ETHICS:
After all information is obtained from Step 3, the staff evaluates all information to determine which vendor is best to make the purchase with. The staff considers all elements of the purchase in making the decision.
Ethics: The primary method that should be used for the overwhelming majority of purchases is a competitive purchasing method--which either 1) solicits bids or quotes from at least 3 responsive and responsible vendors, or 2) uses a competitively established state procurement contract. A competitive purchasing process is designed to explore "options" in an objective and unbiased manner. Personnel should never enter into a competitive purchasing process with the idea of using a pre-determined vendor.
Tabulation & Comparison. The staff should create a "tabulation" of the bids, quotes, and/or proposals for comparison. This can be done using a spreadsheet, Bid/Quote Summary Form, or a similar tool. This tabulation comparison should be retained with the purchasing file for future audit/reference.
Team Decision. It is recommended a team approach be used for high cost purchases or decisions involving uncertainty. Team members should meet, decide together, and document their decision along with the names of those involved in the decision. The final decision shall be approved by the appropriate administrator(s).
Vendor/Contractor Selection - Responsive & Responsible:
District, school, and program personnel have a fiduciary duty to taxpayers and public patrons to select the vendor/contractor which is the best value when considering bids, quotes, and RFPs. When obtaining bids/quotes, personnel should ensure the bids/quotes being considered are from responsive and responsible vendors/contractors. The vendor/contractor selected must be both the most responsive and most responsible option. Not only is cost a consideration, but also timeliness, reliability, compliance, and other factors are used to determine the best value. “Best Value” is always defined and evaluated per the specifications determined in the planning phase of the purchasing process.
Responsible Bidder: A bidder who has the capability in all respects to perform fully all requirements with integrity and reliability to assure good faith performance.
Responsive Bidder: A bidder who has submitted a proposal response which conforms in all respects to the purchase specifications.
If Lowest Bid is Not Selected: There are many situations where selecting the lowest bid is not the best option. However, the school/program must document the reasons, details, and information that lead to this decision. The documentation must be retained for future audit and reference.
Vendor Selection - 3 Options: There are 3 options when selecting a vendor for a purchase:
Option 1 - Competitive: Select a vendor through a competitive process -- at least 3 vendors should be considered.
Bid/Quote Summary Form (used to summarize 3 vendor quotes)
Option 2 - State Contract: Select a vendor using a state cooperative contract
State Cooperative Contracts Website
Option 3 - Sole Source as Last Resort: When a competitive process is not available, use a sole source purchase process.
Sole Source Purchase Approval Form
3-401 Conditions For Use of Sole Source Procurement.
Sole source procurement shall be used only if a requirement is reasonably available from a single supplier. A requirement for a particular proprietary item does not justify a sole source procurement if there is more than one potential bidder or offeror for that item.
Examples of circumstances which could necessitate sole source procurement are:
(1) where the compatibility of equipment, accessories, replacement parts, or service is the paramount consideration;
(2) where a sole supplier's item is needed for trial use or testing;
(3) a test or pilot is being conducted under R33-3-121(3);
(4) procurement of items for resale;
(5) procurement of public utility services.
The determination as to whether a procurement shall be made as a sole source shall be made by the procurement officer. Each request shall be submitted in writing by the using agency. The officer may specify the application of the determination and its duration. In cases of reasonable doubt, competition should be solicited. Any request by a using agency that a procurement be restricted to one potential contractor shall be accompanied by an explanation as to why no other will be suitable or acceptable to meet the need.
Level of Processing for Purchasing Functions: Purchases over $3,000 must be processed through the district office. A purchasing authorization form or contract should be used to establish the agreed upon terms of the purchase with the vendor. Purchases under $3,000 may be processed at the school/program level. Purchasing functions include Steps 1 - 5:
Forms & Resources:
PURCHASING PROCEDURES: