-9

Unauthorized Purchases 9

Blanket (Open) Purchase Orders

Invoices for More than the Amount of a Purchase Order

Emergency Purchases

9

9

10

Procedures for Miscellaneous Payment Requests 10

Procedures for Adding New Vendors 10

Budget Codes 11

1. Object Codes 11-12

2. Function Codes 12

Receiving Goods 12

Payment Procedures

Personal and Software Purchases

Purchases Valued at or Above $25,000

13

13

13-14

Competitive Procurement Options and Categories 14-17

Guidelines for Competitive Procurement 18-20

Vendor Performance Evaluation 21

Synopsis of Competitive Procurement Process 20

Sole Source Purchases

Vendor Performance Evaluation

20

20- 21

General Questions and Answers 21-23


Introduction

The purpose of this handbook is to provide information to Lancaster ISD personnel on the correct procedures to be

used when utilizing the purchasing function and allow the district to be in compliance with state and local

purchasing statutes and policies.

This handbook is a review of the procedures to be used when ordering goods and services and an overview of the

purchasing function. Please use this handbook often as a reference for any questions relating to purchasing policy

and procedures. Quite understandably, you may still have questions after reviewing the material; please feel free to

call the Purchasing Department with any questions or concerns.

It is the goal of the Purchasing Department to assist you and enable you to make your purchases and receive your

goods as efficiently and expeditiously as possible.

It is the intent of this handbook to ensure that Lancaster ISD is able to:

1. Comply with state purchasing laws and statutes, the Board of Trustees’ policies, administrative

procedures and sound business practices.

2. Provide quality products and services that meet the specifications requested by all Lancaster

Independent School District Campuses and Departments.

3. Obtain the most competitive prices for the products and services purchased utilizing procurement

techniques that stimulate vendor competition.

It is the mission of the Purchasing Department “to maintain an accurate process for acquiring goods and services

which satisfy both internal and external needs of the District.

It is the responsibility of the Purchasing Department to provide fair and accurate purchasing guidelines and

procedures and to take care of District obligations in an efficient and timely manner with minimal interference to

campus activities.

Code of Ethics & Conflict of Interest

A special responsibility is imposed on all people who are entrusted with the disposition of the state’s funds.

Purchasing personnel are required to perform with the highest integrity while constantly being asked to manage

more effectively, to secure better economic results, to speed up the process, and to be innovative in accomplishing a

given mission. This is a great challenge and an exciting one!

The nature of purchasing functions makes it critical that all players in the process remain independent, free of

obligation or suspicion, and completely fair and impartial. Maintaining the integrity and credibility of a purchasing

program requires a clear set of guidelines, rules and responsibilities to govern the behavior of purchasing employees.

Credibility and public confidence are vital throughout the purchasing and contracting system. Any erosion of

honesty, integrity or openness tends to be more injurious to purchasing than to most other public programs. The

shadow of doubt can be as harmful as the conduct itself.


The Procurement Cycle

Need Defined…..

Procurement Method Selected

Solicitation

Receipt of Bids

Evaluation & Awards

Inspection & Acceptance

Contract Administration

Payment

Disposal of Property

Identify End-Users Needs

The end user will communicate to the purchaser(s) the commodity or services needed. The most common

document used to identify the need is a purchase requisition. The requisition should include the

specifications of the commodity or service that an end user seeks to procure.

A specification is a detailed description of a product or service that a user seeks to procure, and

consequently, a description of what a bidder must offer to be considered for an award. Specifications are

the primary means of communication between an agency and a vendor (see Section 2.23 Specifications).

Specifications control the following procurement aspects:

the quality of the product

the amount of competition

suitability of the product or service for the job

the method of evaluation used in making an award and in determining the bid with the best value

for the purchase


Purchasing Overview

The purchasing function is a major management process supporting financial accountability in Texas public schools.

Purchasing has several links to overall accountability initiatives which include the:

Strategic Link. The overall mission of purchasing is to use available fiscal resources to obtain the maximum

product or service for the resources expended.

Operational Link. Purchasing supports instructional delivery, administration, and other services. Performance

and goal achievement throughout the school district depend on its effectiveness.

Tactical Link. The purchasing process influences day-to-day financial functions including budget management,

accounting, and accurate financial reporting.

Purchasing in the public sector environment presents numerous challenges including:

The requirement to comply with numerous statutes, policies, legal interpretations, and procedures. The

complexity of these requirements demands not only knowledge of purchasing laws and standards but

compliance in implementing a purchasing system that also meets user needs.

The dynamic and diverse nature of the public education organizational environment. School districts are

complex organizations with diverse functions. Although instruction is the heart of the organization, numerous

other services—ranging from custodial services to food service to tax collection—support the overall

educational mission. These distinct organizational units need a procurement process that is responsive to their

needs.

The competition among vendors for school district business. The strong competition among vendors for school

district business may create pressure on school district personnel for product selection, bid or proposal awards,

and dispute resolution. Most school districts seek to foster both good vendor relations and strong competition

but balance them with objective purchasing decisions.

The consistent oversight by interest groups. School district purchasing is scrutinized by diverse groups

including those from the public, the media, state and federal agencies, and auditors. Strict adherence to

established guidelines and consistency in record keeping, documentation, and execution of procedures assists

the school district in withstanding this scrutiny.

There are many “gray” areas relating to purchasing methods and procedures. Complex and diverse needs

create challenges for districts to determine the appropriate purchasing methods. Ever-changing legislative,

executive, and judicial decisions at both the state and federal levels further complicate the procurement process.

Purchasing Functions and Roles

The purchasing process includes a wide range of procurement functions including planning, acquisition, quality

assurance, contract administration and distribution. Basic functions include the following:

The organization and administration of procurement/purchasing as determined by the superintendent and the

Board of Trustees.

The acquisition of goods and services requested consistent with state and federal law, board of education

policies and sound business practices.

The distribution of goods and services to users in a timely and responsive manner with assurance that quality

standards have been met.


Maximizing Efficiency

As recommended by TEA, the purchasing function should be centralized within the district for maximum efficiency

to be achieved. Centralized purchasing and decentralized purchasing are defined by the council of State

Governments publication, State and Local Governmental Purchasing as follows:

Centralized Purchasing is defined as “a system of purchasing in which authority, responsibility, and control of

activities are concentrated in one administrative unit.”

Decentralized Purchasing is defined as “a system of purchasing in which there is a varying degree of delegation

authority, responsibility, and control of purchasing activities to the several using agencies.”

Centralized purchasing is more efficient than decentralized purchasing because it enables a district to coordinate the

common purchase requirements of campuses and departments to obtain better prices. For example, when two

campuses requisition the same goods and/or services, a centralized purchasing department may combine the

goods/services on the same purchase order and arrange for more favorable price terms. Better planning, reduced

paperwork, and reduced costs result from centralized purchasing.

