Humble Independent School District Purchasing Policies and Procedures Manual

Transcription

1 Humble Independent School District Purchasing Policies and Procedures Manual Revised July 2015

2 Table of Contents Overview... 4 Purchasing Department Organization... 4 Executive Director of Financial Services Operations... 4 Assistant Director of Purchasing... 5 Purchasing Buyer... 5 Purchasing Specialist... 5 Legal Policies... 5 Local Policies... 5 Responsibility for Debts CH(LOCAL)... 6 Consequences for Purchases of Goods or Services Made Outside Board Policy CH or CH(REGULATION)... 6 Reporting of Purchase Commitment Violations... 6 Purchase Commitments CH(LOCAL)... 6 Purchasing Under Texas Education Code... 7 Professional Services.)... 7 Purpose and Intent for the Competitive Bidding Process... 7 Competitive Bid... 7 Competitive Sealed Proposal... 8 Request for Proposal... 8 Interlocal Contract... 8 Reverse Auction... 9 Purchasing for Construction Services Under Education Code (a) and Chapter 2269 of the Texas Government Code... 9 Design-Build Contract... 9 Construction Manager-Agent (CM Agent) Construction Manager-at-Risk ( CM at Risk ) Job Order Contracts or JOC Emergency Purchases Sole Source Purchases (CH (LEGAL)) Procurement Process Bid/Proposal Specifications Vendor Selection Criteria for Goods and Non-construction Related Services CH(LEGAL) Vendor Selection for Construction Related Services (CV(LEGAL)) Awarded Vendors Board Approved Contracts Special Vendor Purchasing Procedures New Vendor Requests Annual Vendor Qualification and Renewal Cooperative Purchasing Contracts Open Market Purchases Contracted Services Contract Signatories Professional Services Defined in the Texas Education Code

3 Defined in the Texas Government Code Common Law Qualifying Common Law Professional Services Examples of Common Law Professional Services Determining Independent Contractor Status Travel Activity Fund Purchases Construction Projects Construction Bids & Requests for Proposals CV(LOCAL) Payment and Performance Bonds Required Workers Compensation Coverage Standards of Conduct Ethics Gifts Sales Employee Conflict of Interest Appendix A- Purchase Order Processing Appendix B CH(REGULATION) Appendix C Board Resolution Regarding Professional Services

4 Humble Independent School District Purchasing Policies and Procedures Manual Overview The Purchasing Department of the Humble Independent School District is a part of the Financial Services Division and is responsible for the organization and administration of the purchasing/procurement functions for the District in accordance with the authority delegated by the Superintendent and Board of Trustees. The primary function of the District s Purchasing Department is to meet the products and service needs of the District by: - Obtaining good and services for the District at the best value while complying with all federal, state and local laws as well as District policies and guidelines. - Promoting competition among bidders. - Insuring an equal opportunity for all vendors to secure District business. - Educating and informing all vendors about District rules, regulations, and methodologies that are applied for the basis for bid awards. - Educating and informing all District staff concerning District purchasing policy and procedures for the procurement of goods and services. The purpose of this manual is to provide guidelines and procedures to the Purchasing Department staff and others involved in the procurement process throughout the District. The purchasing procedures contained in the document are intended to comply with all applicable laws, policies, and procedures. In the event of a conflict or omission, the appropriate law or policy shall prevail. Purchasing Department Organization Executive Director of Financial Services Operations The Board delegates to the Superintendent or designee the authority to determine the method of purchasing for goods and non-construction services, in accordance with Policy CH(Local) and applicable law. As the Superintendent s designee, the Executive Director of Financial Services Operations, under the supervision of the Chief Financial Officer, is to direct and manage the planning for procurement of equipment, supplies and services, request quotations, investigate vendors, negotiate contracts (with the assistance of legal counsel, as necessary), sign purchase orders, assist in the development of specifications, and request, open, and make recommendations to the Superintendent, and ultimately the Board of Trustees for award of bids, proposals, and contracts. Please note: Policy CV(LOCAL) designates the Assistant Superintendent 4

5 of Support Services the responsibility for determining the method of purchasing for construction related purchases. Assistant Director of Purchasing Assists the Executive Director for Financial Services Operations in the direction and management of the Purchasing activities of the District. The Assistant Director of Purchasing develops and implements purchasing procedures to process bids and purchase orders to ensure compliance with applicable state laws and local Board policy and is responsible for the daily supervision of the Purchasing Department staff. The Assistant Director leads the training efforts of the Purchasing Department for District staff. Additional responsibilities include the administration and management of the Purchasing Card Program, vendor management, and leadership of special projects related to the purchasing function. Purchasing Buyer Under general supervision of the Assistant Director of Purchasing, procure and purchase goods, materials, supplies and equipment in assigned commodity areas; perform the complex and technical functions of the buying process. Purchasing Specialist Under the general supervision of the Assistant Director of Purchasing, the Purchasing Specialist enters approved travel purchase orders, maintains the prospective vendor file, and maintains the Vendor Master File in MUNIS with approvals from the Executive Director of Financial Services Operations or the Assistant Director of Purchasing. Legal Policies The Texas Education Code (TEC) and the Texas Government Code (TCG) contain state statutes (laws) governing public procurement for goods and services in Texas. These statutes apply to all educational institutions supported in whole or in part by state tax funds, unless specifically excluded by the code. The TEC directs the goals and framework of public education in Texas. It is established by the Texas Legislature. The legal board policies are the codification of the statutes of the TEC. The legal board policies that apply to the area of purchasing are: CH (LEGAL), CHE (LEGAL), CHF (LEGAL), CHG(LEGAL), CV (LEGAL), CVA (LEGAL), CVB (LEGAL), and CVC (LEGAL), CVD (LEGAL), CVE (LEGAL), CVF (LEGAL), CHG (LEGAL), and DBD (LEGAL). Local Policies Local policies are established by the Board of Trustees and may be more restrictive but not less restrictive than the legal policies set forth in the TEC and TGC. The local board policies that apply to the area of purchasing are: CH 5

