PURCHASING
The Board declares its intention to purchase competitively without prejudice and to seek maximum educational value for every dollar expended. The Purchasing Agent shall be responsible for developing and administering the purchasing program of the District. The purchasing department shall encourage competitive bidding by extending a courteous reception to interested parties, giving equal brands fair consideration, and seeking competitive sources of supply. PROCEDURES
Requesting bids or quotations - although prices can be obtained in several different ways, it is the responsibility of the Purchasing Agent to decide the manner in which the prices will be solicited. Bids can be placed in two major categories: -
Formal - Those bids that are publicly opened and read aloud for interested parties in attendance. Formal bids are usually one of two kinds: -
"Notice to Bidders" form - Each prospective bidder is sent a copy of the form which provides space for vendors to include such data as brand name, price extensions, etc. regarding the items which he is bidding. It notifies the vendor of the date the bid is due, the quantity, specifications, and delivery procedures required by the Board and purchasing department. Space is provided for terms (discount, FOB, etc.) and signature of the authorized agent of the vendor; and - newspaper advertisement - all purchases subject to formal bid procedures shall be advertised in a newspaper of general circulation in thecommunity and all of the above information is included in the advertisement, or instructions for obtaining full details of the bid are given.
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Informal - Those bids that are not publicly opened and are used to expedite purchases and to minimize bidding costs on low dollar value orders. Informal bidding procedures used include: -
"Write for Price" form - prices from out of town vendors are obtained in this manner for those publishing, scientific, and other specialty areas where local vendors cannot serve; -
telephone quotations - at least three local vendors are contacted by phone for prices, delivery, and terms on items of low cost and of simple or standard specifications; -
requisition purchases - the maintenance and transportation departments shall be authorized to make purchases of less than $100.00. Such requisitions, properly approved and signed by the department head and sent to the accounting office with the invoice shall constitute authority for reimbursement. The decision is to be based on availability, established and historic pricing of such orders, and in a fair method of vendor selection; and - cooperative purchasing - the administrative staff shall cooperate with the Berrien County Intermediate School District in the Berrien County Cooperative Purchasing Program in taking bids and letting contracts for cooperative purchasing. The Assistant Superintendent for Business and Finance shall present to the Board a summary of items bid through this program. All other cooperative buying ventures shall be submitted to the Board for approval and authorization on an annual basis.
Selection of Bid Procedures - Upon receipt of a properly executed requisition, the Purchasing Agent determines which bidding procedure should be used to serve the Board effectively. Guidelines for selection of the appropriate bid procedures are as follows: -
Quotations totaling less than $1000.00 can be taken from reliable vendors by telephone with the need of written confirmation. -
Quotations of more than $1000.00 require written confirmation from the vendors to ensure that misunderstanding is kept to a minimum. -
Purchases of an item, or a group of items, purchased in a single transaction costing $15,837 or the amount established in Sections 1267 and 1274 of the revised School Code, whichever is higher, require formal bid (competitive bid) procedures and Board approval. -
All contracted service for new construction, repairs, additions, or renovations costing $15,837 or the amount established in Sections 1267 and 1274 of the revised School Code, whichever is higher, require formal bid (competitive bid) procedures except in emergency situations. -
Third Party Competitive Bids - The Superintendent or designee is authorized to obtain third party competitive bids for materials, supplies, and equipment through programs such as the State of Michigan's Department of Management and Budget Joint Competitive Bidding Program, The "Classrooms for Tomorrow" Computer Equipment Procurement Program, the Regional Educational Media Center Purchasing Program (REMC), and other similar programs. Third party competitive bidding on behalf of the school District shall constitute a competitive bid for purposes of Section 1274 of the School Code of 1976, as amended. Selection of Best Bid - The purchasing department is obligated to select the best bid in the interest of the District. The best bid shall be the lowest bid meeting specifications. When the best bid is not the lowest bid received, a letter of justification shall be written by the using department, giving details on why the low bid should be rejected. -
Criteria for determining the best bid are: quality, price, and delivery. -
If bids are received on technical items unfamiliar to the purchasing department, evaluations shall be made in conjunction with the using department. -
The Board reserves the right to accept or reject any or all bids, in whole or in part; to waive any irregularities therein; to increase or decrease the quantities listed; to award the contract to other than the low bidder; or to accept any responsible proposal, if in the opinion of the Board, it may appear in the best interests of the District to do so. If unopened bids are rejected and the article(s) is re-advertised, those bids shall remain confidential until the item(s) is ultimately purchased. General Purchasing Policies -
Late Bids - All formal invitations to bid shall specify a day and hour for the public opening of the bid. Each vendor has the responsibility for seeing that its bid arrives in time to be considered. Lateness resulting from delays in United States Post Office service shall not be excused and such bids shall not be accepted. Quotations on items on formal invitations shall not be accepted by phone before or after the bid opening. -
Mistakes in Bidding - Prior to the opening of any bid, the vendor retains the right to withdraw its bid for any reason. The bid shall be re-accepted any time prior to the stated bid opening time and date. - Supplier Protests – The following procedures will be followed in the event a formal Supplier protest is received:
- Prior to Bid Opening – Any request for clarification or protest of specifications on the Bid Point Calculator and Evaluation Criteria must be received by the Purchasing Agent in writing before the day of the scheduled bid opening.
