SLPS Purchasing Department. SLPS Purchasing Guide, 2012

Transcription

1 SLPS Purchasing Guide SLPS Purchasing Department Rick Schaeffer, Procurement Analyst Requisition >$5,000 RFPs/Contracts/Board Resolutions Academics/Operations/Food Service Transportation/Facilities Management Kevin Coyne, Contract Compliance Analyst RFPs/Contracts/Board Resolutions Finance/Human Resources Technology/Special Education Constance Byrd, Buyer II Office Supplies & Requisitions <$5,000 SAP New Vendors SAP Training Bus Passes Ketra Montgomery, Contract Compliance Specialist SAP Specialist Office Supplies & Requisitions < $5,000 Contracts under $5,000/Board Resolutions 1

2 The Purchasing department's continuous goal is to be responsive to the needs of those we support; students, educators and administrators. The District's purchasing policies include but are not limited to the following: 1.To obtain the maximum value for each dollar expended. 2.To comply with all applicable provisions of state and federal laws governing school district purchasing. 3.To establish specifications those are descriptive of materials desired, and, at all times, sufficiently broad to promote competitive bidding. 4. To publicly open advertised bids at the prescribed time and place. 5. To attract and develop a group of responsible bidders able to offer the best prices consistent with quality, delivery and service. 6. To serve the best interest of the school district in all transactions. Reliance shall be placed on reputable firms of known integrity, bearing in mind the fundamental responsibility for maintaining an adequate and satisfactory source of supply. 7. To give all bidders an equal opportunity to qualify for the District's business. 8. To purchase without favor or prejudice. 9. To conduct purchasing in a business-like manner using the most efficient procedures, records and reports. 2

3 Table of Contents Ethics in Procurement Ethics in General Other Procurement Guidelines Unlawful Actions in General Fraud in Delivery of Services Introduction Purpose and Benefits Procurement Process and Source Selection Non-Contractual/Contractual Requisitions Purchases of $5,000 or more Types of Purchases Methods of Procurement Formal Sealed Bids Invitation for Bids Request for Proposals Requests for Qualifications Requests for Information Non-Competitive Procurement Requirements Procedure Emergency Purchase Sole Source Authority Applicability Statewide Contracts Contract Management Contract Renewals and Non-Renewals Contract Debarment Open Records Request Contract Execution Contract File Documentation RFP and Purchase Order File Content Unauthorized Purchases 3

4 Ethics in Procurement This Section prescribes rules governing conflict of interest and code of conduct of Saint Louis Public Schools (SLPS) employees involved in procurement process. This is reflective of the SLPS Purchasing policies and procedures. The policy and this section should be read and understood collectively. Ethics in General All Saint Louis Public Schools Personnel shall: Never accept for themselves or their families, favors, or benefits under circumstances which might be construed by responsible persons as influencing the performance of their SLPS duties. Make no private promises of any kind binding upon the duties of office, since an SLPS employee has no private work which can be binding on public duty. Do engage in business with SLPS directly or indirectly which is inconsistent with the conscientious performance of their duties. Never use any information divulged to them confidentially in the performance of SLPS duties as a means of making private profit. Expose corruption whenever discovered. Purchasing Guide Sep2008 4

5 Other Procurement Guidelines: In addition to the major requirements that are summarized in the previous section and the SLPS Purchasing Policy, this guide also establishes standards and guidelines to ensure that materials and services are efficiently and economically obtained and in compliance with the provisions of applicable law and regulations. 1. No employee, officer or agent of the SLPS shall participate in selection or in the award or administration of a contract supported by SLPS funds if a conflict of interest, real or apparent, would be involved. 2. Conflicts of interest arise when any of the following has a financial or other interest in the firm selected for the award: a. The employee, officer, or agent; b. Any member of his / her immediate family c. His or her partner; or d. Any organization which employs or is about to employ any of the above 3. The SLPS employees, or agents shall neither solicit nor accept gratuities or favors of more than nominal value from contractors, potential contractors, or parties to sub agreements. 4. As permitted by law or regulations, the SLPS shall provide for penalties, sanctions, or other disciplinary actions form violations of these standards by employees or their agents, or by the contractors or the contractor s agents. Purchasing SLPS Guide Purchasing Sep2008 Guide,

