Duplin County Schools
Purchasing Manual
Fiscal Year
2014-2015
Created July 2014
Table of Contents
INTRODUCTION AND PURPOSE 3
Introduction 3
Purpose 3
PURCHASING RULES AND REGULATIONS 4
Purchase of Apparatus, Supplies, Materials, or Equipment 4
A. Existing Contracts - NC State Term Contracts and/or Cooperative Purchasing Agreements 4
B. Waiver to Bidding for Previously Bid Contracts 4
C. Sole Source 4
D. Services 5
E. Items not on existing contracts – at least $90,000 5
F. Items not on existing contracts - $30,000 to $90,000 5
G. Items not on existing contracts – less than $30,000 5
Conflict of Interest 5
Construction or Repair Work 6
Contracted 6
Use of Own Force 6
Service Contracts 6
DOLLAR THRESHOLDS FOR DUPLIN COUNTY SCHOOLS 7
EXCEPTIONS AND DELEGATIONS OF AUTHORITY 8
SPECIAL CONDITIONS 8
Emergency Purchases 8
Open “Blanket” Purchase Order 8
Lease/Purchase 9
Historically Underutilized Business (HUB) Program 9
PURCHASING PROCEDURES 10
Damaged or Incorrect Items 10
Requisitions 10
Purchase Orders Issuing 11
The Duplin County Board of Education is not responsible for the payment of invoices for orders placed without authorization and without being assigned a purchase order number. 11
Receiving 11
SPECIAL PURCHASING SITUATIONS 12
Purchases for State Employees 12
Purchases from State Employees 12
Complaint to Vendor 12
Fixed Assets 13
Subscription and Periodical Orders 13
OTHER SERVICES 13
Central Office Mailings 13
School Postage 14
INTRODUCTION AND PURPOSE
Introduction
Local Boards of Education are delegated authority to purchase goods and services and to enter into contracts by the North Carolina General Assembly. Therefore, school systems’ purchasing operations and procedures are controlled by North Carolina General Statutes. Areas not specifically addressed by the General Statutes are covered by Duplin County Schools Board policy and procedures.
The Department of Administration through the Division of Purchase and Contract is charged with jurisdiction and control over the specifications and purchase of supplies, equipment and materials related to student transportation. Items needed that have safety features and are available on statewide term contract must be purchased from State contract vendors. (G.S. 115C-522(a))
The purchase or exchange of all other supplies, equipment, and materials available on State term contracts will be made from contract vendors, unless items are available from other sources at a lesser cost.
Purpose
The purpose of this manual is to be both informative and instructive to those associated with acquiring goods and services for Duplin County Schools. The manual will describe the procedures to be used to ensure that the school system is in compliance with statutory requirements relating to purchasing.
The purchasing function includes the entire process of securing goods and services which assures:
• Obtaining maximum benefits from and proper use of the school district’s monies for the students and furthering the educational goals of the Board;
• Conducting all purchasing activities in accordance with N.C. General Statutes, local Board of Education policies, ethical principles, and recognized professional purchasing practices ;
• Providing a climate of fair and open competition for all qualified vendors;
• Requiring satisfactory and proper performance of all contractual obligations of vendors; and
• Providing prompt and courteous service to other school district personnel, other governmental entities and vendors.
Purchasing processes are in accordance with
• various requirements of the N.C. General Statutes (NCGS)
• regulations of the State of N.C., Division of Purchase and Contract (PC)
• policies of Duplin County Board of Education (DCBOE)
• procedures outlined in this manual
PURCHASING RULES AND REGULATIONS
G.S. 115C-522 states: It shall be the duty of local boards of education to purchase or exchange all apparatus, supplies, materials, or equipment and these purchases shall be made in accordance with Article 8 of Chapter 143 of the General Statutes. It is the responsibility of each employee involved in the procurement process to understand the policies that these procedures are based upon.
There is no minimum number of bids, proposals or quotes required for the purchase of apparatus, supplies, materials, or equipment (whether formally or informally bid); however, the Board encourages departments/schools to obtain at least two bids, proposals or quotes when feasible.