Upon receipt of a timely protest, the Purchasing Agent shall determine if the date for the bid opening or closing date for receipt of proposals should be postponed. If the bid opening or closing date is postponed, the Purchasing Agent will contact all parties who were furnished a copy of the bid specifications to advise that an appeal has been filed and that the bid opening or closing date or receipt of proposals is postponed until a decision has been issued. Notice of any postponement will be made in writing. The Purchasing Agent and the protester shall meet and/or discuss the substantive issues raised in a timely protest. Upon completion of the meeting or discussion between the District and the protestor, the Purchasing Agent will transmit a final decision in writing to the protestor and to all parties submitting bids. Upon issuance of the written decision to a timely protest, the Purchasing Agent will issue an addendum to reschedule the date for the bid opening or closing date for the receipt of proposal. Any change of the previously specified dates will be made in writing to the protestor and to all parties submitting a bid. -
After Bid Award – Protests regarding the bid award must be submitted in writing and be received by the Purchasing Agent not more than fourteen (14) days after the bid award notification is issued. Protests must specify the factual basis for the bid protest, an itemization of all procedural and substantive objections to the bid award, and all documentary evidence supporting the bid protest. Protests shall be limited to irregularities in the bid evaluation process and may not seek reevaluation of the subjective or objective evaluations used to award the bid. The Superintendent shall review any timely protest and issue a written determination to the protestor. The Board may meet with the bid protestor at its discretion to discuss the protest. The decision on the bid protest is final and not subject to additional internal review. Notice of any protest and all decisions will be provided to the bid recipient and all other bidding parties. If a bid protest is granted, the Purchasing Agent shall notify the bid recipient and all bidders in writing of the decision and of further action to be taken in conjunction with the bid with input from the federal and/or state agencies involved. An appeal to involved federal or state agencies may only be commenced following exhaustion of the internal appeal mechanism as set forth above. The criteria for an appeal shall be limited to the criteria specified in 2005CFR Title 7, Volume 15, Chapter XXX, Part 2016.36(b)(12): - Violations of Federal law or regulations and the standards of this section (violations of State or local law will be under the jurisdiction of State of local authorities); or
- Violations of the District protest procedures for failure to review a complaint or protest.
- Deposits of Good Faith (Bid Bond) - On certain bids, the Purchasing Agent may deem it necessary to require deposits of good faith. The deposits shall be in a reasonable amount and usually not in excess of 5% of the anticipated contract. The invitation to bid shall specify the deposit amount. A certified check, cashier's check, or properly executed bond shall accompany the bid proposal. Checks shall be payable to the Benton Harbor Area Schools.
Bid guarantees (other than bid bonds) shall be returned to unsuccessful bidders as soon as practicable after the opening of bids. Successful bidders shall have bid guarantees returned upon execution of such further contractual documents and bonds as may be required by the bid as accepted. -
Performance Bond - The Purchasing Agent may require that performance bonds be furnished prior to the awarding of a contract in the time and manner prescribed and to save, indemnify, and hold harmless the Board against loss. Bid proposals requiring a performance bond are specifically stated on the invitation to bid form. Bonds in the amount of 100% of the contract are required, unless specifically pre-set at lesser amounts by the Purchasing Agent. - Emergency Purchases - A bona fide operating emergency is defined as an eventuality that:
- cannot reasonably be foreseen;
- demands correction by immediate action; and
- threatens either an economic loss, or the health and safety of students, staff, or the public.
In the event of an emergency, the Purchasing Agent and the user shall discuss the problem and agree upon the action to be taken. The Assistant Superintendent for Business and Finance has the authority to purchase or delegate to any department to purchase in the open market without prior submission of a requisition and without the necessity for formal invitations or advertisements for bids. However, if at all possible, at least three telephone quotations should be taken before obligating the District.
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Standardization of Supplies and Equipment – Items commonly used in the various schools and units thereof shall be standardized whenever consistent with educational goals and in the interest of efficiency and economy. Formal bidding procedures may be waived where standardization of certain equipment items exist. -
Ethics - No Board member, officer, employee of the District, or their families shall be interested financially in any contract entered into by the Board. This shall also preclude acceptance of any gratuities, financial or otherwise, by the above persons, from any supplier of materials or services to the District. The District shall not purchase supplies or materials from an employee of the District or a Board member, nor from a member of the household of an employee of the District or a Board member. This policy shall also cover purchases from a company or firm in which an employee of the District or a Board member holds a controlling interest. -
State of Michigan Compliance - All purchasing procedures shall comply with all applicable laws and regulations of the State of Michigan. -
Waiver of Purchasing Procedures - Notwithstanding the above purchasing provisions, the Assistant Superintendent for Business and Finance may request that the Board purchase an item(s) under circumstances where all of their requirements were not met; and in the event that the Board, upon motion duly passed, authorizes the purchase of item(s) in view of the circumstances presented in the motion, said purchases may be made by the district. -
Equal Opportunity - All contractors and sub-contractors submitting formal bids shall be required to meet affirmative action and equal opportunity standards established by the Board and local, state, and federal agencies prior to the time contracts are awarded and to submit a statement indicating such. - Local Purchasing – It shall be the policy of the district to purchase locally, goods of equal quality and at competitive prices are available from local suppliers.
The Purchasing Agent shall not feel bound to purchase locally that which can be secured at a savings to the district from outside sources, nor shall the Agent feel bound to purchase locally unless adequate service and delivery can be given by the local supplier. |
