NJASBO
PUBLIC SCHOOL PURCHASING
“What NJASBO Offers to You!”
PRESENTER
MR. JAMES SHOOP
SCHOOL BUSINESS ADMINISTRATOR (RET.)
FEBRUARY 2016
NJASBO
“What NJASBO Offers to You!”
NJASBO is committed to provide the best possible guidance and support to School Business Administrators and other school officials to do their job and to do it well.
Today’s presentation will provide guidance on Public School Purchasing. It is hopeful that our membership will avail itself to the guidance and many support documents that are found on the NJASBO website.
Public School Purchasing
Part I Announcements and Broadcasts
Part II Major Methods of Procurement with Documents
Part III Topics of Interest
Technical support—Public School Purchasing
If you have questions on Public School Purchasing you may reach Jim Shoop at the following e-mail addresses
February 2016—James Shoop
Part I: Broadcasts and Announcements
May 26, 2015
NJASBO Guidance for P.L. 2015, Chapter 47
Report of Awarded Contracts – due by July 1
Pursuant to PL 2015, Chapter 47 N.J.S.A. 18A:18A-42.2 the ______Board of Education intends to renew, award, or permit to expire the following contracts previously awarded by the board of education. These contracts are, have been, and will continue to be in full compliance with all state and federal statutes and regulations; in particular, New Jersey Title 18A:18A. et seq.,N.J.A.C. 6A Chapter 23A, and Federal Uniform Administrative Requirements 2CFR, Part200.
LIST All Contracts that the Board has awarded (or you believe will be awarded)and included in the official board minutes during the past 12 months, ending June 30. This would include contract awards pursuant to New Jersey’s procurement laws; i.e. bids for goods and services, transportation, as well as awards pursuant to board resolution for professional and extraordinary unspecifiable services.
Section 2 of the Law (Added by Jim Shoop)
N.J.S.A. 18A:18A-42.2 (b)
b. Prior to the execution, extension, or renewal of any school district contract that was not included in the report prepared pursuant to subsection a. of this section, the school business administrator shall notify the board of education in writing of all applicable federal and State laws, rules, and regulations relating to the contract.
July 9, 2015
RESOLUTIONS FOR ADOPTINGNEW BID THREHOLDS
Below are sample resolutions that can be used to establish the new bid thresholds, for QPA’s and Non-QPA’s, which became effective July 1, 2015. These amounts (QPA - $40,000 and Non-QPA - $29,000) will remain in effect until June, 2020.
Resolution #1
Resolution Increasing the Bid Threshold—Qualified Purchasing Agent
WHEREAS, (Name of school official), School Business Administrator/Board Secretary possesses a qualified purchasing agent (QPA) certificate;
WHEREAS, the Governor, in consultation with the State Treasurer and pursuant to N.J.S.A. 18A:18A-3 (b), on July 1 , 2015 has increased the bid threshold amount for school districts with purchasing agents who possess qualified purchasing agent certificates, from $36,000 to $40,000;
NOW, THEREFORE BE IT RESOLVED that the (Name of Board of Education), pursuant to N.J.S.A. 18A:18A-3 (a) and N.J.A.C. 5:34-5.4, establishes and sets the bid threshold amount of $40,000 for the board of education, and further authorizes (Name of SBA/Bd. Secy.) to award contracts, in full accordance with N.J.S.A. 18A:18A-3 (a), for those purchases that do not exceed in the aggregate of the newly established bid threshold amount.
RESOLUTIONS FOR ADOPTING
NEW BID THREHOLDS
Resolution #2
Resolution Increasing the Bid Threshold—Without QPA Purchasing Agent
WHEREAS, the Governor, in consultation with the State Treasurer and pursuant to N.J.S.A. 18A:18A-3 (b), on July 1, 2015 has increased the bid threshold amount for school districts whose purchasing agents do not possess a qualified purchasing agent (QPA) certificate, from $26,000 to $29,000,
WHEREAS, the (Name of Board of Education) would like to take advantage of the maximum statutory bid threshold amount of $29,000 for school districts who do not have a qualified purchasing agent;
NOW, THEREFORE BE IT RESOLVED that the (Name of the Board of Education), establishes and sets the bid threshold amount of $29,000 for the board of education, and further authorizes (Name of SBA/Bd. Secy.) to award contracts, in full accordance with N.J.S.A. 18A:18A-3 (a), for those purchases that do not exceed in the aggregate the newly established bid threshold amount.