Centralizing the purchasing function strengthens internal controls. A centralized purchasing department typically:

Receives and coordinates purchasing requisitions/purchase orders from campuses or departments

Communicates with vendors regarding prices and terms of purchases

Processes and approves all purchase orders

Issues purchase orders to vendors

Receives purchases at central warehouse locations ( if district has a warehouse)

Coordinates competitive procurement processes

Distributes goods based on purchase requirements

Centralizing the purchasing function does not erode the principles of site based management. Purchase requisitions

still originate at the campus or department level where needs are identified. Centralized purchasing carries out the

site-based requisitions and improves the internal controls within the purchasing function.

The area in which internal controls are improved most is in the purchase approval process. In centralized purchasing,

every purchase order within the district is reviewed by the centralized purchasing department to prevent violations

of state and federal law and local school board policies. A centralized purchasing function with varying levels of

authority and a receipt and distribution process provides another strong internal control.

In decentralized purchasing, campuses and departments may issue purchase orders, communicate directly with

vendors, and receive goods at other than central locations. If purchases are made inappropriately, violation of laws,

regulations and school board policies may result.

Quality Assurance

Appropriate steps should always be taken to assure the quality of merchandise received. The first step is to examine

the merchandise for obvious defects or damages. All defects and damage should be documented on the receiving

report; the vendor should then be contacted.


General Purchasing Procedures

Function: The purchasing department is a part of the business services (finance) department. The function of this department

is to organize and administer purchasing procedures for the district in accordance with the responsibility and authority

delegated by the Superintendent and the Board of Education

Board Purchasing Policy: It is imperative that All Budget Managers, who are responsible for approving purchases,

familiarize themselves with the Board of Trustees purchasing policies and ensure that his/her campus/department is following

these policies explicitly.

Purchasing Commitments and Authority: “All purchasing commitments shall be made by the Superintendent or designee

on a properly drawn and issued purchase order.” Board Policy CH (Local).

Purchasing Procedure: Authority to approve expenditures is not authority to purchase. A purchase has not been authorized

until a purchase order has been issued and signed by the Coordinator of Purchasing or designee. A requisition is not a

purchase order; it is a request for a purchase order. The Coordinator of Purchasing is designated by the Superintendent for

authorizing all purchases unless an exception is made or granted by the Superintendent.

Responsibility for Debts: The Board shall assume responsibility for debts incurred in the name of the District so long as

those debts are for purchases made in accordance with adopted Board policy and current administrative procedures. The

Board shall not be responsible for debts incurred by persons or organizations not directly under Board control; persons

making unauthorized purchases shall assume full responsibility for all debts. Board Policy CH (Local).

Personal Purchases: District employees shall not be permitted to purchase supplies or equipment for personal use through

the District’s Business Office. Board Policy CH (Local).

Contracts: Contracts for services, supplies, or equipment, including the rental of equipment, may be entered into on behalf of

the District under the policy applicable to the purchase, i.e., a contract is a “purchase,” and a person with authority to approve

purchases has the same authority, and the same limitations, to approve contracts. The Coordinator of Purchasing shall duly

record the encumbrance and maintain files as appropriate.

The District will enter into contractual relationships only with those vendors who have through word and action, affirmed

that they comply with all applicable existing laws or executive orders to ensure equal employment opportunities, without

regard to race, creed, color, sex or national origin.

Support: As a support organization with the responsibility of acquiring goods and services requested by the various

divisions, the purchasing department will function in a manner consistent with state law, the Board of Education’s policies

and sound business practices.

Cooperative Effort: Effective purchasing is a cooperative effort between the purchasing department and other departments

within the district. These departments share the responsibility of expending district funds in such a manner that all

transactions will pass numerous audits with respect to state, federal and district procurement regulations.


Lancaster ISD Purchasing Policies and Procedures

Procedures for Online Purchase Requisitions:

Lancaster ISD (CH) Local states, “All purchases shall be made by the Superintendent or designee on a properly drawn

purchase order, in accordance with administrative procedures.”

All purchases for goods and services that are to be paid from monies allocated in the annual budget shall be made through the

following process:

1. Lancaster ISD’s purchasing policy requires prior approval of any purchases that are made. The policy requires that a

purchase order be completed and approved before ordering items for the district. No verbal orders shall be made. Verbal

approval of an administrator or supervisor does not replace the need for a purchase order. If an order is made without a

purchase order, it shall be the sole responsibility of the person placing the order to make payment; it is not the

responsibility of the district to pay for an order made under these circumstances. Persons placing verbal orders shall be

reprimanded. Poor planning, which causes urgency on the part of the requesting party is not an acceptable reason for

purchasing without a purchase order.

2. Requests for all purchases shall be submitted to the purchasing department using the online requisition system, SUngard

Public Sector (Pentamation). Complete the requisition online ensuring that all required fields (indicated by an asterisk)

have been completed. Please be aware of your descriptions; if purchase orders do not have complete descriptions, the

purchase order may not be approved. Requests shall include all required information; please be sure all

shipping/handling charges are included on the requisition. A requisition must clear all of the required approval levels

before it can be processed and converted to a purchase order. Requisitions at the campus level must be approved by the

principal, assistant superintendent, and Chief Financial Officer or Senior Finance Manager. Requisitions at the

departmental level must be approved by the department director and the Chief Financial officer or Senior Finance

Manager.

3. The purchasing department will convert all approved requisitions to purchase orders on a daily basis. The Coordinator of

Purchasing will review the purchase order and approve or deny it. Approved purchase orders will be printed and

distributed on a daily basis. Please note that the Director of Purchasing does not approve requisitions except in special

and/or unusual situations.

4. Accounts Payable will receive the yellow copy; Purchasing will receive the gold copy, and the ordering campus or

department will receive the pink and white copies via interdepartmental mail. The ordering campus or department will be

responsible for faxing or mailing a copy of the purchase order to the vendor. If the merchandise is ordered through a

purchasing cooperative such as the BuyBoard or TCPN, the purchase order may be required to be faxed to the

cooperative’s headquarters; this will be done by the Purchasing Director.

5. Requisitions for materials and/or equipment shall be submitted in sufficient time to allow for the delivery of the materials

and/or equipment within that school year. Suppliers shall be informed that back orders will not be accepted unless

specific permission is granted by the Superintendent or designee. If applicable, please be sure to include all

shipping/handling charges on the requisition; this will be a separate line item.

6. When your order has been received, please verify the contents against your packing slip. After this has been done, go

online and receive your items by line items only. The items on the purchase order that have not been received will not be

paid. Multiple page purchase orders have to be received by page. The District does not accept back orders; a new

purchase order will have to be submitted.

7. If a purchase order is not used, please notify the Purchasing Department so it can be closed. If an unused purchase order

is not closed, the funds remain encumbered.

8. Please plan your purchases in advance. Your designated approvers may not always be available to approve everyday.

9. Do not place an order using a requisition number; this is a direct violation of purchasing policy. Please remember that a

purchasing requisition is not a purchase order and is not to be used as such; it is a request for a purchase order.


10. Unauthorized purchases made outside of the requisition/purchase order process will cause the guilty party to be

personally liable for the expense.

Reimbursements

Any request for a reimbursement for a purchase made by an employee with personal funds must have approval before the

purchase is made. Please be certain prior approval is received before personal funds are used for a purchase and a

reimbursement is requested.

Please make note of the following reminders when submitting a requisition:

When submitting a requisition of $3500.00 or more, please verify the purchase can be made without a formal

procurement process in place or verify if a process is in place. There could have been other purchases in that

particular category, and the allowable spending limit could be exceeded, therefore causing a violation to occur.

Please verify that any purchase requisition in excess of $10,000.00 is allowable and that a valid purchasing contract

is in effect with the vendor. It is quite possible that a formal quote or bid may have to be conducted before the

purchase can be made. Please remember that there is not an acceptable reason for violating purchasing statutes, no

matter how badly the materials may be needed. Purchasing laws,statutes and/or policies will not be violated.

For any purchase requisition in excess of $25,000.00, a formal purchasing contract must be in place with the vendor

and the Board of Trustees will have to formally approve the purchase if it has not already done so.

If the TEA Sole Source Provision is to be used for a purchase in excess of $25,000.00, the purchase must still be

approved by the Board of Trustees.

Purchase requisitions for technology hardware and software will require the approval of the Chief Technology

Officer before they can be converted to a purchase order.

Again, please remember that a purchasing requisition is not a purchase order; it is a request for a purchase order. A

purchase order is in hard copy format with an authorized signature.

Unauthorized Purchases

Lancaster ISD (CH) Local states, “All purchase commitments shall be made by the Superintendent or designee on a properly

drawn purchase order, in accordance with administrative procedures.” The purchasing department is ensuring that campuses

and departments are adhering to this regulation through close monitoring and supervision. For any purchase requested to be

made without a purchase order, documentation must be provided that the requested items cannot be purchased from a vendor

that does accept purchase orders. Purchases made without a purchase order must have prior approval. For purchases made

without a purchase order and with no prior approval granted, the employee shall be held accountable and financially

responsible for any purchase made outside the parameters of the approved purchasing process.

Blanket (Open) Purchase Orders

A blanket purchase order is issued to a pre-approved vendor authorizing purchases from that vendor over a period of time.

Blanket purchase orders are valuable because they allow the purchase of items quickly. However, blanket purchase orders

must follow certain criteria: pre-qualification of vendors, limitation on the maximum amount for purchases, a specific time

frame for purchases covered by the blanket purchase order (usually one month), and identification of authorized purchasers.

Blanket purchase orders will only be allowed to be issued if the requesting campus/department has received prior approval

from the Coordinator of Purchasing. Unless otherwise authorized, open purchase orders shall not exceed $500.00, unless an

extenuating circumstance exists and shall be valid for one month. The user department must issue a new requisition if items

are requested beyond the specified time period. Any exception to this procedure must be requested and approved by the

Director of Purchasing.

The following controls shall be in place for the use of blanket purchase orders:

The number of vendors to whom blanket purchase orders are issued will be limited.

Those who can make purchases under blanket purchase orders will be clearly designated.

Dollar limits will be carefully observed.


Emergency Purchases

Two types of emergency purchases are made in districts. One type results from an eminent threat to the health, safety, or

welfare of students. Such purchases must comply with state law and may be made only after a formal board action declaring

an emergency and authorizing the purchase. An example of an emergency purchase of this type is the authorization to repair a

school after a fire or natural disaster.

Emergency purchases exceeding the dollar amount triggering competitive procurement requirements shall be made in

conformance with subsection (h) Section 44.031 Texas Education Code.

The second type of emergency purchase usually is defined by local policy to provide for the acquisition of goods or services

which may imperil students or the security of the facility. For example, if windows are broken at a school by vandals, an

immediate need exists to not only secure the building, but also to protect the contents from damage by the elements. This

type emergency purchase is normally utilized after regular business hours or on weekends or holidays. After purchases of this

type are made, a purchase order should be issued after the fact on the next business day. Care should be taken that emergency

purchases do not result from improper planning rather than from a true emergency.

It is important that the district attempts to eliminate emergency purchases for nonemergency situations as much as possible

and requires that all emergency purchases be fully justified.

Invoices for More than the Amount of a Purchase Order

An amount of 10% over the stated amount on original purchase order will be approved for processing. However any amount

over the 10% will constitute the need for a new/revised purchase order.

Procedures for Miscellaneous Payment Requests (MPRs)

1. The MPR System is to be used when a check is needed that is not covered by a purchase order. Examples of this include

but are not limited to: (1) registration and membership fees, (2) newspaper ads for bids/proposals, (3) mileage, (4)

reimbursement for travel costs including meals and lodging. Do not use an MPR because it is faster or easier.

2. Please be sure than any special instructions about mailing or returning are printed legibly on your MPR. If any

paperwork needs to be returned with the check, please indicate on the MPR and provide a copy for finance records

(example: registration for conferences). Also, please be aware of your vendor numbers. Use only the master file to get

vendor numbers. Failure to do this will cause a miscellaneous vendor number of 99999; this number will not be

accepted. If a vendor is not on the Master File, please contact the Director of Purchasing so a new vendor can be set up in

the system.

3. MPR’s with proper back-up are to be signed by your principal or director and should be received by Accounts Payable

on the Monday before the Thursday check run. Planning is extremely important in order to meet your payment needs and

requirements. All requests for hand checks must be approved by Ms Kizziar, Chief Financial Officer.

4. Checks will be available for pickup at 1:00 P.M. on Thursday of each week. Principals, Directors, Secretaries or

Bookkeepers are responsible for picking up any checks. Any exceptions to this should be e-mailed to Accounts Payable.

All other checks will be mailed to the vendor on Thursday.

5. Any documentation that Accounts Payable mails to you that requires a MPR needs to be returned to Accounts Payable

within two (2) business days.

6. Accounts Payable cannot pay from a statement; please provide an invoice for all payment requests.

7. Please remember to plan in advance. Your individual approver may not always be available to approve everyday.

The number of MPRs should be very minimal.

An example of the Miscellaneous Payment Request (MPR) form is provided in Exhibit I


Procedures for Adding New Vendors

Forward your new vendor request to Coordinator of Purchasing via e-mail: [email protected]. A W-9 form is

required to be on file before a new vendor can be added.

Please submit your request(s) in a timely manner; please do not wait until the last minute to send in your request. Please

allow 24 hours for your request to be processed.

Once your new vendor number has been established, you will be notified by e-mail.

If you have any questions or concerns, please contact Mr. Brasher via e-mail or by phone (972) 218-1412.

A new vendor desiring to do business with Lancaster ISD should complete the form displayed in Exhibit II.

Budget Codes

Budgets are entered according to the following format:

Fund Function Sub Object Organization Program Object Code (Account Code)

199 11 00 001 299000 6399

Object Codes: The following is a list and brief explanation of the more frequently used object codes by campuses and

departments.

