Essential Guidelines for Effective Procurement Processes

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Establishing procurement guidelines is crucial for successful operations. From defining RFP requirements to forming evaluation committees, each step plays a vital role in selecting suitable vendors. Criteria like experience, quality, and cost must be considered in this process. By following these structured steps, organizations can ensure fair evaluation and successful outcomes in their procurement endeavors.

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Purchasing Department

Procurement Code Revisions (S.B. 179) RFP Requirements Small Purchases Ethics P-Card in Review New Travel Request Process New Website!

The procurement of professional services A design-build procurement When cost is not the most important factor to be considered in making the selection that is most advantageous to the procurement unit When factors, in addition to cost, are highly significant in making the selection that is most advantageous to the procurement unit

A request for proposals shall: state the time period of acceptance how the proposal will be submitted place where proposal shall be submitted description of the procurement items sought description of the subjective and objective criteria standard contractual terms and conditions state the relative weight of the criteria state the formula to determine cost state if there will be multiple stages with criteria and scoring state that discussions may be conducted

Possible Criteria: Experience Performance ratings Inspection Testing Quality Workmanship Time, manner, or schedule of delivery References Financial solvency Suitability for a particular purpose Management plans Cost Other criteria specified in the RFP

Evaluation Committee: Appoint at least 3 individuals Members do not have conflicts of interest Can fairly evaluate each proposal No communication with offerors Ensures a fair and competitive process Prohibited from seeing cost until after final scoring of other factors has been completed

Best and Final Offers: Must request from all responsible and responsive offerors Ensure each offeror is treated fairly and equally Establish a schedule and procedure for discussions Responses to remain confidential from each other No auction tactics

In determining which proposal provides the best value to the district, the evaluation committee shall prepare a written justification statement Explains the score assigned to each evaluation category Explains how the proposal with the highest total score provides the best value to the district If applicable, includes a cost-benefit analysis

( (1 1) ) As (a) established that same As used "Annual Cumulative established by that a a procurement same source used in Cumulative Threshold" by the procurement unit source under in section section: : (a) "Annual Threshold" means the applicable unit may under this means the rulemaking authority may expend this section the maximum authority under to obtain maximum total under Subsection obtain procurement total annual Subsection ( (2 2)(a)( procurement items annual amount, amount, )(a)(i i), ), from the applicable rulemaking expend to items from the section. . (b) established by the applicable rulemaking authority under Subsection (2)(a)(ii), for which a procurement unit may purchase section. (b) "Individual Procurement Threshold" established by the applicable rulemaking authority under Subsection (2)(a)(ii), for which a procurement unit may purchase a procurement item section. "Individual Procurement Threshold" means the maximum amount, means the maximum amount, a procurement item under this under this (c) amount, established by the applicable rulemaking authority under Subsection (2)(a)(iii), that a procurement unit may expend to obtain items (c) "Single procurement aggregate threshold" amount, established by the applicable rulemaking authority under Subsection (2)(a)(iii), that a procurement unit may expend to obtain multiple procurement items from one source at one time under this section. "Single procurement aggregate threshold" means the maximum total means the maximum total multiple procurement from one source at one time under this section.

( (2 2) ) The small (a) (b) thresholds (c) The applicable small purchases, (a) establishing ( (i i) ) an (ii) (iii) (b) establishing thresholds described (c) the applicable rulemaking purchases, including establishing expenditure an annual (ii) an (iii) a a single establishing procurement described in the use rulemaking authority including: : expenditure thresholds, annual cumulative an individual single procurement procurement requirements in Subsection use of authority may may make make rules rules governing governing thresholds, including cumulative threshold individual procurement procurement aggregate including: : threshold; ; procurement threshold aggregate threshold requirements relating Subsection ( (2 2)(a) of electronic, threshold; ; and threshold; ; and relating to to the the )(a); ; and or written and electronic, telephone, telephone, or written quotes quotes. .

Small Small Purchases Purchases: : Procurement Procurement Item Item Thresholds Thresholds $ $1 1, ,000 $ $2 2, ,000 $ $50 000 000 50, ,000 = = = = = = Individual Single Annual Individual Procurement Single Procurement Annual Cumulative Procurement Threshold Procurement Aggregate Cumulative Threshold Threshold Aggregate Threshold Threshold63 63 63G G- -6 6a a- -408 408 Threshold 63 63G G- -6 6a a- -408 408 000 63G G- -6 6a a- -408 408

$ $1 1, ,000 Any 000 Procurement Item = = Individual Item Costing Individual Procurement Costing Less Procurement Item Less Than Item Threshold Threshold Any Procurement Than $ $1 1, ,000 000 Examples One Examples: : One artificial artificial plant plant costing costing $ $999 999 One One package package of of printer printer ink ink cartridges cartridges costing costing $ $70 70 One One ream ream of of special special bond bond paper paper costing costing $ $30 30 One One laptop laptop computer computer costing costing $ $875 875

$2,000 = Single Individual Procurement Item Aggregate Threshold $2,000 = Single Individual Procurement Item Aggregate Threshold Any $ $1 1, ,000 Any Combination 000 Purchased Combination of Purchased From of Individual From One Individual Procurement One Source Procurement Items Source at Items Costing Time Up Costing Less Up To Less Than 000. . Than at One One Time To $ $2 2, ,000 Examples Two Examples: : Two artificial artificial plants plants each each costing costing $ $999 999, , totaling totaling $ $1 1, ,998 998 Twenty Twenty packages packages of of printer printer ink ink cartridges cartridges costing costing $ $70 70, , totaling totaling $ $1 1, ,400 400 Fifty Fifty reams reams of of special special bond bond paper paper costing costing $ $30 30, , totaling totaling $ $1 1, ,500 500 Two Two laptop laptop computers computers each each costing costing $ $875 875, , totaling totaling $ $1 1, ,750 750

$50,000 = Annual Cumulative Individual Procurement Item Threshold Total One $50,000 = Annual Cumulative Individual Procurement Item Threshold Total Individual One Source Individual Procurement Source During Procurement Items During A A Fiscal Items Costing Year Not Costing Less Not To Less Than 50, ,000 Than $ $1 1, ,000 000. . 000 Purchased Purchased From From Fiscal Year To Exceed Exceed $ $50 Examples 60 Examples: : 60 Artificial Artificial plants plants each each costing costing $ $999 999, , totaling totaling $ $59 59, ,940 940 = = Contract Contract 1000 Contract 1000 Packages Contract Packages of of printer printer ink ink cartridges cartridges costing costing $ $70 70, , totaling totaling $ $70 70, ,000 000 = = 2000 2000 Cases Cases of of paper paper each each costing costing $ $30 30, , totaling totaling $ $60 60, ,000 000 = = Contract Contract 100 100 Laptop Laptop computers computers each each costing costing $ $875 875, , totaling totaling $ $87 87, ,500 500 = = Contract Contract

Under $2,000 Obtain at least one (1) verbal or written quote. Any single item over $1,000 Obtain at least three (3) quotes. $2,000 to $9,999 Obtain three (3) verbal or written quotes using the JSD quote form. Must include company name, contact name, date of quote, product name/model number, and price. $10,000 to $49,999 Coordinate with the purchasing buyer assigned to the appropriate commodity and obtain three (3) written quotes on vendor letterhead or quote form. $50,000 and above Requisition to be submitted in Skyward and the appropriate purchasing buyer will solicit competitive bid or RFP on behalf of the requesting school/department.

Shipping or freight costs should always be included in all quote requests. If you know there are no shipping charges, indicate Free shipping in the last line of the requisition. When requesting quotes for shipping/freight, ask for FOB Destination Freight Prepaid and Add. If the company cannot provide an exact freight quote, ask for an estimated freight quote. Include the estimated shipping as a line item on the Skyward requisition. Requisitions that do not include a line for shipping/freight charges will be sent back to the originator. Requisitions that do not include a line for shipping/freight charges will be sent back to the originator.

Effective May 1, 2014 Effective May 1, 2014 Gratuities Kickbacks Unlawful use of position or influence.~ UCA 63G-6a-2304.5 Artificially dividing a purchase. ~UCA 63G- 6a-2305 and 2306 REMOVED From Code

Family member means a parent, stepparent, spouse, sibling, stepsibling, child, stepchild, grandparent, great-grandparent, grandchild, or great-grandchild. Gratuity means anything of value including money, a loan with an interest rate lower than terms usually offered on the market, an award, employment, admission to an event, a meal, lodging, travel, or entertainment for which a charge is normally made.

Kickback means a gratuity given in exchange for favorable treatment in a pending procurement or the administration of a contract. Hospitality gift means a promotional or hospitality item, including, a pen, pencil, stationery, toy, pin, trinket, snack, nonalcoholic beverage, or appetizer Hospitality gift does not include money, a meal, a ticket, admittance to an event, entertainment for which a charge is normally made, travel, or lodging.

Procurement professional means an individual who is an employee, and not an independent contractor, of a procurement unit, and who, by title or primary responsibility: (i) has procurement decision making authority; and (ii) is assigned to be engaged in, or is engaged in: (A) the procurement process; or (B) the process of administering a contract or grant, including enforcing contract or grant compliance, approving contract or grant payments, or approving contract or grant change orders or amendments

Exceptions: Not guilty if item is classified as hospitality gift Contributions to the entity with no intent for reciprocation for the contribution by title or primary responsibility, does not have procurement decision making authority; and is not assigned to engage in, and is not engaged in, the procurement process.

Exceptions - cont. any individual who, by title or primary responsibility, does not have procurement decision making authority; (ii) an individual holding an elective office; (iii) a member of a governing body; (iv) a chief executive of a public entity or a chief assistant or deputy of the chief executive, if the chief executive, chief assistant, or deputy, respectively, has a variety of duties and responsibilities beyond the management of the procurement process or the contract or grant administration process; (v) the superintendent, business administrator, principal, or vice principal of a school district or charter school, or the chief assistant or deputy of the superintendent, business administrator, principal, or vice principal