August 3, 2015
Office of the State Comptroller
Procurement – Notification of Contracts over
$2 million and $10 million
N.J.S.A. 52:15C-10 requires contracting units must notify OSC as early as practicable, but no later than 30 days before advertisement, of any negotiation or solicitation of a contract that may exceed $10 million.
Contracting units must also provide post-award notification for any contract for an amount exceeding $2 million. Notification must be given within 20 days of the award.
Go to www.nj.gov/comptroller/compliance/index.html
Instructions and the required forms can be found at the link above.
All forms are to be remitted to
Section: 52:15C-10: Notice to State Comptroller of award of certain contracts;
10. a. In furtherance of the duty of the State Comptroller to audit and monitor the process of soliciting proposals for, and the process of awarding, contracts by contracting units which contracts involve a significant consideration or expenditure of funds, a contracting unit shall provide notice to the State Comptroller no later than 20 business days after the award of a contract involving consideration or an expenditure of more than $2,000,000 but less than $10,000,000.
Section 10 of the law added by Jim Shoop
Apple Products and Services
The announcement below is one that was sent by John Donahue to the membership in November and December 2015 and January 12, 2016.
Good Morning:
I just finished checking with Treasury about the status of the Apple State Contract. I wish I could report that I see a resolution coming soon, but I cannot. My December email on this subject is below:
Good Afternoon:
I have been hearing from some of you about the problem that exists due to the expiration of the Apple State Contract. Apple continues to negotiate the terms and conditions of this contract and we all hope that it will get resolved in good time. But that’s the problem, we don’t how long this will take, and I have spoken to both the national Apple office and our Department of Treasury. No one can or will commit to when this will get resolved.
I know some of you have a letter from Apple indicating that you can purchase directly from them as a “sole source”. Although there is a state protocol for proprietary goods and services, I don’t recommend this process. So what do I recommend, go out to bid.
Yes, you can submit to Apple a formal bid at . I have spoken to the folks at Apple and they explain to me that they have three project managers to handle government bids. One problem though! They can’t handle the requirement to submit bid bonds, so if that is critical (and I don’t see why it must be) to you then submitting your bids through this website may not help you. Please know that a bid bond is a local decision and not “required” by law. Your bid specification can be the Apple products you desire or “equivalent”. If you can’t wait until the national and state contract is in place, this bid process should work. They tell me that they have handled formal bids from New Jersey in the past.
John Donahue
Part II: Methods of Procurement
Document Review
“We just can’t go to Costco and buy items off the shelf!”
Methods of Procurement
It’s More Than Bidding!
Methods of Procurement for Public Schools
A. Advertise for Bids
B. Solicit for Quotations
C. Request for Proposals (RFP)
D. Competitive Contracting Proposals
E. Extraordinary Unspecifiable Services (EUS) and Insurance
F. State Contract Purchases
G. Emergency Contracts
H. Cooperative Purchasing Agreements
I. Shared Services Agreements
J. Sound Business Practices
K. Proprietary Purchases
L. Federal Funds Grants—2 CFR Part 200 Uniform Grant Guidance
M. Federal Funds—National School Lunch—7 CFR 210.21
Methods of Procurement
Public Schools
Procurement Method
A. Advertise for Bids (Purchases that exceed the bid threshold--$40,000)
This method is used for contracts for goods, materials, services and public works projects that exceed the bid threshold of $40,000.
Examples
Building Services Technology
Plumbing, Electrical, HVAC work Computer Supplies/Equipment
Custodial Supplies Printers / Computer
Public Works Project Interactive White Boards
Food Services* Title I Testing
Groceries and Canned Goods Test Scoring Services
Pest Control Services
Baking Goods—Rolls, Bread Athletics
Footwear
District Athletic Supplies/Equipment
Furniture Phys Ed Supplies/Equipment
AV Equipment
Calculators
Award of Contract--Lowest Responsible Bidder
The common thread of all these bids is that the board has to award the contract pursuant to N.J.S.A. 18A:18A-4 (a) to the lowest responsible bidder.
*Subject to Federal Guidelines 7 CFR 210.21
Purchases of goods and services when using Federal Funds are subject to Federal Guidelines 2 CFR Part 200 (Effective July 1, 2015)
It is recommended that school districts use two (2) different bid boilerplates
1. Goods and Services Bid Boilerplate
2. Public Works Bid Boilerplate
Methods of Procurement
Public Schools
B. Quotations (Purchases that fall between $6,000 and $39,999)
This method of procurement is used for contracts for goods, materials, services and public works projects that in the aggregate between $6,000 and $39,999.
