When Purchasing with Federal Funds

Federal Funds Compliance

Frequently Asked Questions:  Staff Guidance - Quotes, Tax Exemption, Conflict of Interest and Vendor Gifts & Gratuities

When do I need quotes?

Quotes are required when the District's annual expenditures with a vendor exceeds three different amounts. When the District spends $9900 with a particular vendor three written quotes are needed and at $99,000, a formal sealed bid or proposal must be issued.

For Example, if one site spends $7300 with a vendor and then another site wants to purchase goods or services total $3300 with that same vendor, then competitive quotes must be obtained before the second order can be placed.

But wait, there's more.  There is also something called "like items".  Like items are when a similar commodity is provided by more than one vendor.  For instance, screen printing.  The District may purchase screen printing services from multiple vendors.  We may spend $1500 with vendor A, $6,000 with vendor B, and $7,000 with vendor C.  Cumulatively we have exceeded the quote threshold of $9900 so quotes are required regardless of which vendor you use.

How do I get quotes?

When obtaining quotes, vendors may be contacted by phone, e-mail, fax or the internet.  A 'Request for Quotation' form is available for your convenience.  If you are planning on purchasing only a few items, these items must be individually priced out.  If you are planning on several items (a dozen or more), than a market basket approach will be sufficient.  For a market basket, simply pick out roughly ten to twenty items which would be bought and price those items. 

What is the difference between oral and written quotes?

Oral quotes are when a vendor verbally provides prices on your items.  As of July 1, 2019, the State of Arizona Auditor General's Office no longer allows oral quotes and instead, written quotes from the vendor must be obtained.  Written quotes are a document provided by a vendor which details their pricing on items you are looking to purchase.  The written quote must have the company name, address and contact information.

What if I can't find three vendors for quotes or a vendor does not carry what I am looking for?

A legitimate effort must be made to find your quotes.  If you are not sure where to find a vendor, call the Purchasing Department.  Kim or Nicholas will help you find a likely source.  If a vendor you contacted does not carry the product or something comparable which you are looking for, then that would be considered a quote.  A 'no' quote or 'no response' to a request for a quote is still a quote.  Be sure to document this in your spreadsheet so that the Purchasing Department will know that you contacted the vendor.  A legitimate effort must be made to find vendors who offer the product, or a similar product, that you are looking for.

Who mails the purchase order to the vendor?

Unless you have requested otherwise, once the purchase order is created, it will automatically be e-mailed directly to the vendor.

Is the District tax exempt?

Library purchases and bulk fuel are exempt.

Conflict of Interest

Staff that may have a conflict of interest must submit a Conflict of Interest form to the Materials and Contract Management Department per Governing Board Policy.  A copy of the form can be found in the FUSD Employee Handbook.

NOTE:  If you have a potential conflict, you must NOT be involved in the purchasing/oversight process.  You may not enter requisitions, approve the requisition, supervise the work being performed, or approve payment for the respective product or service.  Please contact the MCM department if you have any questions.

Vendor Gifts and Gratuities

Flagstaff USD employees may find themselves in a position where they are offered gifts and/or gratuities from a person or company that conducts or would like to conduct business with the greater school community.  State law and FUSD governing board policy prohibit employees from accepting anything of economic value that may appear to be designed to influence the employee's official conduct.  Given the nebulous guidance provided in Arizona Revised Statute and FUSD policy, the district felt it necessary to draft a guidance document to assist our employees to make informed decisions about appropriate relationships that they have with current and potential vendors.  Click here to access the guidance document.