6 The General purpose of this section is to protect procurement integrity. Employees of SLPS must discharge their duties impartially and in such a manner as to assure fair and competitive access to SLPS procurement by responsible vendors. Moreover, these employees must conduct themselves in such a manner as to foster public confidence in the integrity of the SLPS Procurement System. Unlawful Actions in General: 1. Collusion Conspiracy in restraint of free and open competition in transactions with the SLPS or collusion is prohibited by law 2. Bribery An Individual who gives to any person acting for or on behalf of the SLPS any benefit, reward, or consideration to which he is not entitled, with the purpose of influencing that individual in the performance of any act related to the functions of his office or employment shall be guilty of bribery. An SLPS employee may be guilty of bribery if he / she solicits or receives such benefit, reward, or consideration. Fraud in Delivery of Services: If any vendor of any goods, services, or construction project procured by the SLPS attempts to willfully or fraudulently evade the specifications for the procurement of any items or willfully or fraudulently fails to deliver quantity or quality as specified through alteration or otherwise; SLPS may in its discretion, disqualify or debar such vendor from any further transactions with the SLPS. Purchasing Guide Sep2008 6

7 Introduction It is the policy of the Purchasing Department to serve and support the needs of schools and departments. We realize that our ability to respond to the need of principals, teachers, and students can and does influence the environment and the way teachers teach and students learn. We believe the better and more informed our customers are of the procurement processes and procedures; the better they can access the services we provide. This leads to realistic expectations from them and assists us in meeting or exceeding those expectations and requirements. This guide offers best practices adopted by the Purchasing Department. Full and open competition is the foundation of our program. We are governed by the policies and procedures mandated by the Saint Louis Board of Education and the appropriate State and Federal regulations and laws in all procurement actions. 1. Purpose and Benefits A. Serve as a resource tool for all District employees B. Simplify the policies and procedures used by the Purchasing Department C. Provide increased economy in purchasing activities, maximize to the fullest extent possible the value of taxpayer funds;, obtain in a cost effective and responsive manner the goods and services and construction required by schools and departments D. Provide consistency across the District among all schools and departments Purchasing Guide Sep2008 7

8 Benefit and Usage of the Guide This Guide applies to procurement activities initiated after October 31, Any future revisions to this guide will be communicated District-wide and posted on The guide is the primary source of reference for the Purchasing Department. Procurement Process and Source Selection Purchasing Requirements Once a need for a good / or service has been identified, the procurement process begins with the preparation of a requisition by an individual in a school or department via the SLPS Financial System. A requisition is a request to purchase goods or services. Completion of a requisition is required for all purchases. The SLPS SAP system automatically verifies the school or department has the funds to purchase the good or service before the requisition is created (released) once the requisition is created the funds then become committed and restricted for that purchase. Purchasing Guide Sep2008 8

9 The requisition is routed for approval via various levels usually a principal, Department head, Fiscal Control, and Purchasing. Once the requisition is approved at the required levels one of two things occur: 1. For non-contractual requisitions, the purchasing department will create a purchase order and send the purchase order to the vendor. Once the goods are received at the school or department, the requestor enters a good receipt, and the Accounts Payable Office generates a vendor check upon receipt of the signed invoice from the vendor; 2. For contractual requisitions, the Purchasing Department will generate a SLPS contract. The contract is routed for approval and applicable signatures; i.e., Department Head, and Contractor. The Purchasing Department will generate a purchase order and send it to the vendor. Once services are rendered and the vendor submits invoices, the department head or requisitioner will sign the invoices, and submit the signed invoices, and typically, a copy of the purchase order so that the accounts payable department can generate a vendor check. 3. Purchases of $5000 or more a. Requires a requisition entered into SLPS SAP System b. Solicitation of vendor quotes must go through the sealed competitive bidding process (i.e., Invitation for Bid, Request for Proposal). However, if a sole source vendor is identified, the sole source form must be submitted and signed by the requesting Department Head. c. All recommendations for awards of contracts to vendors require Superintendent s approval, and Board via Resolution d. Requires a SLPS purchase order Purchasing Guide Sep2008 9

