PURCHASING and ACQUISITION
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1 Student Alternatives Program, Inc. CH POLICIES PERTAINING TO BUSINESS AND SUPPORT SERVICES PURCHASING and ACQUISITION 1. Guiding Principles (a) The superintendent or designee in consultation with charter district designee shall ensure that each charter district utilizes the appropriate procurement method for the acquisition of goods and/or services. Additionally, the superintendent or designee shall select and contract with vendors providing the best value to the charter district. (b) In making and authorizing charter district purchases, neither members of the Board of Directors (Board) nor employees of the charter district shall intentionally or knowingly violate a law relating to that Board member s or employee's authority, duties and responsibilities with the charter district. (c) Employees may not purchase goods and/or services for their personal benefit with charter district funds. 2. Applicability of Purchasing Thresholds As the limited statutory requirement set forth in Texas Education Code Section , Applicability of Laws Relating to Public Purchasing and Contracting, applies to an openenrollment charter school, 1 as opposed to an open-enrollment charter holder, 2 the purchasing thresholds identified in this policy shall apply to each charter district individually and not to the charter holder (corporation) as whole. However, if two or more charter districts may benefit from the consolidated procurement of goods and/or services, the superintendent or designee is authorized to consolidate the purchase of identical or similar goods and/or services provided that such the resulting unified procurement does not violate applicable state or federal law. Accordingly, if the procurement is consolidated, the purchasing thresholds identified in this policy shall apply to the combined transaction as a whole. 3. Component, Separate and Sequential Purchases Prohibited Unless otherwise permitted, SAPI and each of the charter districts shall apply the purchasing thresholds described in this policy based on the aggregate value of the goods and services purchased during a twelve-month period. Thus, component, separate and sequential purchases are prohibited and not allowed. 1 Texas Administrative Code, Title 19, Section (3) defines a charter school as A Texas public school operated by a charter holder under an open-enrollment charter granted either by the State Board of Education (SBOE) or commissioner of education, whichever is applicable, pursuant to TEC, , identified with its own county district number. 2 Texas Education Code Section (1) provides that "Charter holder" means the entity to which a charter is granted under this subchapter. 1 of 6
2 4. Purchasing Authority Campus directors, charter district directors, central administration directors, business manager and superintendent are authorized to make budgeted purchases or other purchases authorized by the Board subject to the following thresholds. (a) Purchases from petty cash are limited to $100. (b) Purchases through purchase requisitions resulting in the expenditure of up to $4,999 in funds require approval by the business manager. (c) Purchases through purchase requisitions resulting in the expenditure of $5,000 or more in funds require approval from the superintendent or designee. (d) The superintendent may authorize purchases resulting in the expenditure of $50,000 to $100,000 in funds provided that the Board is notified of the purchases. The Board will review and ratify (or censure) these purchases at the next regularly scheduled meeting of the Board. (e) Purchases resulting in the expenditure of more than $100,000 in funds require Board approval. (f) Purchases through a corporate charge or credit account by an authorized cardholder in excess of $1,000 require the superintendent s prior written approval. (g) Purchases with personal cash or personal charge or credit cards are limited to the same purposes as petty cash and are limited to $100, unless prior written approval of the superintendent or designee has been obtained. 5. Contract Required The Superintendent shall procure or cause the procurement of goods and/or services resulting in the expenditure of more than $50,000 in funds through an executed contract or other written agreement. 6. Corporate Card Program The superintendent may establish a corporate charge or credit card program to permit authorized employees to purchase goods and/or services. The superintendent may only use and may only allow the use of the corporate card program for official charter district business and shall prohibit the use of the corporate card program for personal benefit or use. Any employee authorized to participate in the corporate card program shall be required to sign a corporate account usage agreement. 7. Regulated Purchases Recognizing that the federal and state governments enacted laws and adopted rules that only regulate the procurement of certain goods and/or services acquired with state funds or of goods and/or services acquired with federal funds, the superintendent or designee shall adhere to the following policy for the use of state and federal funds to purchase goods and/or services. 2 of 6
3 7.1 Real Property Improvements (a) When awarding a contract for the construction, repair, or renovation of a structure, road, highway, or other improvement or addition to real property (collectively, real property improvements) on the basis of competitive bids, and if the contract requires the expenditure of more than $50,000 of public funds, as defined in Section of the Texas Education Code, the superintendent or designee shall procure goods and services by the process set forth in Texas Government Code Chapter 2269 and Texas Education Code Chapter 44, Subchapter B, as stipulated in Section of the Texas Education Code and Section of Title 19 of the Texas Administrative Code. (b) Pursuant to Texas Government Code Section and Texas Local Government Code Section , in determining who is a responsible bidder, the Board (or designee) take into account the safety record of the bidder, of the firm, corporation, partnership, or institution represented by the bidder, or of anyone acting for such a firm, corporation, partnership, or institution pursuant to the following definition and criteria for accurately determining the safety record of a bidder. (1) Citations include notices of violation, notices of enforcement, suspension/revocations of state or federal licenses or registrations, fines assessed pending criminal complaints, indictments, or convictions, administrative orders, draft orders, final orders, and judicial final judgments. Notice of Violations and Notice of Enforcement received from the Texas Commission on Environmental Quality (TCEQ) shall include those classified as major violations and moderate violations under the TCEQ S regulations for documentation of Compliance History, 30 Texas Administrative Code, Chapter 60.2 (c) (1) and (2). (2) Environmental Protection Agency includes, but is not limited to the TCEQ, the U.S. Environmental Protection Agency, the U.S. Fish and Wildlife Service, the U.S. Army Corps of Engineers, the Texas Department of Health, the Texas Parks and Wildlife Department, the Structural Pest Control Service, agencies of local governments responsible for enforcing environmental protection laws or regulations, and similar regulatory agencies of other states of the United States. (3) Based upon the bidder s response to certain questions, the Board (or designee) will consider the following criteria and, at its discretion, determine whether to disqualify the bidder. (A) The revelation of more than two (2) cases in which final orders have been entered by the Occupational Safety and Health Review Commission (OSHRC) against the bidder for serious violations of Occupational Safety & Health Administration (OSHA) regulations within the past five (5) years. (B) The revelation of more than one (1) case in which bidder has received a citation or for which final orders have been entered from an environmental protection agency for violations within the past five (5) years. (C) The revelation that the bidder has been convicted of a criminal offense within the past ten (10) years or has been subject to a judgment for a negligent act or omission, which resulted in serious bodily harm or death. 3 of 6
4 7.2 Professional Services When awarding a contract for professional services, the superintendent or designee shall procure the professional services by the process set forth in Texas Government Code Chapter 2254, as stipulated in Section of the Texas Education Code. For purposes of this policy, professional services shall be defined pursuant to Section of the Texas Government Code. 7.3 Child Nutrition Programs When purchasing goods and/or services with funds received through the federal nutrition programs administered by the Texas Department of Agriculture, the superintendent or designee shall procure such goods and/or services pursuant to the applicable Administrator s Reference Manual or other superseding or authoritative handbook. 7.4 Federal Procurements When purchasing goods and/or services with funds received from a federally-funded grant awarded by the United States Department of Education, Texas Education Agency or other federal, state or local agency, the superintendent or designee shall procure goods and/or services pursuant to Education Department General Administrative Regulations, Part 200 of Title 2 the Code of Federal Regulations or other applicable federal law or regulation. 8. Unregulated Purchases Recognizing that the federal and state governments enacted laws and adopted rules that only regulate certain procurements, as disclosed in Section 6 above, the superintendent or designee shall adhere to the following policy for the use of public funds to purchase goods and/or services other than those pertaining to real property improvements, professional services, federal nutrition programs and federally-funded grants which are subject to the policies adopted in Section 6 above. 8.1 No Method Required The superintendent or designee may procure goods and/or services that result in the expenditure of less than $5,000 in funds through the most expedient manner available that provides value to the charter district. 8.2 Quotes and Informal Bids (Not Including Construction, Renovations or Repairs to Real Property of $50,000 or More) The superintendent or designee shall procure goods and/or services that result in the expenditure of $5,000 to $100,000 in funds through the solicitation of written quotes or informal bids from authorized vendors. 8.3 Competitive Bids (Not Including Construction, Renovations or Repairs to Real Property) (a) The superintendent or designee shall procure goods and/or services that result in the expenditure of $100,000 or more through formal competitive bids. 4 of 6
5 (b) When using competitive bidding as the purchasing method, the superintendent or designee shall prepare bid specifications. All formal bids shall be submitted in sealed envelopes, plainly marked with the name of the bidder and the time of opening. All bidders shall be invited to attend the bid opening if a formal bid opening will occur. Bids received after the specified time shall not be considered. The charter district may reject any and all bids or waive any requirements or technicalities it determines is in the best interest of the charter district. (c) In awarding a contract, the charter district shall consider appropriate criteria, which may include, but are not limited to, the following factors: (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 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 relating to historically underutilized businesses; (7) The total long-term cost to the district to acquire goods or services; and (8) Any other relevant factor specifically listed in the request for bids or proposals. 8.4 Purchases Through Cooperative (a) The superintendent is authorized to engage or join interlocal and governmental purchasing cooperatives organized under Texas Government Code Chapter 791 as deemed beneficial and advantageous to the charter districts. (b) In lieu of competitive bids, the superintendent or designee may procure goods and/or services through a cooperative that provides written assurance of compliance with state purchasing requirements. (c) In the event that a participating vendor in the purchasing cooperative program quotes a lower price for the same goods and/or services than the price available through the cooperative, the superintendent or designee may procure the goods and/or services directly from and using the vendor's direct quote. 8.5 Computers As authorized under Texas Government Code Chapters 2054 and 2157, the charter district may acquire computers and computer-related equipment, including computer software, through a contract administered by the Department of Information Resources. 8.6 Sole Source 3 The charter district may procure goods and/or services that are available from only one source provided that adequate and sufficient documentation is maintained demonstrating that no other source was identified to provide a similar good and/or service. 3 Federal regulations require the consideration of additional measures when procuring goods and/or services from a sole source using federal funds. 5 of 6
6 9. Publication of Solicitation for Bids Where competitive bidding is utilized (and not including real property improvements requiring the expenditure of more than $50,000 in public funds), notice of when and where bids or proposals or the responses to a request of qualifications will be received and opened shall be published in the county where the charter district s central administrative office is located and/or in the county where the charter district is based, at least once, prior to the deadline for receiving bids, proposals, or responses to a request for qualifications. If there is no newspaper in that county, the advertising shall be published in a newspaper in the county nearest the county seat of the county in which the charter district s central administrative office is located. 10. Interested Transactions The charter district may contract with business entities in which a Board member has a substantial interest if the Board member follows the disclosure and abstention procedures promulgated in Texas Local Government Code Chapters 171 and 176 and such contract provides the best value notwithstanding the disclosed relationship. Additionally, the charter district shall create and maintain a discrete and clear record of the business arrangement or transaction in the accounting, auditing, budgeting, reporting, and recordkeeping systems for the management and operation of the charter district. 11. Administrative Procedures The superintendent or designee shall prepare and formally adopt administrative procedures as reasonably necessary to properly implement this policy and the legal requirements promulgated in applicable law and regulation. Date Adopted: November 4, 2000 Last Date Amended: March 5, of 6
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