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Note - These guidelines will be updated periodically. Please check the process document library often to ensure you are viewing the latest version.

2016 2017

Living Document

Revised as of

4/17/2016

Weatherford ISD Purchasing Policies and Procedures

Manual

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Table of Contents Chapter 1: Purchasing Overview............................................................................................... 3

Chapter 2: Purchasing Authority ................................................................................................ 5

Chapter 3: Ethical Standards ......................................................................................................11

Chapter 4: Internal Controls……………………………………. ................................................... 16

Chapter 5: Purchasing Process, Roles and Responsibilities ...................................................... 19

Chapter 6: Purchasing Process- Federal Funds.........................................................................27

Chapter 7: Competitive Procurement ........................................................................................36

Chapter 8: Vendor Procedures and Guidelines...........................................................................42

Chapter 9: Requisition Procedures and Guidelines....................................................................45

Chapter 10: Other Procurement Procedures ..............................................................................50

Chapter 11: Purchase Order Guidelines......................................................................................53

Chapter 12: Receiving and Distribution.......................................................................................55

Chapter 13: Independent Contractor Agreements .....................................................................56

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CHAPTER 1 PURCHASING OVERVIEW

The purchasing process includes a wide range of procurement functions including planning, acquisition, quality assurance, contract administration and distribution and to ensure that the standard of procurement is observed properly throughout the entire district.

BUSINESS OFFICE STAFF Tracy Ray EXT. 3006 Assistant Superintendent of Business & Operations Tammy Hutto EXT. 3003 Administrative Asst./Purchasing Agent Sharon Landrum EXT. 3019 Director of Purchasing Becky Salazar EST. 3005 Director of Accounting Patricia Melendez EXT. 3008 Director of Finance Sandra Brackin EXT. 3030 Accounts Payable Ladawna Raper EXT. 3004 Payroll Specialist Susan Hellman EXT. 3034 Accounting Assistant AS DIRECTLY RELATED TO PROCUREMENT Assistant Supt of Business & Operations

• Direct and manage the planning for procurement of equipment, supplies and services • Assist in the development of specifications, and request, open and make suggestions to the

Superintendent and ultimately the Board of Trustees for award of bids, proposals, and contracts Director of Purchasing

• Primarily responsible for the effective operation of the purchasing system • Manage the procurement of goods and services in a timely and cost efficient manner • Assist in the development and modification of the purchasing manual, travel manual and purchasing

policies, procedures and forms and is responsible for the implementation of such policies, procedures and forms

• Resolve problems encountered within the purchasing function • Establish and monitor good working relations with vendors • Ensure that district staff is aware of relevant purchasing statutes, regulations, and board policies

through either formal or informal training programs • Contract management • Manage On-line buyer accounts vendors such as Amazon, Office Depot, Sam’s and Lowes • Maintain vendor database and awarded vendor listing

Purchasing Agent

• Perform the daily administrative support activities within the Purchasing Department • District Travel • Assist and/or train Skyward users with the use of the automated purchasing system

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• Assist in maintaining the following purchasing responsibilities: Credit Card services ٭ Agenda Items and Board Recommendations ٭

The purchasing manual is intended to document the guidelines and administrative procedures, which are used to accomplish the procurement and expenditure functions of Weatherford ISD. The purchasing procedures contained in the document are intended to comply with all applicable laws, policies, and procedures. These instructions are for the guidance of all personnel who participate in the actions and decisions relating to purchasing and/or expending funds for goods and services. These fundamentals

are designed to provide a foundation for effective, consistent, and complete consideration to all aspects related to these tasks. The Purchasing Department of the Weatherford Independent School District is a part of the Business & Operations Division and is responsible for the organization and administration of the procurement function for the District in accordance with the authority delegated by the Superintendent and Board of Trustees. The Purchasing Department is responsible for purchasing all supplies, materials, and equipment, within the guidelines governing our District. Purchasing issues all formal bids, proposals, request for quotes for certain items/products and services, requests for qualifications, facilitates selection of vendors, and negotiates and establishes bids, pricing and other contract terms and conditions, delivery, and adjustments. The Purchasing Department facilitates the adherence to applicable statute and policy requirements and application of efficient and effective procurement processes by:

• Monitoring purchases from a district-wide perspective to ensure adherence to Statute and District Policy requirements.

• Establishing bids and contracts to cover repetitive procurements of goods and services. • Processing purchase requests and monitors the issuing of purchase orders to vendors in a timely

manner. General Procurement Guidelines District purchasing procedures shall comply with all federal, state and local procurement requirements. The District shall comply with the general procurement requirement of the Texas State Ethics Commission: 1295 form filing and EDGAR (2 CFR 200). All purchases shall be in accordance with the District’s School Board Policies (CH Legal and Local) and consistent with the District’s purchasing procedures as described in this manual. All purchases must be coordinated with the District’s vision, goals, and objectives.

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CHAPTER 2 PURCHASING AUTHORITY

Under the Texas Education Code § 44.0312 (a), the board of trustees of the District may, as appropriate, delegate its authority under this subchapter regarding an action authorized or required by this subchapter to be taken by a school District to a designated person, representative, or committee. The Board delegates to the Superintendent or designee the authority to make budgeted purchases for

goods or services. The Superintendent delegates the Assistant Superintendent of Business & Operations and the Director of

Purchasing to approve all purchases that are less than $50,000. The Board of Trustees retains the authority to approve all contracts for the purchase of goods or services

for any single purchase that exceeds $50,000. Budget owners have the authority to initiate and approve purchase requisitions within their authorized

budget. Every employee involved in the procuring of goods or services for the District is responsible for earnestly

working to attain the District’s goals and objectives.

Authorized Purchases For a purchase to be considered an authorized purchase of the District it must have been made in accordance with the procedures outlined in this manual. The following is required prior to committing the District for any expenditure: 1. A properly completed and authorized Purchase Order. 2. Emergencies must have approval of the responsible Budget Administrator (district or campus administrator)

and a memo explaining the emergency must accompany the request the next business day. 3. Employees should not purchase materials with their own money with the intention of being reimbursed by

the district. Employees/persons making unauthorized purchases shall assume full responsibility for all such debts and payment obligations. Instead, purchasing procedures outlined in this section should be followed.

4. Purchase requisitions are to be placed into the Skyward system and must be approved as a Purchase Order before any services or products may be purchased. “After the Fact” requisitions will not be approved and the District is in no way obligated to pay for the services or products.

Purchasing Approval A purchase for goods and services cannot be made using District funds without prior approval from the Purchasing Director in the form of an approved Purchase Order. The Board delegates to the Superintendent or designee the authority to determine the method of purchasing, in accordance with CH (Legal) Policy. The Designee must approve any exceptions to this policy prior to committing any District funds. Prior to the approval from Purchasing Director, District staff must adhere to the following guidelines: Purchase requisitions must be necessary to the instructional program or the operation of the District.

The release of an online requisition by the approving authority verifies the necessity of the purchase.

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The user department/campus is responsible for checking the accuracy and completeness of the information on the purchase requisition entered into the online purchasing system and ensuring that the request is in compliance with established purchasing policies and procedures.

Each requisition must be approved online by the person who has final approval authority for the funds

associated with the purchase. This authority cannot be delegated. The Purchasing Agent will review the purchase requisition and the Purchasing Director will provide

final approval after verifying compliance with the District’s purchasing guidelines. Purchases over $50,000 (Board Approval Required) Any purchase order or contract that exceeds $50,000 requires WISD Board of Trustees approval before any procurement may take place. The Superintendent is not required to obtain Board approval for the following types of budgeted purchases, regardless of cost, but shall subsequently report them to the Board:

(1) A purchase made pursuant to a Board-approved inter-local contract, in accordance with law; (2) A purchase made through a cooperative purchasing program or state purchasing program that

satisfies the District’s obligation for competitive purchasing [see CH(LEGAL)]; (3) A continuing or periodic purchase under a Board-approved bid or contract throughout the duration

of the renewal periods; (4) A sole-source purchase, in accordance with law; or (5) A purchase for produce or fuel.

Contracts and Agreements Only the Board President, Superintendent, Assistant Superintendent of Business & Operations, Director of Purchasing or their designees may sign contracts or agreements requiring payment from any WISD funds. Contracts or agreements not signed by the approved authorities will not bind the District financially and will be the personal responsibility of the individual who did sign the agreement or contract. The budget authority granted to a Principal, Administrator, or Coordinator authorizes them to make purchases in the name of the District. All contracts and/or agreements must have a purchase order in place before any goods or services are rendered.

STATUTES, REGULATIONS AND BOARD POLICIES APPLICABLE TO PURCHASING The district shall comply with all Federal and Texas State laws, regulations and Texas Attorney General

Opinions related to the purchasing of goods and services. The district shall comply with all local policies and procedures, such as School Board Policy CH Local and

these written purchasing procedures. For all purchases with federal grant funds, the district shall comply with the federal regulations, Education

Department General Administrative Regulations (EDGAR) related to the purchasing of goods and services. [2 CFR 200.317-200.326]

All relevant statutes, regulations, board policies and procedures shall be made available to all purchasing stakeholders, as appropriate in a paper or electronic format.

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The Texas Education Code, Purchasing Contracts (Primarily sections 44.031 through 44.047). An electronic version of the Texas State Education Code can be obtained at the following website address: http://www.statutes.legis.state.tx.us/Docs/ED/htm/ED.44.htm#44.031. The Texas Education Agency (TEA) Financial Accountability System Resource Guide Purchasing Module. The TEA Resource Guide can be accessed at the following website address: http://www.tea.state.tx.us/index4.aspx?id=1222&menu_id=645&menu_id2=789. Weatherford Independent School District’s Board Policy (Sections CH…). The WISD Board Policy can be accessed at the following website address: https://www.weatherfordisd.com 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. “Expenditure of budgeted funds shall be made in accordance with District purchasing guidelines.” PURCHASE COMMITMENTS CH (LOCAL) All purchase commitments shall be made by the Superintendent or designee (Director of Purchasing) 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 expenditure of federal grant funds shall adhere to the district’s purchasing policies and procedures. In addition to the normal purchasing process, all grant funds must be approved by the Director of the Federal Program for each respective grant program, as appropriate. All instances of violations of purchasing laws or Board policies related to the purchasing function shall be reviewed by the Director of Purchasing and Internal Audits, and the Assistant Superintendent of Business & Operations. The Board shall be notified on a monthly basis of any and all violations or Board policy. PERSONAL PURCHASES District employees are not permitted to purchase supplies or equipment for personal use through the District’s business office and may not use the District’s tax exempt status for personal use. PURCHASING UNDER TEXAS EDUCATION CODE Under Texas Education Code §44.031(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) Inter-local contracts (5) Reverse auction procedure as defined by Section 2155.062(d), Government Code; or (6) The formation of a political subdivision corporation under Section 304.001, 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.

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The purchasing requirements of Education Code 44.031 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 2254.003 in lieu of the methods under Texas Education Code Section 44.031(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, state certified 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 2254.002, .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 lowest practical prices 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 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 offeror, 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. Inter-local Contract An inter-local agreement is a contract authorized by Texas Local Government Code §791.001 et seq. (the “Inter-local Cooperation Act”) between two or more local governments (including a federally recognized Indian tribe in Texas listed 8 under 25 USC §479a-1) and with agencies of the state and other entities permitted under the Inter-local Cooperation Act to either study the feasibility of the performance of a governmental function or service by inter-local agreement, or to provide a governmental function or service that each party to the agreement is authorized to perform individually. This method allows WISD to enter into an inter-local agreement with another local government (or Indian tribe) or certain nonprofit purchasing cooperatives for the

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purpose of “purchasing goods or services from vendors competitively and lawfully procured by the entity managing the cooperative”. An inter-local agreement must be approved by the WISD Board of Trustees and must specify that each party will make payments under the agreement from current revenues only. Reverse Auction A procurement method defined in Texas Government Code - Section 2155.062 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 44.031(a) and Chapter 2269 of the Texas Government Code 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 WISD 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. 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.

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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. The Superintendent will establish administrative regulations for the identification and purchase of sole source items. Contracts for properly documented sole source purchases shall not require Board approval. SEE PURCHASING PROCESS CHAPTER FOR PROCEDURES

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CHAPTER 3 ETHICAL STANDARDS

The Texas Education Agency (TEA), Financial Accountability System Resource Guide – General Ethical Standards and other documents, describes common standards of ethics governing the conduct of employees involved in the purchasing function, which are incorporated in the procedures below. Texas Education Code, §44.032. General Ethical Standards There are certain common standards of ethics that govern the conduct of employees involved in the purchasing function, as follows: 1. It is a breach of ethics to attempt to realize personal gain through public employment with the school district

by any conduct inconsistent with the proper discharge of the employee’s duties. 2. It is a breach of ethics to attempt to influence any public employee of the school district to breach the

standards of ethical conduct set forth in this code. 3. It is a breach of ethics for any employee of a school district to participate directly or indirectly in procurement

when the employee knows that: • The employee or any member of the employee’s immediate family has a financial interest pertaining

to the procurement; • A business or organization in which the employee, or any member of the employee’s immediate family,

has a financial interest pertaining to the procurement; or • Any other person, business or organization with whom the employee or any member of the employee’s

immediate family is negotiating or has an arrangement concerning prospective employment is involved in the procurement.

• If a school district board member or other official has a substantial interest in procurement, that person shall abstain from discussion and decisions regarding the award of the procurement contract. (Local Government Code, Chapter 171,) for definition of substantial interest.) In addition, the board member should disclose this substantial interest by filing an affidavit with the district.

4. Gratuities-It is a breach of ethics to offer, give or agree to give any employee or former employee of the school district, or for any employee or former employee of the school district to solicit, demand, accept or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation, preparation of any part of a program requirement or purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any proceeding or application, request for ruling, determination, claim or controversy, or other particular matter pertaining to any program requirement or a contract or subcontract, or to any solicitation or proposal therefore pending before this government. Acceptance of gratuities may be construed as a criminal offense.

5. Kickbacks-It is a breach of ethics for any payment, gratuity or offer of employment to be made by or on behalf of a subcontractor under a contract to the prime contractor or higher tier subcontractor for any contract of a school district, or any person associated therewith, as an inducement for the award of a subcontract or order.

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State law and applicable Board policy prohibits the following types of purchases:

Separate, Sequential, or Component Purchases When preparing requisitions, the requesting department must be aware that the employee shall not intentionally or knowingly make or authorize separate, sequential or component purchases to avoid the competitive bidding requirements. Sequential Purchases – District employees shall not make purchases, over a period of time, of items that in normal purchasing practices would be made in one purchase. (Example: Purchase of band instruments in the following manner: all brass instruments in one order, totaling $43,750; all woodwinds in one order totaling $42,625; all percussion instruments in one order totaling $22,850. When purchased separately, no single purchase was over the District’s maximum threshold, but altogether exceeds the threshold.) Component Purchases – District employees shall not make purchases of the component parts of an item that in normal purchasing practices would be made in one purchase. (Example: Table tops, table bases purchased separately in two purchases that totaled under $50,000 each, then assembly of table tops and bases into one unit) Separate Purchase – District employees shall not make purchases separately in order to circumvent board approval of items that in normal purchasing practices would be made in one purchase. One truckload of paper at $48,000 in August, another in October at $42,000 and another in March at $49,000, each individual purchase under the District’s threshold, but altogether exceeds the threshold.) Violation of this provision is a Class B or C misdemeanor. Conviction may result in confinement in a penitentiary, removal from office or dismissal from employment. Texas Education Code-Subchapter B. - Sec. 44.032 CONFLICT OF INTEREST Reporting On August 7, 2015, the commission adopted updated Forms CIS and CIQ as required by H.B. 23, 84th Leg., Regular Session, which became effective September 1, 2015.

New laws include not only District Officers, but also include: (A) A member of the governing body of a local governmental entity (B) A director, superintendent, administrator, president, or other person designated as the executive officer

of a local governmental entity; or (C) An agent of a local governmental entity who exercises discretion in the planning, recommending,

selecting, or contracting of a Vendor. An agent is defined as “a third party who undertakes to transact some business or manage some affair for

another person by the authority or on account of the other person. The term includes an employee.” New forms were adopted on 8/7/2015 and can found on the districts website. Any conflict of interest should be reported to the district’s superintendent’s office with Form CIQ found at the following link or on the Business or Purchasing website under “Forms”. https://www.ethics.state.tx.us/filinginfo/conflict_forms.htm Overview of Chapter 176 Requirements 1. Conflicts Disclosure Statement (176.003) – If a local government entity enters into or is considering entering

into a contract for the sale or purchase of real property, goods or services with a person (including an agent of a person), an officer of the local government is required to file a Conflicts Disclosure Statement if the officer or a family member of the officer:

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a) is receiving taxable income from an employment or other business relationship with the person, other than investment income, that exceeds $2,500 during the 12-month period preceding the officer’s awareness of the contract or consideration of the person; or

b) has received gifts with an aggregate value of more than $250 in the 12 month period before the officer became aware of the contract or consideration of the person (with some exclusions discussed below).

2. Conflict of Interest Questionnaire (176.006) – A person (or their agent) who enters or seeks to enter into a contract with a local government entity for the sale or purchase of real property, goods or services and has a business relationship with the local government entity must file a Conflict of Interest Questionnaire if they:

a) have an employment or other business relationship with an officer of the local governmental entity or an officer’s family member as described in 1(a) above or;

b) have given an officer of the local governmental entity or an officer’s family member one or more gifts with the aggregate value specified in 1(b) above.

3. List, Posting Requirements – The local governmental entity is required to make a list of the officers of the

entity available to the public and provide access to the statements and questionnaires filed under Chapter 176 on its Internet website.

General Provisions of EDGAR

The District has established a conflict of interest policy, and it shall apply for all federal grant awards, and it shall disclose in writing any potential conflict of interest to the granting agency. See Policies BBFA (LEGAL) Ethics‐Conflict of Interest Disclosures and DBD (LEGAL) and DBD (LOCAL) Employment Requirements and Restrictions‐Conflict of Interest. Employees are required to disclose to their supervisor any situation that creates a potential conflict of interest with proper discharge of assigned duties and responsibilities or creates a potential conflict of interest with the best interests of the district. This includes the following:

A personal financial interest A business interest or any other obligation or relationship Non‐school employment

No employee or Board member shall participate in selection, award, or administration of a contract supported by federal funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when any of the following has a financial or other interest in the firm selected for award:

An employee or Board member. Any member of the immediate family of an employee or Board member. The partner of an employee or Board member. An organization that employs or is about to employ any of the above.

The district shall comply with all additional conflict of interest requirements required by the federal granting agency and/or the pass‐through entity (TEA). Mandatory Disclosures The District shall disclose in writing to the granting agency and/or pass‐through entities any violations of federal criminal law including fraud, bribery or gratuity violations affecting a federal grant award. Upon detection of any fraud, abuse or waste with federal grant funds, the District shall promptly notify the proper legal authorities and pursue appropriate criminal and/or civil actions. In addition, the district shall report to the granting agency and pass‐through entity, the extent of the fraud or violations. In addition, the District shall reclassify fraudulent expenditures made with federal grant awards to local district funds, i.e. the General Fund. The ASBO shall be responsible for overseeing, reporting and documenting any fraud, abuse or waste of federal grant funds. Prohibition from Soliciting Gifts or Tokens All district employees are prohibited from soliciting gifts or tokens from vendors or other parties who are affected by (or have an interest in) a federal grant award. The District’s employees and Board members shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors, potential contractors, or parties to sub‐agreements.

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Employees may not accept gifts or favors that could influence, or be construed to influence, the employee's discharge of assigned duties. The acceptance of a gift, favor, or service by an administrator or teacher that might reasonably tend to influence the selection of textbooks, electronic textbooks, instructional materials or technological equipment may result in prosecution of a Class B misdemeanor offense. This does not include staff development, teacher training, or instructional materials, such as maps or worksheets that convey information to students or contribute to the learning process.

In accordance with Board Policy DBD (Legal), an employee who exercises discretion in connection with contracts, purchases, payments, claims, or other pecuniary transactions shall not solicit, accept, or agree to accept any benefit from a person the employee knows is interested in or likely to become interested in any such transactions of the District, Penal Code (36.08(d). A conflict of interest is defined as any circumstance that could cast doubt on an employee’s ability to act with total objectivity with regard to the District’s interest. A person who wishes to conduct business with the District must file a questionnaire no later than seven days after the date the person begins contract discussions or negotiations with the District, or submits an application or response to a request for proposals or bids, correspondence, or another writing related to a potential agreement with the District. PURCHASING ETHICS Subverting the public purchasing process by directing purchases to certain favored vendors, or tampering with the competitive bidding process is a serious breach of the public trust and may impose criminal penalties. The competitive nature of the public purchasing arena and the expenditure of significant amounts of public funds require that ethical standards be incorporated into the foundation of all purchasing functions. Procurement personnel and other school district staff face the difficult task of developing good vendor relations and encouraging vendor competition while avoiding even the appearance of favoritism or other ethical misconduct. Know the purchasing laws-the penalties for breaking them are severe. Accepting gifts from vendors is allowed if the gift provides no real benefit and is generally valued at less than $50 (providing it is not cash or a negotiable item). Gifts may not be accepted as consideration for a decision, recommendation, votes, or other exercise of discretion-this is bribery, and is a second degree felony. Be sure to check state and district policy when you are in doubt. Ethics relating to conflicts of interest, financial interests in firms conducting business with the school district, kickbacks, gratuities and improper use of a position or confidential information are areas to be aware of potential problems if not handled according to the law.

Sales: An employee shall not use his or her position with the District to attempt to sell products or services. It is against district policy for an employee of the district to sell goods or services to WISD. Relatives of Employees ~ First Degree: Relatives in the first degree wishing to sell to the District need to disclose the relationship through the Conflict of Interest form. Sales/Procurement ~ Relatives or Employees: Close family member with any of the above interests: If a close relative of a local official has any of the above types of interest in a business entity. A local official is considered to have the same interest in a business entity that his close relatives have in that business entity. In this context, close relatives of an official would include persons who are related to the office within the first degree by consanguinity (blood) or affinity (marriage). Such relatives would include an official’s father, father-in-law, mother, mother-in-law, daughter, daughter-in-law, son, son-in-law and the spouse of the official.

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PRIVATE PURCHASES DELIVERED TO DISTRICT FACILITIES No employee may use the purchasing power of the Weatherford Independent School District to make private purchases, except where “employee discounts,” or other District managed programs are provided. In addition, employees should not have private purchases sent to the District to be paid for by the employee.

A. Such purchases may give citizens the erroneous impression that something dishonest is being perpetrated.

B. It may confuse vendors who believe they are conducting business with the District. C. It may evade sales tax, which is illegal.

VENDOR GIFTS AND RELATIONS

Gifts – District employees shall not solicit, accept, or agree to accept any gifts or benefits from a person conducting or intending to conduct business with the District or who have an interest in a federal grant award. School districts should also be aware of the disclosure requirements regarding federal conflict of interest regulations that prohibit an employee (and members of the employee’s immediate family) who is involved in administering, directing or authorizing federally funded transactions. Items that may be considered as gifts are:

Meals, Trips, Tickets for entertainment Gifts of value (aggregate economic value of $250 or more per officer or employee or Board member)

The prohibition of accepting gifts does not apply to accepting an unsolicited item with a value of less than $50, excluding cash (Penal Code 36.10). Financial Interest – District employees shall not participate directly or indirectly in procurement when the employee or the employee’s family member has a financial interest pertaining to the procurement. Personal Use – District employees shall not make any commitment to acquire goods or services in the name of the District for personal use or ownership. Equal Consideration – District employees shall grant all competitive suppliers equal consideration insofar as state and federal laws and District policy permit. This is especially important when evaluating bids and proposals. Relatives - No District employee with purchasing authority may authorize the purchase of anything from any person or from any firm that is controlled, owned, or operated by that employee or from a relative within the second degree by blood or marriage of the employee. District employees who violate this administrative directive shall be subject to disciplinary action, up to and including termination of employment with the district. Violations that exceed the federal Conflict of Interest thresholds shall be reported to the federal granting agency and/or pass-through entity by the grant manager.

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CHAPTER 4 INTERNAL CONTROLS

Texas Education Agency guidance states that “A district needs a strong control environment in which to perform the purchasing function”. These activities govern a strong and successful CONTROL ENVIRONMENT:

A comprehensive purchasing manual. Monitoring purchasing activities by all employees involved with the procurement of goods and

services. Training personnel on purchasing procedures. Establishes and maintains a reliable and financially accountable control environment for procuring

goods and services. Maintain effective controls over Federal awards to provide reasonable assurance that the district is

managing the award in compliance with Federal statutes, regulations, and terms and conditions of the Federal award.

PURCHASING MANUAL

The purchasing manual is a primary tool for establishing a strong control environment and must be adhered to by all employees of the District. The purchasing manual provides written procedures designed to detect and prevent the circumvention of statutes, regulations, and board policy applicable to purchasing. If a situation occurs which is not addressed in the purchasing manual, it should be brought to the attention of the Director of Purchasing to determine the proper course of action. If it is likely that this situation will reoccur, the proper procedures will be included in a revision to the purchasing manual.

MONITORING AND TRAINING

The following activities enhance the control environment and require MONITORING by those involved in procuring goods and services:

• Approval of purchase requisitions at the campus and departmental levels. The campus principal or department head should review for need and approve purchase requisitions before they are submitted to the centralized purchasing department for processing. If a purchase is grant funded, approval by the appropriate compliance officer is required. Refer to the Grants Manual.

• Approval of purchase orders. The Purchase Agent and or other designated personnel will review requisitions for compliance before approving purchase orders for issuance to vendors.

• Supervision of purchasing process. Vigilance in the supervision of the entire purchasing function on a daily basis is essential.

• Segregation of duties among Purchasing, Accounts Payable and Finance personnel. The Purchasing Department, Accounts Payable and Accounting and Finance Directors, along with the Assistant Superintendent of Business & Operations, and ultimately the Superintendent are responsible to ensure that duties among purchasing, accounts payable and finance personnel are properly segregated (to the degree possible) to provide a checks-and-balances environment.

• Maintenance of purchasing files and records. The purchasing staff should be trained and supervised so that purchasing files and records are complete and maintained in an orderly fashion for the period required by law.

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• Control over incoming merchandise. Receiving personnel (either centralized or decentralized) should be trained and monitored to ensure that the proper procedures are followed with incoming merchandise (i.e., the counting and inspection of merchandise received, and the completion of receiving reports).

• Verification of invoices with purchase orders and on-line receiving information. Although receiving personnel are responsible for the initial verification, accounts payable personnel verify that the invoice, the purchase order, and the on-line receiving information match before presenting the invoice for approval for payment.

• Verification of delivery. All campuses and/or departments are responsible for ensuring that the deliveries are in agreement with its original purchase order.

• Internal review of the purchasing processes. An internal review of the purchasing activities should be performed periodically. This review is usually conducted by the District to ensure that purchasing policies and procedures are being followed by district personnel.

• Training of district personnel. Formal training is conducted at least annually normally at the beginning of the school year. However, training and communication should be ongoing throughout the school year through revisions to the purchasing manual and emails/newsletters to a purchasing news group.

RISK ASSESSMENT AND MANAGEMENT There are numerous risks that WISD has factored into the procurement of goods and services.

The requirement to comply with state statutes, policies, legal interpretations, regulations and procedures. The complexity of these requirements demands not only knowledge of purchasing laws and standards but compliance in implementing a purchasing system that also meets user needs. The dynamic and diverse nature of the public education organization environment is extremely complex. School districts are multifaceted organizations with diverse functions. Although instruction is the heart of the organization, numerous other services – ranging from custodial services to nutrition services to tax collection – support the overall educational mission. These distinct organizational units need a procurement process that is responsive to their needs.

There exists a competition among vendors for school district business. This strong competition may create pressure on school district personnel for product selection, bid awards, and dispute resolution. Most school districts seek to foster both good vendor relations and strong competition but balance them with objective purchasing decisions.

There exists consistent oversight by multiple special interest groups. Various groups including those from the public, the media, state and federal agencies, and auditors scrutinize school district purchasing. Strict adherence to established guidelines and consistency in record keeping, documentation and execution of procedures assists the school district in withstanding this scrutiny.

There are many “gray” areas relating to purchasing methods and procedures. Complex and diverse needs create challenges for districts to determine the appropriate purchasing methods. Ever changing legislative, executive and judicial decisions at both the state and federal levels further complicate the process.

All purchases with federal grant funds shall also adhere to the EDGAR Procurement Standards along with other upcoming change in laws and regulations.

All purchasing violations are tracked and reported in the internal audits and subject to review by the supervisor’s and external auditors.

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To minimize risk assigned budget owners: Shall plan purchases for each budget year in order to maximize opportunities to use competitive

procurement options. Shall make sure purchases are procured according to district procedure (see decentralized

purchasing function.) Shall coordinate purchases with the Director of Purchasing for competitive procurement and to

select the best method of procurement that will meet the needs of the District. Shall process all requests for procurements that costs or aggregate to a cost of $50,000 or more

through the Purchasing Department for competitive procurement and Board approval. Shall only initiate and approve procurements that are within approved budget authority. Segregate key responsibilities and restrict access to systems and records by use passwords and

automated controls Refer to the Business Office Process Library for important information and user manuals and

procedures.

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CHAPTER 5 PROCUREMENT PROCESS OVERVIEW

The WISD Purchasing Department reviews and monitors the purchasing history of aggregate goods and services by commodity grouping categories for compliance with all applicable statutory and legal requirements, WISD Board Policy, best practices, and adherence to the ethical standards advocated by the Texas Association of School Business Officials. Purchasing collaborates with end-users once a category of goods and/or contracted services approach the $50,000 threshold whereby procurement is warranted. The purchasing process begins when the department/campus determines a need for goods or services and ends when that need is met. Purchasing Goods Schools and departments are encouraged to use vendors currently under contract with the District for all purchases. Vendors under an approved contract (Cooperative Contract or Local Contract) help expedite the procurement process. 1. Purchases from approved contracts up to $50,000 will require at a minimum a written quote, and the

contract number associated with the bid. 2. Purchases for approved contracts greater than $50,000 will require board approval. Contact the

purchasing department for purchases over $50,000. Open Market Purchases If the District does not have a current bid contract for the commodity or service needed, the following procedures apply.

1. Contact purchasing to determine if a purchase off contract is truly necessary and reasonable. The Purchasing Department will review the request and determine if by aggregate spend for the fiscal year for the good or service can be legally obtained through an open market vendor. The Asst. Supt of Business & Operations has the final authority over such Open Market purchase decisions. If approved you may proceed.

For purchases of personal property or services totaling less than $50,000 in the aggregate for the fiscal year, schools and departments will be allowed to purchase using the Best Value criteria for the individual transaction, with the following guidelines: A. For purchases up to $3,500, schools and departments must include a written quotation with the requisition.

It is recommended that at least two quotes are obtained to ensure the best value for the district. Seek assistance from the Purchasing Department to obtain lists of interested vendors.

B. Purchases $3,501 to $49,999, two written quotes are required. The requisition will not be processed until written documentation of the quotes is provided. It is recommended to seek assistance from the Purchasing Department in obtaining information on potential vendors. Does not apply to purchases with contracts or sole source.