Object codes are often misunderstood, because sometimes they are similar and doubt can be raised concerning what object

code should be used for a particular purchase. Listed below are some of the most frequently used object codes and an

explanation of when they should be used.

6219 – Professional Services. Expenditures/expenses for professional services rendered by personnel who are not on the

district’s payroll. Such services are paid on a fee basis for specialized services that are usually short-term or temporary in

nature, normally in areas that supplement the expertise of the school district. Professional Services are defined and listed in

the Texas Local Government Codes.

6239 – This code is used to classify all contracted services provided by the education service center.

6249 – Contracted Maintenance Repair. Expenditures to include normal contracted upkeep, repairs, maintenance and

renovation of: office equipment, furniture, computers, copiers, district-owned telephone system, facsimile machines,

maintenance agreement fees, other equipment when the repairs are provided by an outside individual or firm.

6291 - Expenditures/expenses for consulting services. Consulting services cover all functional areas such as instruction,

curriculum, and administration. Software is not a consultant and should be charged to object code 6399.

6299 – Miscellaneous Contracted Services. This code is used to classify expenditures/expenses for miscellaneous contracted

services not specified elsewhere.

6321 – Textbooks. This code is used to classify expenditure/expenses for textbooks purchased by the school district and

furnished free to students, certain classes or grades.

6329 – Reading Materials. This code is used to classify all expenditures/expenses for magazine subscriptions and newspaper

subscriptions that are placed in classrooms, offices, or libraries. Also included are reference books and other reading

materials placed in a classroom or office that are not catalogued and controlled by the library.

6339 – Testing Materials. Used to classify expenditures/expenses for testing materials such as test booklets. Test scoring is

not to be classified here.

6399 – General Supplies. This code is used to classify expenditures/expenses for those items of relatively low unit cost (even

though used in large quantities) necessary for the instruction process and/or administration. Expenditures include:

mailto:[email protected]


consumable teaching and office items such as paper, pencils, forms postage, etc., workbooks, audio-visual aids such as VCR

tapes CD ROM disks. Also included are site licenses, single use software that has a per-unit cost of less than $5000.00, and

supplies for a satellite dish and other supplies for technology.

6411 – Travel and Subsistence – Employee only. This code is used to classify the cost of transportation, meals, room, and

other expenses associated with traveling on official school business. The cost of employee travel also includes any

registration fees associated with attending conferences, including seminars, inservice training, etc.

6412 – Travel and Subsistence – Students. This code is used to classify the cost of transportation (rental of vans, buses and

other vehicles), meals participation fees, room and other expenses associated with students traveling for school sponsored

events (Do not use function 34).

6495 – Dues paid to clubs, committees, or other organizations. Examples are: TASA, TASP, TASB and other associations.

6499 – Miscellaneous Operating Costs. This code is used to classify expenditures/expenses for all other costs not assigned to

specific object code. This account includes: fees and not associated with travel, awards, bid notices, graduation expenses,

newspaper advertisements, and food/refreshments for school-related meetings. (The term miscellaneous does not mean that

this code may be used at random. It is not to be used for supplies or furniture.

6631 – Vehicles per unit cost of $5000.00 or more. This code is used to classify expenditures for the purchase of vehicles

having a per-unit cost of $5000.00 or more and a useful life of more than one year.

6641 – Vehicles per-unit cost of less than $5000.00. This code is used to classify expenditures for the purchase of vehicles

having a per-unit cost of less than $5000.00 and a useful life of more than one year.

6649 – Capital Assets –Locally Defined Groupings . This code is used at the discretion of the school district if the school

district policy requires the capitalization of items that individually or as a group, are less than $5000.00. If a school district

does not account for these items under object code 6649, then the items are to be classified under 6399, General Supplies.

Function Codes: The following is a list of the more frequently used function codes.

11 – Instruction. This function is used for activities that deal directly with the interaction between teachers and students. This

function includes expenditures/expenses for direct classroom instruction and other activities that deliver, enhance or direct

the delivery of learning situations to students.

12 – Instructional Resources and Media Services. This function is used for expenditures/expenses that are directly and

exclusively used for resource centers, establishing and maintaining libraries and other major facilities dealing with

educational resources and media.

13 – Curriculum Development and Instructional Staff Development. This function is used for expenditures/expenses that are

directly used to aid instructional staff in planning, developing and evaluating the process of providing learning experiences

for students.

23 – Instructional Leadership. This function is used for expenditures/expenses that are used to direct and manage a school

campus. They include the activities performed by the principal, assistant principals and other assistants.

31 – Guidance, Counseling and Evaluation Services. This function is used for expenditures/expenses that are directly and

exclusively used for assessing and testing students’ abilities, aptitudes and interests; counseling students with respect to

career and educational opportunities and helping them establish realistic goals.

36 – Extracurricular Activities. This function is used for expenditures/expenses for school-sponsored activities outside of the

school day. These activities are generally designed to provide students with experiences such as motivation and the

enjoyment and improvement of skills in either a competitive or noncompetitive setting.


Receiving Goods

All merchandise received by the District shall be checked immediately upon delivery for contents and condition. The

employee receiving the goods shall sign the receipt, signify the date of delivery, and note any deviation in the content or any

question about the condition of the goods received.

Payment Procedures:

District payment procedures shall be as follows:

1. Payment shall be made by proper invoice only. If the invoice is for an amount that is higher than the purchase order, the

purchasing department may approve additional costs up to $300.00. Quite often a purchase order may not include

shipping and handling costs.

2. Vendors shall be paid for goods purchased by the District after the accounts payable office has on file a copy of the

invoice and a receiving report on the items purchased.

3. After the merchandise has been received, go into the system and receive the goods. Send Accounts Payable the pink

copy of the purchase order and indicate on the PO that the items have been received and the date they were received;

please sign to verify receipt of the items

4. Payment for the purchase shall be approved by the Superintendent or designee when receipt of shipment is submitted.

5. In the instances when a purchase order cannot be issued a Manual Payment Request (MPR-direct payment) shall be

submitted for processing. This process is to be completed after the invoice has been received.

Records of all purchases, expenditures, and receipts shall be kept in accordance with TEA regulations, public law, and

the recommendations of the independent auditor. The Superintendent shall supervise the expenditure of District funds in

accordance with the proposals listed in the annual budget adopted for the current school year.

Personal Purchases

District employees shall not be permitted to purchase supplies for personal use through the District’s business office.

Software Purchases

Because of network and compatibility issues, the purchase of any software must have prior approval from the District’s Chief

Technology Officer. Also, other technology items, such as printers, scanners, etc may also require this approval.

Purchases Valued at or Above $25,000.00

In accordance with local Board of Trustees policy (CH) Local, all District contracts, except for the purchase of produce or

vehicle fuel, valued at $25,000.00 or more in the aggregate for each 12-month period, shall be made by the method that

provides the best value to the district:

1. Competitive bidding;

2. Competitive sealed proposals;

3. A request for proposals for services other than construction services;

4. An interlocal contract;

5. A design/build contract;

6. A contract to construct, rehabilitate, alter, or repair facilities that involves using a construction manager;

7. A job order contract for the minor construction, repair, rehabilitation, or alteration of a facility;


8. The reverse auction procedure as defined by Section 2155.062(d), Government Code; or

9. The formation of a political subdivision corporation under section 304.001, Local Government Code.

The Board shall assume full responsibility for debts incurred in the name of the District so long as those debts are for

purchases made in accordance with adopted Board policy and current administrative procedures. The Board shall not be

responsible for debts incurred by persons or organizations not directly under Board control; persons making unauthorized

purchases shall assume full responsibility for all such debts.

Competitive Procurement Options

Board Policy (CH) Local states that all contracts, except contracts for the purchase of produce, or vehicle fuel, valued at

$25,000 or more for each 12-month period are to be made by the method or methods that provide the best value to school

districts. These options include:

Competitive Bidding

Competitive Sealed Proposals

Request for Proposals

Catalog purchases through Texas Procurement and Support Service (TPASS) administered through the Office of the

State Comptroller

Inter-local Contracts

1. Competitive Bidding

Competitive bidding is a formal process that may also be referred to as competitive sealed bidding, sealed bidding, or

formal bidding. The competitive bidding process requires that bids be evaluated and awards made based solely upon bid

specifications.

1.1 The Bid Process

The Board of Trustees has provided the Purchasing Department with established bidding requirements, which are

revised periodically as the need arises. The basic rule on the bidding is that all purchases in a category in an

aggregate amount over $25,000 must be submitted to competitive procurement procedures. Exceptions to this rule

are emergency purchases and fees paid for professional services or purchases that qualify under the TEA sole

source provision. However, purchases under $25,000 may be submitted to the competitive bid process if it is in

the best interest of the District.

Bids must be advertised as required by the Texas Education Code, Sec. § 44.031 (a). The requirements for the bid

advertisement are:

1.11 Advertisements for bids are to be advertised in the county where the district’s central administrative

office is located once a week for at least two weeks before the deadline for receiving bids.

1.12 Bids on construction Projects of $15,000 or more are to be advertised, along the standard advertising

procedure on publications directed to organizations in the trade such as to the Dodge Report. The

advertisement must be published at least twice in one or more newspapers of general circulation in the

county or counties in which the work is to be performed. The second publication must be on or before the

10th day before the first date bids may be submitted (Art. 271.025b).

The procedures in the advertising process determine the number issued to bids/proposals. Numbers

assigned to bids are composed of eight (8) digits and are arranged according to the following sequence:

Example:Arts & Crafts Supplies – Catalog Discount 12-06-0133

12 The first two digits indicate the year 2012

06 Indicates the month of the bid submittal deadline – June

0133 Indicates the numerical sequence of the bids/proposals that have been issued


1.2 Bids/Proposals Opening Procedures (Please note for this section that the terms bid and proposal are

interchangeable).

The following steps are followed on all bid openings:

1.2.1 When a bid or proposal is submitted and received prior to the advertised deadline, it is stamped with

the time and date of receipt, received to ensure that the bids/proposals are sealed, addressed as

required and placed in the bid file.

1.2.2 Upon arrival of the specified deadline for the submittal, the Coordinator of Purchasing shall

introduce himself to the vendor representatives that are present. It is then announced that the

deadline for submitting a bid has passed and that no more bids will be accepted for consideration.

1.2.3 The opening of the bids requires that the Coordinator of Purchasing break the seal, check to ensure

that the bid/proposal is properly signed by an authorized officer of the organization, and that all

special requirements have been met before reading the bids aloud. Failure to meet all of the

requirements outlined in the bid documents disqualifies the bid from being considered.

1.2.4 All bids submitted and recorded are final and may not be altered, except for competitive sealed

proposals. Proposals are negotiable. If allowed, vendors may submit an alternate sealed bid before

the arrival of the bid deadline.

1.2.5 Any bid received later than the specified deadline, whether delivered in person or mailed, shall be

disqualified and will not be considered under any circumstances. Late bids received in the mail may

be returned to the bidder unopened with a notation indicating the bid was received late. It shall be

the sole responsibility of the bidder to ensure his/her proposal arrives at the appropriate location by

the specified deadline regardless of delivery method. At this point, the bid file contains the

following:

Advertisement

Bidder’s List

Tabulation Form

Copy of the Bid Packet

All Bids received by the specified deadline

1.3 The Bid Evaluation Process:

After it has been determined to which vendor(s) bid award shall be made, the Coordinator of Purchasing will

prepare a formal recommendation for bid award to be presented to the Board of Trustees for approval. The

recommendation for award shall include a bid summary, justification of award to other than the low bidder (if

applicable) a copy of the bid tabulation, and any other information pertinent to the recommendation for

award.

2. Competitive Sealed Proposals

The Competitive Sealed Proposal process is an alternative to competitive bidding. The terms and conditions of

competitive sealed proposals are identical to those of a competitive sealed bid, except the finality of initial offers and

the public reading of the proposals, By utilizing a competitive sealed proposal, changes in the nature of the proposal

and the prices submitted may be negotiated after the proposals have been opened. A competitive bid does not allow

for any negotiations of the above components. Competitive sealed proposals are recommended when other

procurement options are not required according to state or federal laws, or regulations in order to stimulate

competitive prices for goods and services.

A Request for Proposals (RFP) is a part of the competitive proposal process. The RFP is the mechanism that

generates the receipt of competitive sealed proposals and should contain the following key elements:


Newspaper Advertisement

Notice to Proposers

Standard Terms and conditions

Scope of Work

Scope and Intent

Definitions and Applicable Documents

Quality Assurance

Acknowledgement of Bid/Proposal

Statement of Non-collusion

Felony Conviction Notice

Conflict of Interest

Contract Clause

3. Catalogue Purchases

School districts may participate in the catalogue purchasing program of the Comptroller’s Office which provides

purchasing services for local governments. Catalogue purchases are an alternative to other procurement methods if

the catalogue purchasing process provides the best value to the district. Purchasing through the Comptroller’s Office

satisfies all competitive procurement requirements stated in TEC §44.031.

4. Interlocal (Cooperative) Contract Agreement/Purchases

A school district may contract or agree with another local government, the state, or a state agency, including the

Office of the Comptroller, or a national cooperative to perform governmental functions and services. The purpose of

an interlocal contract may be to study the feasibility of using an interlocal contract to perform a governmental

function or service, or to provide a governmental function or service that each party to the contract is authorized to

perform individually.

4.1 Requirements for interlocal contracts include:

Authorization by the governing body of each party to the contract;

Statement of the purpose, terms, rights and duties of the contracting party;

Specification that each party paying for the performance of governmental functions or services must

make those payments from current revenues available to the party.