Examples: Athletic Wear Fitness Equipment
Athletic Trainer Supplies Instrument Reeds
Dry Cleaning Services Payroll Checks
Award of Contract—Price and Other Factors
The Board of Education, is obligated to solicit at least two (2) competitive quotations and award the contract pursuant to N.J.S.A. 18A:18A-37 (a), to the vendor whose response is most advantageous, price and other factors included.
It is recommended that school districts use two (2) quotation boilerplates
1. Goods and Services Quotation Boilerplate
2. Public Works Quotation Boilerplate
Methods of Procurement
Public Schools
C. Request for Proposal—RFP--This method is preferred for contract for:
Professional Services Academic/Operational Services
Medical (Contracts less than $40,000)
Auditing; Accounting Instructional Services
Legal Educational Services
Engineering, Architectural Professional Development
Award of Contract—Evaluative Criteria
The RFP method is designed to award the contract to the vendor based upon a list of criteria which is includes as recommended by the NJ State Comptroller’s Office with the publication
Best Practices in Awarding Service Contracts (2010)
· Technical Criteria
Ø Submission of narrative how firm will provide services; planned
approach; measurable results
Ø Understanding how services will be provided
· Management Criteria
Ø Business organization; staffing
Ø Experience; and
Ø Knowledge of district
· Cost Criteria
Ø Fee proposal submission; cost analysis
The contract for an RFP contract does not; I repeat does not have to be given to the respondent who submits the lowest price. The evaluative process is designed to award the contract to the respondent whose response will provide the highest quality service at a fair and competitive price.
Methods of Procurement
Public Schools
D. Competitive Contracting (Certain Contracts over $40,000)
This method is used for certain contracts over $40,000.00.
The district can only use this procurement method for contacts that are outlined in N.J.S.A. 18A:18A-4.1. Some of the examples that are permitted are:
1. Proprietary Computer Software for Board Use
a. Student Information Systems
b. Business Office; Human Recourses
c. Student Transportation
2. Professional Development Services
3. Educational Consultant Services
4. Instructional Improvement Services
The award of contract is similar to the RFP award—an evaluative criteria which includes, price and other factors considered.
E. EUS—Extraordinary Unspecifiable Services--Insurance
This method is the procurement method for the purchase of insurance and insurance consulting services. Similar to the RFP process
F. Other Procurement Methods
· State Contract (GSA Contracts) Purchasing
· National Cooperatives
· Emergency Contracts
· Cooperative Purchasing Agreements
· Shared Services Agreements
· Sound Business Practices
Part III: Topics of Interest
NJASBO
Procurement Presentation
Topics of Interest
Issuing Professional Services Contracts; The January Organization Meeting
The Use and Misuse of the RFP with additional items
1. List of Professional Services
2. NJDOE Approved Clinics and Agencies
3. A Word About the RFQ
4. Notice of Intent—Purchase of Related Services
Public Notices for Award of Contracts
Preparation of Board Resolutions; Awarding Contracts for Goods and Services
The Purchase Order Rationale Form; An Argument for Its Use
You Are Being Watched; Audits That Befell School Business Administrators
Ethics in Purchasing—You Must Always Lead by Example
Issuing
Professional Services Contracts
The January Organization Meeting
Issuing Professional Services Contracts;
January Organization Meeting
Professional Services Contracts Insurance Broker of Record
Architect/Engineer Health Benefits
Auditor Property and Casualty
Board Attorney Reminder—Insurance consultant
Other Legal Services services should not be classified as
School Physician professional services contracts.
Calendar Year Award of Contracts
Many school boards award professional services contracts and make Insurance Broker of Record appointments in their January Organization Meeting. Many of the board resolutions have contract dates on a calendar year basis
January 1, 2016 through December 31, 2016
These calendar year contracts may be problematic!
1. Vendor Contracts Overlapping Two (2) Budget Years
Having professional services contracts overlap two budget years may cause some problems as to issuing of two (2) purchase orders; advertising two (2) contract awards in the newspapers; maintaining two (2) legal services budgets, two (2) legal services billings and possible open purchase orders. It could become very confusing for all concerned.
2. Permitting Time to Procure Professional Services Contracts
Yes, contracts for professional services are an “exception to bidding” however, there is administrative code to consider in the award of all professional services contracts.
Issuing Professional Services Contracts
N.J.A.C. 6A:23A-5.2 (a) (5)
“Professional services contracts are issued in a deliberative and efficient manner that ensures the district receives the highest quality services at a fair and competitive price or through a shared service arrangement. This may include, but is not limited to, issuance of such contracts through a request for proposals (RFP) based on cost and other specified factors or other comparable process.”