10 4. Types of Purchases Construction All contracting relating to buildings, facilities, and other erected structures on real estate of Saint Louis Public Schools such as new construction, rehabilitation, remodeling, and repairs. Commodities The purchase of all goods, equipment, foodstuffs, office and other supplies such as art, furniture, textbooks, instructional aids, and other materials for education. Non-Professional Services Purchasing of Advertisements, printing, non-construction repairs, computer and information systems, shipping, mailing, microfiche, microfilm, courier, storage, travel, and other non-professional services. Professional Services Consultants, auditors, architectural engineers, and any other services whose applicable selection criteria requires a license or other certificate of competency. Authorized Exclusions There are certain items that are excluded from the competitive bid process, but are necessary purchases for SLPS. These may include software licenses, fees for professional membership, postage, Bi-State Metro passes, standardized tests, subscriptions, government agencies, public utilities, and such items. Purchasing Guide Sep

11 Methods of Procurement 1. Formal Sealed Bids (IFBs, RFPs and RFQs) Formal sealed bids require a great deal of time, but rewards the District with excellent prices because of competition. Under Board policy and State Statues, the formal sealed bid process is required for purchases that exceed $5,000. This process is a lengthy process that results in good or best value for the District. Sound Acquisition planning is the key element in the success of formal sealed bids along with the development of quality specifications. Formal sealed bids normally require about 6 8 weeks to complete the purchasing cycle. Invitations to bid can normally be completed within 30 days depending on the number of items being solicited. Keep in mind that purchases that exceed $5,000 in value require approval by St. Louis Board of Education. This sometimes can add as much as four six weeks to the process because Board approval is required. Purchasing Guide Sep

12 Below is an abbreviated outline of the process: a. Departments will determine the need for the good or service and funding b. Departments will develop specifications and submit to the Purchasing Department c. Purchasing department will develop a draft RFP d. Purchasing Department may route the RFP for review and make any necessary changes. e. Purchasing Department will determine the date bids are to be received f. Generally the solicitation will remain open for at least 30 days g. Purchasing Department will obtain a list of potential vendors to receive the RFP notice. h. Purchasing department will post the solicitation to i. If advertising is necessary, Purchasing will prepare a notice for the newspaper (St. Post Dispatch, St. Louis American, Daily record, & other applicable trade periodicals / web sites) j. Purchasing will hold a bidder s conference to clarify any vendor questions and all answers will be available for all potential bidders as an addendum on the SLPS website. k. Purchasing Department receives sealed bids l. Purchasing Department conducts Public opening of sealed bids m. An evaluation team reviews and scores bids based upon the evaluation criteria. n. Lowest responsive and responsible bidder is identified o. Departments will create a requisition in SLPS SAP on-line system p. If total cost of bid is under $5,000, the purchase order is created q. If the total cost of the bid is $5,000 or over, an action item is created and submitted to the Board for approval r. After Board approval, a contract is signed by both parties and a purchase order is issued Purchasing Guide