6 (LOCAL), CH(REGULATION), CH(EXHIBIT), CV (LOCAL), CVA (LOCAL), CVB (LOCAL), DBD (LOCAL). Responsibility for Debts CH(LOCAL) The Board shall assume responsibility for debts incurred in the name of the District so long as those debts are for purchases made in accordance with adopted Board policy and current administrative procedures. The Board shall not be responsible for debts incurred by persons or organizations not directly under Board control or debts incurred in contradiction to applicable Board policies or current administrative regulations; persons making unauthorized purchases shall assume full responsibility for all such debts. Consequences for Purchases of Goods or Services Made Outside Board Policy CH or CH(REGULATION) Employees who attempt to bind the District for the purchase of goods or services in violation of Board policy or this administrative regulation may be held personally responsible for compensating the vendor. The employee may also be considered for reprimand, probation, suspension, or termination. Reporting of Purchase Commitment Violations All instances of purchasing violations shall be reviewed by a committee comprised of the director of purchasing, director of financial accounting and reporting, the chief financial officer, the internal auditor, and the deputy superintendent. A quarterly report will be prepared and submitted to the Superintendent for review and/or follow-up with the immediate supervisor, depending on the nature of the violation. The report will include the cost of the purchase commitment, description of the items related to the purchase commitment, the name of the employee responsible for the purchase commitment, the campus/department location of the employee and the name of their immediate supervisor. Persons making unauthorized purchases shall assume full responsibility for all such debts. The Board shall be notified of any and all purchasing violations that result in disciplinary action. Purchase Commitments CH(LOCAL) All purchase commitments shall be made by the Superintendent or designee (Executive Director for Financial Services Operations) on a properly drawn, issued, and duly executed purchase order or such other purchase mechanism as approved by the Board, in accordance with administrative regulations. The Board authorizes the use of the purchasing card as an alternative purchasing mechanism in lieu of a properly drawn, issued, and duly executed purchase order. In the absence of encumbrance accounting, the amount of each authorized card limit will be reduced from the appropriate budgetary account and set aside in a designated budgetary account as a means of ensuring funds availability. Please refer to the Humble ISD Purchasing Card Policies and Procedures Manual for all applicable rules and processes. To access this manual launch the District home page at > Departments> Purchasing>American Express Purchasing Card Program. You must sign in to the Purchasing site to access this information. 6

7 Purchasing Under Texas Education Code Under Texas Education Code (a) ;(b), "all contracts, except contracts for the purchase of produce or vehicle fuel, valued at $50,000* or more in the aggregate, for each 12-month period shall be made by the method, of the following methods, that provides the best value for the district: (1) competitive bidding for services other than construction services; (2) competitive sealed proposals for services other than construction services; (3) request for proposals, for services other than construction services; (4) interlocal contracts (5) reverse auction procedure as defined by Section (d), Government Code; or (6) the formation of a political subdivision corporation under Section , Local Government Code. NOTE: Regarding construction of school facilities, see policy CV generally; CVA for competitive bidding; CVB for competitive sealed proposals; CVC and CVD for contracts using a construction manager; CVE for design/build contracts; and CVF for job order contracts for minor repairs/alterations. The purchasing requirements of Education Code do not apply to a contract for professional services rendered, including the services of an architect, attorney, certified public accountant, engineer, or fiscal agent. A school district may, at its option, contract for professional services rendered by a financial consultant or technology consultant in the manner provided by Texas Government Code Section in lieu of the methods under Texas Education Code Section (a). Competitive bids or proposals shall not be solicited for professional services of any licensed or registered certified public accountant, architect, landscape architect, land surveyor, physician, optometrist, professional engineer, statecertified or state-licensed real estate appraiser, or registered nurse. Contracts for these professional services shall be made on the basis of demonstrated competence, and qualifications to perform the services for a fair and reasonable price. Gov t Code ,.003 (a) (See section in this document labeled as Professional Services.) Purpose and Intent for the Competitive Bidding Process The purpose and intent of the competitive bidding process is to help public schools secure the best work and materials at the best value by stimulating competition. Competitive Bid Procurement method for obtaining goods, services and construction services in which bids are submitted in a sealed fashion in response to a Request for 7

