6320 - PURCHASING

It is the policy of the School Board that the Chief Financial Officer and/or Superintendent Designee shall act as the purchasing agent for the Board. This policy applies only to purchases that are not paid from Federal funds or Corporation matching funds. All purchases that are paid from Federal funds or School Corporation matching funds shall be made pursuant to Policy 6325 - Procurements - Federal Grants/Funds.

Purchases of Supplies

For purposes of this policy, "supplies" means any personal property. The term includes equipment, goods, and materials. The term does not include an interest in real property. For purposes of this policy, "purchase" means buy, procure, rent, lease, or otherwise acquire.

The purchasing agent may make open market purchases of supplies totaling no more than $50,000 for a single item or a group of similar items.

The purchasing agent shall seek at least three (3) price quotations on purchases of supplies that are more than $$50,000 but less than $$150,000 except in cases of emergency or where materials are of such nature that price quotations would not result in a savings to the Corporation.

The purchasing agent shall mail an invitation to quote at least seven (7) days before the time fixed for receiving quotes.

If the purchasing agent receives a satisfactory quote, they shall award a contract to the lowest responsible and responsive quoter for each line or class of supplies required. The purchasing agent may reject all quotes.

If the purchasing agent does not receive a quote from a responsible and responsive quoter, they may purchase the items by following the procedure for items costing under $50,000.

When the purchase of, and contract for, single items of supplies is equal to or exceeds the amount stipulated by statute, the Chief Financial Officer shall obtain competitive bids.

Competitive Bidding - Supplies

The purchasing agent shall follow the procedure described below in awarding a contract for supplies that equals or exceeds $150,000.

1. The purchasing agent shall issue an invitation for bids.
2. An invitation for bids shall include the following:
    
   1. A purchase description.
   2. All contractual terms and conditions that apply to the purchase.
   3. A statement of the evaluation criteria that shall be used, including any of the following:
       
      1. Inspection.
      2. Testing.
      3. Quality.
      4. Workmanship.
      5. Delivery.
      6. Suitability for a particular purpose.
      7. The requirement imposed in I.C. 5-22-3-5 for offers submitted by trusts.
   4. The time and place for opening the bids.
   5. A statement concerning whether the bid shall be accompanied by a certified check or other evidence of financial responsibility that may be imposed in accordance with rules or policies of the Board.
   6. A statement concerning the conditions under which a bid may be canceled or rejected in whole or in part as specified in I.C. 5-22-18-2.

Evaluation criteria that will:

1. affect the bid price; and
2. be considered in the evaluation for an award;

shall be objectively measurable.

Only criteria specified in the invitation for bids shall be used in bid evaluation.

The purchasing agent shall give notice of the invitation for bids in the manner required by I.C. 5-3-1. The purchasing agent also may provide electronic access to the notice through:

1. the computer gateway administered by the Office of Technology; or
2. any other electronic means available to the Corporation.

The purchasing agent shall open bids publicly in the presence of one (1) or more witnesses at the time and place designated in the invitation for bids.

Bids shall be:

1. unconditionally accepted without alteration or correction, except as permitted below; and
2. evaluated based on the requirements provided in the invitation for bids.

A contract shall be awarded with reasonable promptness by written notice to the lowest responsible and responsive bidder.

For a bidder  to be considered responsive, the proposal shall:

1. respond to all bid specifications in all material respects;
2. contain no irregularities or deviations from the bid specifications that would affect the amount of the bid or otherwise provide a competitive advantage; and 
3. comply specifically with the solicitation and instructions to bidders.

The purchasing agent also may consider whether the bidder has complied with all applicable statutes, ordinances, resolutions, or rules pertaining to the award of a public contract.

For a bidder to be deemed responsible, the Board may request evidence from the bidder concerning its:

1. experience (type of product or service being purchased, etc.); 
2. financial condition; 
3. conduct and performance on previous contracts (with the Corporation or other agencies); 
4. facilities; 
5. management skills; and 
6. ability to execute the contract properly. 

The purchasing agent may consider the following factors in determining whether a bidder  is responsible: 

1. the ability and character of the bidder to provide the supplies;
2. the integrity, character and reputation of the bidder; and
3. the competency and experience of the bidder.

The purchasing agent shall maintain the following information:

1. The name of each bidder.
2. The amount of each bid.
3. Other information required I.C. 5-22 and its rules.

The information described above is subject to public inspection after each contract award.

The Board allows:

1. Correction or withdrawal of inadvertently erroneous bids, provided notification to the purchasing agent is givenno later than Five (5) business days following opening of the bids.
2. Cancellation of awards or contracts based on inadvertently erroneous bids.

The purchasing agent shall make a written decision to:

1. permit the correction or withdrawal of a bid; or
2. cancel awards or contracts based on bid mistakes.

The purchasing agent shall not permit changes in:

1. bid prices; or
2. other provisions of bids prejudicial to the interest of the Board or fair competition;
3. after bid opening.

If a bidder inserts contract terms or bids on items not specified in the invitation for bids, the purchasing agent shall treat the additional material as a proposal for addition to the contract and may do any of the following:

1. Declare the bidder nonresponsive.
2. Permit the bidder to withdraw the proposed additions to the contract in order to meet the requirements and criteria provided in the invitation for bids.
3. Accept any of the proposed additions to the contract, subject to the following limitations.

The purchasing agent shall not accept proposed additions to the contract that are prejudicial to the interest of the Board or fair competition.

A decision of the purchasing agent to permit a change to the requirements of the invitation for bids shall be supported by a written determination by the purchasing agent which provides the justification for that change.
 
The Board reserves the right to reject any and all bids.

The Board shall be informed of the terms and conditions of all competitive bids. All bids shall be entered upon the records of the Board at its next meeting following the bid opening. The Board shall accept or reject bids in a Board meeting open to the public and award contracts as a consequence of such bids.

Purchases of Services

For purposes of this policy, "services" means the furnishing of labor, time, or effort by a person not involving the delivery of specific supplies other than printed documents or other items that are merely incidental to the required performance.  The purchasing agent is authorized to use the special purchasing procedures as established under I.C. 5-22-10.  All specifically aligned purchases within a line item may be made upon authorization of the Superintendent or designee. 

The purchasing agent is authorized to make emergency purchases, without prior approval, of those services needed to keep the Corporation's schools in operation.

Such purchases shall be brought to the Board for approval at the next regular meeting. 

Public Works Projects - Less than $300,000

Whenever the cost of a public works project will be at least $50,000 but less than $300,000, the following procedure applies:

1. The Board shall invite quotes from at least three (3) persons known to deal in the class of work proposed to be done by mailing them a notice stating that plans and specifications are on file in a specified office. The notice shall be mailed not less than seven (7) days before the time fixed for receiving quotes.
2. The Board shall not require a person to submit a quote before the meeting at which quotes are to be received. The meeting for receiving quotes shall be open to the public. All quotes received shall be opened publicly and read aloud at the time and place designated and not before.
3. The Board shall award the contract for the public work to the lowest responsible and responsive quoter.
4. The Board may reject all quotes submitted.

If the cost of a construction project exceeds $300,000, the Corporation will follow the statutory provisions for design-build, construction manager as constructor, competitive bid, or guaranteed energy savings contract.

