POUDRE SCHOOL DISTRICT R-1 PURCHASING MANUAL Number: 1.0 Effective Date: 7/1/07 TABLE OF CONTENTS

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POUDRE SCHOOL DISTRICT R-1 PURCHASING MANUAL Number: 1.0 Effective Date: 7/1/07 TABLE OF CONTENTS Supersedes No: 1.0 PURCHASING OVERVIEW 1.1 PURPOSE 1.2 SCOPE 1.3 RESPONSIBILITY / AUTHORITY 1.4 PURCHASING ETHICS 2.0 PURCHASING OBJECTIVES AND RESPONSIBILITIES 3.0 PURCHASING METHODS 3.1 PURCHASING CARD 3.2 PURCHASE ORDER PROCESSING 3.3 EMERGENCY PURCHASES 3.4 SOLE SOURCE PURCHASES 3.5 CONTRACT ADMINISTRATION 3.6 ENVIRONMENTALLY PREFERABLE PRODUCTS 4.0 COMPETITIVE PURCHASING PROCESSES 4.1 COMPETITIVE PROCESSES 4.1.1 COMPETITIVE BIDDING 4.1.2 COMPETITIVE SEALED BIDDING 4.1.3 COMPETITIVE SEALED PROPOSALS 4.1.4 BID METHOD DETERMINATION 4.1.5 CORRECTION OF BID ERRORS 4.1.6 COOPERATIVE PURCHASING 4.1.7 PROFESSIONAL SERVICES 4.1.8 CANCELLATION OF BIDS/PROPOSALS 4.1.9 EXEMPTIONS FROM BIDDING REQUIREMENTS 4.1.10 BID PROTESTS 4.1.11 VENDOR CONTACTS 4.1.12 VENDOR RECORDS 5.0 VENDOR SUSPENSION/DEBAREMENT 5.1 VENDOR PERFORMANCE 5.2 CAUSES FOR SUSPENSION AND DEBARMENT 6.0 WAREHOUSE RECEIVING 6.1 RECEIVING AND INSPECTION 7.0 SURPLUS PROPERTY 2 of 14 7.1 SURPLUS PROPERTY DETERMINATION AND DISPOSAL GUIDELINES BID SURPLUS AUCTION/SALE RECYCLE LANDFILL CROSS REFS - Poudre School District Policies: DJ / DJA / DJB / DJG / DJGA

POUDRE SCHOOL DISTRICT R-1 PURCHASING MANUAL Number: 1.0 Effective Date: 7/1/07 PURCHASING OVERVIEW Supersedes No: 1.1 PURPOSE To establish uniform procedures for the procurement of material and services that are consistent with the Superintendent policies. 1.2 SCOPE The procedures in this manual apply to all material and service procurements and related activities, unless otherwise expressly provided. 1.3 RESPONSIBILITY It is the individual responsibility of each employee involved in the procurement process to understand the policies upon which these procedures are based, and the meaning and intent of the procedures themselves. If there are any questions or concerns relative to either the policies or procedures, or the ability of the employee to respond effectively to the requirements of the procedures, then it is the responsibility of the employee to bring such matters to the attention of the purchasing and materials manager. The fundamental purpose of these procedures is not to restrict the effectiveness of the individuals involved in procurement, but to provide a foundation for effective, consistent, and complete consideration of all aspects of the task with the expected result being a positive, professional relationship between the Poudre School District R-1 purchasing and materials management personnel, district employees and the vendors who serve the district. 1.4 PURCHASING ETHICS No purchasing employee shall engage in or have a financial interest, directly or indirectly, in any activity that conflicts or raises a reasonable question of conflict with his duties and responsibilities in the school system. Purchasing employees are governed by the highest ideals of honor and integrity in all public and personal relationships in order to merit the respect and inspire the confidence of the organization and the public being served. Purchasing employees will not seek personal aggrandizement or personal profit obtained through misuse of public or personal relationships. This conduct is deemed to be dishonest and not tolerable. At no time, or under any circumstances, will purchasing employees accept directly or indirectly, gifts, gratuities, or other things of value from suppliers, which might influence or appear to influence any and all purchasing decisions. Purchasing employees will adhere to Poudre School District staff ethics policy, GBEA, State of Colorado Constitution, Article X, Section 13; and ethics laws, C.R.S. 18-8-308 / C.R.S. 24-34-402(1). 3 of 14

POUDRE SCHOOL DISTRICT R-1 PURCHASING MANUAL Number: 2.0 Effective Date: 7/1/07 PURCHASING OBJECTIVES AND RESPONSIBILITIES Supersedes No: 2.1 PURCHASING OBJECTIVES The fundamental objective of the purchasing function is to provide operating departments with the goods and services they need in the right quality and quantity, on a timely basis, as efficiently as possible, and at the lowest overall cost. To achieve this objective, the purchasing department seeks to foster as much competition as possible. In doing so, it adopts the goal of fairness by ensuring that all who wish to compete for the opportunity to sell to the District can do so. The goal of integrity is woven throughout the purchasing cycle so as to maintain the public s trust. This goal is achieved through the requirement for complying with all applicable District policies and legal provisions. 2.2 RESPONSIBILITY The Purchasing cycle consists of many steps and requires the participation of several persons. Those steps and the responsible entity for each step are: 2.2.1 Recognition of the need for goods or services End User 2.2.2 Specification is prepared End User 2.2.3 Requisition is prepared End User 2.2.4 Requisition is approved and sent to PSD Purchasing Department via Bi- Tech - End User 2.2.5 Review of requisition and specifications Purchasing Department 2.2.6 Determination of proper procurement method Purchasing Department 2.2.7 Quotation, bids or proposals solicited (if appropriate) Purchasing Department 2.2.8 Receipt of quotations, bids or proposals Purchasing Department 2.2.9 Review and evaluation of quotations, bids or proposals End User And Purchasing Department 2.2.10 Award recommendation sent to end user / budget holder Purchasing Department 2.2.11 Award approved or disapproved (if required) Board of Education 2.2.12 Purchase order or contract award issued to vendor Purchasing Department 2.2.13 Warehouse personnel received products in system Warehouse Receiving 2.2.14 Receipt of goods or services End User 2.2.15 Payment is made to the vendor Accounts Payable 4 of 14

POUDRE SCHOOL DISTRICT R-1 PURCHASING MANUAL Number: 3.0 Effective Date: 10/1/12 PURCHASING METHODS Supersedes No: 3.1 PURCHASING CARD 3.1.1 The VISA purchasing card program has been implemented for the efficient acquisition of products not exceeding without approval any single transactions greater than $5,000. The responsibilities outlined below will be followed by the purchasing card administrator in managing the purchasing card program. Maintain and update purchasing card forms and the purchasing card guidelines manual. Review and process requests for cards. Verify receipt of purchasing card agreement with application. Provide initial training and documentation. Enter and maintain purchasing card numbers and associated accounting codes in Bi-Tech. Liaison with purchasing card provider and the District s accounting department. Manage cardholder profiles. Coordinate audit and review procedures. Enforce individual cardholder compliance with signed agreements. Download and create the total monthly charge from combined cardholder statements. Review requests for card changes from schools/sites. Review actions taken by cardholder to ensure proper return procedures have been followed. Review actions taken by cardholder to ensure the proper reporting procedures for lost, stolen or misplaced purchasing cards have been followed. Acquire replacement cards for cardholders when appropriate. Cancel and destroy card upon employee separation or by request of site/location authority. 3.1.2 The District employees entrusted with a District VISA purchasing card are bound by all program procedures as identified in the Poudre School District VISA Purchasing Card Program Guidelines and Procedures. 3.2 PURCHASE ORDER 3.2.1 The PSD purchase order represents a purchasing contract between the District and the vendor. For each purchase order issued, the applicable District approved purchase order terms and conditions will also be issued. 5 of 14

3.2.2 After the Bi-Tech electronic purchase requisition has received all required department approvals, the requisition line item will appear on the Bi-Tech report identified as, Requisitions to be Printed. The purchasing department will print this report one or more times per business day and from it the purchasing personnel will convert the requisitions into purchase orders. The purchasing department buyers will review the purchase order to ensure that the proper fields on the form are correctly identified. i.e., account numbers, product information, vendor information, etc. Funds are not encumbered until the purchase order has been printed. 3.2.3 After printing, the purchase order will be faxed, emailed or mailed to the vendor. The original purchase order and faxed confirmation sheets are filed in the purchasing department. A receiving copy of the purchase order is filed in the warehouse receiving area. 3.2.4 In the event that a purchase order is printed and subsequently cancelled by the end user, and in order to maintain a permanent audit record, the purchasing department will cancel the purchase order and note on the first line of the purchase order the reason for cancellation. The encumbered funds will return to the budget holder s account. This process is also applicable to the Bi-Tech purchasing requisitions. The purchase orders and requisitions will never be deleted or permanently removed form the Bi-Tech purchasing system. 3.2.5 All purchase order change requests must be coordinated through the purchasing department. 3.3 EMERGENCY PURCHASES 3.3.1 In accordance with Superintendent Policy DJB, requirements pertaining to the bid process may be waived in emergency situations. Emergencies exist when there is a threat to health, welfare, or safety of students, staff, the public, and/or district property. 3.3.2 The purchasing and materials manager or designee shall authorize the use of emergency purchasing procedures when it is clear that a major disruption of instructional or operational activities will occur if the emergency is not addressed. 3.4 SOLE SOURCE PURCHASES 3.4.1 Sole source items are defined as materials or services that perform a certain function for which no other materials or services are known to exist. District employees wishing to purchase goods that meet this definition must provide the district s purchasing and materials manager, or designee, with the appropriate District sole source form supporting the sole source claim in cases where each single item purchase exceeds $5,000.00. The purchasing and materials manager or designee, shall attach to the purchase order the sole source form so indicating that the bidding requirements may be waived on an individual case basis. Some of the reasons for determinations of a sole source are: Patents, lack of competition, or technological superiority. Performance specification requirements. Brand name or design specifications. 6 of 14