8 Competitive Sealed Proposals by bidders competing for a contract, privilege, or right to supply specified services or goods. This method is never available to obtain professional services under the Texas Professional Services Procurement Act. The competitive bidding process requires that bids be evaluated and awards be made solely upon bid specifications, terms and conditions contained in the request for bids document, and according to the bid prices offered by vendors and pertinent factors that may affect contract performance; no substantive changes are permitted to the bid terms, conditions and specifications. Competitive Sealed Proposal Procurement method for obtaining goods, services and construction services in which bids are submitted in a sealed fashion in response to a Request for Competitive Sealed Proposals by offerors competing for a contract, privilege, or right to supply specified services or goods. It differs from the competitive bidding method because once the District has selected the offeror that offers the best value to the District, based on the published selection criteria and ranking evaluation, the District may attempt to negotiate a contract with the selected offeror, and may discuss options for scope or time modifications and any price change associated with the modification. If the District is unable to negotiate a satisfactory contract with the selected offereror, the District shall formally end negotiations with that offeror in writing, and proceed to negotiate with the next ranked offeror. Request for Proposal Request for Proposal procedures provide for full competition among proposals. The procedures allow for negotiation with the proposer or proposers to obtain the best services at the best price. During the evaluation process prior to award of a contract, the negotiation process allows modification and alteration of both the content of the proposals and price. Interlocal Contract An interlocal agreement is a contract authorized by Texas Local Government Code et seq. (the Interlocal Cooperation Act ) between two or more local governments (including a federally recognized Indian tribe in Texas listed under 25 USC 479a-1) and with agencies of the state and other entities permitted under the Interlocal Cooperation Act to either study the feasibility of the performance of a governmental function or service by interlocal agreement, or to provide a governmental function or service that each party to the agreement is authorized to perform individually. This method allows Humble ISD to enter into an interlocal agreement with another local government (or Indian tribe) or certain nonprofit purchasing cooperatives for the purpose of " purchasing goods or services from vendors competitively and lawfully procured by the entity managing the cooperative. An interlocal agreement must be approved by the Humble ISD Board of Trustees and must specify that each party will make payments under 8

9 the agreement from current revenues only. Reverse Auction A procurement method defined in Texas Government Code - Section as: (1) a real-time bidding process usually lasting less than one hour and taking place at a previously scheduled time and Internet location, in which multiple suppliers, anonymous to each other, submit bids to provide the designated goods or services; or (2) a bidding process usually lasting less than two weeks and taking place during a previously scheduled period and at a previously scheduled Internet location, in which multiple suppliers, anonymous to each other, submit bids to provide the designated goods or services. Purchasing for Construction Services Under Education Code (a) and Chapter 2269 of the Texas Government Code Please note: Policy CV(LOCAL) designates the Assistant Superintendent of Support Services the responsibility for determining the method of purchasing for construction related purchases. All District contracts valued at $50,000 or more in the aggregate shall be made by the method that provides the best value to the District: 1. Competitive Bidding 2. Competitive Sealed Proposal 3. Construction Manager- Agent Method 4. Construction Manager-At-Risk Method 5. Design-Build 6. Job Order Contract Method Design-Build Contract A method of procurement used for the construction, rehabilitation, alteration, or repair of a facility in which there is a single contract with a design-build firm or team for the project. The design criteria package must specify criteria Humble ISD considers necessary to describe the project and may include, as appropriate, the legal description of the site, survey information concerning the site, interior space requirements, special material requirements, material quality standards, conceptual criteria for the project, special equipment requirements, cost or budget estimates, time schedules, quality assurance and quality control requirements, site development requirements, applicable codes and ordinances, provisions for utilities, parking requirements, or any other requirement, as applicable. 9

10 Construction Manager-Agent (CM Agent) A CM-Agent serves as the agent for the District by providing consultation or administrative services during the design and construction phase and managing multiple contracts with various construction prime contractors for construction, rehabilitation, alteration, or repair of a facility. Construction Manager-at-Risk ( CM at Risk ) A method of procurement that is unique to Construction Services and results in a contractor who assumes the risk for construction, rehabilitation, alteration, or repair of a facility at the contracted price as a general contractor and provides consultation to the school district regarding construction during and after the design of the facility. Job Order Contracts or JOC A method of procurement used for maintenance, repair, alteration, renovation, remediation, or minor construction of a facility when the work is of a recurring nature but the delivery times, type, and quantities or work are indefinite. Emergency Purchases If school equipment, a school facility, or a part of a school facility or personal property is destroyed or severely damaged or, as a result of an unforeseen catastrophe or emergency, undergoes major operational or structural failure, and the Board determines that the delay posed by the methods provided for in this policy would prevent or substantially impair the conduct of classes or other essential school activities, then contracts or purchases for the replacement or repair of the equipment, school facility, or the part of the school facility may be made by methods other than those required by Education Code and local board policy. Sole Source Purchases (CH (LEGAL)) The following items shall not be required to be purchased through a competitive procurement process: 1. An item for which competition is absent because of a patent, copyright, secret process, or monopoly. 2. A specific film, manuscript, or book. 3. A utility service, including electricity, gas, or water. 4. A captive replacement part or component for equipment. A sole source purchase can be made without the benefit of a competitive process when there are no other items available in the marketplace that have the same fit, form and function of the items being purchased, except for purchases of mainframe data-processing equipment and peripheral attachments with a single-item purchase price in excess of $15,000. The Superintendent or the Superintendent s appointed designee in their sole discretion may determine whether a purchase qualifies as a sole source purchase based upon documentation provided by the vendor, the originator, or information 10

