PASSAIC BOARD OF EDUCATION

BUSINESS OFFICE

101 Passaic Avenue

Passaic, New Jersey 07055

M E M O R A N D U M

TO: All Administrators and Supervisors

FROM: Mr. James Shoop, Business Administrator,

Board Secretary, Purchasing Agent

DATE: July 10, 2013

RE: Methods of Procurement – Federal Funds – Annual Notice

EDGAR 80.36 and 7CFR 3016.36

This Annual Notice on Methods of Procurement – Federal Funds, provides to you some guidance on purchasing goods and services when using Federal Funds. Please review this memo and if you have any questions do not hesitate to contact me.

A. State Contract Purchases -- Using Federal Funds – Prohibited!

I am sorry to inform you that the Federal Government does not recognize the New Jersey State Contract list a form of competitive pricing.

With that being written, my office will be unable to purchase any goods or services provided by NJ State vendors when the district uses Federal funds. This has a major effect if your school office wants to purchase:

·  Computers / ·  School Supplies
·  Copiers / ·  Office Supplies

and other goods and services using NJ State Contract vendors.

I am sorry that I will have to return all Federal funded purchase orders when NJ State contract vendors are being used.

Again, please do not submit purchase orders with State Contract vendors when you use Federal funds. They will be returned.

The Dilemma!

Federal and State purchasing laws still require “price or rate quotations from

an adequate number of qualified sources.”

What to do?

Purchases of goods and services using Federal funds must be properly planned

and grouped together so that the Purchasing Office may solicit formal

quotations or formal bids, depending on the total cost of the goods and services.

I ask that all central office administrators who coordinate Federal funds to

meet with me and Mrs. Lydia Arce, Executive Assistant, to discuss special

formal bids or quotations.

Please contact Mrs. Arce at x5598 for an appointment.

B. Methods of Procurement – Using Federal Funds

Description of Goods/Services / Amount* / Procurement Method
Goods and Services / Less than $36,000 / Quotation or Bid
Goods and Services / $36,000 or more / Bid
Professional Services / Less than $5,400 / Simple Proposal
Professional Services / $5,400 - $99,999 / Request for Proposals (RFP)
Professional Services / $100,000 or more / Competitive Contracting
Educational Consultant Services / Less than $5,400 / Simple Proposal
Educational Consultant Services / $5,400 - $35,999 / Request for Proposals (RFP)
Educational Consultant Services / $36,000 or more / Competitive Contracting
Instructional Improvement Services / Less than $5,400 / Simple Proposal
Instructional Improvement Services / $5,400 - $35,999 / Request for Proposals (RFP)
Instructional Improvement Services / $36,000 or more / Competitive Contracting
Professional Development Services / Less than $5,400 / Simple Proposal
Professional Development Services / $5,400 - $35,999 / Request for Proposals (RFP)
Professional Development Services / $36,000 or more / Competitive Contracting
Sole Source (Proprietary) (a) / Less than $5,400 / Simple Proposal
Sole Source (Proprietary) (a) / $5,400 - $35,999 / Proprietary Quotation
Sole Source (Proprietary) (a) / $36,000 or more / Proprietary Bid
Services Provided by Government Units/Schools / Less than $5,400 / Simple Proposal
Services Provided by Government Units/Schools / $5,400 - $35,999 / Request for Proposals (RFP)
Services Provided by Government Units/Schools / $36,000 or more / Competitive Contracting

* The amount is in the aggregate as determined by the Purchasing Agent.

(a)  Sole Source (Proprietary) goods/services is only recognized when using Federal

Funds. Special documentation and certification is needed for this particular

method.

C. Identification of Federal Program – Type on Requisition/Purchase Order

The Federal Government requires that the particular Federal Program be identified on all purchase orders/requisitions, e.g. Title I, IDEA, etc.

Please ensure that the Federal Program is identified on all purchase orders/requisitions.

Again, please contact Mrs. Arce for any assistance.

Thank you.

JS:la

C: Dr. Colleen LaRocca Malleo, Interim Superintendent of Schools

Ms. Erlinda Arellano, Assistant School Business Administrator

Mr. John Farina, Comptroller

Mrs. Rosa Dehais, Staff Accountant

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