6320.02 - PROCUREMENT METHODS FOR SERVICES, SUPPLIES, EQUIPMENT, AND OTHER PROPERTY
This policy sets forth requirements and expectations related to methods of procurement, including purchases made, in whole or in part, using federal funds that have been awarded to the District. The District Administrator and Director of Business Services have primary administrative responsibility for directing and overseeing the implementation of this policy as a component of the District’s overall procurement procedures and within a system of internal controls that supports the District’s processes for budgeting, procurement management, accounting and financial management, and property disposition.
While this policy grants authority for employee procurement agents to utilize relatively informal competitive processes and even noncompetitive methods in some situations, such authority does not:
- Permit any District procurement agent to disaggregate a purchase into multiple transactions with the intent and purpose of avoiding a cost threshold that requires a more demanding procurement method.
- Preclude District procurement agents from lawfully going beyond any minimally-required and minimally acceptable procurement procedures for the purpose of (a) enabling the District to make a more informed decision, (b) enhancing the District’s competitive and bargaining position with respect to a procurement decision, or (c) otherwise increasing the tangible or intangible value that the District can derive from a particular purchase or contract.
All persons involved in the procurement of services, supplies, equipment, or other property on behalf of the District are responsible for ensuring that (1) their actions and decisions are within the scope of their authority, and (2) they sufficiently understand and make all reasonable efforts to comply with applicable laws, School Board policy, and established District procedures.
Methods of Procurement for Purchases Supported by Federal Funds
When procuring services, supplies, equipment, or other property involving the use of federal funds that are subject to the procurement standards found in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), the District shall use a procurement method that (1) at a minimum, is consistent with the Uniform Guidance, as summarized at a general level in the following chart; and (2) implements any additional standard locally-defined procurement procedures/requirements that are not in conflict with the Uniform Guidance:
| Cost Threshold | Allowable Federal Procurement Methods |
| A purchase of supplies or services that, in an aggregate amount, does not exceed $10,000, as federally indexed | Such “micro-purchases” of supplies or services may be made or awarded without soliciting competitive quotations to the extent any of the following determines that the cost of the purchase/contract is reasonable: District Administrator and Director Business Services. Where multiple qualified suppliers of the same or materially interchangeable products have been identified and such suppliers offer effectively equivalent rates/prices and other terms, repeated micro-purchases that are subject to the Uniform Guidance are to be reasonably distributed among different suppliers when practical. |
| Purchases below $250,000, as federally indexed (unless the purchase qualifies as a “micro-purchase”) | Price or rate quotations must be obtained in advance from a reasonable number of qualified sources, as further detailed in District procurement procedures, unless (1) a valid basis exists under the Uniform Guidance for relying on procurement by a noncompetitive proposal (i.e., “single source” procurement), or (2) the District elects to use a more formal competitive bid or request for proposal process. To the extent required by federal regulations, the District will negotiate profit as a separate element of the price for each contract that is awarded in the absence of price competition. |
| Purchases of $250,000 or more, as federally indexed | The District shall conduct a cost or price analysis for these purchases that, at a minimum, shall include making an independent estimate before receiving bids or proposals (including noncompetitive proposals). Whenever appropriate and relevant to the specific transaction, the cost analysis may include life-cycle cost estimates which shall then be incorporated into any solicitation of bids or proposals. Procurement shall be made by sealed bids or by competitive proposals unless a valid basis exists under the Uniform Guidance for relying on procurement pursuant to a noncompetitive proposal (i.e., “single source” procurement). However, no construction, facility remodeling, or other public works capital project with an aggregate cost of $150,000 or more shall be conducted under a “single source” rationale without the express approval of the Board. To the extent required by federal regulations, the District must negotiate profit as a separate element of the price for each contract involving expenditures at or above this cost threshold. |
The above chart represents a starting point for identifying an appropriate and lawful procurement method for purchasing that is subject to the Uniform Guidance. Many additional details, requirements, restrictions, and procedures are established in the federal regulations. In certain cases, other federal laws and regulations establish additional requirements and/or affect the specific application of the Uniform Guidance.
Methods of Procurement for Purchases NOT Involving the Use of Federal Funds Subject to the Uniform Guidance Regulations
The following parameters for methods of procurement apply when the District procures services, supplies, equipment, or other property and the expenditure does NOT involve the use of any federal funds that are subject to the Uniform Guidance procurement regulations:
- The District shall adhere to any other state or federal requirements that dictate the use of a certain procurement method for a particular purchase or contract.
- When no separate state or federal requirement applies and the Board has not directed or approved a more specific procurement method for a particular purchase or contract, the Director of Business Services is authorized to utilize the following procurement methods:
| Cost Threshold | Allowable Federal Procurement Methods |
| A purchase in an aggregate amount that does not exceed $10,000, as federally indexed | Such purchases may be made or awarded under a reasonable business judgment standard without soliciting quotations, bids, or proposals. The Board will consider this standard satisfied to the extent that any of the following has determined that the cost of the purchase/contract was reasonable: District Administrator, Director of Business Services, or an administrative designee who is directly involved in approving or recommending the purchase. The administration may also elect to use any of the methods approved for the higher cost thresholds. |
| A purchase in an amount greater than $10,000 but less than $250,000, as federally indexed | Such purchases may be based on any of the following:
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| Purchases of $250,000 or more, as federally indexed | Such purchases may be based on any of the following:
Whenever appropriate and relevant to the specific transaction, the District will make life-cycle cost estimates and incorporate consideration of life-cycle costs into the solicitation and evaluation of competitive bids and proposals. |
The Board authorizes “single source” (i.e., noncompetitive) procurement for non-federal purchases if at least one of the following justifications has been verified and documented by the District Administrator or Director of Business Services:
- Any of the circumstances is present under which noncompetitive procurement would be allowable under the federal Uniform Guidance.
- The purchase involves the District’s choice to exercise a renewal or extension option found in an existing license or other contracting arrangement where the underlying contract was either previously approved by the Board or procured via the solicitation of competitive bids or competitive proposals.
- The District is choosing to continue to use (or expand the use of) a specific product or service (such as a specific curriculum element or computer application or software system) that is already in use in the District and in which a significant investment of time and/or money has already been made. In such a situation, the District may consider a particular brand or particularly proprietary version of a product to be a “single source,” and may further consider a specific vendor or contractor to be “single source” when such vendor or contractor has exclusive rights to purvey the goods or services in question.
- The District makes the purchase from another unit of government or the procurement is pursuant to a contract or other agreement with a Cooperative Educational Service Agency or via an intergovernmental agreement.
- The procurement is pursuant to pre-negotiated state contract pricing.
- Grant monies are involved and the grant mandates the participation of expressly-identified grant partners, subcontractors, or vendors.
- The Board has otherwise expressly authorized or approved a non-competitive procurement process.
The Board acknowledges that the procurement of professional services, such as legal services, can present unique situations such that a contract or other service agreement may not be readily amenable to the typical procurement methods and procedures outlined in this policy. Accordingly, whenever such procurement decisions are legally left to the District’s discretion, the Board relies heavily on its own oversight function. Therefore, except in emergency circumstances where the District Administrator or reasonably relies on an authorized “single source” rationale for such procurement, the Board expects the District Administrator to work jointly with the Board to define (1) a situation-appropriate procurement or selection process; (2) the scope of any current or potential future professional services the Board is being asked to approve or authorize; and (3) the scope of any District agent’s authority, if different from standard policy-based purchasing authority, to engage a preapproved provider of professional services in the future without obtaining advance approval from the Board for the specific engagement.
School District of Jefferson