Superintendent has the authority to award contracts for purchase of apparatus, supplies, materials and equipment, involving amounts up to $50,000. Any purchase or contracts involving expenditures greater than this amount must be approved by the Board. The Finance Officer and any additional staff deemed appropriate by the Superintendent shall review submissions of bids, proposals or quotes to determine if they are responsive to the district’s specifications and make recommendations to the Superintendent. The Superintendent may award the contract based upon such recommendations or make a recommendation to the Board for award of the contract by the Board.
Purchase of Apparatus, Supplies, Materials, or Equipment
The following procedures affecting purchasing by school administrative units and individual schools are drawn to comply with the various requirements of the North Carolina General Statutes.
1. Purchase of apparatus, supplies, materials, or equipment may be purchased in one of these ways (Board Policy 6430):
A. Existing Contracts - NC State Term Contracts and/or Cooperative Purchasing Agreements
These are contracts with other State agencies. GS 143-129(g). These contracts are established through legal advertising and competitive bids to sell commodities at certain prices and under specified terms and conditions. It is the practice of Duplin County Schools to use established contracts to take advantage of volume pricing.
B. Waiver to Bidding for Previously Bid Contracts
Piggybacking” as allowed in G.S. 143- 129(g) only applies to the purchase of apparatus, supplies, materials, or equipment with an anticipated cost greater than $90,000 (formal range). Local governments can “piggyback” on another governmental unit’s contract without going out for bids with approval by the DCBOE at a regularly scheduled meeting no fewer than ten (10) days after publication of notice that a waiver of the bid procedure will be considered in order to contract with a qualified supplier. Public notice shall contain (1) general description of the item(s) to be purchased; (2) identity of the supplier; (3) city, state, or other agency with whom the supplier has contracted within the past twelve months; and (4) the date of the regular board meeting at which the board will consider the waiver of bidding.
C. Sole Source
Sole Source GS 143-129(e)(6) purchases are allowed for the purchase of apparatus, supplies, materials, and equipment when performance or price competition for a product are not available, when a needed product is available from one source of supply, or when standardization or compatibility is the overriding consideration. All sole source purchases require approval by the DCBOE. When requesting a purchase under the sole source exception, the Board shall be provided with documentation that justifies the use of the exception.
D. Services
Normal competitive procedures cannot be utilized in securing professional services such as attorneys, planners, and other professional people who, in keeping with the standards of their discipline, will not enter into a competitive bidding process. Services in which an independent contractor performs services requiring specified knowledge, experience, expertise, or similar capabilities such as maintenance of equipment, auditing, film production, employee training, waste removal, welding and food services do require competitive bidding to the extent practical and in accordance with Board Policy 6450.
E. Items not on existing contracts – at least $90,000
Costs of at least $90,000 for apparatus, supplies, materials, and equipment not covered by any existing contracts are to be bid by the appropriate Department. This applies to all funds, regardless of source as well as the purchases of equipment, materials and supplies which require installation. To determine if this type of purchase falls under this rule consider separate cost of the goods and installation. If the overriding cost is for the goods then bidding by the Department is required. The $90,000 applies to the total cost rather than the cost of a single item. Orders cannot be divided to circumvent this provision. The Department must maintain copies of bid and submit copies to the Finance Department.
F. Items not on existing contracts - $30,000 to $90,000
Costs of at least $30,000 and less than $90,000 for apparatus, supplies, materials, and equipment not covered by any existing contracts are to either bid or quotations may be solicited by the appropriate Department. This applies to all funds, regardless of source as well as the purchases of equipment, materials and supplies which require installation. To determine if this type of purchase falls under this rule consider separate cost of the goods and installation. If the overriding cost is for the goods then bidding by the Department is required. The $30,000 applies to the total cost rather than the cost of a single item. Orders cannot be divided to circumvent this provision. The Department must maintain copies of bid or quote and submit copies to the Finance Department.
G. Items not on existing contracts – less than $30,000
Costs of less than $30,000 for apparatus, supplies, materials, and equipment not covered by any existing contract totaling less than $30,000 may be purchased from best available source. The $30,000 maximum applies to the total cost of the order rather than line item cost or single item cost. Orders cannot be divided to circumvent this provision.
