contracts and purchasing aasbo certificate program april 18 & 20, 2011 david smith
TRANSCRIPT
![Page 1: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/1.jpg)
Contracts and Purchasing
AASBO Certificate ProgramApril 18 & 20, 2011
David Smith
![Page 2: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/2.jpg)
Disclaimer: The opinions expressed in this presentation are those of David Smith and are not meant to be a legal interpretation of the law. The material included in this presentation is dated as of April 2011 and is subject to change.
Official interpretation of particular questions or situations should be obtained through the board’s legal council, the Alabama Attorney General’s office or the Examiners of Public Accounts.
Contracts and Purchasing
![Page 3: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/3.jpg)
Contracts and Purchasing
•Competitive Bid Law•Public Works Law•Request For Proposals ( RFP)•Public Contracts
![Page 4: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/4.jpg)
Competitive Bid Law – Legal Authority for Boards
•Code of Alabama 1975, Section 16-13B-1 through 16-13B-11
•Applies to both County and City Boards of Education
![Page 5: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/5.jpg)
![Page 6: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/6.jpg)
![Page 7: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/7.jpg)
To What It Applies…
•Applies to the expenditure of funds for labor, services and work involving $15,000 or more
•Applies to the purchase or lease of materials, equipment, supplies or other personal property involving $15,000 or more
![Page 8: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/8.jpg)
Legal RequirementRequires a contractual agreement
entered into by free and open competitive bidding, on sealed bids, to
the lowest responsible bidder.
![Page 9: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/9.jpg)
Joint Purchasing16-13-B-1
•Governing bodies of two or more boards (or county commission/municipality) may purchase jointly.
•Each governing body must approve joint purchasing agreement and details by resolution.
•A Joint Purchasing Agent may be designated.
![Page 10: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/10.jpg)
Length of Contract Terms
•Purchase or Service Contracts - limited to 3 years
•Lease-Purchase Contracts for capital improvements, repairs to real property and other lease-purchase contracts - limited to 10 years
![Page 11: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/11.jpg)
Advertising Requirements•Post notice on bulletin board outside
purchasing department•Can do more…but not required!
![Page 12: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/12.jpg)
Bid Lists•Sealed bids shall also be solicited by
sending notice by mail to all vendors who have filed a request in writing that they be listed on the bid list for the particular items being bid.
•If a vendor fails to respond to any solicitation after the receipt of three solicitations, the vendor may be removed from the bid listing.
![Page 13: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/13.jpg)
Sealed Bids and Documentation
•Must be sealed when received (except under reverse auction procedures)
•Opened in public at the hour stated in the notice
•All original bids and documents pertaining to the award of the contract shall be retained for a period of seven years from the date the bids are opened and shall be open to public inspection
![Page 14: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/14.jpg)
Bid Bonds/Cashier’s Check
•Bid bonds are no longer required – optional16-13B-1(d)
![Page 15: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/15.jpg)
![Page 16: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/16.jpg)
Items Exempt from Requirements
•Utility Service (rates fixed by law, regulation, or ordinance)
•Insurance
![Page 17: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/17.jpg)
Items Exempt from Requirements (cont.)
Professional Services: Attorneys Physicians Architects Teachers Superintendents of
Construction Artists Appraisers Engineers
Consultants
Certified Public Accountants
Public Accountants
Others possessing a high degree of professional skill where the personality of the individual plays a decisive part.
![Page 18: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/18.jpg)
Items Exempt from Requirements (cont.)
• Regular Civil Service employment contracts
• Fiscal or Financial Advice or Services
• Products made by Alabama Inst. For Deaf and Blind
• Maps/Photographs from any federal agency
• Manuscripts, Books, Maps, Pamphlets, or Periodicals
• Paying Agents/ Trustees
• Existing contracts for renewal of sanitation or solid waste collection, recycling, or disposal and those providing the service
![Page 19: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/19.jpg)
Items Exempt from Requirements (cont.)
Security Related Services/Products - contractual services and purchases of products related to, or having an impact upon, security plans, procedures, measures, or systems, or the security or safety of persons, structures, facilities, or infrastructures.
Purchases of goods made as a part of any purchasing cooperative sponsored by the National Association of Counties. Act 2006-279
U.S. Communities is the purchasing cooperative
![Page 20: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/20.jpg)
NACO – Purchasing Cooperative (cont.)
•Purchases may only be made if all of the following occur:
▫The goods being purchased are available as a result of a competitive bid process approved by the Alabama Department of Examiners of Public Accounts of each bid. On May 31, 2006, Examiners communicated their approval of
this competitive bidding process used by U. S. Communities.
▫The goods are either not at the time available to local boards of education on the state purchasing program or are available at a price equal to or less than that on the state purchasing program.
▫The purchase is made through a participating Alabama vendor holding an Alabama business license if such a vendor exists.
![Page 21: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/21.jpg)
![Page 22: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/22.jpg)
![Page 23: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/23.jpg)
Items Exempt from Requirements (cont.)
• Individual school purchases from monies other than those raised by taxation or received from state or county appropriations (i.e., fundraisers, donations)▫May have board policy that requires bids
•Legislative Monies– Bid law does apply
![Page 24: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/24.jpg)
Bid Lists
•Sealed bids or bids to be submitted by a reverse auction procedure shall also be solicited by sending notice by mail or other electronic means to all persons, firms, or corporations who have filed a request in writing that they be listed for solicitation on bids for the particular items that are set forth in the request.
• If a vendor whose name is listed fails to respond to any solicitation for bids after the receipt of three solicitations, the listing may be cancelled.
![Page 25: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/25.jpg)
Items to be considered when determining the lowest bidder…
•Qualities of the goods proposed to be supplied
•Conformity with specifications•Purposes for which required•Terms of delivery•Transportation charges•Dates of delivery
![Page 26: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/26.jpg)
Rejection of a Bid
▫Awarding authority may reject a bid when the price is deemed excessive or the quality of product is inferior.
▫Must document. If applicable, should announce budget.
![Page 27: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/27.jpg)
Documentation of Results
• To whom bid was awarded• Reasons for not awarding to the lowest bidder
▫Request legal council assistance• Bid file shall be open for public inspection
Document-Document-Document
![Page 28: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/28.jpg)
Emergencies•Section 16-13B-3•Must affect public health, safety or convenience, be
declared in writing by the awarding authority, and such action and reasons should be immediately made public by the awarding authority.
•Contracts may be let to the extent necessary to meet the emergency without public advertisement.
![Page 29: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/29.jpg)
Only One Bid Received
•May accept bid or•May reject the bid and negotiate the purchase or
contract, provided the negotiated price is lower than the bid price.
![Page 30: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/30.jpg)
Splitting of Contracts
•No purchase or contract in excess of $15,000 shall be divided into parts involving amounts of $15,000 or less for the purpose of avoiding the requirements of the competitive bid law
![Page 31: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/31.jpg)
Resident Bidder Preferences
•Resident Bidder – has a place of business within the local preference zone.
•Deemed to be a Responsible bidder.•Bid is no more than 3 percent greater
than the bid of the lowest responsible bidder.
•In this instance, contract may be awarded to the resident bidder.
![Page 32: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/32.jpg)
Procedures for Reverse Auction and Life-Cycle Costs
![Page 33: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/33.jpg)
Legal Authority16-13-B-4
•Act Number 2008-379, Acts of Alabama•Effective July 1, 2008 (January 1, 2009 for
Reverse Auction Procedures and Life Cycle Costing)
![Page 34: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/34.jpg)
Reverse Auctions
Beginning January 1, 2009, the awarding authority may make purchases or
contracts through a reverse auction procedure.
![Page 35: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/35.jpg)
Examiners Shall Establish Procedures
•No later than November 30, 2008, the Department of Examiners of Public Accounts shall establish procedures for the use of reverse auction and life cycle costs, which shall be distributed to all contracting agencies and shall be used in conducting any audits of the purchasing agency.
•Procedures posted on Examiners website at www.examiners.state.al.us
![Page 36: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/36.jpg)
![Page 37: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/37.jpg)
Definition of Reverse Auction
A reverse auction is a purchasing process in which offerors (suppliers)
submit bids in competition to sell services or supplies in an open
environment via the internet; the auction is an invitation-only, timed
event.
![Page 38: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/38.jpg)
Methods of Handling Reverse Auctions•Acquire necessary software to conduct
the auction on an “in-house” basis•Contract with a commercial auction host
to conduct the auction as an agent•Participate through a regional, state, or
national purchasing cooperative
![Page 39: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/39.jpg)
Bidding Process• 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 anonymous suppliers submit bids to provide the designated goods or services.
• 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 anonymous suppliers submit bids to provide the designated goods or services.
![Page 40: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/40.jpg)
Use of Reverse Auction Allowed if..
•The item to be purchased at a reverse auction is either not at the time available on the state purchasing program under the same terms and conditions, OR,
• If available, the lowest price offered in the reverse auction is equal to or less than the price for which the item is available on the state purchasing program under the same terms and conditions
![Page 41: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/41.jpg)
Solicitation of Bids•Advertised in any manner and for any
length of time as may be determined •Notice must be sent by mail or other
electronic means to all persons, firms, or corporations who have filed a request in writing that they be listed for solicitation on bids for the particular items that are set forth in the request; may be removed from listing after three non-responses
•Notification shall include the scheduled time and internet location
![Page 42: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/42.jpg)
Bid Specifications
•Clear and concise bid specifications must be developed
•Brand name or equal specification used for the purpose of describing the base standard of quality, performance and characteristics – not to limit or restrict competition
![Page 43: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/43.jpg)
Pre-Screening of Bidders•Bidders may be pre-screened at the option of
the awarding authority – ensures only responsible parties submit bids
•Pre-screening must be documented in bid file•Prospective bidders should submit a
notification of intent to bid in a sealed envelope noting the bid number on the outer envelope to the awarding authority/agent within an appropriate time frame as specified by the awarding authority
![Page 44: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/44.jpg)
Reverse Auction Process• Contact person should be designated to answer
questions from suppliers regarding the reverse auction process
• Online instructions should be provided to bidders
• Bidders will be notified of the start of the reverse auction through an electronic notification
• Auction will conclude at the previously scheduled stop time
• Awarding authority is responsible for providing a secure location and/or website to the reverse auction
![Page 45: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/45.jpg)
Record of Auction•An event record of the auction should be
maintained by the awarding authority that will include the prices offered by the bidders; should be part of the contract documents/public record at the conclusion of the event
•Event record must disclose the beginning and ending times of the auctions
•Bid documents must be retained 7 years in accordance with the Alabama Competitive Bid Law
![Page 46: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/46.jpg)
Price Submittals
•Bidders may submit multiple prices during the event
•The lowest price offered will become the price portion of the bid response
![Page 47: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/47.jpg)
Award of Contract
•Contracts will be awarded to the lowest responsible bidder as provided by the Alabama Competitive Bid Law
![Page 48: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/48.jpg)
Tie Bids
•In the event that multiple bidders submit identical prices for the same goods or services, the bid received first will be considered to be the lowest.
•Any other identical bids received later will be considered in the order received.
![Page 49: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/49.jpg)
Public Viewing of Auction Event
•The public may attend the internet auction event which will be conducted such that the names of the bidders will not be disclosed until after the completion of the auction, at which time the event record will be available to the public
![Page 50: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/50.jpg)
Life Cycle Cost Analysis
“A method for evaluating all relevant costs over the time of a project, product, or
measure.”
![Page 51: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/51.jpg)
What are Life Cycle Costs?
•The total cost of ownership over the expected life of an item▫First Costs (Acquisition Costs) – capital
investment costs, purchase and installation costs
▫Future Costs (Sustaining Costs) – energy costs, operating costs, maintenance costs, capital replacement costs, and financing costs; any resale, salvage or disposal cost
![Page 52: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/52.jpg)
Legal Authority
•The awarding authority may use life cycle cost analysis for personal property purchases as provided by Code of Alabama 1975, Section 16-13B-7 (c) (1).
•Not allowed for the purchase of real property
![Page 53: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/53.jpg)
![Page 54: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/54.jpg)
Purchases Below $15,000 Threshold•Develop written procedures
▫$ amount for written quotes Define number of quotes Example-
Purchases between $5,000-$15,000 require two written quotes from vendors
Below $5,000 require two phone quotes
•Transparency/Good Business Practices•When in doubt “Bid It”
![Page 55: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/55.jpg)
Competitive Bid Law
Questions ???
• When faced with questions- Seek advice▫Legal Council▫Examiners of Public Accounts▫AG Opinions
![Page 56: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/56.jpg)
Public Works LawTitle 39 Code of Alabama
•Applies to any governmental board, commission, agency, body, authority, instrumentality, department, or subdivision of the state, its counties and municipalities.
![Page 57: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/57.jpg)
![Page 58: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/58.jpg)
![Page 59: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/59.jpg)
Public Works Law (cont.)
•Applies to any construction, repair, renovation, or maintenance of public buildings, structures, sewers, waterworks, roads, bridges, docks, underpasses, and viaducts as well as any other improvement to be constructed, repaired, renovated, or maintained on public property and to be paid, in whole or part, with public funds or with financing to be retired with public funds in the form of lease payments or otherwise.
![Page 60: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/60.jpg)
Expenditure Threshold
•$50,000•Section 39-2-2 (a) – “No public work…
involving a sum in excess of $50,000 shall be split into parts involving sums of $50,000 or less for the purposes of evading the requirements of this section.”
![Page 61: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/61.jpg)
Advertising Requirements•Advertise in a newspaper of general circulation in the
county - once each week for three consecutive weeks•Additional requirement for contracts over $500,000 -
once in 3 (additional) newspapers of general circulation throughout the state
![Page 62: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/62.jpg)
![Page 63: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/63.jpg)
Public Works Law
•Receive one bid-May negotiate downward
•No provision for in county or in state contractors ( Section 39-3-5) ▫Reciprocal law- Nonresident bidders
subject to same preference granted to Alabama bidders bidding in their state (Question- contact building commission)
![Page 64: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/64.jpg)
Provisions for Mistakes by Vendors•Clerical or calculation errors - low bidder
must provide written notice of withdrawals within 3 days
•Withdrawing bidder cannot work on project in any way
![Page 65: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/65.jpg)
Project Completion
•Contractor must give notice of project completion by advertising 4 successive weeks in a newspaper of general circulation published in the county
![Page 66: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/66.jpg)
Provisions for Retainage•No more than 5% of estimated work
done and value of materials shall be retained up to 50% of work completed
•No additional retainage withheld after 50% of work completed
•Retainage held until project completion and acceptance
![Page 67: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/67.jpg)
Professional Services
•Architects, Engineering, Project Management Services - exempted from the bid process
•Should do RFP for professional services
![Page 68: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/68.jpg)
Emergencies
•No advertising required•Must still follow other requirements -
per Code 39-2-2(e)
![Page 69: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/69.jpg)
Contract Documentswww.bc.alabama.gov
![Page 70: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/70.jpg)
Contract Documents
![Page 71: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/71.jpg)
Contract Documents
![Page 72: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/72.jpg)
Project Under $50,000
•Request for quotes/estimates▫In writing▫District letterhead▫Define scope of work▫Require license /insurance▫Signed estimates▫Signed contract
•Treat like a bid without advertising requirements
![Page 73: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/73.jpg)
Purchasing Procedures
•Centralized Purchasing▫One person should be responsible for the
purchasing function Knowledge of laws and procedures governing
procurement Knowledge of quantity and quality of goods or
services needed by the district Knowledge of department budgets and account
codes Independent of departmental preferences for
particular product or vendor
![Page 74: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/74.jpg)
•Centralized purchasing▫ Maintains files for all bids and contracts▫Tracks purchases of fixed assets▫Inventory control▫Risk Management
Building Insurance General Liability Vehicles
![Page 75: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/75.jpg)
•Develop a Purchasing Policy and Procedure Manual▫Written procedures on the procurement
process for the school district Employees Vendors
![Page 76: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/76.jpg)
•Purchasing Policy and Procedure Manual▫Procedures for processing of requisitions
$ thresholds Approval process CIS Funds Emergency purchases
![Page 77: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/77.jpg)
•Purchasing Policy and Procedure Manual▫Bidding Procedures
$ Thresholds Competitive bid law Public Works Law
▫Bidding Process Time line
Development of specs Advertisement
Pre-Bid Conferences Recommended on all bids
Insurance/license requirements for vendors
![Page 78: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/78.jpg)
Developing Specifications
•Objectives▫Provide best value for tax payer’s
dollars▫Compliance with legal statutes▫Purchase of appropriate products and
services at best pricing▫Provide fair competition for all
vendors▫Provide service to all internal users
![Page 79: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/79.jpg)
Specifications
•Types of Specifications▫Qualified Products List (QPC)
List of products that meet specs▫Design Specs
Professional Architect/Engineer Drawings and Specifications
▫Performance Specs What product must do or what end
result will be produced
![Page 80: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/80.jpg)
Specifications
▫Item Specifications Specific information that clearly states the level
of quality and performance
▫Statement of Work (SOW) and/or Services Performance based – you tell the contractor what
to do, but not how to do it
![Page 81: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/81.jpg)
•Recommended purchasing practices▫Have pre-bid on all contracts▫Utilize purchasing co-ops
US Communities Regional co-ops State Bids
▫Joint purchasing contracts▫RFP for professional services
Banking, Engineers, Architects
![Page 82: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/82.jpg)
Specifications
•Who should be involved?▫Knowledgeable Users▫Vendors▫Professionals▫Finance▫Other Agencies▫Purchasing▫Legal?
![Page 83: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/83.jpg)
•Recommended purchasing practices
▫Use technology to improve procurement
▫Use procurement/purchasing cards Maintenance/Operations Departmental Supervisors Principals Teachers Booster Clubs
![Page 84: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/84.jpg)
Specifications
•Specification Q & A▫Clear
What to do, how to perform, timing, etc. Fair to allow appropriate competition Provide sufficient detail to communicate
what is expected All aspects included? (insurance,
warranty, delivery, installation, cleanup) Allow for significant level of evaluation
![Page 85: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/85.jpg)
Specifications
•Insurance▫Workman’s Comp▫Vehicle/Equipment▫General Liability▫Bonds Required?▫Amounts Sufficient for Level Needed?
![Page 86: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/86.jpg)
Specifications
•Freight▫Freight on Board (FOB) Destination
Seller arranges, pays and insures▫FOB Destination Freight Collect
Buyer pays freight but seller owns▫FOB Origin
Buyer accepts ownership at origin(Not recommended unless employee picking up)
![Page 87: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/87.jpg)
Specifications
•Warranty▫Duration
Months, Years, Extended
▫Start Date At installation or delivery
▫What’s Covered Full body or limited, installation
▫Extended Options Available What is covered and at what cost?
![Page 88: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/88.jpg)
Contracts
•Purpose ▫Sets up requirements and obligations
of all parties▫Properly executed, binds all parties▫Legal Compliance and Authority▫Set out any special terms and
conditions
![Page 89: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/89.jpg)
Contracts
•Contract Types▫General Operations (fundraisers,
vendor)▫Bid Contract/Agreement▫Construction ▫Professional Services▫Statement of Work▫Others
![Page 90: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/90.jpg)
Purchasing Cards
Benefits•stream line the purchasing process• teachers will benefit from the
optimal purchasing power for incidental expenses
• reduce (not do away with) the purchase order paperwork
![Page 91: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/91.jpg)
Benefits • increase budget control and internal
control• provide better reporting in terms of
who/what/when/how much•reduce the costs of procurement• reduce the costs of payments
![Page 92: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/92.jpg)
Purchasing Cards
•Setting Up The Program▫AASBO Program▫Purchasing Card Agreement
Appendix A▫Procedures
Appendix B
![Page 93: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/93.jpg)
Conflict of Interest
Alabama Ethics LawCode of Alabama
(Section 36-25-1- 36-25-30)
Conflict of Interest (Defined)- A conflict on the part of a public official/public employee between his/her private interest and the official responsibilities inherent in an office of public trust
![Page 94: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/94.jpg)
Conflict of Interest
•Does it meet the smell test
•Always check with your Board Attorney
•Contact the Ethics Commission
•When In Doubt Bid It
![Page 95: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/95.jpg)
Conflict of Interest
A conflict of interest shall exist when a public official has a substantial financial interest by reason of ownership, control or the exercise of power over any interest greater than 5%. (§ 36-25-5 (f))
![Page 96: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/96.jpg)
•Usually done for professional services exempt under bid law▫Architects, engineers, auditors,
banking services etc.▫Written request with services defined
Request For Proposal
![Page 97: Contracts and Purchasing AASBO Certificate Program April 18 & 20, 2011 David Smith](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649da85503460f94a94aa2/html5/thumbnails/97.jpg)
Questions?
Contracts and Purchasing AASBO Certificate Program
April 18 & 20, 2011
David Smith