Regulation 6085: Purchasing and Bidding Regulation

The following sets forth the procedures for the procurement of goods and services by the district:

Definitions

Purchase Contract: a contract involving the acquisition of commodities, materials, supplies or equipment

Public Work Contract: a contract involving services, labor or construction
General Municipal Law

The General Municipal Law requires that purchase contracts for materials, equipment and supplies involving an estimated annual expenditure exceeding $20,000 and public work contracts involving an expenditure of more than $35,000 will be awarded only after responsible bids have been received in response to a public advertisement soliciting formal bids. Similar procurements to be made in a twelve-month period commencing on the date of the purchase, will be grouped together for the purpose of determining whether a particular item must be bid. Purchases of commodities, services or technology shall not be artificially divided and any change to or renewal of a discretionary purchase shall not be permitted if the change would bring the reasonably expected aggregate amount of all purchases of the sale commodities, services, or technology from the same provider within the twelve-month period commencing on the date of the first purchase to an amount greater than the discretionary buying threshold amount.
Competitive Bidding Required
1. Method of Determining Whether Procurement is Subject to Competitive Bidding
  1. The district will first determine if the proposed procurement is a purchase contract or a contract for public work.
  2. If the procurement is either a purchase contract or a contract for public work, the district will then determine whether the amount of the annual procurement is above the applicable monetary threshold as set forth above.
  3. The district will also determine whether any exceptions to the competitive bidding requirements (as set forth below) exist.
2. Contract Combining Professional Services and Purchase
  
  In the event that a contract combines the provision of professional services and a purchase, the district, in determining the appropriate monetary threshold criteria to apply to the contract, will determine whether the professional service or the purchase is the predominant part of the transaction.
3. Opening and Recording Bids; Awarding Contracts
  
  The Purchasing Agent will be authorized to open and record bids. Contracts will be awarded by the Board of Education to the lowest responsible bidder (as recommended by the Purchasing Agent), who has furnished the required security after responding to an advertisement for sealed bids.
4. Documentation of Competitive Bids
  
  The district will maintain proper written documentation which will set forth the method in which it determined whether the procurement is a purchase or a public work contract.
  
  Proper written documentation will also be required when a contract is not awarded to the vendor submitting the lowest quote, setting forth the reasons therefore. That vendor may be given an opportunity to defend his product and/or reputation before the Board of Education.
5. Purchase of Instructional Materials
  
  In accordance with law, the district shall give a preference in the purchase of instructional materials to vendors who agree to provide materials in alternative formats (i.e., any medium or format for the presentation of instructional materials, other than a traditional print textbook, that is needed as an accommodation for a disabled student enrolled in the district, including but not limited to Braille, large print, open and closed captioned, audio or an electronic file in an approved format.)
  
  The district will establish and follow a plan to ensure that every student with a disability who needs his or her instructional materials in an alternative format will receive those materials at the same time that they are available to non-disabled students.
6. Leases of Personal Property
  
  In addition to the above-mentioned competitive bidding requirements, Section 1725 of the Education Law requires that the district will be subject to competitive bidding requirements for purchase contracts when it enters into a lease of personal property.
  
  Documentation: The district will maintain written documentation such as quotes, cost-benefit analysis of leasing versus purchasing, etc.
  
  Any legal issues regarding the applicability of competitive bidding requirements will be presented to the school attorney for review.
7. Transportation
  
  Transportation Contracts may be solicited through Competitive Bidding or in response to requests for proposals whenever authorized by law, but once awarded, may be extended annually as specified in General Municipal Law.
Exceptions to Competitive Bidding Requirements

The district will not be subject to competitive bidding requirements when the Board of Education, in its discretion, determines that one of the following situations exists:
1. emergency situations where:
  1. the situation arises out of an accident or unforeseen occurrence or condition;
  2. a district building, property, or the life, health, or safety of an individual on district property is affected; or
  3. the situation requires immediate action which cannot await competitive bidding.
  However, when the Board passes a resolution that an emergency situation exists, the district will make purchases at the lowest possible costs, seeking competition by informal solicitation of quotes or otherwise, to the extent practicable under the circumstances.
  
  Documentation: The district will maintain records of verbal (or written) quotes;
2. when the district purchases surplus or second-hand supplies, materials or equipment from the federal or state governments or from any other political subdivision or public benefit corporation within the state.
  
  Documentation: The district will maintain market price comparisons (verbal or written quotes) and the name of the government entity;
3. when the Board separately purchases eggs, livestock, fish and dairy products (other than milk), juice, grains and species of fresh fruits and vegetables directly from producers or growers. The amount expended in any fiscal year by the district may not exceed an amount equal to fifteen cents multiplied by the number of days in the school year multiplied by the total enrollment of the district.
  
  Documentation: The district will maintain documentation consistent with sections 114.3 of the Regulations of the Commissioner of Education;
4. when the Board separately purchases milk directly from licensed milk processors employing less than forty (40) people. The amount expended in any fiscal year by the district may not exceed an amount equal to twenty-five cents multiplied by the number of days in the school year multiplied by the total enrollment of the district or exceed the current market price.
  
  Documentation: The district will maintain documentation consistent with Section 114.4 of the Regulations of the Commissioner of Education; or
5. when there is only one possible source from which to procure goods or services required in the public interest.
  