While competitive bidding is not required, purchases should be made under conditions that foster competition among potential vendors. Purchasing decisions should be made after considering price, quality, suitability for specified need, safety and timeliness of delivery and performance on any previous contract has been found to be unsatisfactory by the Superintendent or the Board.
In addition, best practices requires for items costing more than $750.00 that three quotes be obtained from vendors and recorded for documentation. The documentation should include: description of item, vendor name, vendor phone number or catalogue number/date or website, individual who gave quote or person researching, date obtained and quoted price.
Conflict of Interest
The Departments/Schools will conduct business in accordance with Board policy 6401 and follow ethics and integrity guidelines set forth in the State of North Carolina Agency Purchasing Manual. Purchasing is committed to fairness and impartiality in all phases of the purchasing process.
Construction or Repair Work
Contracted
The formal bid process procedures as outlined in G.S. 143-129 are followed for construction and repair work that requires the established expenditure of at least $500,000 or more of public money.
North Carolina local governments may use an informal bidding procedure for construction or repair projects involving expenditures of at least $30,000 but less than $500,000 of public money (G.S. 143-131). The Maintenance Department must maintain a public record of those bids and submit copies to the Finance Department.
Contracts for construction or repair projects with a cost less than $30,000 do not require bids.
Use of Own Force
Construction or repair projects with a total project cost of $125,000 (total project) or $50,000 (labor only) may be undertaken by the Maintenance Department (G.S. 143-135). Apparatus, supplies, materials, and equipment for such projects are subject to the bidding regulations previously listed.
Service Contracts
A Service contract is defined as any agreement in which an independent contractor performs services requiring specified knowledge, experience, expertise, or similar capabilities. The services may include, by way of illustration, not limitation, services such as maintenance of equipment, auditing, film production, employee training and food services. Competitive bidding is required to the extent practical and in accordance with Board Policy 6450.
No contract requiring the expenditure of funds may be entered into unless the budget resolution adopted authorizes the expense and there is a sufficient unencumbered balance to pay the amount to be disbursed. (See policy 6421, Pre-Audit Certification.) Any contract involving expenditures in excess of $50,000 must be reviewed by the Board attorney and approved in advance by the Board. Unless otherwise prohibited by statute or regulation, the Superintendent or designee is authorized to enter into contracts or approve change orders involving amounts up to $ 50,000.
To provide greater flexibility at the school level, the Superintendent also may establish circumstances in which principals may enter contracts involving amounts up to $5,000. The Superintendent, with appropriate involvement of the Finance Officer, shall establish any procedures necessary to ensure fiscal accountability and reporting by principals who enter into contracts.
DOLLAR THRESHOLDS FOR DUPLIN COUNTY SCHOOLS
Formal bids
Construction or repair contracts $500,000 and above
(Estimated cost of contract) G.S. 143-129
Purchase of apparatus, supplies, materials, and equipment $90,000
and above (estimated cost of contract) G.S. 143-129; Policy 6430
Informal bids
Construction or repair contracts $30,000 to formal limit G.S. 143-131
Purchase of apparatus, supplies, materials, and equipment $30,000
to formal limit Board Policy 6430
Service contracts with a cost of at least $30,000 when appropriate Board Policy 6430
Construction delivery methods authorized for building projects
Over $300,000 G.S. 143-128; DPI Guidance
Separate Prime (estimated cost of project) Single Prime
Dual Bidding
Construction Management at Risk
Limit on use of own forces Not to exceed G.S. 143-135 Construction or repair projects $125,000 (total project) or
$50,000 (labor only)
Bid bond or deposit
Construction or repair contracts Formal bids (see above) G.S.143-129(b)
Purchase contracts not required
General contractor’s license $30,000 and above G.S. 87-1
Use of registered architect or engineer required
Nonstructural work $300,000 and above G.S. 133-1.1(a)
Structural repair or new construction $135,000 and above
Repair work affecting life safety systems $100,000 and above
Selection of architect, engineer, surveyor, or construction manager at risk
“Best qualified” selection procedure
All contracts unless exempted G.S. 143-64.31
Exemption authorized Projects where estimated fee is less G.S. 143-64.32 than $50,000 or other projects in sole discretion of unit