3.5 CONTRACT ADMINISTRATION Compatibility with existing commodities or services. Repairs involving hidden damage requiring disassembly before a determination of needed repairs and cost can be made. The contract is a follow-on for the continued development or production of a major system or highly specialized equipment or for the provision of highly specialized services, if switching contractors would result in unacceptable delays or a substantially higher cost. 3.5.1 As stated in the Superintendent policy DJA the ratification of a PSD contract is governed by the following levels of spending authority. Board of Education: purchases of $250,000 or greater Superintendent and Assistant Superintendent: up to $250,000 Goods and/or services and construction Purchasing and Materials Manager: up to $250,000. Goods and/or services. For construction contracts joint approval is authorized with the director of construction contracts. Purchasing department buyers with delegated authority from the purchasing and materials manager: up to $100,000 District sites, departments and employees: up to $5,000 3.5.2 Where it is in the best interest of PSD, a written contract will be generated after the PSD purchase order has been approved and budget encumbered. Depending on the commodity, service or construction project, the contract for goods, services or construction will include appropriate terms and conditions which specifically protect and support the interests of PSD. 3.6 PURCHASING ENVIRONMENTALLY PREFERABLE MATERIALS AND PRODUCTS 3.6.1 When financially viable, the district shall purchase environmentally preferable or recycled products and shall encourage suppliers, both private and public, to make recyclable products and unbleached paper products available for purchase by public schools. (PSD Policy EDE) Utilizing products that contain recycled content provides a valuable means for using recycled materials. This action reduces the landfill waste which is often detrimental to the environment. When utilizing recycled materials PSD avoids depleting our natural resources as quickly and provides the environment the opportunity to replenish it s self. 7 of 14

POUDRE SCHOOL DISTRICT R-1 PURCHASING MANUAL Number: 4.0 Effective Date: 7/1/07 COMPETITIVE PURCHASING PROCESSES Supersedes No: 4.1 COMPETITIVE PROCESSES 4.1.1 Competitive Bidding. A single procurement that requires obtaining price quotations in written form by mail, facsimile transmission, electronic mail, or other written means from at least three (3) bidders in an attempt to solicit quotations. Quotations may be solicited verbally or in writing. Purchases less than $5,000 do not require a competitive action for acquisition. 4.1.2 Competitive Sealed Bidding. A District method of procurement that requires: Public notice via BidNet.com; Issuance of an invitation for bid (IFB) with product or project specifications and terms and conditions applicable to the purchase which may include evaluation criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, suitability for a particular purpose, and total ownership or life cycle cost; Public opening and recording of written and/or electronic bids at a designated time and place in the presence of two (2) or more PSD employees; and Award without prejudice or favoritism to the responsive and responsible bidder who has submitted the lowest costs or most advantageous bid as determined by evaluation criteria set forth in the invitation for bid document and that meets the requirements and criteria set forth in the IFB. The purchasing department may disqualify a competitive sealed bid under consideration for one or a combination of the following reasons: The bid is received after the time and date specified in the solicitation. The vendor submitting the bid does not have the capability to perform fully the contract requirements, or who does not have the integrity and reliability to assure performance. The bid does not conform to the mandatory or essential requirements of the IFB. The bid submittal is not signed. 8 of 14

4.1.3 Competitive Sealed Proposals. A District method of procurement that requires: Public notice via BidNet.com; Issuance of a request for proposals with a statement of work, terms and conditions applicable to the purchase, information required to be submitted in proposals, and proposal evaluation criteria; Public opening of proposals in the presence of two (2) or more PSD employees, who will avoid disclosure of contents, other than respondent s names, to competing offerors during the process of negotiation; Award made to the responsible offeror whose proposal is determined in writing to be the most advantageous, considering price and evaluation factors set forth in the request for proposal. 4.1.4 Bid method determination. The authority of the purchasing department is limited and bound by Superintendent Policies. The purchasing department will process District acquisitions in the most ethical and equitable methodology. For product or service acquisitions exceeding $5,000.00 the District purchasing department personnel will use discretion in evaluating and applying the best method of source selection in the competitive bidding process. The source selection process will meet no less than the minimum dollar thresholds as required by Superintendent Policies DJA and DJB. 4.1.5 Correction of bid errors. Correction of errors in competitive bids (apparent clerical mistakes or potential non-clerical mistakes) that do not prejudice other bidders, may be allowed upon approval of the purchasing and materials manager. If discrepancies are suspected, the buyer will be required to ask the offeror to verify the bid. After public recording of bids, no changes in price or other changes in bids shall be permitted which would prejudice the rights of other bidders. Penalty for withdrawal of a bid may, at the discretion of the purchasing and materials manager, results in the disqualification of that vendor for future bids for a period not to exceed one (1) year. 4.1.6 Cooperative Purchasing. Purchases of supplies, materials, equipment, and services may be made through available federal or state contracts, educational cooperatives and the contracts of other governmental entities, whenever such purchases are in the best interest of the District. To foster this cooperative purchasing effort, the purchasing department shall make its contracts available to other entities whenever practicable. 4.1.7 Professional services. Purchases may be negotiated by the purchasing department, or designee, for professional services, sole source items, or service contracts in which the full extent of the work or material required is not known exactly and for which specifications cannot be definitely predetermined. While the element of competitive bidding is not entirely 9 of 14

eliminated, it should be demonstrated that the negotiated arrangements are fair and equitable, that no statutory restriction is violated. 4.1.8 Cancellation of bids/proposals. A competitive sealed bid or sealed proposal may be cancelled, or all bids or proposals may be rejected, only if it is determined in writing that such action will be in the best interest of the District and is approved by the purchasing and materials manager. 4.1.9 Exemptions from bidding requirements. The following are recognized as commodities that may be purchased without soliciting bids: Advertising in newspapers, periodicals, and related publications, television, radio, and billboards. Commodities in instances of an unforeseen and unavoidable emergency. Fees, including medical fees and physician fees. Freight, storage charges and demurrage. Licenses. Maintenance on office machines and technical equipment. Perishable foodstuffs for immediate use or processing. Commodities only available from a single source. Utility services, the rates for which are subject to regulation by a Colorado state agency or a federal regulatory agency. 4.1.10 Bid Protests. In accordance with Superintendent policy DJB the purchasing and materials manager shall investigate and settle any protest regarding the procurement process, solicitation or award of a bid or contract, or any claims arising out of the performance of a contract. Such claims and protests shall be deemed to be waived if not made within ten (10) business days of the challenged action or failure to act. Appeals of the purchasing manager s decision shall be made first to the Controller of financial services and then to the superintendent. For actual or potential purchases up to $250,000, the superintendent s decision shall constitute the District s final determination of the matter on appeal. For actual or potential purchases of $250,000 or more, the Board of Education may, but is not required to, hear an appeal of the superintendent s decision. In the event of a timely protest under this procedure and unless the purchasing manager or his/her designee makes a written determination that the award of the contract without delay is necessary to protect the interests of the District, the purchasing manager or buyer shall not proceed further with the solicitation or with the award of the contract until the protest is concluded. 4.1.11 Vendor Contacts. Superintendent policy DJG/DJGA prohibits sales representatives from contacting school or department personnel at school 10 of 14

or department sites. Vendor representatives should receive prior approval from the purchasing department before demonstrating their products at the schools or other District departments. An employee shall not accept a gratuity offered by any vendor. Specific questions regarding the acceptance of goods or services for business purposes should be addressed to the purchasing and materials manager. Any attempt to bribe or compromise an employee should be reported to the purchasing and materials manager immediately. All correspondence with vendors regarding District business should be by or through the purchasing department so that a complete record of the transaction may be documented. 4.1.12 Vendor Records. The purchasing and materials manager, or designee, will manage the vendor content in the PSD financial system, including ensuring data integrity by entering, modifying, updating and approving vendors and vendor item numbers within the system. Additional tasks include ensuring that the vendor required W-9 forms are completed, where required, prior to the payment of funds. The PSD Finance Department will complete the end-of-year 1099 reporting function. Coordination of vendor record activity with the PSD Finance Department is required. 11 of 14

POUDRE SCHOOL DISTRICT R-1 PURCHASING MANUAL Number: 5.0 Effective Date: 7/1/07 VENDOR SUSPENSION / DEBAREMENT Supersedes No: 5.1 VENDOR PERFORMANCE 5.1.1 Vendors that provide unsatisfactory service and performance to the District cause undue hardship and unnecessary costs. It is in the District s best interest to discontinue doing business with such vendors. The purchasing and materials manager may suspend a vendor if there is probable cause for debarment for a period not to exceed ninety (90) days while an inquiry is conducted. 5.1.2 Causes for suspension or debarment are: Conviction for commission of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract, or in the performance of such contract or subcontract. Conviction under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense indicating a lack of business integrity or business honesty which currently, seriously, and directly affects responsibility as a District contractor. Conviction under state or federal antitrust statutes arising out of submission of bids or proposals. Violation of contract provisions, as set forth below, of a character which is regarded by the purchasing and materials manager to be so serious as to justify debarment action: Deliberate failure without good cause to perform in accordance with the specifications or within the time limit provided in the contract; or A recent record of failure to perform or of unsatisfactory performance in accordance with the terms or one or more contracts; provided that failure to perform or unsatisfactory performance caused by acts beyond the control of the contractor shall not be considered to be a basis for debarment. Continuous failure to post bid or performance bonds or proof of insurance in an acceptable form, as required by an Invitation For Bid or Request For Proposals. Substitution of commodities without the prior written approval of the purchasing department. Falsifying invoices, or making false representations, or untrue statements about any payment under a contract or to procure award of a contract, or to induce a modification in the price or the terms of a contract to the vendor s advantage. 12 of 14

POUDRE SCHOOL DISTRICT R-1 PURCHASING MANUAL Number: 6.0 Effective Date: 7/1/07 WAREHOUSE RECEIVING Supersedes No: 6.1 RECEIVING MERCHANDISE 6.1.1 The warehouse receiving personnel will check each shipment immediately upon receipt for overt damage. If the products do not appear to be damaged the bill of lading can be signed. Items received must match the items ordered on the Bi-Tech purchase order. The packing slip, bill of lading and any other paperwork will be attached. Any discrepancies such as damage, shortage, incorrect merchandise, duplicate shipment, etc. should be reported to the purchasing department the day the products were received. No package should remain unopened for more than two (2) business days and damages must be reported within five (5) business days or the ordering department will absorb the costs of damages discovered thereafter. 6.1.2 At the school or department site, it is the budget holder or designees responsibility to inspect and ensure that the goods received and/or services performed are in accordance with the specifications of the purchase order. When authorizing the receipt of goods, the budget holder or designee shall carefully inspect the merchandise for latent damages and defects, and ensure that the items ordered are indeed the same items received. When incorrect or damaged shipments are received, the budget holder or designee should immediately notify the purchasing department for problem resolution. Failure to act promptly may relieve the vendor of responsibility to rectify the situation. 6.1.3 All merchandise picked up by District employees or delivered to a District school or office should be accompanied by a delivery copy of the Bi-Tech purchase order. The purchase order delivery copy should be signed and dated by the employee receiving the merchandise. The purchase order copy and packing slip are forwarded to the accounts payable department for payment. 6.1.4 All textbook adoption orders will be delivered, received and inspected at the textbook distribution facility. The original packing slip and purchase order receiving copy will be sent to accounts payable for processing. 13 of 14

POUDRE SCHOOL DISTRICT R-1 PURCHASING MANUAL Number: 7.0 Effective Date: 7/1/07 SURPLUS PROPERTY Supersedes No: 7.1 SURPLUS PROPERTY GUIDELINES 7.1.1 District sites that determine they no longer have a need for District property/equipment will contact the purchasing and materials management department for final property disposition. 7.1.2 All property declared as surplus will be disposed of by one of the following methods: Auction/Sale. Property deemed to have tangible value will be placed on the auction website, PublicSurplus.com, and advertised for sale. District employees and the general public can submit electronic bids on this surplus property. The warehouse supervisor will coordinate all PublicSurplus.com sales including: picking up or receiving and temporarily storing the surplus property from the owner, photographing and posting the property on the website, coordinating pick up of the surplus property sold with the buyer, collecting sales receipts and submitting to accounts receivables for processing, providing the purchasing and materials manager with a monthly summary of products sold. Recycling. The preferred method of disposal of District surplus property not deemed to have sales value. The warehouse supervisor will coordinate with the surplus property owner the disposal of surplus property via recycling. Landfill. To maintain a culture and ethic of sustainability and responsibility for our natural resources, the least preferred method of disposal is in the landfill. 14 of 14