  Documentation: The district will maintain written documentation of the unique benefits of the item or service purchased as compared to other items or services available in the marketplace; that no other item or service provides substantially equivalent or similar benefits; and that, considering the benefits received, the cost of the item or service is reasonable, when compared to conventional methods. In addition, the documentation will provide that there is no possibility of competition for the procurement of the goods.
Standardization

Upon the adoption of a resolution by a vote of 3/5ths of the Board stating that, for reasons of efficiency or economy, there is a need for standardization, purchase contracts for a particular type or kind of equipment, material or supplies of more than $20,000 may be awarded to the lowest responsible bidder furnishing the required security after advertisement for sealed bids. The resolution must contain a full explanation of the reasons for its adoption.
Quotes When Competitive Bidding Not Required

Goods and services which are not required by law to be procured by the district through competitive bidding will be procured in a manner so as to ensure the prudent and economical use of public monies in the best interests of the taxpayers. Alternative proposals or quotations will be secured by requests for proposals, written or verbal quotations or any other appropriate method of procurement, as set forth below
1. Methods of Documentation
  1. Verbal Quotations: the telephone log or other record will set forth, at a minimum, the date, item or service desired, price quoted, name of vendor, name of vendor's representative;
  2. Written Quotations: vendors will provide, at a minimum, the date, description of the item or details of service to be provided, price quoted, name of contact. The district will maintain documentation consistent with Exhibit E.1 that will include advertisements, specifications and the awarding resolution. Alternatively, written or verbal quotation forms will serve as documentation, if formal bidding is not required;
  3. Requests for Proposals: the district will contact a number of professionals (e.g., architects, engineers, accountants, lawyers, underwriters, fiscal consultants, etc.) and request that they submit written proposals. The RFPs may include negotiations on a fair and equal basis. The RFPs and evaluation of such proposals will consider price plus other factors such as:
    1. the special knowledge or expertise of the professional or consultant service;
    2. the quality of the service to be provided;
    3. the staffing of the service; and
    4. the suitability for the districts needs.
    The district will first locate prospective qualified firms by:
    1. advertising in trade journals;
    2. checking listings of professionals; or
    3. making inquiries of other districts or other appropriate sources.
  The district will then prepare a well-planned RFP which will contain critical details of the engagement, including the methods which it will use in selecting the service.
2. Purchases/Public Work: Methods of Competition to be Used for Non-Bid Procurements; Documentation to be Maintained
  
  The district will require the following methods of competition be used and sources of documentation maintained when soliciting non-bid procurements in the most cost-effective manner possible:
  1. Purchase Contracts up to $20,000
    1. Under $5,000: No quotes required - selection of vendor is at the discretion of District Purchasing Agent.
    2. Contracts from $5,000 to $9,999: Three verbal quotes.
      
      Documentation will include notations of verbal quotes.
    3. Contracts from $10,000 to $19,999: Three written quotes.
      
      Documentation will include notations of verbal quotes.
  2. Public Work Contracts up to $35,000
    1. Under $5,000: No quotes required - selection of vendor is at the discretion of District Purchasing Agent
    2. Contracts from $5,000 to $9,999: Three verbal quotes.
      
      Documentation will include notations of verbal quotes.
    3. Contracts from $10,000 to $34,999: Three written quotes.
      
      Documentation will include notations of verbal quotes.
  3. Reasonable attempts should be made to obtain the required number of quotes. In cases where less than the required number of quotes are received because of the lack of interest on the part of vendors, or the number of vendors dealing in the product is limited, the Purchasing Agent shall have the discretion to award the order based on the best quote from those that have been received.
  4. Emergencies: Verbal quotes
    
    Documentation will include notations of verbal quotes.
  5. Professional Services: RFP
    
    Documentation will include written proposals.
  6. Second Hand Equipment from Other Governments: Written quotes
    
    Documentation will include market price comparisons (verbal or written quotes) and the name of the government.
  7. Certain Food and Milk Purchases: Written quotes
    
    Documentation will be consistent with Sections 114.3 and 114.4 of the Regulations of the Commissioner of Education.
  8. Sole Source: Written or verbal quotes
    
    Documentation will include, among other things, the unique benefits of the patented item as compared to other items available in the marketplace; that no other item provides substantially equivalent or similar benefits; and that considering the benefits received, the cost of the item is reasonable, when compared to conventional methods.
    
    Notations of verbal quotes will be maintained by the district. In addition, the district will document that there is no possibility of competition for the procurement of the goods.
Quotes Not Required When Competitive Bidding Not Required

The district will not be required to secure alternative proposals or quotations for those procurements:
1. under any county contract;
2. under a state contract;
3. under a BOCES contract;
4. from sources other than county or state contract provided that such product(s) are substantially similar in function and are lower in price or available under terms which are more economically efficient;
5. of articles manufactured in state correctional institutions; or
6. from agencies for the blind and severely disabled.
In addition, the district will not be required to secure such alternative proposals or quotations for:
1. emergencies where time is a crucial factor;
2. procurements for which there is no possibility of competition (sole source items);
3. procurements of professional services, which, because of the confidential nature of the services, do not lend themselves to procurement through solicitation; or
4. very small procurements when solicitations of competition would not be cost-effective.
Procurements from Other than the "Lowest Responsible Dollar Offer"

The district will provide justification and documentation of any contract awarded to an offer or other than the lowest responsible dollar offer or, setting forth the reasons why such award is in the best interests of the district and otherwise furthers the purposes of Section 104-b of the General Municipal Law.

Administrative Regulation

Approved by the Superintendent of Schools: January 10, 2008

Revised:

April 15, 2008
December 1, 2009
September 21, 2010
December 19, 2011