11 otherwise generally known in the public domain. In order to qualify as a sole source purchase, the vendor must complete a Humble ISD Sole Source Verification Form. The vendor may also provide the District with an affidavit verifying it to be the sole source of the goods to be purchased, but the affidavit must be approved/accepted by the Superintendent appointed designee. A listing of all current sole source affidavits can be found on the Purchasing website humbleisd.net> Departments> Purchasing>Sole Source. Procurement Process Note: For purchases made with federal or state grants, please refer to the Federal & State Grant/Programs Procedure Manual located on the Accounting and Financial Reporting website. The Humble ISD Purchasing Department reviews and monitors the purchasing history of aggregate goods and services by commodity grouping categories for compliance with state and local purchasing policy. Purchasing collaborates with end-users once a category of goods and/or contracted services approach the $50,000 threshold whereby procurement is warranted.. If it is determined that the good or service needed will require a procurement, the Purchasing Department will coordinate the bid process with the associated campus or department for which the procurement is required. Upon conclusion of the procurement process, the Purchasing Department will open, tabulate, and provide the campus or department with written documentation of the results. The campus or department will be asked to evaluate and provide input concerning the results. The Purchasing Department along with the campus or department will collaborate to determine a recommended award. A final bid tabulation summary will be provided to the requesting campus or department. The requesting campus or department will prepare the Agenda Item for Board approval, and will submit the agenda item along with the Listing of Goods, Professional Services, and Non-construction Services Exceeding $50,000 in the Aggregate or $25,000 Individually (template may be obtained from the Division Head) and any other supporting attachments noted in the Agenda Item to their vertical team leader or division head for final review. The vertical team leader or division head will submit the approved Agenda Item and attachments to the Superintendent s office via at boarditems@humble.k12.tx.us. Bid/Proposal Specifications Preparation of specifications/scope of work for a bid shall be the responsibility of the requesting campus or department. The responsibility of the Purchasing Department is to review the specifications to ascertain whether competitive bids/proposals can be obtained, assure that Board policies and state laws are followed regarding the purchase, and to facilitate the bidding process. 11

12 Specifications must contain adequate technical descriptions to clearly identify for prospective bidders the type of material, equipment, or services required. In addition to the detailed specifications, brand names, model numbers, and like descriptions may be referred to as product meeting specifications to inform prospective bidders of the type of quality required. Descriptions must include quantitative data such as commercial grade, texture, finish, strength, chemical analysis, or composition where possible. All bids will carry descriptive specifications when possible. Vendor Selection Criteria for Goods and Non-construction Related Services CH(LEGAL) In awarding a contract, the District shall consider: 1. Purchase price 2. The reputation of the vendor and of the vendor s goods and services. 3. The quality of the vendor s goods and services. 4. The extent to which the goods and services meet the District s needs. 5. The vendor s past relationship with the District. 6. The impact on the stability of the District to comply with laws relating to historically underutilized businesses. 7. The total long-term cost to the District to acquire the goods or services. 8. For a contract that is not for goods and services related to telecommunications and information services, building construction and maintenance, or instructional materials, whether the vendor or the vendor s ultimate parent company or majority owner has its principal place of business in this state or employs at least 500 persons in this state. 9. Any other relevant factor specifically listed in the request for bids or proposals. Vendor Selection for Construction Related Services (CV(LEGAL)) 1. Price 2. The offeror s experience and reputation 3. The quality of the offeror s goods or services 4. The impact on the ability of the District to comply with rules relating to historically underutilized businesses 5. The offeror s safety record 6. The offeror s proposed personnel 7. Whether the offeror s financial capability is appropriate to the size and scope of the project 8. Any other relevant factor specifically listed in the request for bids, proposals, or qualifications Awarded Vendors The Purchasing Department posts all awarded vendors under Humble ISD bids on the Purchasing Department website. To access the listing launch the District home page at > Departments> Purchasing> Current Bids 12