13 2. Invitation for Bid (IFB) An IFB enables SLPS to acquire products and services at a good value. The specifications are specific as to the performance and design of a good. This method is typically not used to procure a service but a good, i.e., a truck, a hammer, a table, desk etc. Typically, bid responses are opened publicly and generally, if all specifications are complied with, the lowest price wins the bid. 3. Requests for Proposals (RFP) An RFP is used when the result is oriented by a scope of work where the vendor develops and provides a solution (proposal). Typically, an evaluation team of 3-5 individuals that possess the technical skills and background to determine best value for the district evaluates proposals. This method allows some flexibility in determining the lowest and most responsive bidder and allows us to obtain best value. a. RFP Requirements 1. Adequate public notice of the Request for Proposals may be given in the same manner as provided for competitive sealed bidding. 2. A register of proposals shall be prepared and made available for public inspection after the award of contract 3. The Request for Proposals shall state the relative importance of price and other evaluation factors. Purchasing Guide Sep

14 b. RFP Evaluation 1. Committees made up of subject matter experts selected (typically from within the school district) will perform the evaluation of proposals. Depending on the availability, experts from outside the District may be called upon to assist with the evaluation. 2. An evaluation plan will be prepared prior to the start of evaluation that allows for scoring of the proposals according to the evaluation factors and their weighted values. 3. The evaluation plan will be prepared and the award will be made to the vendor with the highest score. In rare circumstances, reasonably close vendor scoring may warrant further discussion with vendors to provide additional information and/or further proposal clarification. 4. These discussions are for purpose of negotiations, clarification, and to assure full understanding of and responsiveness to the solicitation requirements. Potential vendors will be accorded fair and equal treatment with respect to an opportunity for discussion. In conducting any such discussions, no disclosure will be made of any information derived from proposals submitted by competing vendors. Purchasing Guide Sep

15 c. Confidentiality of Bids / Proposals 1. All bids / proposals, whether sealed or informal, are confidential; and their existence will not be disclosed until they are opened. Bid contents are made public after their opening. The contents of proposals shall not be disclosed to anyone other than SLPS employees with a need to know. Proposals will be made available for public inspection after board approval and contract award through an Open Records Request. d. Rejection of Bids / Proposals 1. SLPS reserves the right to reject any bids or proposals submitted in responses to any solicitation document, to reject any portion thereof, or to waive any minor irregularity. e. Acceptance Period 1. The Purchasing Department generally requires a minimum of 60 days to evaluate bids / proposals for award. Those, which limit the acceptance period to less than sixty (60) days, may therefore be rejected. When it is determined that a time period other than 60 days is appropriate, the solicitation document will so indicate. f. RFP Award 1. Award will be made to the responsible vendor whose proposal is determined in writing to be in the best interest (best value to) of SLPS, taking into consideration price and the evaluation factors set forth in the Request for Proposal document. No other factors or criteria are used in the evaluation. Purchasing Guide Sep

16 4. Requests for Qualifications (RFQ) A Request for Qualifications (RFQ) is used in cases where the customers are attempting to find vendors with the qualifications to produce the product or service desired. The required qualifications are known and each vendor is evaluated based upon its ability to meet or exceed the required qualifications. This form of solicitation may, but does not always culminate in a contract award. 5. Requests for Information (RFI) A Request for Information (RFI) is a semi-formal method for soliciting information from vendors who have knowledge or information about an industry, product, or service. The RFI method is typically not intended to result in a contract award, but is designed to allow for the collection of industry information to determine if an RFQ or RFP solicitation method is required. 6. Telephone, Fax and Quotes (RFI) a) Determine the need for a good or service b) Determine if funding is available for the good or service c) Develop the specifications for the good or service d) Determine method for quotes (Purchasing) e) Exact specifications must be sent to all potential vendors for equal opportunity f) If phone quotes: call vendors and get verbal quotes (Purchasing) g) Determine lowest responsive and responsible vendor (determine which vendors offers the good or service with the best price and most fit the need of the Department) (Purchasing) h) Typically, create a requisition in SLPS SAP Purchasing system for the good or service. Purchasing Guide Sep

17 7. Unauthorized Purchases A purchase is declared an unauthorized purchase when it has been made without an valid purchase order issued by the Purchasing Department. When the purchasing department receives a requisition that has evidence that the merchandise or services has already been ordered / received / or performed, it is deemed an unauthorized purchase. Exceptions are purchases issued through vouchers. a. Ratification of Unauthorized Payments An unauthorized purchase may be ratified for payment typically based upon a determination by the Superintendent that the following parameters were met: 1. Benefit: That the SLPS has or will receive full benefit of the unauthorized purchase. 2. Propriety of Purchase: that the purchase would have been proper and authorized if the action was taken by the Purchasing Department or by an individual authorized in writing by the Superintendent 3. Availability of Funds: That the price Request for Qualifications was fair and reasonable based on a determination made by the Purchasing Department. Purchasing Guide Sep

18 Non-Competitive Procurement 1. Requirements If the Purchasing Department determines that the items can reasonably be purchased for less than $5000, the purchase may be made without competitive bidding. 2. Procedure The following procurement procedure should be used for orders that are less than $5000: a. If contracted, quote documentation would be retained in the Purchasing department b. Requisition for item(s) should be entered into SAP system c. Purchase Order is generated(purchasing). 3. Emergency Purchase The Chief Financial Officer (CFO) / Superintendent must approve/ sign all emergency purchase requests. The requests must be approved prior to work performed by vendors (see Emergency Purchase Request Form in the Appendix) In accordance with purchasing procedures, an emergency condition is defined as a situation that creates threat to public health, welfare, safety, or property that may arise by reason of flood, epidemic, riots, equipment failure or such reasons any be proclaimed by the Superintendent of Saint Louis Public Schools. An emergency purchase: a. May be made by a SLPS employee; b. May also be made if failure to do so would render the District unable to deliver instruction for a significant period of time or; c. Failure to act would create an environmental condition that is not conducive or detrimental to the District. Any individual who attempts to obligate the District without the Superintendent s prior approval may be subject to disciplinary action and may be personally liable for the unauthorized purchase. Purchasing Guide Sep

19 4. Sole Source On occasion, it may be necessary to purchase equipment, supplies or services from a single source vendor. This means that there is only one source or supplier available for a good or service. Examples of a sole source purchase include: a. Items that have specific features essential for the compliance of a task or project at hand that are available from only one source. b. Items which must be compatible with existing equipment or systems and are available only from the original manufacturer c. When changing brands or manufacturers would compromise the continuity or integrity of a project or proprietary items; (e.g., software; hardware, etc.). d. A Sole Source form is required for purchases of $5,000 or greater. 5. Authority All purchases and contracts for goods and services ($5,000 and over) are awarded through a competitive process to the lowest responsible, responsive bidder except in those instances when only one source exists (textbooks) for a needed good or service and approved by the Superintendent or his / her designee. 6. Applicability Any requisition of $5,000 and over that has not been accompanied by a Board approval. A sole source purchase must be based on the requestor s investigation and evaluation of the requested product and its availability (or lack of availability) from multiple sources. The sole source justification form must be completed and signed by the appropriate staff or administrator, as indicated on the form. Purchasing Guide Sep

20 Approximately five business days are required to evaluate and process a sole source request. Please consider this when submitting a request, and allow sufficient time prior to deadlines (quote expiration, grant expiration, etc) for the sole source request to be evaluated. It is also important to allow sufficient time (approximately 8 weeks) for the bid process should the sole source status not be granted. Justification will include features, which are unique and essential for the intended use that other manufactures of like products do not offer. Preference for one vendor, product, or service, quotations, acquisition or demonstration testing by a department does not constitute a sole source. These preferences must be determined through a competitive process issued by the Purchasing Department. Submission of the sole source request to the Purchasing Department does not preclude the requirement to obtain a written / ed quotation. Additionally, budget considerations are not sufficient grounds to approve a sole source purchase (remember that if your requirement is available from more than one source, it is not considered a sole source (see sole source purchase form in appendix). 7. Statewide Contracts All requests to use statewide contracts must be made through the Purchasing Department. Purchasing Guide Sep