Interlocal contractual payments must fairly compensate the party who performs the services or functions under the

contract. In addition, the parties to an interlocal contract may create an administrative agency or designate an

existing local government to supervise the performance of the contract. Consequently, the agency or designated

local government can employ personnel perform administrative activities and provide administrative services

necessary to perform the interlocal contract (Government Code 791.011-791.025).

Benefits of cooperative purchasing include:

Cost savings on products or services. A cooperative purchasing arrangement can increase the buying power of a

single district with volume discounts

Savings on administrative costs. A cooperative arrangement can reduce administrative costs relating to

performing the purchasing function Cost savings can include major areas such as salaries and benefits, supplies,

office equipment and contracted services. A cooperative can result in the elimination of redundant costs which

may be associated with individual districts performing their own purchasing functions.

Accessibility to more products and services. A cooperative may provide districts the opportunity to buy a

greater variety of products and services. The district chooses what is best for its needs at lower costs.

A district that enters into a purchasing contract valued at $25,000 or more under certain cooperative purchasing

contracts must document any contract-related fees, including management fees, and the purpose of each fee. The


amount, purpose, and disposition of any fee must be presented in a written report annually as an agenda item in an

open meeting of the Board of Trustees. This written report may be audited by the commissioner. (HB 273)

5. The Quote Process

Some items require price quotes whereby the school district requests prices either written or verbal from the

vendor(s). If the purchase of personal property cost at least $10,000.00 but less than $25,000.oo over a twelve (12)

month aggregate period, the school district must solicit vendors to supply the particular items through a formal

newspaper advertisement. In the procurement of the items, the district must obtain price quotes from at least three

applicable vendors (or every vendor if fewer than three vendors respond to the advertisement for inclusion on the

vendor list. Quotes should be written and maintained in the purchasing office. If telephone quotes are received, then

written quotes from all participating vendors should be submitted as a follow up procedure and documentation.

5.1 All quotations whether written or received by telephone must consist of:

Quotation number (maintained in the purchasing department

Quotation Date and Time

Delivery date required

Reply date

Requisitioner (School or Department)

Quantity needed

Complete description of items needed

Competitive Procurement Categories

“The following is a partial list of related categories to be used as a guide to determine requirements under the Texas

Education Code District purchasing law. Districts shall add to this list as aggregate dollars of contracts that exceed

the threshold amount. This list is non-inclusive. Note: Items in the supplies and materials sub-categories or within

each equipment/non-consumable category listed below must be considered as an aggregate purchase if available

from a single source vendor; however, contracts may be split into seasonal purchases.” – TEA Financial

Accountability Resource Guide.

Athletic/Trainer Supplies

Various Sports and Supplies

Uniforms

Custodial chemicals/janitorial supplies/paper products/can liners

Contracted services

Audio Visual equipment

Telephone equipment

Instructional/General Supplies

Instructional Teaching Aids/Supplies

Office Supplies

Maintenance Supplies

Buses (leases/Rent/Lease Purchase/Buy


Guidelines for Competitive Procurement

When Purchasing Personal Property or Services

Definitions:

Competitive Bidding: a formal process consisting of procedures that may also be referred to as

competitive sealed bidding or formal bidding. According to the American Bar Association Model

Procurement Code, “Competitive Bidding……is the preferred method of procurement.”

Personal Property: personal property includes, but is not limited to any item or thing that can be moved

from one location to another or is consumable and does not include real property such as land,

buildings, and repair or renovation to any building. The term “personal property” includes related

classes or types or items or consumable supplies, such as athletic equipment, automotive supplies,

office supplies, cafeteria equipment, instructional supplies etc.

Right of Inspection: the buyer’s right to inspect the goods at delivery before accepting them.

Terms and Conditions: requirements that are binding upon the vendor who is awarded the bid; they also

communicate the district’s expectations in regard to the bidder’s performance in connection with the

district’s purchase.

Purpose and Intent of Competitive Bidding for the Purchase of Personal Property:

The purpose and intent of competitive bidding is to help public schools secure the best work and

materials at the lowest practical prices by stimulating competition. If a district advertises purchasing

needs relating to large expenditures, then economies of scale – purchasing in large quantities – will

probably result in lower costs either per unit item or in the aggregate. Another reason for competitive

bidding – it is an open process.

Why Lancaster ISD Must Bid:

Not everyone understands why public school districts must conduct a formal bid process when

certain items are to be purchased. The simple answer is that “It is the Law.” State Law, § 44.031 of

the Texas Education Code states, “Except as provided by this subchapter, all school district

contracts, except the purchase of produce and vehicle fuel, valued at $50,000 or more in the

aggregate for each 12-month period shall be made by the method that provides the best value to the

district. Local Policy (CH) Local state that Lancaster ISD must be competitively procured for

aggregate purchases in excess of $25,000.

Advantages of Competitive Procurement

(1) Provides for more competition;

(2) Better prices;

(3) Compliance with state law and local policy.

Other areas of Consideration for Purchasing in the Public Sector

The requirement to comply with numerous statutes, policies, legal interpretations, and

procedures. The complexity of these requirements demands not only knowledge of purchasing

laws and standards, but compliance in implementing a purchasing system that also meets user

needs.

The dynamic and diverse nature of public education organizational environment. School

districts are complex organizations with diverse functions. Although instruction is the heart of

the organization, numerous other services-ranging from custodial services to food service to tax

collection – support the overall educational mission. These distinct organizational units need a

procurement process that is responsive to their needs.


The competition among vendors for school district business. The strong competition among

vendors for school district business may create pressure on school district personnel for product

selection, bid awards and dispute resolution. Most school districts seek to foster both good

vendor relations and strong competition but balance them with objective purchasing decisions.

The consistent oversight by interest groups. School district purchasing is scrutinized by diverse

groups including those from the public, media, state, and federal agencies, and auditors. Strict

adherence to established guidelines and consistency in record keeping, documentation, and

execution of procedures assist the school district in withstanding this scrutiny.

There are “gray” areas relating to purchasing methods and procedures. Complex and diverse

needs create challenges for districts to determine the appropriate purchasing methods. Ever-

changing legislative executive and judicial decisions at both the state and federal levels further

complicate the procurement process.

Essential Processes of Competitive Bidding

Requirements Planning: A district plans for major purchases to be made during the next twelve

months identifying the products or services and when they are needed. The award of bids is

scheduled to ensure timely delivery so that operations are not interrupted. From that schedule, a

mechanism for coordinating bidding of like or similar items on a district-wide basis is developed.

Requirements planning also enables the district’s purchasing officials to analyze and plan their

workloads.

Activites and Responsibilities for Bid specifications and Bid Award: This process structures the total

bid package which includes developing and reviewing specifications, incorporating these

specifications into a standard bid form, determining objective bid award criteria, advertising the bid,

responding to vendor questions, and recommending a vendor for bid award. Establishing time

frames and defining responsibility for each activity is crucial.

Development of an approved Vendor List: The identification and qualification of vendors for

specific products can facilitate the bid process in two ways. First, the District can identify vendors

who are interested in doing business with the District and their products and services. Second, the

district can monitor the vendor’s responses to bids and performance when they are awarded the bid.

Essential Elements of a Competitive Bid Advertisement and Structure of the Bid Process:

Essential Elements:

Purchase description or specifications covering the item(s) to be obtained;

Address where bid documents may be obtained or viewed;

Work or services needed;

Terms and conditions for the proposal bid contract;

Time and place for opening bids and other provisions.

Structure of the Bid Process:

Development of clear specifications

Advertising for competitive bids

Responding to vendor questions

Procedures for opening and tabulating the bids

Analysis of the bids to ensure compliance with requirements

Recommending the vendor(s) for bid award

Award of the bids by the Board of Trustees


Synopsis of the Competitive Procurement Process:

Unfortunately, the competitive procurement process cannot be conducted overnight. From start to finish, the process

can be quite lengthy and involved. Here is a synopsis of what is involved in the competitive procurement process:

A legal notice advertising the bid/proposal must be placed in a newspaper located in Dallas County for two

successive weeks. While no specific time period to wait after the second advertisement to open the bids is

required, purchasing officials are strongly urged to allow a reasonable amount of time after the second

advertisement to open the bids. Ten (10) to (fourteen (14) days after the second advertisement is generally

considered to be a reasonable time period.

After the bids have been opened, a bid tabulation will be completed for review and recommendation(s) for

award will be made by the appropriate department for which the bid has been conducted. Quite often the

tabulation and analysis can take one full day or longer to complete. The number of vendors responding to

the bid solicitation will also affect the length of time to complete the tabulation and analysis.

After the recommendations for bid award of contract are completed, they are place on the agenda for the

next regularly scheduled Board meeting for formal approval by the Board of Trustees. The Board of

Trustees is the only entity within the District authorized to officially award the bid(s). The documents

presented to them are only recommendations. Once the bids have been awarded by the Board of Trustees,

orders for the items may be placed by submitting a purchase order.

Sole Source Purchases:

Compliance with Texas Education Code §44.031 is not required for purchases that are available from only

one source including:

Identification and confirmation that competition in providing the item or product to be purchased is

precluded by the existence of a patent, copyright, secret process or monopoly;

A film, manuscript, or book.

Sole source does not apply to mainframe data processing equipment and peripheral attachments with a

single item purchase price in excess of $15,000.

It is incumbent on the District to obtain and retain documentation from the vendor which clearly

defines the reason(s), which qualify the purchase to be made on a sole source basis. Lancaster ISD

requires the sole source affidavit on the next page be completed and notarized by the vendor before it

can be considered for sole source status (see Exhibit IV).

Vendor Performance Evaluation

A system for the evaluation of vendors and their performance is important to support an effective purchasing

function. Factors to consider are:

Timeliness of deliveries

Service availability

Completeness and accuracy of order

Quality of products or services received

Whenever problems are encountered with a vendor, (i.e., a vendor fails to deliver certain items or delivery does not

meet specifications) it is important to document the problem, noting the date and an accurate description of the

problem The vendor should then be contacted by telephone and told specifically how the school district wants the

problem corrected. The school district should keep a record of all phone calls, including the dates and what was

discussed. If the problem is not resolved or continues, written notification stating the problem, the corrective action


required and that the vendor’s failure to correct the problem will be considered a breach of contract and result in the

cancellation of the contract should be given the vendor. This record of information about the vendor performance is

very important in the evaluation of the vendor.

If significant problems are encountered with the vendor, the school district should consult with legal counsel

concerning the removal of the vendor from the vendor approved vendor list and discontinuing business with the

vendor.

Finally, the school district should try to develop an open and professional relationship with each vendor while still

maintaining total independence and objectivity.

Please see Vendor Evaluation Performance form on page 27.

General Questions and Answers

Regarding Personal Property

This section is taken from the TEA Accountability System Resource Guide – Purchasing

1. Is direct mailing of specifications to vendor required in addition to the advertisement in a newspaper?

No. The Texas Education Code District purchasing law only requires districts to publish notice; however, in

most circumstances, districts will enhance the effectiveness of the process if notices are mailed to businesses

that have had or may have an interest in offering bids/proposals.

2. Are brand names allowed in the specifications?

Yes. Specifications may include brand names. All efforts should be made to describe in a practical or

economical manner the item(s) being purchased, if not, then brand names may be used if followed by the

words, “or equal.” In connection with “or equal,” the contract specifications, district’s decisions regarding

comparability of products are final, but should be based upon defined performance criteria.

3. If a brand is specified, what other information must be included in the specifications?

It is recommended that the specifications must clearly set forth and convey to prospective vendors the general

style, type, character, and quality of the brand desired and that equivalent products will be acceptable.

4. Must an award of contract for personal property automatically be to the lowest vendor?

No. For purchases of personal property, there is no requirement to award a contract to the lowest vendor;

however according to the Texas Supreme Court, board members are required “to act faithfully in the

exercise of their best judgment so as to best serve the interests of the district.”

5. What additional criteria constitute adequate justification for awarding a contract to other than the lowest

bidder?

In regard to the Texas Education Code purchasing law, there is no requirement in state law that a contract for

personal property be awarded to the lowest vendor; however, a decision to award a contract to a vendor other

than the lowest bidder should reflect the exercise of sound discretion by the district.

Additional criteria for selecting an offer higher than the lowest offer might be:

The item or service offer is not responsive to the specifications, to the invitation to bid/proposal or

to the general instructions.

The vendor is not responsible (vendor integrity documented by record of past performance).

The contract is awarded because of the bidding preference law, Government Code, Title 10,

Section 2252.003.


The financial and technical resources of the vendor are not adequate to service the contract.

There is evidence of noncompliance with public policy or federal and state laws.

Delivery or service requirements create the need for award to a local vendor.

The safety record of the vendor.

6. Is the lowest vendor that is not awarded a bid required to be notified and provided a public hearing.

No. There is no requirement in law, §44.031, Texas Education Code, that the lowest vendor be notified or

provided a public hearing, prior to the award of a contract for personal property to a vendor who was not the

lowest bidder.

7. Can a district avoid the need to competitively purchase items through sequential purchases?

No. Sequential purchases of related items within a fiscal year with the intent to circumvent the Texas

Education Code district purchasing law constitute a criminal offense.

8. How should a district handle a vendor, who received an award, and failed to deliver certain items, and in

several instances, items delivered were different from the items that were specified or vendor delivered

substituted products other than those specified?

a. Document the problem, noting the date and writing an accurate description of the problem.

b. Next, notify the vendor by telephone of the problem and tell the vendor specifically how the district

wants the problem corrected.

c. A district should keep a record of the dates of all phone calls and what was discussed in the event that

talking with the vendor written notification of the problem

d. If the problem continues, give the vendor written notification of the problem, state that the district

expects immediate correction, and that failure to do so will be considered a breach of contract and could

result in the cancellation of the contract.