13 and Quotes. You must sign in to the Purchasing site to access this information. Board Approved Contracts The Purchasing Department maintains a listing of all Board Approved Contracts for goods and non-construction services on the Purchasing website. Construction related Board approved contracts are maintained by the Support Services Division and can be found on their website. Special Vendor Purchasing Procedures Vendor purchases that require special processing are documented in procedure memos posted at Departments> Purchasing> Procedures. You must sign in to the Purchasing site to access this information. New Vendor Requests Campuses and Departments may request new vendors be added to the MUNIS system. The campus/department should request a W-9 from the prospective vendor. Once the W-9 is received, the campus/department shall fill out a Vendor Information Sheet located at You must sign in to the Purchasing site to access this information. The W-9 and Vendor Information Sheet should then be ed to the Purchasing contact listed on the form. Purchasing will conduct a review of the vendor, including ensuring that the vendor does not appear on the State of Texas Suspension and Debarment listing, and what is being purchased from the vendor. Once the vendor has been approved in the Purchasing Department review process, the vendor will be entered into the MUNIS system. Should the Executive Director for Financial Services Operations determine the good or service should be purchased under a currently awarded bid, the campus or department will be instructed to redirect their purchase to a currently awarded vendor under bid. Annual Vendor Qualification and Renewal For District awarded bids, prior to the renewal of annual contracts (with the exception of District-wide contracts), the Purchasing Department will work with the applicable budget managers to determine if they wish to exercise an optional contract renewal with the awarded vendor(s) or conduct a new procurement process. If the budget manager wishes to proceed with a renewal, the Purchasing Department will contact the vendor(s) to inquire if they wish to renew for an additional year. If the vendor wishes to renew, the following items are required to be submitted by the vendor to the Purchasing Department: 1. Renewal Option Acceptance Form 2. Felony Conviction Notice 3. Form W-9 4. Criminal History Certification Vendors are also checked against the federal suspension and debarment database prior to the issuance of purchase commitments. 13

14 Cooperative Purchasing Contracts In addition to Humble ISD awarded vendors, District staff may purchase from Board of Trustee approved purchasing cooperatives through interlocal contracts. Such contracts, if competitively bid by the cooperative administration, satisfy the requirement for competitive procurement listed under Texas Education Code, Chapter The Purchasing Department maintains a listing of Board approved interlocal contracts on the Purchasing Department website. To access the listing launch the District home page at > Departments> Purchasing> Current Bids and quotes and Interlocal Contracts. You must sign in to the Purchasing site to access this information. An interlocal contract between the District and a purchasing cooperative may not be used to purchase engineering or architectural services. Gov t Code (h) The Purchasing Department will bring all interlocal participation agreements with purchasing cooperatives to the Board for approval on an annual basis. When purchasing from cooperative purchasing contracts, quotes must be obtained from a minimum of three different vendors under the particular purchasing cooperative for purchases of personal property or contracted services of $50,000 or greater. The quote determined to provide the best value for the District shall be selected. [See CH(LEGAL) Section FACTORS for information concerning vendor selection considerations that determine best value.] Documentation must be provided to the Purchasing Department as to how the determination of best value was derived by the budget manager responsible for the purchase. This documentation, along with the three quotes obtained, shall be attached to the Purchase Requisition before release of the requisition for approval. Open Market Purchases Annually, the Purchasing Department will review commodities that have not historically reached the threshold whereby a bid is required. Each fiscal year, the Purchasing Department will publish a list of items by commodity code that can legally be made as an open market purchase. Three quotes will be required to support open market purchases costing $5,000 or more to determine the best value for the District. Documentation must be provided to the Purchasing Department explaining how best value was derived. [See CH(LEGAL) Section FACTORS for information concerning vendor selection considerations that determine best value.] The three quotes along with the explanation of how best value was determined shall be attached to the purchase requisition before releasing the requisition for approval. The Executive Director for Financial Services Operations shall have the final authority over such open market purchase decisions. Contracted Services All contracted services unless otherwise noted on the Contracts web page must be routed through the District s contract review process for approval. To access details concerning this process please launch the District home page at 14

15 > Departments> General Counsel>Contracts. The contract process is managed by the General Counsel s Office. Please refer to the General Counsel s website for all information and instructions related to the contract process. Contract Signatories No other employee other than the Superintendent, the Chief Financial Officer in the Superintendent s absence, or the Superintendent s designee shall be authorized to sign contracts that obligate the District, except as otherwise provided in policy CH(LOCAL). The Superintendent may sign contracts for the purchase of goods or services that are not required to be approved by the Board. The Superintendent may designate, by administrative regulation, a representative to execute contracts for construction, including change orders, valued below $25,000. The Superintendent may designate, by administrative regulation, a class of representatives of the District to sign contract for goods and services valued below $2,500 that have been pre-approved by legal counsel. Professional Services Properly qualified professional services do not have to be chosen on a competitive basis. There are two types of professional services that are excepted from the competitive purchasing process: professional services as defined by law and professional services under common law. Defined in the Texas Education Code Section of the TEC defines certain professional services as being excepted from competitive bidding. When the District seeks to procure professional services from the following professional service providers, it will first qualify the professionals by considering their certifications, good standing in the field, reputation, and references, if the District does not have personal knowledge of the quality of the services. In order to qualify, the service providers may provide the District with promotional materials, a copy of their certification, a resume or curriculum vitae, and a reference list or samples of work product. 1. Architect 2. Attorney 3. Certified Public Accountant 4. Engineer 5. Fiscal Agent 6. Financial Consultant 7. Technology Consultant Defined in the Texas Government Code 15