21 4. Contract Renewals and Non-Renewals Contract renewals will be handled through Purchasing every 12 months. Once a contract is up for renewal, Purchasing generally notifies the requisitioning department that it will expire. The requisitioning department is ultimately responsible for making the decision to renew the existing contract, or re-solicit the services. Purchasing will: a. Renew option if available b. Allow the contract to terminate and re-solicit. Prepare specifications to re-solicit c. Let the contract end because no further services are needed The requisitioning department may elect to terminate a contract, if it has been determined that the goods or services are no longer needed from the vendor. The Purchasing Department will coordinate this process and issue notice to the vendor. 5. Contract Debarment Debarment is a serious action, which may lead to the person or company being excluded from contracting with SLPS for a period of five years. The SLPS Debarment policy will protect SLPS from conducting business relations with dishonest, unethical, or otherwise irresponsible persons or companies. Once there is probable cause to debar a company, debarment is handled by SLPS legal counsel. Purchasing Guide Sep

22 Causes of Debarment a. Conviction of, civil judgment, or a debarment by another governmental agency b. Fraud or criminal offense in connection with obtaining or attempting to obtain or performing a public or private agreement or transaction c. Commission of an act of federal or State antitrust statutes, including those proscribing price fixing between competitors, allocation of customers, between competitors or proposal / bid rigging d. Commission of embezzlement, theft, forgery, bribery, falsification, destruction or concealment of records, making false statements, submitting false information, attempting to commit a fraud against the Board of Education, receiving stolen property, making false claims or obstructing justice, fraudulently obtaining public funds 6. Open Records Requests a. General Public / Vendors All public records are subject to inspection under the provisions of the Sunshine Law. If a department or school receives such a request, they should forward the request to the Marketing Communications Department. b. Bid tabulations / RFP Evaluation Scores The pricing sheets of Bids / RFPs responses are typically read during Public openings. The contents of bid tabulations and RFP Evaluation Scoring are not available for public inspection. If a vendor requests such records, they must send his / her request via Sunshine Law. Purchasing Guide Feb

23 7. Contract Execution The vendor and Superintendent or his designee will sign all contracts and all copies of the contract are sent to the applicable requisitioning departments. The Purchasing Department will serve as the repository for all contracts. All vendor contracts, (Consultant, Services, Leasing, Maintenance, and Construction) will be kept on file in the Purchasing Department. Copies of the signed contract are sent to the applicable requisitioning departments. a. Types of contracts (examples) 1. Consultant 2. Services 3. Leasing 4. Maintenance 5. Construction All requests for the use of contractors (over $5,000) must comply with the competitive bid process. Unless the contract is renewed, the RFP process should occur on an annual basis. Below is the process when submitting a Contractual Agreement for Consultative and / or Technical Services (after Board approval): 1. Complete and submit a Contractual Agreement Form and submit to Purchasing 2. In most cases, Purchasing will utilize the District approved contract template. Therefore, outside legal review will not be necessary. If Purchasing determines a need for further contract review, they will seek outside legal counsel. 4. Obtain signatures of Vendor, Superintendent or his designee. 5. Purchasing generates and delivers the purchase order and contract to the Department Head/Requisitioner Purchasing Guide Sep

24 8. Contract File Documentation Any contract involving the expenditures of public funds is subject to review / audit to ensure that SLPS received the goods / services it solicited, and is satisfied with the results. The Purchasing Department will maintain the following two types of documentation files, RFP and Purchase Order: RFP file contents: Advertisement(if applicable) RFP Addendums Pre-bid attendance list Proposal / Bid responses Bid opening attendance list/note sheet Purchase Order file contents: Purchase Order Approved Board Resolution Evaluation / Tabulation Summary sheet Evaluation Scoring Sheets / Bid tabulations Executed contract Purchasing Guide Sep