INTRODUCTION

The following purchasing policies and procedures have been determined to be the most commonly used, as well as the most frequently asked. Therefore, the Flagstaff Unified School District’s Purchasing Department has provided to you this "QUICK REFERENCE GUIDE" to PURCHASING POLICY and PROCEDURE. This "QUICK REFERENCE GUIDE" is intended to assist you and make you aware of the most commonly used procedures, and the respective policies that govern these procedures.

This manual does not cover every purchasing related eventuality. The District’s comprehensive Purchasing Policy and Procedure Manual is much more detailed, and is available through your school’s Principal’s office.

FLAGSTAFF UNIFIED SCHOOL DISTRICT NO. ONE
PURCHASING POLICY and PROCEDURE

TABLE OF CONTENTS

1.1 Delegation of Procurement Authority
1.2 Unauthorized Purchases
1.3 Gifts and Gratuities
2.5 Preview Materials
3.1 Purchase Orders
3.4 Reimbursable Expenses
4.2 Selection of Vendors
4.3 Supplier Lists
4.4 Request for Quotation (RFQ)/Proposal (RFP)
4.6 Sole Source
5.6 Will-Call/Receiving Items From Vendor’s Location
6.1 Disposition of Surplus Property
6.2 Property Control of Grant Funded Equipment
6.3 Emergency Procurement
6.4 Sole Source Procurement

POLICY TITLE: Delegation Of Procurement Authority

Policy Number 1.1

The Governing Board of the Flagstaff Unified School District has, first and foremost, delegated the responsibility for procurement negotiations and administration of procurement policies and procedures to the Director of Purchasing. However, signature authority to commit the District in the purchase of goods and services has been extended to include the following District personnel:

Kim Aringdale, Kevin Brown, Bill Brannen, Bob Kuhn and Becki Roberts.

Any purchase transaction without a District purchase order/contract signed by one of the authorized individuals listed above will be considered a personal obligation.

LEGAL REFERENCE: A.A.C. R7-2-1006

POLICY TITLE: Unauthorized Purchases

Policy Number 1.2

All unauthorized purchases will be considered a personal responsibility and obligation of the individual involved in the unauthorized purchase. District letterhead or District purchase orders should not be used for ordering personal items to be paid for by an individual. When letterhead or purchase orders are used, the vendor will very often bill the District rather than the individual, resulting in time-consuming and expensive correspondence. District policy does NOT permit the purchase of personal items.

Note: Questions may be directed to the Purchasing Office to determine whether a purchase is appropriate or should be considered personal.

POLICY TITLE: Gifts and Gratuities

Policy Number 1.3

It is the policy of the District to decline personal gifts or gratuities in connection with a purchasing function. District officials and employees are specifically forbidden to accept personal gifts or gratuities from any current or potential supplier(s) of goods or services to the District. Members of the board, district officials and employees are specifically forbidden to solicit, accept or receive, either directly or indirectly, from any person, firm or corporation to whom any purchase order may possibly be awarded by rebate, gift or otherwise, any money loan, gratuity, favor or anything of value or any promise, obligation or contract for future reward or compensation.

Note: Accepting inexpensive gifts of nominal value, such as advertising items of general distribution, i.e., pens, calendars and the like are acceptable under this policy.

Acceptance of business lunches are currently acceptable under this policy. However, legislative discussions have taken place regarding a future policy revision which will forbid the acceptance of business lunches.

LEGAL REFERENCE: A.R.S. 15-213, 15-323, 38-503

POLICY TITLE: Preview Materials

Policy Number 2.5

Previewing materials provided by vendors is very prevalent and widely accepted with all school districts. This concept is certainly a preliminary step in making decisions about certain material goods, books, etc. before actually making the purchase. However, previewing materials without an authorized purchase order, whether you plan to keep the item(s) or not, is viewed the same way as ordering and receiving materials without an authorized purchase order. Both situations are a direct violation of Arizona State School District Procurement Laws, as well as District policy.

District policy allows for schools/departments to preview materials. However, you must comply with the following procedure:

1. A purchase order must be generated, signed by someone who has signature authority and issued to the vendor for the item(s) to be previewed.

a. The purchase order must include the item description(s), unit price, applicable tax, etc. and THE FOLLOWING LANGUAGE:

"Upon acceptance of this purchase order through , 1999, the following item(s) are for preview only. The District reserves the right to send item(s) back within fourteen (14) days after the preview deadline at no cost to the district, or keep the item(s) at which time the vendor will invoice the district".

If a decision is made to not keep the item(s) on the purchase order, you must comply with the following:

2. Contact the Purchasing Department and request that the purchase order be canceled, or specify the item(s) you would like to keep and the item(s) you would like to cancel, at which time a Purchase Order Amendment will be generated. Contact the Warehouse and make arrangements for the item(s) to be picked up from your school/department and returned to the vendor.

If a decision is made to keep the item(s) on the purchase order, you must comply with the following:

3. Contact the vendor and tell them that you would like to keep and purchase the item(s), and to send an invoice, referencing the purchase order number, to the Administrative Center.

POLICY TITLE: Purchase Orders

Policy Number 3.1

Purchase orders are generated from a requisition authorized by a building administrator, and copies of the five (5) part purchase order form are distributed as follows:

White copy to the Vendor
Green copy to the Warehouse
Goldenrod copy to the Requisitioner
Blue copy to the Accounts Payables Department
Yellow copy to the Purchasing Department

Purchase orders are required for any and all types of purchases, regardless of the dollar amount. All purchase orders must meet the following criteria in order to comply with District policy, and to ensure that each purchase order is a legal, binding and enforceable contract between the District and the Vendor:

a. All purchase orders generated must indicate the following Ship To Address:

District Warehouse
5400 E. Railhead Ave.
Flagstaff, AZ 86004

The only exception to the ship to address is for those schools/departments who have elected to receive their own items ordered on purchase orders generated at their school/department location. In this situation, schools/departments can specify their respective mailing address as the ship to address.

b. All purchase orders must specify an on or before delivery date. You do not have any recourse, nor is the vendor held liable or accountable, when you specify "ASAP" as an on or before delivery date.

c. The item description(s) listed on a purchase order must be clear and concise.

d. All purchase orders must indicate a valid budget code.

e. All purchase orders must have an authorized signature in the "Ordered By" space provided on each purchase order.

f. If the purchase order is going to be faxed or called in to the vendor verbally, you must write or type the statement"Confirmation Only" on the face of the purchase order.

POLICY TITLE: Reimbursable Expenses

Policy Number 3.4

All expense claims for travel, meals, and hotel accommodations, for workshops and seminars, etc. must be pre-approved by your supervisor prior to your trip. After you have returned from your approved trip, you must complete a "School District Travel Expense Claim" form along with your expense receipts. If your site does not have copies of this form you can get them from the District Office.

Reimbursable expenses are limited to certain threshold dollar amounts, so be aware that claims made for reimbursement over and above these amounts will not be honored. The District will only reimburse for expense claims within the allowable dollar amount.

Information regarding reimbursable expenses and their respective reimbursable dollar limits is available through the Human Resources Department.

Expense claims for the purchase of supplies, and/or equipment submitted by District employees for reimbursement is strictly forbidden and will not be approved unless the purchase constitutes an emergency purchase as outlined in Policy Title: "Emergency Procurement", Policy Number: 6.3

POLICY TITLE: Selection of Vendors

Policy Number 4.2

Authority for the final selection of a vendor in a purchasing transaction is ultimately the responsibility of the Purchasing Department. We encourage all departments to submit the names and addresses of known vendors, and we will add to the selection list from our vendor database.

All vendors must be selected for their capability to serve the needs of the District in the most economical and efficient manner possible. Past performance and cooperation are important factors to consider.

All departments should keep the Purchasing Department informed of transactions where a problem developed with a vendor.

POLICY TITLE: Supplier Lists

Policy Number 4.3

The Purchasing Department maintains a list of vendors who have requested to bid on District purchases. This vendor list is available through the Purchasing Department. All schools/departments are encouraged to notify the Purchasing Department to obtain vendor lists for specific categories or to give

POLICY TITLE: Request for Quotation (RFQ)/Proposal (RFP)

Policy Number 4.4

According to the Uniform Standard of Financial Reporting (USFR) and the Arizona Administrative Code (A.A.C.) for school district procurement rules, there are threshold dollar amounts that dictate a particular bid process. These threshold dollar amounts are as follows:

The District must obtain verbal price quotes from at least three (3) vendors for purchases costing at least $5,000.00 but less than $15,000.00.

Note: Verbal price quotes must be documented and kept as part of the file.

The District must obtain written price quotations from at least three (3) vendors, for purchases costing at least $15,000.00 but less than $35,306.67.

Note: Written price quotes must be submitted on vendor letterhead.

The District must conduct a formal competitive sealed bid/proposal for purchases over $35,306.67, and such purchases must be approved by the District Governing Board. This is a process that must be conducted by the District Purchasing Department to ensure that the District is in full compliance with the very complex legal structure associated with procurement activity over $35,306.67. All vendor responses are to be opened at a public bid/proposal opening. This mandatory bidding requirement includes purchases of all supplies, equipment, insurance and contractual services made by the District. The only exception to the mandatory bidding requirement is the provision for emergency procurements or sole source procurements.

a. An emergency procurement exists if there is a threat to health, welfare or safety.

b. A sole source procurement exists when there is only one (1) vendor for the required materials, service or construction.

Emergency procurements will be made with such competition as is practical under the circumstances, and must be documented and forwarded to the District Purchasing Department for approval.

Sole source procurements must also be documented and forwarded to the District Purchasing Department for approval.

For those purchases under the $5,000.00 limit, it is the discretion of the District to secure verbal quotes, whenever practical, from vendors handling the same or similar products/services. The Purchasing Department may, at its discretion, choose to bid any item(s) which in its judgement "lends itself" to a competitive bidding process, whether formal or informal, where cost savings may result from such action.

POLICY TITLE: Sole Source

Policy Number 4.6

It may be necessary to purchase equipment, supplies or services from a sole source vendor. This means that there is only one (1) source of supply for your purchase requirement. This should always be the exception rather than the rule. Some examples of a sole source procurement are:

a. Items which must be compatible with existing equipment or systems and are available only from the original manufacturer.

b. Items that have specific features essential for the completion of the task or project at hand that are available from only one (1) source.

Submission of sole source justification, brand name and other essential data, even though accepted by Purchasing, does not negate the requirement to obtain pricing confirmation from the specified vendor which may be in the form of a written bid.

Rule of Thumb: If your requirement is available from more than one (1) vendor, it is not considered a sole source.

LEGAL REFERENCE: A.A.C. R7-2-1053

POLICY TITLE: Will-Call/Receiving Items From Vendor’s location

Policy Number 5.6

Employees who pick up supplies and/or equipment from a vendor’s location must notify the District Warehouse to let them know that the item(s) have been picked up. The purchase order number, vendor name, and the date the item(s) was picked up must be given to Warehouse personnel. All receipts, packing slips, and other paperwork associated with the pick up of item(s) must be forwarded to the District Warehouse for processing. Item(s) that are Two-Hundred and Eighty Five dollars ($285.00) and over must be taken to the District Warehouse for tagging purposes. Otherwise, item(s) can be taken directly back to the employee’s school as long as the Warehouse is notified of the pick up from the vendors location.

POLICY TITLE: Property Control of School District Assets

Policy Number 6.1

All school district employees who wish to transfer, or move item(s) where the item(s) will remain within a school or within the district must fill out a Request for Authorization to

Dispose/Transfer of Equipment form. This form must be approved by your building administrator and forwarded to the Property Control Manager, located in the Business Office. This procedure must be followed before any items are transferred, or moved. Once this form has been approved and you have received your copy back from the Business Office, you can transfer or move item(s). This policy/procedure is critical in order to maintain accurate control and to be able to annually reconcile against the General Fixed Asset Listings.

For the sale of school district property, the Arizona Administrative Code for School District Procurement Rules allow for the following methods for selling of school district property:

1. Competitive Sealed Bids
2. Public Auction
3. Established Markets
4. Trade-in
5. State Surplus Property

For these five (5) disposition methods established by the Arizona Administrative Code for School District Procurement Rules, you must fill out a Request for Authorization to Dispose/Transfer of Equipment form. This form must be approved by your building administrator and forwarded directly to the Purchasing Department for approval. The Purchasing Department must be responsible for administering and conducting one of the five (5) options being requested.

In situations where district property is determined to be non-functional and can not be fixed, you must fill out a Request for Authorization to Dispose/Transfer of Equipment form. This form must be approved by your building administrator and forwarded directly to the Property Control Clerk for approval. Once the form has been approved and you have received this form back from the Business Office, you must call the District Warehouse and make arrangements for the item(s) to be picked up.

Under any circumstances, you are not allowed to give item(s) away to anyone, unless it is given directly to another public agency (i.e., school district, city, county, etc.)

Note: The Request for Authorization to Dispose of Equipment form is available from the Business Office

LEGAL REFERENCE: A.A.C. R7-2-1131

POLICY TITLE: Property Control of Grant Funded Equipment

Policy Number 6.2

Title to equipmet item(s) purchased through grant funds shall remain the property of the grant recipient’s primary school, unless the grant specifies that the equipment item(s) is to be used at one or more school sites.

If and when grant recipient changes schools, the equipment item(s) will remain the legal property of the designated primary school. All equipment item(s) will be cataloged with the school library and will then become the property of the Flagstaff Unified School District.

If the equipment item(s) is to be transfered, moved, or otherwise disposed of, you must follow the policy and procedures outlined in Policy Title 6.1.

POLICY TITLE: Emergency Procurement

Policy Number 6.3

An emergency condition creates an immediate and serious need for materials, services or construction that cannot be met through normal procurement methods, and seriously threatens the functioning of the District, the preservation or protection of property or the public health, welfare or safety. Some examples of emergency conditions are floods, epidemics or other natural disasters, riots, fires or equipment failures.

An emergency procurement shall be limited to the materials, services or construction necessary to satisfy the emergency need. All emergency purchase situations must be documented and submitted to the Purchasing Department, where it must be filed as part of the procurement transaction records.

LEGAL REFERENCE: A.A.C. R7-2-1056

POLICY TITLE: Sole Source Procurement

Policy Number 6.4

A contract or purchase order may be awarded for materials, service or construction without competition if there is only one (1) source for the required material, service or construction. Sole source procurement shall be avoided except when no reasonable alternative source exists.

A copy of the written evidence and determination of the basis for the sole source procurement must be submitted to the Purchasing Department, where it must be filed as part of the procurement transaction records.

LEGAL REFERENCE: A.A.C. R7-2-1053