16 The Texas Professional Services Procurement Act, Chapter 2254 of the Texas Government Code, identifies professional services as services: (A) within the scope of the practice, as defined by state law, of: 1. Accounting 2. Architecture 3. Landscape Architecture 4. Land Surveying 5. Medicine 6. Optometry 7. Professional Engineering 8. Real Estate Appraising 9. Professional Nursing; or (B) provided in connection with the professional employment or practice of a person who is licensed or registered as a(an): 1. Certified Public Accountant 2. Architect 3. Landscape Architect 4. Land Surveyor 5. Physician (Including Surgeon) 6. Optometrist 7. Professional Engineer 8. State Certified or State Licensed Real Estate Appraiser 9. Registered Nurse The District must select the providers of professional services listed above based upon the service provider s competency and qualifications before negotiating a fee or considering a price for the services. The professional fees may not exceed any maximum provided by law. Common Law Professional Services also include services of providers that are not specifically listed in Texas law, but still may qualify as professional services for purposes of the procurement policy. If the District seeks to procure a provider for services that are not listed above, it must consider the services of the provider on a case-by-case basis to determine whether to apply the competitive procurement process. The District will consider the following factors in determining what constitutes a professional service. Factors: 1. Do the services require predominantly mental or intellectual, rather than physical or manual labor and skill to perform the work? 2. Does the service provider work in a profession that requires years of education and services for one to obtain competence and which calls for a high order of intelligence, skill, and learning? 16

17 3. Does the service provider work in a profession with widely accepted standards set by the industry? 4. Does the service provider have to maintain a certain type of license or certification in order to perform the services? Qualifying Common Law Professional Services When the District seeks to hire a provider who meets the definition of professional services under the common law, it will first qualify the services by considering the service provider s certification/license, good standing in the field, reputation, and, if the District does not have personal knowledge of the quality of the services, references. In order to qualify, the service providers may provide the District with promotional materials, a copy of their certification/license, a resume or curriculum vitae, a reference list or samples of work product. In determining whether a service is a professional service under the common law, the District shall use the factors listed above. The District, by and through its Board, empowers and delegates the ability to make this determination to the Superintendent and the Superintendent appointed designee (CH (EXHIBIT)). Examples of Common Law Professional Services The District has determined that the following non-exclusive listing of services meets the requirements to be considered professional services for the purposes of Policy CH (LOCAL): 1. Occupational Therapist 2. Physical Therapist 3. Speech Therapist 4. Certified Transition Specialist 5. In-Home Training Specialist 6. Licensed Bilingual Special Education Assessor 7. Educational Diagnostician 8. School Psychologist/Counselor 9. Master Social Worker 10. Speech Pathologist 11. American Sign Language Interpreter 12. Certified Bilingual Interpreter 13. Demographer 14. Financial Advisor (Including Bond, Arbitrage, etc.) Determining Independent Contractor Status 17

18 The originator of a contract or purchase order for consulting services where the status of the vendor is not readily ascertainable must complete the Independent Contractor Questionnaire (CH Regulation Exhibit A), and obtain the appropriate Division or Department Head signature prior to requesting a purchase order. Travel All travel related purchases must be made in accordance with the Humble Independent School District Travel Guidelines. These guidelines and travel forms are located on the Accounts Payable website. To access this information launch the District home page at > Departments> Accounts Payable>Travel Policy. Activity Fund Purchases All campus and student activity fund purchases must be made in accordance with the Humble ISD Activity Fund Manual. To access this information launch the District home page at >Departments> Financial Services Campus/Department Support> Activity Fund Downloads> Activity Fund Manual. Campus activity fund (Fund 461) purchases are subject to the purchasing laws outlined in this manual. Please make special note that the vendor sourcing (i.e. Humble ISD bid#, cooperative bid#, sole source, etc.) for campus activity fund purchases must be noted on the activity fund PO and that all documentation supporting the purchase and the vendor sourcing should be attached to the approved activity fund PO for audit purposes. Student activity funds are funds raised by the students of a campus for a specific student club and purpose. All expenditures of these funds must be approved by those students. Student activity fund (Fund 865) purchases are not subject to the purchasing laws outlined in this manual. However, the purchase of contracted services from student activity funds shall be routed through the District contract review process for approval. Please refer to the Humble ISD Activity Fund Manual for more detailed policies and procedures concerning activity fund purchases. Construction Projects Please note: Policy CV(LOCAL) designates the Assistant Superintendent of Support Services the responsibility for determining the method of purchasing for construction related purchases. Construction Bids & Requests for Proposals CV(LOCAL) The competitive sealed proposal process shall be deemed the project delivery/contract award method providing the best value to the District on 18

19 construction projects. The Board may adopt another project delivery/contract award method only if, prior to advertising, the Superintendent recommends the Board approve a different method that is believed to provide a better value to the District in a particular case. For construction contracts, including contracts with vendor procured through cooperative purchasing, valued at or above $50,000, the Superintendent shall also submit the resulting contract to the Board for approval. Payment and Performance Bonds When the Board makes a public work contract for constructing, altering, or repairing a public building or carrying out or completing any public work, it shall require the contractor, before beginning the work, to execute payment and/or performance bonds as specified below. The bonds shall be executed by a corporate surety in accordance with Insurance Code The bond shall be payable to the Board and in a form approved by the Board. Gov t. Code (a), (d), (e) For a contract in excess of $100,000, a performance bond shall be executed in the amount of the contract conditioned on the faithful performance of the work according to the plans, specifications, and contract documents. The bond is solely for the protection of the District. Gov t Code (b). For a contract in excess of $25,000, a payment bond shall be executed in the amount of the contract solely for the protection and use of payment bond beneficiaries who have a direct contractual relationship with the prime contractor or a subcontractor to supply public work labor or material. Gov t Code (c) Required Workers Compensation Coverage When the District enters into a building or construction contract on a project, it shall fulfill the following requirements regarding required workers compensation coverages. A project includes the provision of all services related to a building or construction contract for the District. The District shall: 1. Include in the bid specifications all the duties and responsibilities of contractors pertaining to required workers compensation coverages. (See CV(EXHIBIT)) 2. As part of the contract, using the language required by 28 TAC (c)(7), require the contractor to perform the duties and responsibilities pertaining to required workers compensation coverages. (See CV(EXHIBIT)) 3. Obtain from the contractor a certificate of coverage for each person providing services on the project, prior to that person s beginning work on the project. This provision includes all persons or entities performing all or part of the services the contractor has undertaken to perform on the project, regardless of whether that 19

20 person contracts directly with the contractor and regardless of whether that person has employees. This includes, but is not limited to, independent contractors, subcontractors, leasing companies, motor carriers, owner-operators, employees of any such entity, or employee of any entity furnishing persons to perform services on the contract. Services include, but are not limited to, providing, hauling, or delivering equipment or materials, or providing labor, transportation, or other services related to a project. Services do not include activities unrelated to the project, such as food/beverage vendors, office supply deliveries, and delivery of portable toilets. 4. Obtain from the contractor a new certificate of coverage showing extension of coverage: a. Before the end of the coverage period, if the contractor s current certificate shows that the coverage period ends during the duration of the project; and b. No later than seven days after the expiration of the coverage for each other person providing services on the project whose current certificate shows that the coverage period ends during the duration of the project. 5. Retain certificates of coverage on file for the duration of the project and for three years thereafter. 6. Provide a copy of the certificate of coverage to the Texas Department of Insurance upon request and to any person entitled to a copy by law. 7. Use the prescribed language for bid specifications and contracts without any additional words or changes, except those required to accommodate the specific document in which they are contained or to impose stricter standards of documentation. (See CV(EXHIBIT) for prescribed language) Standards of Conduct Ethics The District subscribes to the Code of Ethics and Standard Practices for Texas Educators, Code of Ethics and Standard Practices for Texas Educators, (Board Policy, DH-Exhibit) which establishes proper conduct for District staff members. Principle I, Professional Ethical Conduct, clearly applies to those individuals engaged in the purchasing process. This principle includes the following standards: a. The educator shall not intentionally misrepresent official policies of his school district or educational organization and shall clearly distinguish those views from his personal attitudes and opinions. b. The educator shall honestly account for all funds committed to his charge and shall conduct his financial business with integrity. 20

21 c. The educator shall not use institutional or professional privileges for personal or partisan advantage. d. The educator shall accept no gratuities, gifts, or favors that impair or appear to impair professional judgment. e. The educator shall not offer any favor, services, or thing of value to obtain special advantage. f. The educator shall not falsify records, or direct, or coerce others to do so. All District staff members are public servants and therefore subject to Title VIII of the Penal code, regarding offenses against public administration, including bribery and corrupt influence (Chapter 36), perjury and other falsification (Chapter 37), obstructing governmental operation (Chapter 38), and abuse of office (Chapter 39). All District staff members shall perform their duties in conformity with District policy, ethical standards for professional educators, and state and federal law. Gifts No employee shall accept or solicit any gifts, favor, services, or other benefit that could reasonably be construed to influence the employee s discharge of assigned duties and responsibilities, or could be perceived as having been offered because of an existing or potential business relationship. Employees shall disclose any gifts, favors, services, or benefits received with an aggregate value of $100 or more from any one individual over the course of one school year to the District s director of internal audit. This includes items of food, lodging, transportation, tickets, or business entertainment accepted as a guest. When the employee is in doubt of the value of the gift, he or she should report it to the District s director of internal audit. If an employee has any questions regarding acceptable conduct of the interpretation of this policy, or if he or she is in doubt about the best course of action in a particular situation, the employee must seek clarification from his or her supervisor or the District s director of internal audit. Failure by an employee to disclose gifts pursuant to this policy could result in adverse personnel action against the employee. Sales An employee shall not use his or her position with the District to attempt to sell products or services. DBD(LOCAL) District employees are not allowed to serve as vendors to Humble ISD. Former employees are not allowed to serve as vendors to the District until having been out of the District s employ for at least one year. Exceptions must be approved by the District s General Counsel. 21

22 Employee Conflict of Interest Purchases of services or equipment from a business owned in whole or in part by a District employee shall not be permitted. Purchase of services or equipment from a business owned in whole or in part by a person related to a District employee by blood (consanguinity) within the third degree or by marriage (affinity) within the second degree that results in the employee receiving compensation directly or indirectly shall be permitted only when the following occurs: 1. The District employee does not exercise discretion in connection with contracts, purchases, payments, claims, or other pecuniary transactions related to the services or equipment supplied by the business, in which case the business shall not be permitted to sell services or equipment to the District employee s department and department affiliates or campus and campus feeder pattern, as applicable, for as long as the employee continues in the department or campus position; and 2. The purchase of services or equipment has been contracted through a documented competitive process as outlined in this Regulation. The documentation of such purchases outlined in this section shall include the Conflict of Interest Form provided to the Internal Audit Department and documentation stating the sourcing method for the purchase. This documentation shall be attached to the purchase requisition prior to the release of the requisition for approval. 22

23 Appendix A- Purchase Order Processing Entering Requisitions in MUNIS Open Requisition Entry from the Department Menu: Dept >G Requisition Entry Click Add to create a new Requisition. On the Main tab, the requisition entry screen is divided into 2 sections: Header and Line Item Detail. The Header contains information about the specific items(s) you wish to purchase. The Line Detail will automatically populate as the user adds items to the requisition. 1. Enter information on the Main tab: 23

24 Note: You may want to enable your text to make your icons larger. Dept/Loc Fiscal Year Requisition number General commodity General description Needed by Entered General Notes Vendor This will default to your department code. You may need to change this if you enter requisitions for multiple departments. Tab through to accept the default Tab through so the system can auto-populate the field. Select from the list a type 2 commodity code by clicking on the help button. The commodity code is needed to route the requisition to the correct Buyer in Purchasing for review and approval. The commodity code selected for this field should characterize the category for the majority of the purchase on your requisition. Note: Warehouse Requisitions should be assigned commodity code 000 for routing to the warehouse staff for approval and filling of the order. Tab through to accept default. Enter a date to alert the vendor if you would like the item(s) by a specific date. Defaults to today s date. Please enter any notes into this folder that need to be communicated to either your budget manager or to the Purchasing Department that will assist in the review of the requisition. These notes will not print on the Purchase Order. Type the number if known. If you do not know the vendor number, click on the help button at the right of the Vendor field to do a search to select the vendor from the list. Helpful hint: Vendor names are case sensitive and are stored in capital letters. Note: The vendor field will be left blank for warehouse inventory requisitions. Vendor Sourcing Notes: This is an extremely important field that must be populated with the appropriate vendor sourcing note for the purchase. The vendor sourcing note identifies the legal method of purchase that is being claimed by the District. The vendor sourcing note will be one of the following options: Humble ISD bid number (i.e. RFP#, RFQ#, etc.) These vendor sourcing notes have been pre-loaded into MUNIS. Purchasing cooperative contract reference (i.e. TCPN contract #, DIR contract #, BuyBoard contract #, etc.) Sole Source (Note: a current sole source affidavit from the vendor must be on file before the purchase can be approved.) Open Market Purchase (Note: The Director of Purchasing and Risk Management has authority over approving this purchasing method.) See Open Market Purchases section in the Humble ISD Purchasing Policies and Procedures Manual for further details.) 24

25 After selecting the appropriate vendor, click on the Vendor/Sourcing Notes folder. The following window will pop up: Click on the Import button to see a list of the pre-loaded vendor sourcing notes. The following window will pop up: Click on the appropriate note for the vendor and purchase and then select on the top of the tool bar to Accept. The following window will pop up: 25

26 Then simply x out of the window. PO Mailing Remit Ship to Reference Tab through to accept default Tab through It will default from the Department Code entered. Tab through to the next field. If you need and item to be shipped to a location other than what defaults, you may change. This is a delivery reference. Enter the room and name of the person to whom the vendor should deliver the order. ( Ex. Attn: Joe Smith 3 rd floor) 4. Enter information on the Terms/Miscellaneous tab. This tab has limited use by the Purchasing Department. Users outside of the Purchasing Department may proceed by clicking enter or accept. 5. Press enter on the keyboard or click the OK/Accept button. This will bring you to the Line Detail section. Each Line Detail screen represents an item you would like to purchase. If there is more than one item, you will 26

27 need to add multiple records on this screen. (Note: Freight charges should be entered as a separate line item and not in the freight field under UOM.) By default, you are brought to the first item you are requesting in add mode. 6. Enter information on the Line Detail screen: Qty Commodity Unit Price Inventory Defaults as 1, but can be changed to the number of units being requested. Select a type 4 commodity code from the list. Note: The first three digits of the commodity code on at least one of the line items of your requisition must match the three digit type 2 commodity code on the Header tab. Enter the price per unit. The total will multiply the Qty times this price. This field is used for ordering of items stocked in the warehouse only. Item Select the help button to pull up a list of available inventory items. Highlight the requested item and hit the OK/Accept button. Location This field will auto populate from the inventory catalog. Tab through to next field. Type - If this is a warehouse requisition, select Type Pick Ticket. If this is an Inventory Replenishment (Warehouse Staff ONLY) please select Type Purchase. UOM Freight The unit of measure for the item. Typical is Each or Lb. or Foot, etc. Do not enter freight charges in this field. Freight charges should 27