C. For any purchases over $50,000, the Purchasing Department should be contacted so that the best value practices can be followed in the procurement process. The Purchasing Department can provide lists of potential vendors and identify any potential problems or pitfalls that might occur with the procurement. Contracts over $50,000 require board approval.

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Failure to follow these guidelines could result in a delay in processing your request. For assistance in this process, or obtaining quotes, please contact the Purchasing Department. Bids/Proposals 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 Purchasing Agent will prepare the Agenda Item for Board approval, and will submit the agenda item along with the bid tabulation summary provided by the Purchasing Department and any other supporting attachments noted in the Agenda Item to the ASBO and division head for final review. The ASBO will submit the approved Agenda Item and attachments to the Superintendent’s office. Written Bid/Proposal Specifications It is important for the requesting department or campus to write specifications that correctly fulfill their needs. Specifications are the basis by which vendors prepare their bids. Specifications should be functional describing performance and design. 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. Care should be taken not to intentionally or needlessly specify features or functions that may mislead a vendor or limit the purchase to one vendor. Departments are urged to contact purchasing when in need of assistance. 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

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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

AUDITING and PUBLIC RECORD REQUESTS Be advised that all documentation relating to procurement activities; including quotes, vendor submissions, justification for award, purchase records, and expenditures within WISD are:

♦ Subject to State audit ♦ Subject to WISD internal audit, and WISD contracted external audit ♦ Subject to The Public Information Act, Texas Government Code Chapter 552, and as such, may be

requested via an open records request Tax Exempt Status The District is a political subdivision of the State of Texas and as such is exempt from state sales tax under Chapter 20, Title 122A, Statutes of Texas. Items or services purchased for which tax exemption status is claimed must be used within the performance of the District’s business. It is a criminal offense to utilize this tax exempt status for any other purpose. Produce and Fuel There is an exception for produce and fuel that allows the District to use any method listed above or those in School Code, 44.034 for these purchases.

Cooperative Purchase Programs All items and services available through the Board approved cooperative have satisfied all procurement regulations for competitive procurement. These items or services do not require further bidding before being procured. District personnel shall not assume that pricing obtained from approved vendors necessarily means that this is the best value for the district; comparative pricing should be attained from multiple vendors to ensure the best value is obtained. The District has a current Inter-local agreement or membership with the following Co-Ops:

2. Department of Information Resources (DIR) 3. Educational Purchasing Cooperative of North Texas (EPCNT) 4. Texas Educational Technology Purchasing Consortium (TETPC) 5. Texas Comptroller of Public Accounts (TX-Smart Buy) 6. The Cooperative Purchasing Network (TCPN) 7. Region 10 Multi Purchasing CO-OP -commercial food and commodities 8. Multi Regional Purchasing Cooperative (MRPC) 9. National Cooperative Purchasing Alliance (NCPA) 10. Purchasing Association of Cooperative Entities (PACE) 11. The Texas Local Government Statewide Purchasing Cooperative (Buy-Board) 12. Region IV – Texas Cooperative Purchasing Network (TCPN) 13. Texas Multiple Award Schedule (TXMAS) 14. The Inter-local Purchasing System (TIPS) 15. US Communities 16. State Travel-Enterprise Rent A Car (TPASS)

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 exempted from the competitive purchasing process: Professional services as defined by law and professional services under common law. An additional exception applies to professional services as defined under Government Code, Section 2254.003. T Contracts for professional

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services are not procured through competitive bids. Rather such services are chosen through a process of selection involving the review of professional qualifications. (RFQ) Defined By Law- Accounting, Architecture, Landscape Architecture, Land Surveying, Medicine, Optometry, Professional Engineering, Real Estate Appraising, Professional Nursing Defined By Education Code- Attorneys, Fiscal Agents, Financial Consultants, Technology Consultants Defined by Common Law (District Determination) - Licensed Auditors, Licensed Speech Therapists, Licensed Specialist in School Psychology, Experts in Autism Spectrum Disorders, American Sign Language Interpreters, Certified bilingual interpreters, Transition Specialists, In-Home Training Specialists, Education Program Consulting, Bilingual Special Education Assessments, Educational Diagnosticians, School Psychologists, Greif Counseling, Drug Impairment and Behavior Recognition Training, Multi-culturalism, Physical Assessment Training, Teachers as Facilitators (TAF), Group Counseling, Counseling Strategies, Ethics, Child Abuse, Professional Development (Various Areas) Sole Source Exception (USE WITH CAUTION) As allowed under Education Code, 44.031, the District is allowed to purchase items available from a single source without complying with the competitive procurement provisions. Sole source items are defined as follows:

1. An item for which competition is precluded because of the existence of a patent, copyright, secret process, or monopoly;

2. A film, manuscript, or book; 3. A utility service, including electricity, gas, water (if available through a single source) or; 4. Captive replacement part of component for equipment.

These exceptions do not apply to main-frame data-processing equipment and peripheral attachments with a single-item purchase price of $15,000 or more. Vendors claiming sole source status will be asked to provide written and signed documentation stating the reason. For a sole source purchase the Purchasing Department will require: 1. A sole source letter signed by the president or authorized company official must be on file from the

manufacturer, developer or publisher of the product requested. Letters from distributors or sales representatives will not be accepted. Once an approved letter is on file, it will then be the determination by the Purchasing Director to waive the quotation or bid requirement.

2. A written statement of justification. The written statement is not a justification to purchase. The law does

not require that the decision to purchase products and services be justified. It is a justification of the need for something that is unique about the product or service that precludes competition. It is important to note that the price of a product is not acceptable justification for a sole source purchase. Because purchasing files are subject to the Open Records Act, the use of sole source purchase procedure is an overt act that must withstand critical scrutiny. The justification cannot be that competing products are not satisfactory. The justification statement is included on the Business Office process document library.

Emergency Purchases Emergency purchases, where school equipment is destroyed or severely damaged, may be authorized by the Superintendent and subsequently reported to the Board of Trustees.

Emergency Requisitions under $50,000: For requisition requirements that are under $50,000 and are deemed as an emergency situation within the guidelines of Education Code 44.031(h); TEA

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Financial Accountability System Resource Guide 3.2.5.7, the Director of Purchasing has authority to bypass the requirement of written quotations. District personnel shall use all due-diligence in the decision making process to select the appropriate vendor from approved resources. If an approved vendor is not available, selection shall be made based on those factors that are in the best interest of the district. For purchases or services after regular business hours or on weekends and holidays, an “after the fact” purchase order must be processed on the next business day. Emergency Procedures to approve requisitions $50,000 and above using an unapproved vendor: At the time of the event, the Superintendent shall contact the Board of Trustees to determine if procedures in Education Code 44.031 will cause delay and substantially impair the conduct of classes or essential school activities and give authority to district personnel to make purchases by methods other than those stated in Education Code 44.031 and the Purchasing Manual. Reference: CH (LEGAL)-Emergency Damage or Destruction.

School Bus Purchases Any contract for the purchase or lease of one or more school buses must be submitted to competitive bidding when the contract is valued at $20,000 or more. Contract Time Period WISD staff may only use funds appropriated by the Board in the approved budgets. Therefore the staff does not have the authority to commit funds in future budgets. While contracts may be issued for any time period as agreed to by the District and the vendor, if the contract extends beyond the end of the current fiscal year, it must contain a cancellation clause as defined by Local Government Code, Chapter 271.903. This clause permits the district to cancel, without penalty, any contract for which the Board does not allocate funding in the sequential year’s budget. If a competitive procurement process is utilized such as a Request for Bid (RFB) or Request for Proposal (RFP) the contract time period must be clearly defined. Invoice Dates Invoices shall not reflect a billing date earlier than the date printed on the purchase order. Pre-Paid Purchases No pre-payment for equipment or services will be allowed. Generally, payment to a vendor is made when goods have been received or services performed. Advance payments are usually not allowed except for certain purchases with extenuating circumstances. In either case, the proper level of management approval must be obtained before the District is obligated in any way. Competitive Procurement The following criteria are used by WISD to evaluate the overall “best value‟ when awarding a bid:

1. The purchase price; 2. The reputation of the vendor and of the vendor’s goods or services; 3. The quality of the vendor’s goods or services; 4. The extent to which the goods or services meet the district’s needs; 5. The vendor’s past relationship with the district; 6. The impact on the ability of the district to comply with the laws and rules relating to historically

under-utilized businesses; 7. The total long-term cost to the district to acquire the vendor’s goods and services; & 8. Any other relevant factor specifically listed in the bid.

This criteria is required under the Texas Education Code §44.031.

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Schools and Departments are encouraged to utilize planning activities for anticipated needs. Lead times vary for different purchasing methods so the administrator should consult with the Purchasing department to determine the proper purchasing method. Items requiring Board action must be formally placed on the agenda. Principals and department heads are responsible for the funds under their control. Requests for additional funding or transfers from one budget category to another must be directed to the Director of Finance. Computers-Hardware and Software Purchases Requests for computers and related equipment, such as software and maintenance must be coordinated and approved by the Technology Department regardless of funds used. Prior to preparing a requisition, a department should contact the Technology Department to discuss their needs. Once their needs are identified, a requisition shall be prepared and submitted for approval. For technology items over $500 you must use object code 6395 for technology approval. Cancellation of a Purchase Order In the event it is necessary to cancel a Purchase Order, the school or department must advise the Accounts Payable Department. AP will close the purchase order and liquidate the funds encumbered. The school or department placing the order must also notify the vendor of the cancellation of the purchase order. Open Purchase Orders – When Approved NOTE: Do not use open purchase orders when you know the quantity and unit price per item to be purchased or one time purchases. An open purchase order is issued to an approved vendor authorizing purchases from that vendor over a specified period of time. Open purchase orders are valuable, because they allow the purchase of items quickly. Both paperwork and related processing costs usually are reduced by open purchase orders. However, open purchase orders must follow certain criteria: approved vendors, limitation on the maximum amount for purchases, a specific time frame for purchases covered by the open purchase order (usually one month), and identification of authorized purchasers. Open purchase orders are issued so that supplies, materials, or services are available "as needed" by end users. For example, open purchase orders may be requested on a regular basis by the Food Service department for perishable items. These purchase orders eliminate numerous individual purchase orders for small dollar-value items. Open purchase orders are limited to the following departments:

• Food Service • Maintenance/Custodial • Transportation

Certain controls shall be in place for the use of open purchase orders: • The number of vendors to whom open purchase orders are issued is limited. • Those who can make purchases under open purchase orders shall be clearly designated. • Dollar limits shall be carefully observed.

Personal Reimbursement Personal reimbursements will not be allowed except in extreme situations when the Purchasing Director has been contacted in advance and no other solution is workable. Once a personal reimbursement has been approved, original receipts must be submitted as support for the requisition. Gift Cards WISD does not permit the use or purchase of gift cards with local, state, or federal funds, unless specifically authorized by a grant program.

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Insurance Requirements State law requires that any contractor entering a building or construction contract must certify in writing that he provides worker’s compensation insurance coverage for each employee of the contractor employed on the public project. This extends to any subcontractors. All certificates must be on file at the District before work commences. Additionally, general liability and automobile coverage is required for any contractor performing services on District property. Insurance certificates must list Weatherford ISD as an additional insured and should be on file at the District before work commences. Failure to produce proof of satisfactory insurance coverage will be a consideration for non-award or contract termination. Delayed Orders When a Purchase Order remains open and unpaid for at least thirty days, the department involved is expected to take action with the vendor to obtain delivery. The Purchasing Department can assist in dealing with vendors where there are delivery problems, particularly involving merchandise purchased on bids. Every effort needs to be made on the part of all schools and department to do their part in promptly closing out purchase orders once merchandise is received or it is determined that, for some reason, the PO should be canceled or closed. Bus Lease Agreement A bus lease agreement is mandatory for all school-related trips utilizing charter buses/vehicles. This agreement should be completed in advance and submitted with the requisition. Contact the Purchasing Department for a list of approved bus companies with ample time to make travel arrangements with the charter bus company. All contracts or agreements must only be signed by the ASBO or the ASBO’s designee. Fuel Card usage procedures: 1. Originate requisition for estimated fuel usage and fuel card. The card will only be issued on the last business

day before the trip and returned the next business morning after the field trip with all original receipts. 2. A fuel card can only be used to purchase fuel for District owned vehicles. The District will investigate any/all

questionable purchases made with the District fuel card and will pursue criminal charges against any person that is found misusing the fuel card for any purchases. If the District determines misuse of the fuel card by any person, administrative action may be taken against the individual including immediate termination of employment with the District.

3. All original fuel card receipts must be signed by the user and turned in with the trip paperwork at the same time the fuel card is returned to the Business Office. The District will hold the user accountable for the fuel bill if receipts are not turned in.

Through the State Comptroller of Public Accounts all employees may rent vehicles through Enterprise Rent-A-Car at discounted rates. These rental vehicles may be the most cost effective option when traveling. A requisition must be created reflecting the necessary fees owed to Enterprise. Fund Raising/Catalogue Sales Approval for the fund raising activity from the Principal must be obtained prior to purchase requisition. No goods or services are to be ordered without an approved purchase order prior to placing the order. Anyone creating or authorizing such a commitment prior to securing an approved purchase order will be held personally liable for payment of such agreement and/or may be liable to prosecution under the Texas Penal Code Chapter 39 Abuse of Office, Section 39.01.

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Equipment Warranty, Maintenance and Repair For repair of equipment that has been received and paid, a Department has one of the following options: 1. If the equipment is under warranty, contact the vendor it was purchased through. If the product was

purchased through a District bid, contact Purchasing. Warranties start the day the equipment is received, even if the item is not put to use immediately.

2. If the equipment is no longer under warranty, contact the Maintenance Department for repair assistance. 3. For any items covered by outside maintenance contracts contact the appropriate service company holding

the maintenance agreement and simultaneously generate a requisition for an estimation of the cost of repairs or the maximum amount to spend on repairs.

4. For all computer equipment, contact the Technology Department. Disposal of District Assets The District is committed to ensuring that all physical assets are used in the most effective and efficient manner. When such resources become surplus/obsolete, the District will dispose of these assets through a public, online auction. Purchasing will establish a schedule for surplus collection. All supplies and equipment which are deemed to be surplus and no longer useable to the District are recommended to the School Board for sale via an Online Auction. All proceeds from the sale will be deposited to the District’s general fund. Fixed Assets/Capital Outlay All fixed assets should be tagged with an identification number. At no time should an identification tag be removed from District equipment. Fixed assets are to remain at the campus or department, which initiated the purchase. A transfer can be made if purchasing is first notified. All equipment transfers shall be initiated with a Fixed Assets Transfer Form. Once the transfer has taken place the form will be forwarded to the Director of Purchasing to complete the transfer. District equipment, non-fixed assets, coded to 6395, (technology related items) and 6396 (furniture and instruments) items, as well as fixed assets, 66xx, shall be tracked and inventoried by the campus principal. The principal shall ensure that equipment is not removed from the premises for use at home, unless a job-related activity at home is authorized. Before a fixed asset is made available for a surplus sale, the Purchasing Department may require specific documentation for technology, portable buildings, and vehicle items. This written information is to be attached to the Fixed Asset Transfer Forms. The transfer form should be signed by the appropriate administrators.

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CHAPTER 6 PURCHASING PROCESS- FEDERAL FUNDS

Procurement Standards/Expenditure of Grant Funds Expenditures of grant funds shall be processed through the same purchasing, accounting, and payroll procedures governing the expenditure of non‐grant funds. However, additional requirements shall be in force as noted below to ensure full compliance with federal cost principles. For all purchases with federal grant funds, the district shall comply with the federal regulations, EDGAR related to the purchasing of goods and services. [2 CFR 200.317‐200.326] All relevant statutes, regulations, board policies and procedures shall be made available to all purchasing stakeholders, as appropriate in a paper or electronic format. The district shall implement the following strategies to maximize federal grant funds:

Consolidation of purchases to obtain volume pricing, as appropriate Evaluate the cost efficiencies of leases versus purchases of equipment Utilize cooperative purchasing agreements, as appropriate, to obtain volume pricing Utilize federal or state excess/surplus property supplies or equipment in lieu of purchasing new

supplies or equipment, as appropriate. The District encourages staff to use Federal excess and surplus property in lieu of purchasing new equipment and property whenever such use is feasible and reduces project costs. The District’s ASBO receives notifications of such surplus items and forwards such information on to potentially interested department administrators for consideration. Items previously purchased include vehicles and trailers. (EDGAR §200.318) The District must award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. Prior to contract award, vendors will be investigated to see if any suspension or debarment is in place that would preclude them from receiving a federally funded contract. (EDGAR §200.318 and §200.212-3) Certification Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion The district must not award a contract to a vendor which is debarred or suspended or is otherwise excluded from or ineligible for participation in federal grant award programs. The Purchasing department shall verify the eligibility of each vendor with the Representations and Certifications form before awarding a bid and/or issuing a purchase order. All vendors on the approved vendor list have completed the form. The Purchasing department shall monitor ongoing contracts to verify the contractor’s compliance with the debarment, suspension, ineligibility and voluntary exclusion provisions. In the event that a vendor is suspended or debarred during a contract, the district shall continue the contract in force until the contract lapses. The contract term shall not include any extensions to the original term of the contract.

The Procurement Department shall be responsible for selecting and awarding contracts to vendors that are qualified to provide the goods and/or services for purchase with federal funds. The vendor selection process shall ensure that the district does not restrict competition among qualified vendors. The District shall maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. (EDGAR §200.318)

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All procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of EDGAR §200.319. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements. The district shall not restrict vendor competition by requiring any of the following as selection criteria:

Unreasonable requirements, such as excessive experience or bonding, brand name products or geographic preferences that would unduly restrict competition among qualified vendors.

Arbitrary restrictions that are not essential to the bid/proposal specifications The District shall develop written bid/proposal specifications that are provided to every qualified vendor to ensure consistency in the procurement process. At no time shall the district allow a specific vendor to develop the bid/proposal specifications as this may provide a barrier to open, competition among the qualified vendors. The bid/proposal documents must include guidance to vendors regarding the following:

Time, date and place of bid/proposal opening Anticipated award date, as applicable Written specifications and addendums, as appropriate List of all bid/proposal required documents such as CIQ, Felony Conviction Notice, etc. Bid/Proposal Sheet Bid/Proposal evaluation criteria, including the weights, as applicable

Procurement Methods The District shall use one of the procurement methods allowed by federal regulations to procure goods and services with federal grant funds. In addition, the district shall comply with state purchasing laws and local Board Policy, CH (LEGAL and LOCAL) Purchasing and Acquisition. The procurement method shall be determined based on the type of goods or services to be purchased with federal grant funds. The Business Services Director shall be responsible for selecting the appropriate procurement method for each procurement. The District utilizes a purchase order and encumbrance system to manage the expenditure of all federal grant funds. In addition to purchase orders, the District also utilizes credit cards, direct payments, etc. as authorized in the District’s operating procedures. Methods of Procurement (Federal Funds) (EDGAR §200.320) The non‐Federal entity must use one of the following methods of procurement.

Procurement by micro‐purchases (less than $3,500) (§200.67) Procurement by small purchase procedures (less than $150,000) Procurement by sealed bids Procurement by competitive proposals Procurement by non‐competitive proposals (See Page 19)

*It is important to remember when a conflict between State and Federal purchasing methods exists, the District shall adhere to the more restrictive of the purchasing methods. Micro-purchase procurement (less than $3,500) – EDGAR Regulation The Procurement by Micro-purchase may be the most frequently used method due to the frequent

purchase of goods or services that are less than $3,500, as defined in CFR 200.67. The district shall purchase goods and services under this method from among qualified vendors, but will not competitively procure the micro-purchases, unless in the aggregate in a 12-month period (fiscal year), the district exceeds the state law thresholds, or the district’s threshold in Board Policy CH Legal or local, which is currently the same. The Grant Managers shall distribute micro-purchases equitably among qualified vendors.

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Small purchase procurement (up to $150,000) - EDGAR Regulation The Procurement by Small Purchase Procedures shall be used by the district when the purchase of

goods or services do not exceed $150,000, the Simplified Acquisition Threshold (CFR 200.88). But, at $150,000 we also must follow the federal rules that require cost or price analysis in conjunction to state rules. The purchasing department shall require written, emailed or faxed price/rate quotations from at least two (2) qualified vendors off contract for all small purchases, i.e. purchases that do not exceed $50,000, but are greater than $3,500. The district shall strive to obtain small purchases from qualified vendors under a Cooperative Purchasing Program.

Sealed Bid Procedures The Procurement by Sealed Bids method shall be used by the district when the purchase of goods or services exceed $50,000 if the acquisition of the goods or services lends itself to a fixed price contract and the selection of the successful bidder can be made principally on the basis of price. The district shall comply with the sealed bid requirements, as defined by the EDGAR, as noted below:

Bids must be solicited from an adequate number of bidders, but no less than two (2) bidders Bids must be publicly advertised and bidders shall be provided an adequate amount of time to prepare

and submit their bid. The district shall publicly advertise all bids in accordance with state law, i.e. at least two (2) ٭

times in two separate weeks The district shall provide no less than ten (10) days for bidders to prepare and submit their bids ٭

Bids must contain detailed specifications to ensure that bidders have a clear understanding of the goods or services that the district is seeking to purchase

Bids must specify the time, date and district location where bids will be opened publicly Bids must be awarded based on a fixed price contract to the lowest responsive and responsible bidder.

The district shall consider discounts, transportation costs and life cycle costs only if these factors were included in the bid specifications. The district will not consider payment discounts because the district may not be able to take advantage of payment discounts.

Bids will be evaluated, ranked and a recommendation for award made to the School Board at the regularly scheduled board meeting.

If no bidder is recommended, the district shall reject all bids and evaluate whether to modify ٭the bid specifications to initiate a new bid process

The district shall notify the successful bidder and process the contract documents and/or purchase orders, as appropriate

The district shall notify all of the unsuccessful bidders to ensure that qualified bidders are encouraged to submit bids during future bid opportunities

Competitive Proposal Procedures The Procurement by Competitive Proposal method shall be used by the district when the acquisition of the goods or services exceeds $50,000 and does not lend itself to a fixed price contract. The district shall comply with the sealed bid requirements, as defined by the EDGAR, as noted below:

Requests for Proposals (RFP) must be publicly advertised The RFP shall identify the evaluation factors and their weight in awarding the proposal Proposals shall be solicited from an adequate number of bidders, but no less than two (2) qualified

vendors Proposals shall be evaluated, ranked and a recommendation for award made to the School Board at

the regularly scheduled board meeting The district shall develop an instrument to evaluate each proposal and rank the proposals based on

the evaluation scores The district shall evaluate each proposal by committee or no less than two (2) district staff with

knowledge of the RFP specifications

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In accordance with state law, the vendor who is ranked highest as providing the “proposal most advantageous to the district” shall be notified of the potential award:

The district may negotiate with the vendor only as it relates to potential cost savings If the district and vendor ceases to negotiate, the district shall notify the vendor in writing before starting

to negotiate with the 2nd highest ranked vendor. Noncompetitive Proposal Procedures The Procurement by Noncompetitive Proposal method shall be used by the district when the purchase of goods or services is from a “sole source vendor”. Procurement by noncompetitive proposals is procurement through solicitation of a proposal from only one source and may be used ONLY when one or more of the following circumstances apply: A sole source vendor is defined as a vendor that meets the following requirements:

1. The items is available only from a single source; The district shall acquire and maintain a copy of a vendor’s sole source letter which specifies the ٭

statutory or other reason for its sole source status. 2. The public emergency for the requirement will not permit a delay resulting from competitive solicitation

process; The district shall declare a public exigency or emergency prior to making such a purchase of ٭

goods or services under this method

3. The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to written request from the district; or

4. After soliciting a number of sources, competition is determined inadequate. The district shall determine that competition is inadequate if after two (2) solicitations of bids ٭

and/or proposal, only one vendor is responsive to the solicitations The Director of Purchasing shall approved all sole source justification letters. To be a bona fide exemption to Texas Education Code 44.031(a) as a sole-source purchase, there must be no other like items available for purchase that would serve the same purpose or function and there must be only one source for the product because of exclusive distribution or marketing rights. The fact that a particular item is covered by a patent or copyright is but one factor in determining if the purchase falls under the sole-source exemption to the purchasing requirements.

Other Procurement Guidelines The District must take all necessary affirmative steps to assure that minority businesses, women's business enterprises, and labor surplus area firms are used when possible. (EDGAR §200.321) The District must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. (EDGAR §200.322) The Assistant Superintendent of Business & Operations shall be responsible for ensuring compliance with all federal, state and local procurement requirements and for ensuring that the district maintains an up‐to‐date procurement history to include, but not limited to:

List of all procurements by type Advertisement date(s) of the procurement Release date of the procurement specifications Selection criteria for vendors Opening date of the procurement List of vendors submitting a proposal/bid

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Selection of Vendor Date of contract award Begin date of contract End date of contract

The procurement history records and other procurement records shall be retained in accordance with the federal, state and/or local retention periods, whichever is greater. The procurement records shall be made available to the federal granting agency, pass‐through entity (TEA), and auditors, as appropriate. Contract cost and price- COST PRICE ANALYSIS The District must perform a cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold ($150,000 including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, the District must make independent estimates before receiving bids or proposals. (EDGAR §200.323) Secondly, all purchases that exceed this threshold shall comply with federal bonding requirements §200.325 such as:

Bid guarantee from each bidder of five percent (5%) of the contract price Performance bond (construction projects) on the part of contractor for 100% of the contract price Payment bond (construction projects) on the part of contractor for 100% of the contract price.

The ASBO shall be responsible to ensure that all purchases above this threshold are guaranteed with the appropriate bid guarantee, performance bond and payment bond. All contracts for services and/or goods purchased with federal grant funds shall be subjected to the same review and approval process as all other district contracts. The district shall retain all records related to the procurement of goods and services in accordance with federal, state and local requirements. In addition, all procurement records shall be available for inspection and/or audit during the life of the records. The district shall maintain all procurement records for seven (7) years in accordance with the district’s Local Records Retention Schedule. All technical aspects of procurements will be made available upon request to Federal awarding or pass-through agencies for review in accordance with §200.324 The District must adhere to Appendix II to Part 200—Contract Provisions under Federal Awards as per EDGAR §200.326. In addition to other provisions required by the Federal agency or non‐Federal entity, all contracts made by the District under the Federal award must contain provisions covering the following, as applicable:

Contracts for more than the simplified acquisition threshold currently set at $150,000, which is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate.

Approval will be contingent upon federal award provisions, proper account code entry, alignment with grant period, start and end dates, professional service costs in accordance with CFR 200.459, and invoicing guidelines. Contracts utilizing federal funds may require the use an Addendum Contract - Provisions for Contracts under Federal Awards, which includes additional details. Federal requirements for all contracts under federal awards may also include the following, as indicated below:

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Contract over $10,000, must address termination for cause and for convenience by the District including the manner by which it will be effected and the basis for settlement.

Equal Employment Opportunity clause. Davis‐Bacon Act clause for construction contracts, including compliance with prevailing wages. The

District must place a copy of the current prevailing wage determination is used by the Department of Labor with each solicitation.

Contract Work Hours and Safety Standards Act clause related to the computation of wages of every mechanic and laborer on the basis of a standard work week of 40 hours.

Rights to Inventions Made under a Contract or Agreement clause if the federal award meets the definition of “funding agreement.”

Clean Air Act and Federal Water Pollution Contract Act clauses if the contract is in excess of $150,000.

Debarment and Suspension clause which prohibits awarding a contract to a contractor who has been debarred, suspended or otherwise excluded from federal awards.

Byrd Anti‐Lobbying Amendment clause which applies to contractors that apply or bid for an award exceeding $100,000 who must file the required certification.

Procurement of recovered materials (200.322). Purchasing Efficiency Strategies All purchases with federal grant purchases shall be in accordance with the federal regulations, specifically CFR 200.318. All purchases shall be purchased from a variety of qualified vendors with the ability to perform successfully under the terms and conditions of a proposed procurement. The district shall strive to avoid acquisition of unnecessary or duplicative items. The district shall implement the following strategies to maximize federal grant funds:

Consolidation of purchases to obtain volume pricing, as appropriate Evaluate the cost efficiencies of leases versus purchases of equipment Utilize cooperative purchasing agreements, as appropriate, to obtain volume pricing Utilize federal or state excess/surplus property supplies or equipment in lieu of purchasing new supplies or equipment, as appropriate Utilize value‐engineering in construction projects to seek cost reductions Develop vendor selection criteria to select the best vendor Develop a tracking system of all informal and formal procurements Avoid “time and materials” contracts if other alternatives exist Monitor vendor performance to ensure that the vendor to ensure that the vendor provides the services and/or goods, as appropriate Ensure that all contract and vendor disputes are resolved in the most advantageous manner Minimize the risk of jurisdictional issues by ensuring that all contracts would be litigated in a court

within the county, city and/or state, as appropriate The district shall complete a review of the procurement system on at least an annual basis to self‐certify that the procurement system is efficient and effective. The Business Services Director shall oversee the completion of the self‐certification. The results of the certification shall be distributed to all grant management staff. If deficiencies are noted, the Business Services Director shall develop a Corrective Action Plan to remedy the deficiencies, as appropriate. Conflict of Interest The Superintendent shall execute an Organizational Conflict of Interest document to disclose if any conflicts exist in the application, receipt of, or expenditure of federal grant funds.

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The Grant Manager, ASBO, and any other person directly involved in the evaluation process shall each execute a Conflict of Interest Form to disclose a conflict of interest, as appropriate, related to the awarding of a contract or substantial expenditures with federal grant funds. Substantial expenditures shall be defined as a purchase in excess of $50,000. No employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest. In addition, no employee, officer or agent of the district may neither solicit nor accept gratuities, favors or anything of monetary value from contractors or parties to subcontractors. All employees shall comply with the Educators’ Code of Ethics, see Policy DH (Exhibit) Employee Standard of Conduct. Violators of the Code of Ethics shall be subject to disciplinary action, including but not limited to, termination of employment with the district. Vendor Competition The Procurement Department shall be responsible for selecting and awarding contracts to vendors that are qualified to provide the goods and/or services to be purchased with federal grant funds. The vendor selection process shall ensure that the district does not restrict competition among qualified vendors.

Vendor Selection Criteria The district has selected vendor qualification criteria that includes, but is not limited to, the following:

the purchase price; the reputation of the vendor and of the vendor's goods or services; the quality of the vendor's goods or services; the extent to which the goods or services meet the district's needs; the vendor's past relationship with the district; the impact on the ability of the district to comply with laws and rules relating to historically underutilized businesses; the total long‐term cost to the district to acquire the vendor's goods or services; for a contract for goods and services, other than 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; and ٭ .Any other relevant factor specifically listed in the request for bids or proposals ٭

Construction contracts will be evaluated differently as there are Government Code guidelines that govern the evaluation of construction contracts. Government Code Sec. 2269.055 states that in determining the award of a contract under this chapter, the governmental entity may consider:

the price; the offeror's experience and reputation; the quality of the offeror's goods or services; the impact on the ability of the governmental entity to comply with rules relating to historically

underutilized businesses; the offeror's safety record; the offeror's proposed personnel; whether the offeror's financial capability is appropriate to the size and scope of the project; and Any other relevant factor specifically listed in the request for bids, proposals, or qualifications.

In determining the award of a contract under this chapter, the governmental entity shall:

consider and apply any existing laws, including any criteria, related to historically underutilized businesses; and

Consider and apply any existing laws, rules, or applicable municipal charters, including laws applicable to local governments, related to the use of women, minority, small, or disadvantaged businesses.

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A vendor database shall be maintained by the Procurement Department in the District’s Finance system (SKYWARD). All vendors shall complete all appropriate and required vendor forms as required by federal or state regulations and the district. The District requires that every vendor have the following documents on file:

Form W‐9 Conflict of Interest Questionnaire Felony Conviction Notice/Representations and Certifications Certification regarding Suspension/Debarment Fingerprinting (SB9) certifications (if working directly with students)

Property Standards The district shall safeguard all property (assets and inventory) purchased with federal grant funds under the same guidelines as property purchased with local funds. Additional insurance for property purchased with federal grant funds shall be acquired if specifically required by a federal grant award. The ASBO shall oversee the acquisition of insurance for all federally funded property. Real Property The district has not and will not use federal grant funds to purchase real property. Equipment and Supplies The district shall use federal grant funds to purchase equipment and supplies. The district shall not use federal grant funds to purchase intangible property. Title to equipment and supplies acquired under a federal award will vest upon acquisition in the non‐Federal entity. The federally‐funded equipment shall be used only for the authorized purposes of the project as long as needed and not encumbered without approval from the Federal awarding agency. When no longer needed for the original program, the equipment may be used in the following order of priority: Activities under a Federal award from the original funding agency Activities under a Federal award from another Federal agency During the time of the grant funded program, the equipment is available for use to other Federal grant funded programs as long as it does not interfere with the program that acquired the funds. The district shall not use the federally‐funded equipment to generate program income. The federally funded supplies shall be used only for the authorized purposes. Equipment means tangible personal property (including information technology systems, general purpose equipment, computing devices) having a useful life of more than one year and a per‐unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non‐Federal entity for financial statement purposes, or $5,000. (CFR 200.33) Supplies means all tangible personal property other than those described in §200.33 Equipment. A computing device is a supply if the acquisition cost is less than the lesser of the capitalization level established by the non‐Federal entity for financial statement purposes or $5,000, regardless of the length of its useful life. (CFR 200.94) Capitalization Policy and Definitions The district shall utilize the same capitalization policy for non‐grant and grant‐funded asset purchases. GAAP requires certain fixed assets to be capitalized for financial reporting purposes. A capitalized asset is a fixed asset that has a unit cost equal to or greater than the capitalization threshold established for that asset type. This threshold is $5,000 per unit cost as under CFR 200.12 Acquisition Cost Acquisition cost means the cost of the asset including the cost to ready the asset for its intended use. Acquisition cost for equipment, for example, means the net invoice price of the equipment, including the cost

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of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired. Acquisition costs for software includes those development costs capitalized in accordance with generally accepted accounting principles (GAAP). Ancillary charges, such as taxes, duty, and protective in transit insurance, freight, and installation may be included in or excluded from the acquisition cost in accordance with the non‐Federal entity's regular accounting practices. (CFR 200.2) The district shall utilize the invoice cost, and all related costs, to record the cost of the equipment on the asset management system. The cost in the asset management system will be reconciled to the general ledger monthly. Identifying and Tracking Federally‐Funded Assets Items purchased through state or federal grant awards will be reviewed and approved through the purchase order process by the grant manager. Some items may require prior approval by the federal granting authority or pass‐through agency. The approved grant application and program specific guidelines will be points of reference for determining an allowable asset. If an asset item is questionable as to allowability, written approval from the funder is required before requisitioning the asset. Equipment Maintenance All federally‐funded assets shall be maintained in an operable state. If repairs are necessary, the district may pay for the repairs of the federally‐funded assets with federal grant funds, unless expressly restricted by the granting agency. The district fixed asset procedures shall include an annual inventory (or more frequently if required by a granting agency) of all assets and reconciliation of the inventory reports. [Note. Federal requirements CFR 200.313 requires an inventory at least once every two years.] The district’s annual inventory of assets shall be conducted by the Accounting department each fiscal year. Condition of the property will be noted during the inventory. Lost, damaged, or stolen assets shall be recorded on the asset management system. A copy of the property loss report and police report will be attached to the Inventory Transfer and Removal Record form. The form will be used for updates to the asset management system. During the life of the asset, the district shall ensure that all assets purchased with federal grant funds are insured against loss. The costs to insure and maintain (repair) assets purchased with federal grant funds are generally allowable costs, unless specifically prohibited by a granting agency. Disposal of Equipment 2 CFR §200.313(e) When it is determined that original or replacement equipment acquired under a federal award is no longer needed for the original project or program or for other activities currently or previously supported by a federal awarding agency will contact the awarding agency (or pass-through for a state-administered grant) for disposition instructions. All disposition of equipment and surplus supplies require approval by TEA, regardless of the dollar amount of the current fair market value. The LEA will use the required TEA disposition form, available on the TEA website, to seek disposition approval prior to the actual disposition of the equipment/supplies. Reasons for removal may include that the equipment is no longer operable, was destroyed, was stolen, or is no longer needed. Generally, disposition of equipment is dependent on its fair market value (FMV) at the time of disposition. If the item has a current FMV of $5,000 or less, it may be retained, sold, or otherwise disposed of with no further obligation to the federal awarding agency, after receiving approval by TEA. If the item has a current FMV of more than $5,000, the federal awarding agency is entitled to the federal share of the current market value or sales proceeds. If acquiring replacement equipment, the LEA may use the equipment to be replaced as a trade-in or sell the property and use the proceeds to offset the cost of the replacement property.

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CHAPTER 7 COMPETIVE PROCUREMENT

When purchases are made in the aggregate on behalf of the District totaling more than $50,000 during a 12 month period (WISD fiscal Year 9/1-8/31) per procurement category/commodity, a competitive bid, competitive sealed proposal (CSP), or request for proposal (RFP) is initiated through the Procurement Department. State Law requires that aggregate purchases (an accumulation of purchases) be grouped into categories.

.Examples of categories are Books, Office Supplies, Art Supplies, etc ٭ Per State Law, any accumulation of purchases within each category of $50,000 or more must be ٭

competitively bid. o When an unanticipated accumulation of purchases nears, or exceeds $50,000 per category, a

competitive bid must be put in place for all subsequent purchases to satisfy State Law. The Weatherford ISD Purchasing Department issues numerous bids, competitive sealed proposals (CSPs) and requests for proposals (RFPs), to satisfy State Law requirements relating to bidding thresholds. It is important to note that certain vendors responding to Weatherford ISD bids and RFPs are “awarded” specific items and/or catalog discount contracts for items within these specific categories. It is for this reason that only awarded vendors can be utilized when purchasing items within these specific categories. Once a bid has been awarded, non-awarded vendors wishing to offer products and services within these bid categories must participate in the Weatherford ISD bid process at the next bid opportunity. WISD has established bids for several purchasing categories such as;

Administrative and Instructional Contracted Services Awards /Trophy’s/Promotional Items Athletic/PE Supplies and Equipment

Catering and Groceries Apparel, T-shirts and Spirit Items General Retail Merchandise

Maintenance and Facilities (All Sub-Categories) Furniture – Classroom, Cafeteria, Library, Lounge Furniture, Office Instructional Supplies (All Sub-Categories; Including Special Education, Fine Arts, CTE) Library Books Office Equipment & Supplies Online Curriculum and Subscriptions Printing Services Technology (All Sub-Categories) Waste Management

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A. Purchasing Thresholds When preparing a requisition, the following requirements for the purchase & purchase order must be followed:

WISD PURCHASING LEVELS AND REQUIREMENTS 2016-2017 Purchase Commitment Amount Support Required

Purchases with State and Local Funds For purchases Less than $10,000.00 Coop or WISD Awarded Vendor - Bid Contract noted on

PO 1 Quote attached to the requisition Purchaser uses purchasing criteria and judgment to determine best value for the District. Quotes are encouraged

No Contract/Bid/Open Market 2 Quotes - attached to the requisition

For purchases of $10,000.00 to $49,999.99 Co-Op or WISD Awarded Vendor -1 Quote attached to the requisition 2 vendor quotes are recommended from approved vendors, however only 1 is required.

For purchases over $50,000.00 Competitive Procurement/Texas (Education Code 44.031)

CSP/RFP/Co-Op Board Approval and Agenda Item

SOLE SOURCE PURCHASE $50,000.00 and over (Below $50,000 no Agenda Item)

1 QUOTE Board Approval and Agenda Item Sole Source Affidavit and Justification

Purchases with Federal Grants For purchases Less than $3,500.00 (Micro-purchase/Fed Funds) 200.320a

Coop or WISD Awarded Vendor – 1 Quote attached to the requisition Purchaser uses purchasing criteria and judgment to determine best value for the District. Quotes are encouraged

For purchases of $3,500.00 to $49,999.99 (Small purchase/Fed Funds)

Co-Op or WISD Awarded Vendor -1 Quote 2 vendor quotes are recommended from approved vendors, however only 1 is required. Attach quotes to requisition.

No Contract/Bid/Open Market 2 Quotes – attached to the requisition

For purchases over $50,000.00 (Small purchase/Fed Funds) Competitive Procurement/Texas

CSP/RFP/Co-Op under Education Code 44.031 Board Approval and Agenda Item

For purchases over $150,000.00 Competitive Procurement/Texas Single Acquisition Threshold/Fed

CSP/RFP/Co-Op Board Approval and Agenda Item under Education Code 44.031

SOLE SOURCE PURCHASE $50,000.00 and over (Below $50,000 no Agenda Item)

Board Approval and Agenda Item Sole Source Affidavit and Justification

Note: Based upon a high annual expenditure for the district, the majority of items being purchased will be part of a proposal, bid or purchasing cooperative.

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Purchasing Methods: The Assistant Superintendent of Business & Operations (or the Superintendent) shall determine the

appropriate purchasing method for each type of purchase as noted below: All purchases of supplies, materials and equipment that, in the aggregate, are less than $50,000 ٭

in a fiscal year, shall be made by selecting the lowest practical prices from the most qualified vendors.

Purchases of supplies, materials and equipment that, in the aggregate, are more than $50,000 in ٭a fiscal year, shall be made by one of the procurement methods allowed by state law and/or federal regulations, as appropriate based on the source of funds.

:The priority order of competitive procurement methods for the district shall be as noted below ٭ Inter-local contract or cooperative purchasing program Competitive sealed proposals Competitive bidding

,All purchases of professional services, such as architects, engineers, certified public accountants ٭etc., shall be obtained through a Request for Qualifications process.

.All purchases with federal grant funds shall also adhere to the EDGAR Procurement Standards ٭ When a conflict exists between the state and federal purchasing methods, the district shall adhere ٭

to the more restrictive of the purchasing methods.

Competitive Procurement Procedures: The following procurement methods and procedures shall be utilized to ensure that the district meets its purchasing goal(s). Cooperative Purchasing Alliance – Through Board of Trustee approval, WISD is a member of several purchasing alliances. These alliances send out bid requests to prospective vendors. Once the vendor has been approved through the cooperative, they also become an approved vendor for WISD. Cooperatives play a key role in satisfying the bid requirements of the Purchasing Laws. They also assist us by providing competitive prices for regularly purchased commodities. See the list of cooperatives on the purchasing website as well as in Chapter 4. When ordering from any of the co-op groups, the first line item must reference the co-op that you are using and quote or bid number. Check to see if there is a discount available by checking the contract with the co-op. If there is a discount, reflect that on the requisition. Types of Competitive Sealed Proposals The competitive sealed proposals process is an alternative to competitive bidding. The terms and conditions of the competitive sealed proposals are identical to those for competitive bidding except that an important difference between competitive sealed proposals and competitive sealed bidding relates to the finality of initial offers. Under competitive sealed proposals, changes in the nature of a proposal, and in price, may be negotiated after proposals are opened. In contrast, changes in the price of goods and services are not negotiable in the competitive bidding process. The competitive sealed proposal process provides for full competition among proposals and allows for negotiation with the proposer or proposers to obtain the best services or goods at the best price. Competitive proposal procedures are recommended where other procurement procedures are not required according to state or federal rules, laws or regulations, in order to stimulate competitive prices for goods and services.

LINE ITEM BIDS - For purchases of $50,000 or more in the aggregate for each 12-month period. In many instances, specific items within these categories are bid individually (example: the category of “Office Supplies” will include line item bids for pencils, staplers, calendar refills, etc.). When items are bid individually, and/or stocked, these items must be purchased from the awarded vendor at the bid price.

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♦ If the bid item does not satisfy the campus/departments requirements, a written explanation will be required by the Purchasing Department before the purchase of an alternate item can be approved.

CATALOG DISCOUNTS - For purchases $50,000 or more in the aggregate for each 12-month period. When line items are not specifically bid/awarded, catalog discounts from participating vendors are requested. To purchase non-line items within these categories, campuses/departments must utilize a vendor from the “awarded catalog discount” list.

♦ Catalog discount vendors offer a variety of discounts and it is often difficult to determine best value based on the discount percentage alone.

♦ While not always mandatory (see purchasing thresholds) when utilizing an awarded catalog

discount vendor, it is highly recommended to get quotes from two -three different vendors to ensure best value.

Evaluation/Contract Award Criteria Under Texas Education Code 44.031 (b), except as provided by this subchapter, in determining to whom to award a contract, the district shall consider:

(1) the purchase price; (2) the reputation of the vendor and of the vendor's goods or services; (3) the quality of the vendor's goods or services; (4) the extent to which the goods or services meet the district's needs; (5) the vendor's past relationship with the district; (6) the impact on the ability of the district to comply with laws and rules relating to historically

underutilized businesses; (7) the total long-term cost to the district to acquire the vendor's goods or services; (8) for a contract for goods and services, other than 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: a) has its principal place of business in this state; or b) employs at least 500 persons in this state; and

(9) Any other relevant factor specifically listed in the request for bids or proposals.

MODEL FOR THE COMPETITIVE PROCUREMENT PROCESS: The competitive procurement process is lengthy and adequate time must be allowed to complete the tasks identified below. A minimum of three months should be expected from complete specifications to award of a Bid/Proposal.

MODEL COMPETITIVE BIDDING/PROPOSAL PROCESS FOR PERSONAL PROPERTY AND SERVICES TASK: EVALUATE PURCHASING NEEDS & CONFIRM AVAILABILITY OF APPROVED BUDGETED FUNDS

DESCRIPTION: Establish the minimum acceptable requirements that the product/service must meet and ensure funds are available. RESPONSIBLE: User Department/Campus

TASK: PREPARE BID/ PROPOSAL SPECIFICATIONS DESCRIPTION: Prepare detailed specifications in accordance with guidelines listed. Specifications must contain adequate

technical descriptions to clearly identify the type of material, equipment, or services required. Descriptions must include quantitative data such as size, weight, or volume and qualitative data such as commercial grade, texture, finish, strength, chemical analysis, or composition where required.

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The specifications must also include: • Detailed description of the item/service that specifies the minimum acceptable requirements of the user

department/campus. Industry standards should be utilized whenever possible Quantity required. • Approximate required delivery and/or period of performance time. • Any relevant prints, diagrams, and/or samples of the item requested. • Suggested source(s) of supply. • Specifications must be provided to the Purchasing Department electronically

RESPONSIBLE: User Department/Campus TASK: REVIEW BID/PROPOSAL SPECIFICATIONS

DESCRIPTION: Review the item/service specifications to determine if competitive bids/proposals can be obtained and to ensure that Board policies and state laws are followed

RESPONSIBLE: Purchasing Department TASK: ADVERTISE

DESCRIPTION: Ensure bid/proposals are published once per week for at least two weeks before the deadline for receiving bids, proposals, or responses to a request for qualifications. Additionally, bids/proposals are published on the WISD Purchasing Website.

RESPONSIBLE: Purchasing Department TASK: PRE-BID/PROPOSAL CONFERENCE

DESCRIPTION: Optional procedure as needed. This conference is used to allow vendors to meet with District personnel to clarify specification requirements or to conduct site visits

RESPONSIBLE: User Department/Campus TASK: OPEN BID/PROPOSAL

DESCRIPTION: Bids/proposals will be opened at the date, time, and place specified in the request for bids or proposal. RESPONSIBLE: Purchasing Department

TASK: EVALUATE BID/ PROPOSAL DESCRIPTION: Review bids/proposal responses and evaluate responses using established Vendor Award Criteria RESPONSIBLE: User Department/Campus

TASK: PREPARE WRITTEN RECOMMENDATION DESCRIPTION: Prepare a written recommendation containing the following information and forward to the Purchasing Department:

• Description of supply, product, or service • Evaluation results (list criteria used to evaluate)

• Justification for recommendation: • If the best value bid is not recommended, list the reason(s) for rejection • Explain how best value was determined (price, quality, delivery, etc.?)

• Name of recommended vendor

• Signature of appropriate approval authority for award recommendation. If the purchase exceeds $50,000 the appropriate signature is required.

TASK: OBTAIN BOARD OF TRUSTEES APPROVAL DESCRIPTION: Board approval is required before the successful bidder/proposer is notified of the award. (Note: Board meetings are

normally held on the second Thursday of each month) RESPONSIBLE: Purchasing Department

TASK: AWARD BID/PROPOSAL DESCRIPTION: Notify successful bidder(s)/proposer(s) via award letters or properly executed purchase order. RESPONSIBLE: Purchasing Department

TASK: MONITOR PERFORMANCE

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DESCRIPTION: Monitor the vendor’s performance and ensure they comply with all specifications regarding the product to be delivered or service to be performed, including the condition of product upon delivery, and whether the service was performed or product was delivered within the stated delivery/performance period. Document performance when creating receiving records in Skyward.

RESPONSIBLE: User department/campus

Cost or Price Analysis: Price analysis is essentially price comparison. It is the evaluation of a proposed price (i.e., lump sum) without analyzing any of the separate cost elements that it is composed of. Cost analysis is the evaluation of the separate elements (e.g., labor, materials, etc.) that make up a contractor's total cost proposal or price (for both new contracts and modifications) to determine if they are allowable, directed related to the requirement and ultimately, reasonable.

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CHAPTER 8 VENDOR PROCEDURES AND GUIDELINES

OBJECTIVE: WISD shall ensure a systematic process of adding and renewing vendors on the finance database. The process is designed to meet local, state, and federal guidelines related to vendor relations and procurement by a school district.

Any vendor that would like to do business with the district should be directed to the Purchasing website and read the “Doing Business with WISD” information letter. There you will find instructions to submit a bid notification application to the Director of Purchasing. The vendor will receive bid notification when an opportunity corresponds to the information put on the application. APPROVED V E NDOR LIS T The district uses multiple cooperative groups and local bids to build our “Frequently Used Vendor List”. A Cooperative’s approved list of vendors can be accessed by going to the cooperative’s website and viewing their contracts. This list also includes WISD awarded vendors by competitive bid. AWARDED VENDORS - Vendors that have participated in WISD’s competitive bidding process and have been awarded either specific line items and/or catalog discounts. Use of these vendors within their awarded categories satisfies State Bidding Law. These vendors may also be utilized when quotations are required. Approved Vendor WISD defines an approved vendor as a vendor that has responded to bid requirements through one of our Cooperative Purchasing Alliances. Vendors may also become an approved vendor by being a sole source, as defined in this section. Campus Activity Funds must use the District approved vendors so that the District is in compliance with purchasing laws. Student Activity (Club) Funds do not have to use the District approved vendors. Every effort must be made to use an Awarded/Approved Vendor when purchasing from the district awarded categories. See the frequently used vendor list.

NEW VENDOR REQUEST Although a vendor may be a member of a cooperative, they may not be in the finance system. A new Vendor cannot be setup until purchasing receives a Vendor Application from the requesting department or campus which includes required forms for the vendor database such as but not limited to: Form W‐9 Conflict of Interest Questionnaire Suspension and Debarment Certification Felony Conviction Notice/Representations and Certifications Fingerprinting SB9 Certification (If working directly with students) VENDOR APPLICATION First Determine if the vendor is on a purchasing cooperative-if yes you may proceed.

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The requestor shall forward the Vendor Application Packet to the prospective vendor. The Vendor must return the Packet back to the requesting campus or department. Inspect the document to ensure all forms are completed and signed prior to forwarding to the Purchasing Department.

The completed Vendor Application Packet should be forwarded by the requestor to the Purchasing Agent. The Purchasing Agent shall check that the vendor is not suspended or debarred on the SAM.gov website.

VENDOR REVIEW AND APPROVAL The Purchasing Department shall review the vendor application to ensure that all required items have

been submitted and are properly executed, including the signature of an authorized individual. If the vendor will perform services on Weatherford ISD Property, the vendor must provide the Certificate

of Insurance (with Weatherford ISD as additional insured) prior to the start of any work and only after a purchase order has been approved by the final approving authority.

After the final approval, the vendor shall be added on the vendor database. ADDING APPROVED VENDORS WISD must comport with state purchasing law. Vendors, in almost all cases, must be qualified through a competitive procurement process outlined in the Texas Education Code Section 44.031 et al. If you feel you must use a specific vendor that is not on our approved list in order to meet instructional goals, please contact the purchasing department to submit an explanation and request a decision based on your specific circumstance. There are many vendors that are legal for WISD to use that we are unable to include on our Frequently Used Vendor list due to the volume of vendors and the fluid contract expiration dates.

VENDOR RELATIONS: Business department staff and purchase order initiators are strictly prohibited from establishing close,

personal relationships with vendors as these types of relationships may result in a conflict of interest or a perception of improper vendor relations.

Whenever problems are encountered with a vendor, (i.e., a vendor fails to deliver certain items or delivery does not meet specifications), it is important to document the problem, noting the date and an accurate description of the problem. The vendor should then be contacted by telephone and told specifically how the school district wants the problem rectified.

If the problem is not resolved or continues, written notification stating the problem, the corrective action is required, and that the vendor’s failure to correct the problem could adversely affect future business with the school district.

The Purchasing Department will then take appropriate action which may include written notification to the vendor outlining the problem and the potential breach of contract. All record of the problem and action taken will be kept on file and used in future vendor evaluations.

Special Vendor Purchasing Procedures Vendor purchases that require special processing are documented in process document library under Purchasing. UNAPPROVED VENDORS: Any purchase from an unapproved vendor must be approved by the Director of Purchasing. No staff member may purchase from a vendor not on our approved vendor list without permission and the aid of the purchasing department. This rule is in place to insure awarded vendors are utilized for products and services and to protect staff from making an illegal purchase and suffering possible criminal charges.

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When can I use a vendor that is not an “approved vendor”? A non-approved vendor may be used when the item(s) being purchased does not fall into one of the procurement categories listed previously. The purchasing department shall monitor the purchases of goods and/or services from the same vendor AND commodity in order to be aware of when the $50,000 threshold is being reached. Fundraising Vendors Fundraising vendors are those who provide a product(s) directly to the students, parents, or patrons, through a catalog or order form sale. Vendors are paid directly for the goods and the schools receive or organizations receive a commission from the sales. It is permissible that invoices are received prior to encumbering funds due to the nature of a fundraiser. Funds should be encumbered as soon as the majority of sales are available. Vendors interested in providing this type of program to be used by the schools or organizations for fundraising activities must submit an application with background information for the Campus principal to review. Consultant or Presenters All vendors, including consultants need to be cautioned not to perform any work until the contract or purchase order is executed, including signatures of the contract by the consultant and approval by the Assistant Superintendent of Business & Operations and final execution by the Purchasing Director. A requisition submitted after the service has been performed is in violation of state law. DO NOT VERBILY CONFIRM TO ANY CONSULTANT OR PRESENTER THAT YOU WILL DELIVER ANY PAYMENT/CHECK THE DAY OF SERVICE. CHECKS ARE AUTOMATICALLY MAILED OUT TO THE CONSULTANT OR PRESENTER AFTER INVOICE IS RECEIVED AND SERVICES ARE PERFORMED VIA MAIL. School Store Sales or Direct Sales by Students Schools and organizations purchasing and selling products direct to their customers (as in a school store) do not have to receive approval for their suppliers. Examples of this would be the produce supplier from whom pumpkins would be purchased for an annual pumpkin patch activity. However, all such supplies should be purchased through awarded contract vendors whenever possible.

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CHAPTER 9 REQUISITION GUIDELINES

On-Line Requisition System: The district shall use an on-line requisition system for all purchases, unless a payment authorization has

been approved in certain circumstances as deemed appropriate by the Assistant Superintendent of Business & Operations.

The Director of Finance shall create all requisition system users/approvers and assign the appropriate account code(s).

The Director of Finance shall create all of the requisition approval paths. Requisitions:

Requisitions are internal documents and should not be forwarded to a vendor to place an order. The requestor (and/or the campus secretary/bookkeeper) shall “submit” a purchase requisition using the

on-line requisition system. ,If the vendor that the requestor intends to purchase from does not exist in the vendor database ٭

the requestor shall follow the procedures in chapter 8. The requestor shall submit and attach to the requisition all order forms, registration forms, quotes or other

special instructions. .If the requisition is for travel, follow the Travel Manual ٭ .If the requisition is for professional services, follow the Contract Procedures in Chapter 13 ٭ If the requisition is for incentives and/or awards for staff or students, follow the Staff and Student ٭

Incentive & Award Procedures. The requestor’s supervisor (campus principal or department head) should receive an email notifying

him/her that a requisition(s) are pending approval. The campus principal or department head shall review and approve requisitions daily. All requisitions from federal grant funds shall be reviewed and approved by the appropriate grants

manager. Refer to the State and Federal Grants Manual.

PURPOSE OF REQUISITION PROCESS THE ENCUMBRANCE PROCESS IS THE DISTRICT’S ONLY EXPENDITURE CONTROLL MECHANISM, THEREFORE EVERY EFFORT SHOULD BE MADE TO ENCUMBER FUNDS PRIOR TO TRANSACTIONS TAKING PLACE. IF THE PURCHASE TAKES PLACE PRIOR TO THE ENCUMBRANCE PROCESS THE REQUISITION WILL BE DENIED. The only exceptions to this rule are special cause reimbursements, subscription renewals, book fairs, athletic officials and membership fee renewals, and other expenditures that require an invoice prior to/with payment.

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TYPES OF REQUISITIONS STANDARD PURCHASE REQUISITION Purchases of personal property, repairs and services for items require this type of purchase requisition. Bids, catalog bids and quotations, as well as, inter-local agreements are used to provide sources for these purchases. These are “line item” purchase requisitions that have a quantity and a unit price per each item to be purchased. BLANKET “NOT TO EXCEED” PURCHASE ORDERS- WITH PRE-APPROVAL BY PURCHASING These types of requisitions are limited to Maintenance, Child Nutrition, Attorneys, Transportation, Career & Tech and other authorized purchases as determined appropriate. This type is normally a monthly purchase order and is issued to an approved/ awarded vendor authorizing purchases from that vendor over a specified period of time. Monthly purchase orders are valuable because they allow the purchase of items quickly. Both paperwork and related processing costs usually are reduced by monthly purchase orders. However, monthly purchase orders must follow certain criteria: only “approved/awarded vendors” may receive monthly PO’s, limitation on the maximum amount for purchases (usually up to $2,000 per month per vendor), a specific time frame for purchases covered by the monthly purchase order (one month.) EMERGENCY PURCHASE ORDERS This type of purchase is always defined by local policy to provide for the acquisition of goods and/or services to meet an immediate need such as purchases to repair damage to a facility, which may imperil students or the security of a facility. For example, if vandals break a window or windows at a school, an immediate need exists to not only secure the building, but also to protect the contents from damage by the elements. This type of emergency purchase is normally utilized after regular business hours or on weekends and holidays. After any Emergency Purchase Order is issued to a vendor, a Purchase Authorization (PA) should be issued the next working business day to seek approval and payment. Care should always be used with Emergency PO’s to ensure that their use is not the result of improper planning as opposed to a true emergency. In the WISD, EMERGENCY PURCHASE ORDERS are available in the following locations for those who have emergency needs:

• Facility Services • Operational Services • Transportation • Business Services • Purchasing

These EMERGENCY PURCHASE ORDERS must be completed as with any regular PO and properly signed, dated, etc. That EMERGENCY PO must then be attached with receipts to a Purchase Authorization on the next workday and sent through Purchasing for approval and ultimately to Accounts Payable for payment.

REQUISITION FORMAT: In order to avoid requisitions from being denied/rejected by either someone in the approval chain or the purchasing department, requisitions should include all information necessary to clearly define the needs of the user department or campus. Requisition FORMAT should always include the following elements: Local Bid Number [if applicable] (example: 15-623-20-CR)- selected from the drop down menu

under CONTRACT:

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Purchasing Cooperative Used (example Buy Board)- Selected from the drop down menu under CONTRACT:

IF NOT AN AWARDED VENDOR submit justification and quotes to Purchasing for authorization to use such vendor.

The quantity needed or requested An adequate description of the items to be purchased Price/per unit, extended in total (HOURS, MILES, EACH) Payment terms, if applicable Discounts, if applicable Shipping arrangements, if applicable Brief statement of the purpose of the purchase Other pertinent factors such as delivery destination, campus, room number, etc. The “SHIP ATTENTION OF” portion of the requisition must contain the shipping physical address of

the campus or department. Department/Campus budget code(s) for each type of purchase

Purchasing will ensure that the appropriate competitive purchasing (i.e., competitive procurement, price quotes, etc.) is determined and performed before the requisition is approved for processing. Normally, price quotes, verbal or written, are obtained by the requesting campus/department. Purchasing is available to offer any assistance or answer any questions.

Some purchases require pre-approval prior to submittal, such as:

All hardware and software related items and equipment must be approved by the Technology Department prior to submission. Any liability incurred prior to approval will be that of the person who initiated the purchase;

Purchases with non-approved vendors; Sole Source purchases, to ensure the purchase and vendor qualify for this status.

Budget (Object) Codes It is the end user’s responsibility to ensure that each line item of a requisition is properly coded with the correct budget (object) codes for the description of the item being purchased. A requisition that contains the incorrect budget object code will be rejected by purchasing and not processed until the end user corrects the budget code. A comment will be entered on the requisition whenever an incorrect budget (object) code is identified. Look under the rejection notes to read comments added by the purchasing department. When correcting a budget object code, be sure to correct the budget code on first page of the purchase order entry as well as the budget code entry on each line item on the second or subsequent pages of the purchase order and have the purchase order re-approved.

A BUDGET CODE CHEAT SHEET list of frequently purchased items with the correct object codes is provided in the SharePoint- Process Document Library for the Business Office.

Requisitions by Departments for School Campuses Departments that process requisitions to be delivered to school campuses must communicate the requisition and purchase order information to the school prior to delivery of goods. It is recommended that the requisition be sent to the campus for approval. This will ensure that the Principal will be aware that a requisition is being ordered for their campus. To do this, the department will have to use the campus’ Dept. /Location when creating the requisition. Additionally, using the campus Dept. /Location code will grant the campuses the ability to create the receiving record after the item(s) are delivered. If this recommendation is not used, email or fax the following information to the appropriate school: The department that processed the requisition

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The school that will receive delivery The vendor name The Purchase Order Number Estimated delivery date Instructions for receiving the goods in Skyward for payment purposes

REVIEW OF PURCHASE REQUISITIONS The Purchasing Agent shall review all requisitions prior to releasing the requisition for review by the

Director of Purchasing. Requisitions shall be denied if not submitted properly. The review shall include the following:

Requestor name and shipping address ٭ Vendor name and number ٭ Reason/Description - Verify that the reason matches the purchase and is properly spelled out ٭

and clear ,Contract- The method of compliance shall be selected from the drop down menu (CSP, TCPN ٭

BuyBoard, etc.) .Bid Number – Bid, quote, or Co-Op contract number, as appropriate ٭

NOTE. If the requisition is for goods or services that were competitively procured, a copy of all bid/proposals shall be on file in the purchasing department.

,Description – Detailed description of item or service (exceptions may include: Web Order ٭Employee Order List attached, Contract/Scope of Services attached, etc.

Unit of measure ٭ ;Unit price – If equipment with a unit cost equal to or over $5000, the object code must be 663X ٭ Attachment - the requisition should not be released until the attachment is received and reviewed ٭

–Pricing determination, if applicable and quote shall be attached. Account code(s) – the account code(s) must match the purchase and location/department ٭

If any deficiencies are noted with a requisition, the Purchasing Agent shall contact the requestor to resolve the discrepancies.

If the discrepancies cannot be remedied, the Purchasing Agent shall “deny” the requisition to the ٭requestor.

The Purchasing Agent shall “approve” all requisitions that meet the required review. The Purchasing Agent shall notify the Director of Purchasing if any requisitions are pending final approval

or are time sensitive. REQUISITION ON-LINE ENTRY

Obtain product and pricing information from an approved/ awarded vendor via quote. Most all requisitions are tied to a contract. Be sure to reference the bid contract # when getting a quote to ensure you are receiving the preferred pricing under the contract. 1. The requisition should be entered on-line by the campus or department secretary that has the proper

authority to do so. Only staff with Departmental Approval authority will approve on-line. This task and responsibility may not be delegated. Violations will be reported to supervisors and other’s deemed appropriate.

2. Vendor Master- Select an approved vendor from the drop down list 3. Complete ship to and order area

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4. ****CONTRACT: Select the competitive procurement contract used to obtain pricing (Example Below)

5. Complete the item detail for each item ordered.

a) Type contract information reference # in first line (usually line 100) (EX: Buy Board #407-12 expires 12/31/16) ALSO SEE ABOVE EXAMPLE

b) Enter the quantity you are ordering. c) Enter the unit of measure that the merchandise is sold. For example: box, each, pkg, hr. d) Enter the unit price. For example: $5.25. Enter the total cost for that item by extending the prices: 10 boxes

@ $5.25 =$52.50. e) Discount Percentage, coupon amount or Free, If applicable f) The budget account number.

6. Once the requisition has been developed, it should be approved by the user and it is then electronically

routed to the next approver (normally the budget owner or administrator. Requisitions which require expenditures from a Special Revenue Fund (2XX-4XX) must be approved by the program administrator (i.e. Federal Programs, Special Programs, etc.) Travel and Technology items are approved by Special internal assignments delegated by the Director of Purchasing.

7. Once a requisition is entered on-line, the accounts associated with the purchase will be immediately

encumbered for the total amount shown on the requisition until the merchandise is received and final prices determined or the requisition is deleted.

Requisition Status The following requisition statuses are utilized by Skyward:

• Status B = Batch (PO has not been printed) • Status O = Open (PO has been approved but has not been received or paid) • Status H = History (PO has been Paid and/or Closed) • Status RD = Denied (PO has been denied by one or more approvers) • Status R = Requisition (Requisition has been entered by Budget Owner)

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CHAPTER 10 OTHER PROCUREMENT GUIDELINES

PETTY CASH/STARTUP FUNDS: The Food Service Department and Athletic Department are authorized to have a petty cash account for

startup funds. The petty cash accounts shall be in the following amounts and time periods: Requests shall be made by contacting the Director of Finance. To start up petty cash accounts, the manager or campus or department secretary/bookkeeper shall

prepare a Requisition to the person to administer the program. o Purchasing will review and give final authority. o The Accounts Payable Coordinator will prepare for payment in accordance with AP procedures.

At the end of the school year a separate deposit shall be made for startup cash. The business office will reconcile this deposit and post as appropriate. If any deficiencies are noted, the business office shall contact the requestor to resolve the discrepancies.

PROCUREMENT PAID BY CREDIT CARD: Credit Card transactions are authorized for all district fund groups, including federal grant funds ONLY if this is the only available method of payment by the vendor. The transaction must go through the requisition and encumbrance process prior a transaction being incurred. If a Credit Card purchase is made with federal grant funds, the appropriate federal grants manager shall approve the transaction to verify that the expense is reasonable, necessary and allowable in the federal grant fund. To request use or possession of a Credit Card, authorization must be given by the Director of Purchasing

or the Assistant Superintendent of Business and Operations. Review of credit card receipts shall include the following:

Original, detailed receipt – the reimbursed amount must not include sales tax The Purchase Agent shall be responsible for the safekeeping of all Credit Cards to include the issuance

and collection of Credit Cards. CREDIT CARD CHECK-OUT PROCEDURES & PURCHASES Credit Cards that are checked out from the Purchasing Office must be signed out in person and must be returned the same business day. You must have an approved Purchase Order in place prior to checking out the credit card. No credit cards can be sent by inter-office mail. They must be returned in person.

PAYMENT AUTHORIZATION FORM: A Payment Authorization Form shall be used for two (2) types of payments:

1. Non-purchase order payments such as unencumbered expenses from travel settle-up, scholarship awards, certification fee reimbursements, purchase violations, and emergency purchases.

2. Purchase order payments that exceed the encumbrance amount. Specifically, if an invoice for a purchase order exceeds the purchase order by 20%, the excess payment amount (over the

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purchase order) shall be initiated by the appropriate campus or department with the account code(s) for the excess cost.

The Purchase Agent shall review all Payment Authorization Forms to ensure that funds exist in the account code(s) and that the vendor exists in the Vendor database.

The Assistant Superintendent of Business & Operations shall approve all Payment Authorization Forms and forward to the Accounts Payable Coordinator for payment.

PURCHASE BY RECEIPT OF DONATION As per Board Policy CDC (Local) The Board welcomes donations from parents, booster clubs, PTOs, PTAs, patrons, and other private entities. All gifts shall be given to the District and, at the discretion of the Superintendent, may be used for a specific campus or program. Once accepted, gifts become the sole property of the District for its use and disposition. A donation cannot be designated for an individual’s salary or compensation. Any individual or group, including PTO’s, PTA’s or booster clubs, wishing to give the District money, gift cards, materials, services, or equipment shall submit a donation request form for consideration by the District. [See the WISD website for the form] The Board or administrators may elect not to accept gifts if any of the following apply:

1. The gift would begin a program for which the District would be unwilling to assume financial responsibility when the gift or grant funds are exhausted.

2. The gift may result in ancillary costs for the District. 3. The gift may require the District to employ additional personnel. 4. The gift would place restrictions on other District programs. 5. The specific materials or equipment are not of acceptable quality or are not compatible

with existing District equipment or facilities. 6. A gift shall not be accepted if any of the following apply:

• The gift would be inappropriate or harmful to students. • The gift would be in conflict with any provision of state law, federal law, or District policy. • The gift does not serve the best interests of the District as determined by the Board

or designee. The Board delegates to the campus principals the authority to accept gifts of $5,000 or less that meet the acceptance criteria. Only the Board may accept gifts of $5,001 or more. Regardless of cost, donations of equipment shall be reviewed by the facilities management and the business office.

Gifts and Awards to Staff Gifts and awards to staff should not exceed $25 for the calendar year. Gifts over $25 must be reported to the IRS as income.

Vending All vending machines should be handled on a “full service” operation with the vendor filling the machines and counting the coins. Your individual “commission” check would then be deposited in your Concession revenue code in your Campus Activity Fund.

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Please remember that the district does have an exclusive contract with PEPSI for all drink use.

CAMPUS ACTIVITY FUND GUIDELINES Campus Activity Accounts contain funds raised at a campus, which are managed by the principal or other campus administrator. Campus Activity Funds must:

Be spent to promote the general welfare of the school and the educational development of the ٭students.

.Be used to supplement budgeted District funds ٭ .Be spent in a manner which would not benefit any individual or non-student group ٭

Campus Activity Funds shall be expended for a public purpose:

.Which improves student and staff morale ٭ .Promotes employee retention ٭ .Recognizes dedicated employee service ٭ .Facilitates achievement of building and District goals ٭ .Recognizes achievement ٭

The following questions must be answered before expending Campus Activity Funds:

?Does it serve a public purpose ٭ ?Is it planned, budgeted and approved ٭ ?Is it reasonable in cost, does it meet District purchasing guidelines and is it prudent ٭ ?Can it withstand public scrutiny ٭

Campus Expenditure Guidelines Campus account questions should be directed to the Business Office prior to the expenditure. Principals should use discretion and be guided by the guidelines addressed above. Frequently Asked Question Why do we have to apply purchasing rules to vending machine funds or the Principal’s Activity fund? Effective in September 2009, Education Code 44.908 defined these funds as revenue over which the District maintains direct control, thus making these funds subject to the same laws and rules as all other District funding. The only exception is those funds raised by student activities and controlled by the student organizations – identified as Student Activity Funds.

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CHAPTER 11 PURCHASE ORDER GUIDELINES

Purchase Order Process

The Director of Purchasing shall serve as the final approver of all requisitions. Upon approval by the

Director of Purchasing, the requisition becomes a purchase order and is assigned a system-generated number.

Purchase Orders are similar to a “promissory note” in the sense that it conveys to the vendor that if they provide the goods or services and an invoice, the district promises to promptly pay for the goods or services.

An email is generated by SKYWARD to the requisition originator once a requisition is turned into a purchase order. The originator can then print and distribute their own purchase orders to the appropriate vendors via fax or email.

Accounts Payable prints an original PO for goods and services and the Purchase Agent prints the ٭original PO for travel for final archiving of auditable documents.

The Accounts Payable and the Purchase Agent shall file a district copy of all purchase orders in an alphabetic file pending receipt of the invoice, packing list, and receiving confirmation.

The Accounts Payable Coordinator shall generate an Aged Purchase Order Report on a monthly basis (at the end of the month) and research all aged purchase order.

All purchase orders that are pending receipt after 60 days shall be cancelled unless there is clear ٭documentation that the order for goods or services will be filled within a reasonable amount of time.

At the end of the fiscal year, all purchase orders shall be either cancelled or carried forward to the following

fiscal year. If the purchase order is carried forward to the following fiscal year, the Director of Finance shall ٭

record the aggregate amount in the respective fund group as Reserved for Encumbrances. Purchase Order Closure In the event it is necessary to cancel a Purchase Order, the school or department must advise the Accounts Payable which will close the purchase order and liquidate the funds encumbered. The school or department placing the order must also notify the vendor of the cancellation of the purchase order.

End User’s Responsibilities Shall ensure that the purchasing process (through the use of an approved purchase order) always ٭

precedes the payment process (invoice). Shall only initiate and approve requisitions within approved budget authority and ensure proper account ٭

coding per line item. Shall use approved vendors to procure goods and services. Note: The requirement to use approved ٭

vendors applies to all purchases with purchase orders. If necessary, confirm with the purchasing department that an approved vendor is available for the goods ٭

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or services needed. If a vendor must be contacted to obtain information to prepare a requisition, explain to the vendor that ٭

the request for information does not represent a commitment to purchase. Shall provide for initiating, authorizing, and adequately funding the procurement through a properly ٭

approved purchase order. .Shall monitor the requisition status ٭ Shall not release the requisition number or use a draft copy of the requisition to make ٭

purchases from a vendor. Shall monitor the vendor’s performance to ensure proper delivery of the goods or services ordered. If ٭

the goods or services are not delivered as ordered, the end user shall take action necessary to protect the District’s interest, up to and including sending a written Stop Payment Order to the Accounts Payables department. Problems with vendor’s unsatisfactory performance shall be directed to the purchasing department for appropriate action, which may include closing the purchase order.

Shall not make any commitments to acquire goods or services in the name of the District for personal ٭use or ownership.

Shall not make or authorize separate, sequential, or component purchases in order to avoid ٭requirements under the Texas Education Code, Section 44.031, or Board approval.

Shall process all requests for procurement that cost $50,000 or more through the Purchasing ٭Department for Board approval.

Shall follow the policies and procedures contained in Board Policy CH (LEGAL) for emergency ٭purchases.

Shall be responsible for complying with statutory requirements, Board policies, and the Purchasing ٭Manual procedures when purchasing goods or services for the District.

Shall not make changes to purchase orders after it has been sent to the vendor without prior approval ٭from the Purchasing Department.

.Shall ensure that items ordered match the purchase order ٭ .Shall record the receipt of goods or services in Skyward ٭

Purchasing Department Responsibilities .Shall not initiate requisitions except for items or services for use by the purchasing department ٭ Shall not purchase anything from any person or from any firm that is controlled, owned, or operated ٭

by that employee or from a relative within the second degree by blood or marriage of the employee. Shall supervise the purchase of all materials, supplies, equipment, and services for the District. [See ٭

Board Policy CHD (LOCAL)] according to the guidelines established on the Education Code 44.031. Shall not approve a requisition after the event has taken place (i.e. After-the-fact) except in special ٭

circumstances or instances. Shall review/process requisitions in a timely manner for completeness and ensure that purchases are ٭

compliant. .Shall verify compliance with statues, regulations, and Board policy applicable to purchasing ٭ .Shall verify correctness of budget object coding according to the WISD Coding Chart ٭ Shall have discretion to direct purchases through inter-local agreements or cooperatives in order to ٭

save time and money. .Shall work with the end users to resolve delays in requisition processing in a timely manner ٭

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CHAPTER 12 RECEIVING AND DISTRIBUTION

Carefully checking deliveries and ensuring that the end user(s) who ordered the goods/services actually obtained them is a critical part of the purchasing process. NOTE: Do Not Sign for any items without verifying the item is yours, belongs to your campus and all the items are accounted for. The district shall utilize a decentralized receiving system for all goods ordered through the purchase

order process. It is the responsibility of the ordering entity (campus/departments) to properly order and receive (comparing

packing list to contents, to the purchase order, to ensure the right product in the right quantity is received) and notify Accounts Payable (electronically receive in SKYWARD) so the vendor can be paid.

A copy of all packing slips should also be maintained on file at the campus or department. Campus and Department staff shall be properly trained to receive and shall inspect all packages/boxes

received for damage. If damages have occurred, the vendor should be promptly notified.

ONLINE RECEIVING RECORDS It is imperative that after physical delivery of goods and services, that an online receiving record be created in the Skyward System for the particular purchase order the delivery pertains to. This online receiving record communicates to Accounts Payables how much to pay and that those goods and services have been received in a satisfactory manner. Without timely online receiving, the payment process is curtailed and jeopardizes future business relations with our vendors.

RETURNING MERCHANDISE:

A school or department who finds it necessary to return merchandise to a vendor, for any reason, is responsible for doing so. It is recommended that you contact the company prior to returning the merchandise. If the merchandise you are returning will be replaced, do not ‘Receive’ the items in SKYWARD until the purchase order has been satisfactorily filled.

Resolving Discrepancies If the campus or department determines there is damaged merchandise or a discrepancy exists, they should notify the vendor immediately and attempt to resolve the discrepancy. All correspondence between the campus/department and vendor must be noted on the packing slip, if possible. If the discrepancy is discovered during or after the inspection or unpacking, the vendor should be contact in a timely manner. It is the end user’s responsibility to contact the vendor and attempt to resolve deficiencies. If all or part of the shipment is accepted, contact the vendor to obtain replacement instructions for the damaged items. If the vendor abandons the merchandise (fails or refuses to pick it up), contact the Purchasing Department to aid in resolving the problem. If the entire shipment is refused, record the reason for refusal on the carrier’s shipping documents and notify the vendor that shipment was refused and needs to be reshipped due to severe damage. If an invoice is included in the container, forward it to the Accounts Payable department immediately.

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CHAPTER 13 INDEPENDENT CONTRACTOR

AGREEMENTS

*It is important to remember when a conflict between State and Federal purchasing methods exists, the District shall adhere to the more restrictive of the purchasing methods. Purchases made with Federal Funds require routing and approval from the Grant Manager and/or Federal Programs Coordinator. Approval will be contingent upon federal award provisions, proper account code entry, alignment with grant period, start and end dates, professional service costs in accordance with CFR 200.459, and invoicing guidelines. INDEPENDENT CONTRACTOR DEFINITION: Contractors are persons or companies that are non-employees who are contracted to perform a personal or professional service that cannot be performed by a District employee. The term “Independent Contractor” is used to denote non-employees performing services on District property on behalf of the District. The Internal Revenue Service (IRS) has extensive information defining when an individual is considered an employee requiring the withholding of income taxes and the payment of Medicare taxes. Contracted services include services such as repairs, maintenance, technical support, customizing, photography and related services. REQUIREMENTS: All independent contractors MUST have a signed contract with the District that specifies dates, times, scope and the term of the services, and if the contractor will have direct contact with students prior to work being performed. The District’s independent contracted services agreement can be found on the WISD website>SHAREPOINT PROCESS DOCUMENT LIBRARY> BUSINESS OFFICE> PURCHASING>INDEPENDENT CONTRACTORS. CONTRACTS FOR SERVICES All District contracts are reviewed and signed by the Assistant Superintendent for Business and Operations. WISD has an internally developed contract for use in which the terms are already pre-approved by the ASBO. When this contract is used appropriate approvals levels must be obtained. When a Principal or Director receives a vendor contract or agreement, the following procedure should take place: • Review the document • Initial changes or edits made to the document • Forward the document to the Director of Purchasing • Keep a copy on your campus or department for your records

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The contract or agreement will be reviewed by the Purchasing Department and forwarded to the Assistant Superintendent for Business and Operations for review and signature of approval. Contact the Purchasing Department with questions.

INDEPENDENT CONTRACTOR AGREEMENTS To facilitate legal requirements to collect certain forms (SB 9 Contractor Certification, Debarment Forms, etc.); two versions of this contract have been created (available on the Purchasing webpage). PACKET 2

PACKET 1 IF CONTRACTOR WILL BE WORKING WITH STUDENTS 1. Send your contractor (PACKET 1-Contractors-FINGERPRINTS REQUIRED) *****The contractor must first determine if they have employees or if they are an individual contractor with no employees and follow the directions below. Company Contractor- (Has employees) Page 5 If a company contractor will be working directly with students, WISD requires certification that the contractor is compliant with Senate bill 9 (COMPANY SB9 CERTIFICATION). If the contractor is a company (usually with covered employees) that will come out to a District location then the contractor must provide DPS with the required information and establish and account with DPS for fingerprinting at the contractors expense. Individual Contractor (no employees) Page 4 If an individual contractor will be working directly with students, complete the (SB9 INDIVIDUAL SUBSCRIBE FORM). This form must be sent to Maudie Lionberger in the HR Department. Maudie will contact the requesting campus secretary or principal/director once the individual independent contractor has been cleared to perform duties on campus. NOTE: The dates on the contract will be the Start and End dates the contractor will be subscribed to FACT by WISD. Once one of the previous steps depending on the status of your contractor has been performed then you can proceed to steps 1-2 above. NEW CONTRACTORS

1. If the contractor is not an existing vendor in Skyward, please have your contractor fill out a Contractor Vendor Application.

IF CONTRACTOR WILL NOT BE WORKING DIRECTLY WITH STUDENTS COMPLETE THESE STEPS ONLY 1) Send the Contractor the contract (PACKET 2-Contractors) Ask them to send it back to you NOT THE BUSINESS OFFICE. A contract must be attached to all contracted service requisitions each time you submit. 2) The campus or department requestor is responsible for checking for completeness and accuracy of the agreement and for getting all parties to sign the contract. Ensure that all blank fields have been completed. The applicable administrator must sign the form, which may be a principal, federal program manager or department administrator.

a) FEDERAL FUNDED EXPENTITURES-Attach (Addendum 1 Federal Funded Contract) and have both parties sign and attach to the requisition. Your federal program administrator will have to sign the addendum.

b) SPED STUDENT RELATED SERVICES-Attach (Addendum 2 Sped Student Related Services) and have both parties sign and attach to the requisition. This will be signed by Patti Young.

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2. Once the requester receives the forms back from the contractor, review for completeness and forward to Tammy Hutto in the Business Office to be set up in SKYWARD.

Required Background Checks for Independent Contractors Effective January 1, 2008, Texas Education Code Chapter 22, Subchapter C requires service contractors to school districts in Texas to obtain criminal history record information regarding covered employees and to certify to school districts that they have done so. Covered employees with disqualifying convictions are prohibited from performing services at a school district. As defined by Texas Education Code, Chapter 22, disqualifying convictions include any of the following, if at the time of the offense, the victim was under 18 or enrolled in a public school:

1. A felony offense under Title 5, Texas Penal Code; 2. An offense for which a defendant is required to register as a sex offender under Chapter 62, Texas code

of Criminal Procedure; or 3. An equivalent offense under federal law or the laws of another state.

Service contractors must obtain the criminal history record information on all new or existing employees who will have continuing duties relating to the contract and will have direct contact with students. Covered employees employed by a contractor before January 1, 2008, are subject to name-based criminal history reviews and contractors must obtain the criminal history record information as soon as practical. Covered employees employed by a contractor employed on or after January 1, 2008, are subject to fingerprint-based criminal history reviews and contractors must obtain the criminal history record information before or immediately after securing the services of the covered employees. Contractors must contact the Texas Department of Public Safety (DPS) directly to establish an account to obtain criminal histories. Instructions for the performance of this requirement by this contractor can be obtained from the Purchasing Department website. Fingerprints are conducted through the DPS vendor, Integrated Biometric Technology. The contractor must certify to the school district that it has performed the required criminal history reviews.

Independent Contractors: The IRS differentiates between the status as an Independent Contractor or

Employee by reviewing the following 3 “Control Areas”. • Behavioral: Does the company (district) control or have the right to control what the worker does

and how the worker does his or her job? • Financial: Are the business aspects of the worker’s job controlled by the payer? (These include things

like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.) • Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan,

insurance, vacation pay, etc.)? Will the relationship continue and is the work performed as a key aspect of the payer’s business?

Depending upon how these questions are answered will define how a worker must be classified.

Fingerprinting through the DPS Clearinghouse is required for employees of Independent Contractors that are “covered” employees: (As set forth by TASB - Texas Association of School Boards) Covered Employees: An employee who will have continuing duties relating to the contracted service and direct contact with students. The test for whether a “covered” employee has three prongs. All prongs must be met.

• Work on a contract for services; • Have continuing duties related to the contract, and • Have direct contact with students

Continuing Duties: Duties pursuant to a contract on a regular, repeated basis rather than infrequently or one-time only.

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Direct Contact: Contact that results from activities that provide substantial opportunity for verbal and physical interaction with students that is not supervised by a certified educator or professional employee of the district. Non-covered Employees: an employee that will not have continuing duties related to the contracted service and direct contact with students. If all 3 prongs are not met, the contractor or district does not have the right to obtain criminal history through the DPS Clearinghouse. If the employee gives consent, the district or contractor may nonetheless obtain criminal history from DPS, but not through the Clearinghouse. A Covered Employee must obtain fingerprints from the DPS Clearinghouse in order to work in the district. A Non-Covered Employee is not required to be fingerprinted. It is WISD’s procedures to require a Name/DOB/DL Criminal History check for anyone that is non-covered. Prospective Independent Contractors must complete the authorization forms and submit them with their packet. If the Independent Contractor refuses to submit the forms, WISD has the right to refuse to enter into an agreement with the Independent Contractor for services.

Budget Code justification as per FAR Guide [TEA]. 6219 for Professional Services: When the contractor is providing professional services and is required to be licensed or registered with the state of Texas [example: architects, engineers, nurses, and real estate appraisers]. 6291 for Consulting Services: Refers to the practice of helping districts to improve performance through analysis of existing problems and the development of future plans and may involve the identification of best practices, analytical techniques, and strategy development. 6299 for Miscellaneous Contracted Services: miscellaneous contracted services not specified elsewhere EXAMPLES: VISITING AUTHORS, PIANO TUNER, UNIFORM CLEANING, JUDGES, OFFICIALS, MUSIC TUTORS, COMMUNITY ED TEACHERS BONDING AND INSURANCE REQUIREMENTS FOR CONTRACTED SERVICES All vendors submitting proposals or bids for contracted service work shall comply with the following requirements. Vendors submitting proposals or bids, which do not comply with these requirements, will not be considered. Bonding Requirements if Construction is involved Bids shall be accompanied by a cashier’s check or certified check upon a state bank in the amount not less than five percent (5%) of the total maximum bid price payable without recourse to Weatherford ISD or a bid bond in the same amount from a reliable surety company licensed to do business in the State of Texas. This will be used as a guarantee that the bidder will enter into a contract and execute a payment and performance bond on any or all projects $25,000 or above within fifteen (15) days after notice of award of the contract. Insurance Requirements All vendors who perform contracted services for Weatherford ISD are required to supply proof of insurance in accordance with the following schedule prior to the start of the project. Weatherford ISD requires that contractor’s insurance be placed only with companies that have achieved at least an “A” rating with A.M. Best. The district reserves the right to require higher limits of coverage depending on the size, scope, and nature of the contract. Weatherford ISD must be named as an additional insured in liability policies with a waiver of subrogation in favor of the district for workers’ compensation policies.

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The immunity of the owner shall not be a defense from the insurance carrier. The selected vendor will be required to supply an insurance certificate naming Weatherford ISD as an additional insured prior to the start of the project. All bidders must furnish Certificate of Insurance with their bid or the bid will not be considered. Only the selected bidder is required to name Weatherford ISD as an additional insured.

Independent Contractor / Vendor Agreement Q & A’s

Q. When is an Independent Contractor Agreement (ICA) required? A. As a general rule, an ICA is needed when a service is being provided to the district by a non-district individual.

Type of service ICA Required?

Fingerprints Required?

Reasoning

Athletic Officials No No Athletic Officials are part of associations which selects members, sets rates of pay, and conducts background checks. They do not need to complete an Independent Contractor Agreement.

Judges for Musical and other Performing Arts Programs

Yes No These individuals are background checked through Human Resources or via the Raptor system and do not have continuing duties.

Providers (Speakers, Workshops, Training, DJ’s, Events, Consultants)

Yes Yes Continuing duties and direct contact with students.

Q. When is a background check required?

Background checks are mandatory anytime a vendor or volunteer will, or may have, unsupervised contact with ٭students.

Background checks may be required when a vendor will have access to confidential records or will handle money ٭on behalf of the District.

Questions relating to Background checks and student safety should be directed to the Human Resource ٭Department.

Questions relating to Background checks and records and/or financial security should be directed to the ٭appropriate Area or Deputy Superintendent.

Q. Should background checks or other criminal history information be attached to the blanket purchase order or check requisition? A. No – Contracts may be “marked” or “stamped” indicating that background checks have been done, but the supporting criminal history documentation should not be attached to the blanket purchase order or check requisition. Q. Do I need to send the signed agreement to Purchasing for review, before creating a purchase order? A. No – Attached contracts will be reviewed during the approval process. You will be contacted with any questions. Q. What if a service is being provided by a Vendor at no cost to the district – i.e., as a Vendor that is providing services that a parent is paying for or vendor received grant funds to implement a project. Does the vendor still need to complete an agreement? A. Yes – We must define what all parties have agreed to, e.g. dates, times, number of students, etc. We must also collect State required forms.

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Q. If this service is already covered by a District Bid, do I need to have the vendor complete a new Independent Contractor Agreement? A. No – all required documents and terms are already included within District Bids. Q. What if the vendor has their own contract they want signed? A. It is preferred that the WISD contract be used (with needed changes with needed changes/amendments noted on the document), however, it is acceptable to have two contracts issued for the same service if the vendor’s document includes additional details and verbiage that is not easily incorporated into the district contract. If this becomes necessary, please review both documents carefully and correct any conflicts in terminology between the two contracts. Both contracts should be forwarded together for approval, and both contracts should be scanned and attached to the purchase order request. Q. After I scan and attach the contract and forms (if required) to the Blanket PO or Check Req., do I need to keep the original documents, or may I shred them?

Please remember that all district created documents are governed by State record retention schedules. Certain ٭documents are required to be retained longer than others.

o Always consult your Campus/Department Records Management Liaison and State record retention schedules to determine how long your record must be stored.

Records that are scanned and attached to a purchase order may be considered the “official record” for retention ٭purposes, however:

o Per newly revised record retention schedules, purchase orders are only required to be retained for the current fiscal year + 5 years.

If it is required that your document be kept for more than 5 years, you must print and store your documents separately. (such as grant funded purchases)

It is always recommended that original documents be retained while the contract is active, or as directed by the ٭campus/department administrator.

After ensuring that the document(s) do not require retention beyond 5 years, they may be shredded after the ٭contract period has expired.

Q. Can a contract be created to include multiple events (several occurrences)? A. Yes – If the contract is written to include multiple occurrences. You will need to let the Accounts Payable Department know when the contract is complete to arrange final payment. Q. If this service is covered by a Co-Op Bid, do I need to have the vendor complete a new Independent Contractor Agreement? A. In most instances - Yes. Co-Op contracts typically do not provide sufficient detail to describe all of the elements found in a completed district contract. Co-Ops also do not collect forms required by school districts. Q. If this service is offered by a Sole Source vendor, do I need to have the vendor complete a new Independent Contractor Agreement? A. In most instances - Yes. Even though the service is offered by only one vendor, we still need to describe all services to be provided. We also need to collect the required forms. Q. Can a contract using general budgeted funds be created to cover more than one budget year?

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A. Yes - Contracts utilizing budgeted funds can be for more than one year, however, a purchase order cannot span two different budget years. Purchase orders must be entered to cover services that start on or after 9/1/XX, and end on or before 8/31/XX. Q. Can I renew an existing contract without securing new approvals or creating a new blanket purchase order or check requisition? A. No – All contracts and purchase orders are issued/approved for specific time periods and/or specific amounts. Q. What types of service require a vendor to provide insurance coverage? Service Insurance Needed Y / N Medical Services & Therapy Services Y One-on-one (on-campus) instruction provided to Students

Typically No, but may be required in certain situations

Group instruction with Students (not supervised 100% of the time by WISD staff)

Typically No, but may be required in certain situations

Workshops with Staff & Students (where WISD staff is present 100% of the time)

N

Workshops for Staff N Speeches & Presentations N DJ Services (supervised events) N Playground, Carnival & Party Events Y Repair or Service of equipment on WISD property Y Repair or Service of equipment sent (off-site) N Repair of District facilities Y Consultants providing Professional Services Y Hospital & Medical Services (off-site) N Transportation Services (buses & taxi-cabs) N (already required by State Law – Proof of insurance

is not required) Q. If insurance is required, what limits should we request? A. When required, Vendor shall provide Certificate(s) of Insurance for the following (at a minimum): General Liability - $250,000.00 Bodily Harm - $500,000.00 Auto Liability (if applicable) $250,000.00 each occurrence + uninsured motorist Q. When is Workers Compensation Insurance required? A. As a general rule, workers compensation insurance is typically required when a contractor hires subcontractors to provide the contracted services. Workers compensation insurance coverage is required when providing building or construction services, including but not limited to, utility work, remodeling, repairing, constructing or demolishing structures on district property.