9. How does a district determine a category of related classes or types of items?

Competitive procurement categories, which will vary for individual districts, are determined by

grouping related items that have a common purpose or function in district operations. Vendor and

market availability also affect the determination of competitive procurement categories and result in

several specific sub-categories of items within a broad functional area of district operations. For

example, there are several sub-categories for food service operations, including milk, bread, fresh

meats and poultry, and canned/dried/frozen foods and non-food supplies. In connection with

automotive supplies there are a few specific sub-categories, including for example, original

equipment manufacturer parts (OEM), after market parts, and lubricants. Proper planning which

includes a review of the past year's historical usage levels will minimize the number of purchases

that cannot be anticipated for the fiscal year.

10. What are some exemptions for a district to the Texas Education Code District purchasing law?

Purchases from the State Bid Contract and State Catalog of the General Services Commission.

Purchases from the Texas Department of Corrections.

Purchases from the Texas Blind and Handicapped.


Purchases through cooperative purchasing pools under interlocal agreements. (Chapter 791, Texas

Government Code)

11. How does the federal conflict of interest rule apply to purchases?

The federal conflict of interest rules apply to expenditures involving federal funds. The federal

conflict of interest rules are much more stringent than state conflict of interest law. Under the

common rule and other federal regulations, the conflict of interest prohibitions extend to employees

of districts whereas state law applies only to board members. If an employee is involved in

administering, directing, or authorizing a transaction funded by a federal program, that employee and

members of the employee's immediate family cannot have a financial interest in a vendor associated

with transactions funded by the federal program. This prohibition applies to employees and their

immediate families who are, for example, sales representatives for computer manufacturers or food

distribution companies. (34 CFR 80.36(3))

12. Are competitive procurement offers required to be date-stamped?

No, however this practice is recommended in order to help document that the integrity of the

competitive procurement process was not affected by allowing vendors to submit late competitive

procurement offers.

13. How should a district handle a vendor, who received an award, and failed to deliver certain items

and, in several instances, items delivered were different from the items that were specified or vender

delivered substituted products other than specified?

If a vendor fails to deliver certain items or delivers substituted items that do not meet specifications

the district should do the following:

a. Document the problem, noting the date and writing an accurate description of the problem.

b. Next, notify the vendor by telephone of the problem and tell the vendor specifically how the

district wants the problem corrected. With even the best vendors, problems occasionally arise

and frequently a single phone call is all that is needed to correct a problem.

c. A district should keep a record of the dates of all phone calls and what was discussed in the

event that talking with the vendor does not resolve the problem.

d. If the problem continues, consult with the district's legal counsel, give the vendor written

notification of the problem, state that the district expects immediate correction, and that failure

to do so will be considered a breach of contract and could result in the cancellation of the

contract.

e. If the vendor seems to be making little effort to resolve the problem to your satisfaction, you

should discuss the problem with the district's attorney and explore options open to the district.

f. If cancellation of the contract becomes necessary, a district should also take steps to disqualify

the vendor from future competitive procurement process. Even if the contract is not canceled,

district may want to consider taking action to disqualify the vendor from future competitive

procurement process.


Exhibit I


Manual Payment Request Authorization

Date: Vendor No. or SSN

Vendor Name:

Address:

City State Zip

Total Amount of Check: $

Fund code: (Budget amendment must be attached if account is

overdrawn or the invoice will not be paid. If more than one fund code is

needed, please fill in the amount charged to each code).

Explanation:

Requested by:

Approved by:

Office of CFO Approval:

Note: Fill out this form when:

1. Check is needed for travel/reimbursement/advance

2. Company will not accept purchase orders.

No Exceptions: purchase requisitions must be used for all other purchase or LISD

will not pay.


Exhibit II


Office of the Coordinator of Purchasing

422 S. Centre Avenue

Lancaster, Texas 75146

(972) 218-1412 – Phone

(972) 218-1401 - Fax

Vendor Request Form

Name of Company/Firm:

Address:

City/State/Zip:

Name of Representative/Contact:

Title:

Telephone No: Fax No:

E-mail Address:

Area(s) of Procurement for which the company is requesting consideration:

Does your company have a website? If the answer is yes, please provide the address:

Is your company a member of any Purchasing Cooperatives (ex., TCPN, BuyBoard, TIPS/TAPS etc)?

If the answer is yes, please list your company’s purchasing cooperative affiliations:

Are you a sole source vendor for the procurement area(s) you have listed?

If the answer is yes, and you would like to sell goods and/or services to Lancaster ISD as a sole source vendor,

you will need to do the following:

Request a sole source affidavit form from the Purchasing Department

Complete the form and have it notarized (forms that are not notarized will not be considered).

Return the completed form to the Purchasing Department for review and formal approval as a sole source

vendor. You will be notified whether or not your company qualifies for sole source status.

Please check any of the following that apply to your company:

Women Owned Minority Owned Historically Underutilized Business


Exhibit III

LANCASTER INDEPENDENT SCHOOL DISTRICT

VENDOR PERFORMANCE EVALUATION

Vendor: Date:

Summary Department Evaluation: Acceptable Unacceptable Not Applicable

Contract Administration

Internal Customer Service

Accounting

Performance Factors

Contract Administration:

Performs on schedule

Performs at quoted/contract prices

Company representatives are readily available

Prompt and accurate with routine documents

Anticipates District’s needs

Offers quick and effective assistance in emergencies

Does not request special consideration

Furnishes specially requested information promptly

Advises of potential problems

Performs with constant follow-up

Fixes problems promptly and efficiently

Internal Customer Services:

Provides quality service

Responds to requests promptly – good response time

Readily accepts responsibility for correcting a problem

Has proven ability for completing difficult tasks

Furnishes requested data promptly

When required, responds with corrective action in a timely manner

Accounting:

Invoices correctly

Issues credit memos promptly

Does not ask for special financial consideration


Additional Comments:

Exhibit IV

SOLE SOURCE AFFIDAVIT

Before me, the undersigned official, on this day, personally appeared ______________________________

a person known to me to be the person whose signature appears below, whom after being duly sworn upon

his oath deposed and said:

1. My name is ______________________________, I am over 18, have never been convicted of a crime

and being competent to make affidavit.

2. I am an authorized representative of the following company or firm:

________________________________________________________________________

3. The above named company or firm is the sole source of the following item(s), and no other company

or firm in the United States of America sales or distributes the product(s) listed Below:

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

4. Competition in providing the above named item(s) or product is precluded by the existence of a patent,

copyright, secret process, or monopoly.

5. There is no other like item(s) or product(s) available for purchase that would serve the same purpose or

function and there is only one price for the above named item(s) or product(s) because of exclusive

distribution or marketing rights.

Signature of Authorized Official Title of Authorized Signature

Affidavit will be valid for three (3) years from date subscribed and sworn.

SUBSCRIBED AND SWORN to before me on this _______ day of ______________, _______.

(seal) _________________________________.

Notary Public Signature

Print Name: _________________________________.

My Commission Expires: ___________________________.

Company:

Address:

City, State, and Zip:

Telephone Number: Fax:

Contact Person: