2017 CBO Boot Camp Purchasing

Transcription

1 2017 CBO Boot Camp Purchasing October 5-7, 2017 February 1-3, 2018 Sharon Ketcherside SK Consulting Procurement/Contract Specialist Retired Director of Purchasing and Contracting

2 PURCHASING OVERVIEW Overview of the role and responsibilities of the Purchasing Department. What every CBO should know about Purchasing to keep the district compliant and within the letter of the law. 2

3 PURCHASING TOPICS Board Authority Role of the Purchasing Department Purchasing Processes Bidding When, How and Why Contract Components Ethics/Gift of Public Funds 3

4 BOARD AUTHORITY The Board has the sole authority and responsibility for all purchase contracts of the district. The Board has the power to delegate: The power to contract may by a majority vote of the board be delegated to its district superintendent, or his/her designee. (EC 17604) All transactions entered into by the officer or employee shall be reviewed by the governing board every 60 days. (EC 17605) 4

5 PURCHASING S ROLE & OBJECTIVES Provide the proper product for the purpose required Buy the proper amount of the product Pay the proper price Have the product available when needed Buy without favor or prejudice While adhering to Local, State and Federal regulations (PCC, EC, CC, LC, BP, DVBE) WE BUY EVERYTHING FROM PENCILS TO BUILDINGS! 5

6 PURCHASING PROCESSES: Standard Process Line item Purchase Order Open/Blanket Purchase Order Contract Purchase Orders Non-Standard Procurement Requiring Strong Controls Procurement Cards Pre-Pay Employee Reimbursements 6

7 INTERNAL CONTROLS: Separation of Duties Written Procedures Up-to-Date Board Policies and Regulations Appropriate Approval 7

8 Legal Codes that Govern Purchasing PCC Bid Limits PCC Bid Splitting PCC Piggyback LC 1771 Payment of Prevailing Wage GC Contracting for Specialized Services PCC Emergencies EC Toxic Arts & Crafts Materials EC Length of Contracts (equipment & services 5 years, supplies & materials 3 years 8

9 BID LIMITS $15,000 for Public Works (except for CUPCCAA Districts PCC 22002) $88,300* for Goods & Services *PCC 20111: $50,000 adjusted annually by the Superintendent of Public Instruction 9

10 BID LIMITS - CUPCCAA CUPCCAA website Small Projects Up to $45,000 Projects can be performed by **force account, or under negotiated contracts (includes maintenance work ). Medium Projects $45,001 to $175,000 Bids can be obtained through the UPCCAA informal bidding procedures ** exception $187,500 Large Projects Over $175,000 Bidding procedures are virtually identical to typical public bidding statues (PCC 20111) 10

11 SB Public Works Contractor Registration Program - DIR Law went into effect on June 20, 2014 (Trailer Bill 502 effective July 2017) Legal Requirements: Contractors and all-tier subcontractors must be registered to bid, be listed in a bid as sub contractor, and to perform work on pubic works project. Requires verification of DIR registration status of contractors and subcontractors for New Construction, alteration, installation, demolition or repair above $25,000 and or $15,000 for maintenance (trailer Bill 502) : Requires that districts check for debarred contractors: Districts must create a profile on the DIR s website to enter projects. and enter project information online. (PWC- 100) 11

12 STATUTORY BIDDING EXEMPTIONS EC GC Perishable Items Energy Contracts energy con/co-generation/alt energy supply sources GC 53060/EC35025 Special Services and Advice in Financial, Economic, Accounting, Engineering, Legal, Administrative Matter PCC 3400 Sole Source In Order to Match Other Products in Use on a Particular Public Improvement either Complete or in the Course of Completion PCC Public Utilities (Pursuant to Public Utilities Commission) 12

13 STATUTORY BIDDING EXEMPTIONS PCC PCC 20118/20652 PCC PCC PCC Emergencies allow for continuation of existing classes Avoid danger to life or property, Must have Unanimous Approval by District and COE Purchases from other Government Agencies Piggyback Bids, CMAS, State Awarded Bids, Consortiums/JPAs Can award electronic data processing systems and software to one of three lowest bidders (RFP vs. Bid) Can secure computers, software, telecommunications equipment through competitive negotiations Textbooks, Library Books, Education Films, A-V Materials, Test Materials, Workbooks, Instruction Software, Periodicals 13

14 BID VS RFP BID Utilized for large quantities of supplies or equipment and in major construction or Public Works. RFP These are typically more openly written so as to push the definition of work down to the vendor. 14

15 COMPONENTS OF A CONTRACT Offer Consideration Acceptance Date Contractor Name Project Description (scope of work) Dollar Amount (Including Expenses) Conflict of Interest Clause Termination/Out Clauses Drug-Free Workplace Clause Liquidated Damages Prevailing Wage Language (Public Works) Fingerprint Clause Hold Harmless / Indemnification Clause Start Date/Completion Date (Term) Insurance Certificates Worker s Compensation Signature(s) **consult with legal counsel for documentation** 15

16 ETHICS Implement strong internal controls Adopt a code of conduct Use your common sense Are you doing the right thing? Promote truthfulness, accuracy & fairness If you don t want to read about it in the newspaper, then don t do it!! 16

17 ETHICS DO NOT ACCEPT GRATUITIES Education Code section : The offering of any valuable thing to any member of the governing board of any school district with the intent to influence his action in regard to the granting of any teacher s certificate, the appointment of any teacher, superintendent, or other office or employee, the adoption of any textbook, or the making of any contract to which the board of which he is a member is a party, or the acceptance by any member of the governing board of any valuable thing, with corrupt intent, is a misdemeanor : Any contract or appointment obtained from the governing board of any school district by corrupt means is void. 17

18 GIFT OF PUBLIC FUNDS Do not use any public funds for gifts to individuals California Government Code and the California Constitution prohibit the gift of public funds to any individual, corporation or another government agency. (GC 8314, Art. XVI, Sec. 6) Both federally funded programs and state Education Code reference the term actual and necessary when determining allowable expenditures The Education Code makes provisions for certain types of expenditures for rewards, incentives, meals, and clothing 18

19 IN CLOSING Price isn t the only consideration remember service Consider total cost of acquisition Rely on Purchasing Department s knowledge/support the Purchasing Dept Is a fundamental component of Business Services Monitor the success rate of the department Good communication between Admin Staff & Director is key Leader or Manager which are you? Enjoy what you are doing! 19

20 THANK YOU QUESTIONS? 20