Public Works Projects - At Least $300,000 (Competitive Bidding)

Whenever the cost of a public works project will be at least $300,000, the following procedure applies:

1. The Board shall prepare general plans and specifications describing the kind of public works project required but shall avoid specifications which might unduly limit competition. If the project involves the resurfacing (as defined by I.C. 8-14-2-1) of a road, street, or bridge, the specifications shall show how the weight or volume of the materials will be accurately measured and verified.
2. The Board shall file the plans and specifications in a place reasonably accessible to the public, which shall be specified in the notice required by section 3 below.
3. Upon the filing of the plans and specifications, the Board shall publish notice in accordance with I.C. 5-3-1, calling for sealed proposals for the public works project. If the Board receives electronic bids, the Board also shall provide electronic access to the notice of the bid solicitation through the computer gateway administered under I.C. 4-13.1-2-2(a)(6) by the Office of Technology.
4. The notice shall specify the place where the plans and specifications are on file and the date fixed for receiving bids.
5. The period of time between the date of the first publication and the date of receiving bids shall be governed by the size of the contemplated project in the discretion of the Board. The period of time between the date of the first publication and receiving bids may not be more than:
    
   1. six (6) weeks if the estimated cost of the public works project is less than twenty-five million dollars ($25,000,000); and
   2. ten (10) weeks if the estimated cost of the public works project is at least twenty-five million dollars ($25,000,000).
6. The Board shall require the bidder to submit a financial statement, a statement of experience, a proposed plan or plans for performing the public works project, and the equipment that the bidder has available for the performance of the public works project. The statement shall be submitted on forms prescribed by the State Board of Accounts.
7. The Board shall not require a bidder to submit a bid before the meeting at which bids are to be received. The meeting for receiving bids shall be open to the public. All bids received shall be opened publicly and read aloud at the time and place designated and not before. Notwithstanding any other law, bids may be opened after the time designated if both of the following apply:
    
   1. The Board makes a written determination that it is in the best interest of the Board to delay the opening.
   2. The day, time, and place of the rescheduled opening are announced at the day, time, and place of the originally scheduled opening.
8. The Board shall:
    
   1. award the contract for public works project or improvements to the lowest responsible and responsive bidder; or
   2. reject all bids submitted.
9. If the Board awards the contract to a bidder other than the lowest bidder, the Board shall state in the minutes or memoranda, at the time the award is made, the factors used to determine which bidder is the lowest responsible and responsive bidder and to justify the award. The Board shall keep a copy of the minutes or memoranda available for public inspection.
10. In determining whether a bidder is responsive, the Board may consider the following factors:
     
    1. Whether the bidder has submitted a bid or quote that conforms in all material respects to the specifications.
    2. Whether the bidder has submitted a bid that complies specifically with the invitation to bid and the instructions to bidders.
    3. Whether the bidder has complied with all applicable statutes, ordinances, resolutions, or rules pertaining to the award of a public contract.
11. In determining whether a bidder is a responsible bidder, the Board may consider the following factors:
     
    1. The ability and capacity of the bidder to perform the work.
    2. The integrity, character, and reputation of the bidder.
    3. The competence and experience of the bidder.
12. The Board shall require the bidder to submit an affidavit that the bidder has not entered into a combination or agreement:
    1. relative to the price to be bid by a person;
    2. to prevent a person from bidding; or
    3. to induce a person to refrain from bidding; and
    4. that the bidder's bid is made without reference to any other bid.

PUBLIC WORKS PROJECTS

Advance Payments

The Corporation may make advance payments to contractors to enable the contractors to purchase materials needed for a public works project of the Corporation. The solicitation of the public works contract providing for such advance payment must include the following information:

1. That the Corporation will make advance payments to contractors to enable such contractors to purchase materials;
2. Any limitations on the amount of advance payments that will be made; 
3. Requirements for documentation relating to making advance payments to contractors for materials; and
4. Any other information about advance payment for materials the political subdivision considers useful to contractors that make offers.

Such advance payments may not exceed the lesser of fifty percent (50%) of the entire cost of the contract or two million dollars ($2,000,000.00).

Purchasing Using Online Reverse Auctions

The Board authorizes the purchasing agent to conduct a reverse auction for the purchase of supplies by using an Internet purchasing site for issuing an invitation for bids and receiving bids.

The purchasing agent shall establish procedures for: 

1. transmitting notices, solicitations, and specifications; 
2. receiving offers; 
3. making payments; 
4. protecting the identity of the bidder or offeror; 
5. providing for the display of the amount of each offer previously submitted for public viewing; 
6. establishing the deadline by which offers shall be received and shall be considered to be open and available for public inspection; 
7. establishing procedures for the opening of offers and
8. maintaining adequate documentation regarding reverse auctions so that the transactions may be audited according to law.

The purchasing agent may charge a bidder in a reverse auction a fee set in the written procedures adopted above.

An internet purchasing site used for a reverse auction shall do the following:

1. provide information that the purchasing entity considers necessary or beneficial to potential bidders.
2. display the amount of all bids previously submitted regarding the reverse auction for public viewing.
3. conceal information that identifies a bidder.
4. comply with I.C. 5-22.

Procurement

The Board shall be informed of the terms and conditions of all competitive bids. All bids must be entered upon the records of the Board at its next meeting following the bid opening. The Board shall accept or reject bids in a Board meeting open to the public and award contracts as a consequence of such bids.

The president and secretary of the Board are entitled, on behalf of the Board, to sign any contract. These contracts may include, but are not limited to, employment contracts and contracts for goods and services. However, each contract must be approved by a majority of the full Board. In the absence of the president or secretary, the vice president may sign the contract with the officer who is present.

Exceptions to the foregoing requirements may be permitted when purchasing from vendors who have been awarded State contracts or when purchasing from authorized State institutions.

All specifically identified purchases that are within a line itemmay be made upon authorization of the Superintendent.

The Board may designate a committee of at least two (2) of the Board members or a committee of not less than two (2) Corporation employees to open and tabulate bids:

1. in connection with the purchase of supplies, materials, or equipment;
2. for the construction or alteration of a building or facility; or
3. for any similar purpose.

Those bids:

1. may be opened by the committee at the time and place fixed by the advertisement for bids;
2. shall be read aloud and tabulated publicly, to the extent required by law for governing bodies; and
3. shall be available for inspection.

Those bids shall be reported to and the tabulation entered upon the records of the Board at its next meeting following the bid opening.

A bid may not be accepted or rejected by the committee but shall be accepted or rejected solely by the Board in a Board meeting open to the public.

The purchasing agent is authorized to make emergency purchases, without prior approval, of supplies needed to keep the Corporation's schools in operation. Further, the Board authorizes the Chief Financial Officer to pay routine invoices for budgeted expenses prior to Board approval if needed to avoid imposition of late fees.

Such purchases shall be brought to the Board for approval at the next regular meeting.

In order to promote efficiency and economy in the operation of the Corporation, the Board requires that the Chief Financial Officer periodically estimate requirements for standard items or classes of items and make quantity purchases on a bid basis to procure the lowest cost consistent with good quality.

Whenever storage facilities or other conditions make it impractical to receive total delivery at any one time, the total quantity to be shipped, but with staggered delivery dates, shall be made a part of the bid specifications.

Before the Chief Financial Officer places a purchase order, they shall check whether the proposed purchase is subject to bid, whether sufficient funds exist in the budget, and whether the material might be available elsewhere in the Corporation. All purchase orders shall be numbered consecutively.

In the interests of economy, fairness, and efficiency in its business dealings, the Board requires that:

1. an opportunity be provided to as many responsible suppliers as possible to do business with the Corporation;
2. where the requisitioner has recommended a supplier, the Chief Financial Officer may make alternate suggestions to the requisitioner if, in their judgment, better service, delivery, economy, or utility can be achieved by changing the proposed order;
3. upon the placement of a purchase order, the Chief Financial Officer shall commit the expenditure against a specific line item to guard against the creation of liabilities in excess of appropriations;
4. unless otherwise permitted by the purchasing agent, no purchase of supplies shall be allowed without a properly signed purchase order. Employees shall be held personally responsible for anything purchased without a properly signed purchase order.

The Board may acquire by lease, by installment payments, by lease-purchase agreements, or by lease with an option to purchase provided the contract setting forth the terms of such a purchase shall not extend for a period of more than five (5) years.

During the current year, provisions may be made in these agreements for renewal for the succeeding year, subject to appropriations being available.

Contracts can be awarded by the Chief Financial Officer without Board approval for any single item or group of identical items costing less than $150,000. All other contracts require Board approval prior to purchase.

Alternative Purchasing Methods

The purchasing agent may, when allowed under the public purchasing and public contract laws, consider use of the following alternative purchasing methods.  Any purchase that does not qualify for an alternative purchasing method must be made through a public bidding process.

1. Requests for Specifications – The school board may make a written finding that the development of specifications is not feasible and may grant a purchasing agent approval to issue a request for specifications. Requests for specifications should be published in accordance with IC 5-3-1, which requires that a notice must be published two (2) times at least one (1) week apart. Requests must include the following:

1. the factors or criteria that will be used in evaluating the specifications; 

2. a statement concerning the relative importance of the evaluation factors; and 

3. a statement concerning whether discussions may be conducted with persons proposing specifications to clarify the specification requirements.

All entities proposing specifications must be accorded fair and equal treatment with respect to any opportunity for discussions and revisions of proposed specifications.

Request for Proposals (“RFP”)

The purchasing agent may also and is encouraged to issue a request for proposals.  It is not advantageous for the Board to purchase certain supplies, including but not limited to technological devices such as tablets, through competitive sealed bidding; therefore, issuing an RFP is the preferred method for such purchases.

An RFP must include at least the following:

1. the factors or criteria that will be used in evaluating the proposals;

2. a statement concerning the relative importance of price and other evaluation factors (only these evaluation factors may be considered in the evaluation of proposals);

3. a statement concerning whether the proposal must be accompanied by evidence of financial responsibility; and

4. a statement concerning whether discussion may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award.

Requests for proposals should be published in accordance with IC 5-3-1, which requires that a newspaper notice must be published two (2) times at least one (1) week apart. 

If an RFP is issued, the purchasing agent must prepare a register of proposals, which must be open to the public inspection after the contract is awarded. The register must include at least the following:

1. a copy of the RFP;
2. a list of all persons to whom copies were given;
3. a list of all proposals received, including the name and address of all offerors, the dollar amount of each offer, and the name and dollar amount of the successful offeror;
4. the basis on which the award was made; and
5. the entire contents of the contract file, except for proprietary information included with an offer.

As provided in the request for proposals or under the rules or policies of the school, discussions may be conducted with, and best and final offers obtained from, responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award. The RFP must be awarded to the responsible offeror whose proposal is determined in writing to be the most advantageous to the school. Awards may be made to more than one offeror if the proposals are determined in writing to be advantageous to the school.

The purchasing agent must treat each offeror fairly and equally with respect to any opportunity for discussion and revision of proposals. In conducting discussions with an offeror, the purchasing agent may use information derived from other proposals in discussion only if the identity of the offeror providing the information is not disclosed to others. Equivalent information must be provided to all offerors with which the purchasing agent chooses to have discussions.

Procurement – Federal Grants

The Superintendent shall maintain a procurement and contract administration system in accordance with the United States Department of Education (USDOE) requirements (2 C.F.R. 200.317 - .326) for the administration and management of Federal grants and Federally-funded programs. The Corporation shall maintain a compliance system that requires contractors to perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. Except as otherwise noted, procurement transactions shall conform to the provisions of this policy and administrative guidelines and comply with 34 C.F.R. 80.36. Please refer to Policy 6325 - Procurements - Federal Grants/Funds.

As the Corporation has received approval from the Indiana Department of Education for a micro-purchasing threshold of $50,000, if the purchasing agent expects the purchase to be less than $50,000 when federal funds are used to purchase supplies and services, the purchasing agent may award without soliciting competitive price or rate quotations if the purchasing agent deems the price reasonable based on research, experience, purchase history, or other information and documents maintained by the Corporation.

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