PURCHASING PROCEDURES

1. PURCHASING PROCEDURES Regulation 470-1 Revised 2013

2. PURPOSE To provide training for all PWCS employees with authority to perform Purchasing functions within their delegated authority.

3. TOPICS ● Purchasing Staff ● VPPA ● Purchasing Acronyms ● Purchasing Thresholds ● Purchase Options ● Purchasing Methods ● Documentation ● Vendor Contracts ● Electronic Approvals ● Purchasing Website ● Conflict of Interest/Gifts ● Audit/Review

4. PWCS PURCHASING STAFF ●Jim Totty, Supervisor – 8744 ● Anthony Crosby, Admin. Coordinator – 8738 ●Laurie Baber, Senior Buyer – 8741 ● Sheila Farmer, Senior Buyer – 8737 ●Daemien Jones, Buyer – 9740 ●Sherry Jones, Buyer – 8096 ●Brian Burtner, Buyer – 8736 ●Karen Sobers, Buyer – 8888 ● Nancy Markov, Buyer – 8742 ●Angie Baker, Secretary – 8743 ● Cathy Draggoo, Secretary - 7414

5. VIRGINIA PUBLIC PROCUREMENT ACT - 1982Modified 22 Times ● Virginia Public Procurement Act (VPPA) -Procurements conducted in a fair and impartial manner – “Level playing field” - Maximize Competition – “Best Value” - Applies to all Virginia public bodies - Identifies the legal processes of public procurement - Clearly defines the rights of PWCS and vendors - If modified, Normally Effective on July 1st -Authorizes PWCS to establish Regulation 470-1

6. COMMONLY USED PURCHASING ACRONYMS ● Centralized Purchase Order (PC) ● Delegated Purchase Order (PD) ● Delivery Order (DO) ● Emergency (PC) ●FOB Destination ● Invitation for Bid (IFB) ● Master Agreement (MA) ● Modification (PC, DO, PD) ● Request for Proposal (RFP) ● Requisition (RQS) ● Sole Source (PC, DO, PD)

7. PURCHASING THRESHOLDS SINGLE QUOTE ●$0 - $5,000 Department & Schools ●$0 - $10,000 Facilities Services ● “This Amount Must IncludeShipping Charges” THREE QUOTES ● $5,000.01 - $15,000 Departments & Schools ●$10,000.01 - $20,000 Facilities Services PURCHASING ●$15,000.01/$20,000.01-$100,000 Unsealed Bid/RFP or other metods ●$100,000.01 Competitive Sealed Bid or RFP

8. PURCHASING THRESHOLDS(Continued) SCHOOL BOARD ●Awards All Purchases > $500,000 MODIFICATIONS ● Submit RQS for All Modifications >$500 - Up to $500 Purchasing will modify with Budget Holder’s email approval

9. PURCHASE OPTIONS ●PWCS Master Agreements ●VA State Contracts ● Cooperative Contracts (Localities, National Cooperatives) ●Price Quotes email, fax or telephone ● If Procurement is < $15/$20,000 - Should check to see if on an established PWCS MA - If not, then obtain Price Quotes ● If Procurement is > $15/$20,000 - Again, check if on an established PWCS MA - If not, create RQS in AMS for appropriated funds; or - Create a “check requisition” in Blue Bear for Activity Funds

10. PURCHASE METHODS DEPARTMENTS ● Small Purchases – Single “or” Three Quotes PURCHASING ● eVA Quick Quote through state procurement portal ● Unsealed Bid or Proposal for (IFB) or (RFP) ● Competitive Sealed Bid/Proposal (IFB/RFP) ● Sole Source ● Emergency ● Exceptions (See Page 7 & 8 of Regulation 470-1)

11. DOCUMENTATION ● Email / Fax / Telephone Quotes ►Document the Details (Tabulation Sheet) ►Tie Bids (Coin Toss with Witnesses) ►Order Splitting Not Permitted ● Certificate of Compliance (If Required) ● Insurance Certificate (If Required) ● Sole Source (Must Have Proper Signatures) ● Vendor Performance (Vendor Complaint Form)

12. VENDOR CONTRACTS Who has authority to sign Vendor Contracts? - Supervisor of Purchasing ► Upon request will review, validate or recommend changes to the content of vendor contract forms < $15/20,000 - Budget Holders ► May sign contracts up to $15,000 for: →Book fairs, charter bus service, dances, field trips, fundraisers, institutional membership applications, interscholastic athletic contracts, proms, graduations, and sport officials, etc.

13. VENDOR CONTRACTS (Continued) ► If you must sign a Contractor’s Contract Form, DO NOT Agree To: - Indefinite automatic renewals - Indemnification (Hold Harmless) Clauses - Limited or No Liability Clauses - A Court of Jurisdiction Outside of Virginia ► If signing Contractor Contract Form try to incorporate: - PWCS Contractor’s Addendum Form -If they will not sign, will require Legal Review

14. Electronic Approval Levels ● Bookkeeper: ● Purchasing: PD, DO, RQS Up to $25 PD>$15/20,000 (Rejects) DO> $100,000 ● Principal/Budget Holder: PC>$100,000 PD Up to $15/20,000 ● Finance DO Up to $100,000 DO, PC > $100,000 RQS Unlimited * Purchasing will not accept any requisitions for less than$15,000 from schools and departments or $20,000fromFacilities Servicesunless approved in advance by the Supervisor of Purchasing.

15. PURCHASING WEB SITE ● Vendor Resources - Vendor Registration - Certificate of Compliance - W-9 Form - Sales Tax Exemption - Communication Tax Exemption - Federal Tax ID # - How to do Business ● Purchase Order Terms ● Solicitations Issued - Invitation for Bids (IFB) - Request for Proposals (RFP) - Unsealed Bids/RFPs ►All Include General Terms & Conditions ● Awards - Notice of Awards ► Sole Source ► Emergency - Bid Tabulations ● Master Agreements

16. PURCHASING INTRANET SITE ●Intranet (Finance and Support - Purchasing) -FAQs - Pocket Guides - Guidelines ► How to purchase software ► How purchase or lease/rent copiers -This PowerPoint Presentation - Forms ► Telephone/Email/Fax Quote Sheet

17. PURCHASING INTRANET SITE(Continued) -Forms (Continued) ► Certificate of Compliance Form for Vendors ► Vendor Database Request Form ► W-9 Form ►Sales & Use Tax Certificate of Exemption Form ►Communication Sales & Use Tax Certificate of Exemption Form ► Vendor Complaint Form ►Sole Source Purchase Documentation Form ► Emergency Purchase Documentation Form

18. AVAILABLE REPORTS • AMS InfoAdvantage ► All Purchase Orders by Department Number Including Cancellation ► Closed Purchase Orders by Department Number ► Open Purchase Orders by Department Number ► Payments to Vendors ► Vendors with DBA Name

19. CONFLICT OF INTEREST/GIFTS ● NoPWCS employeecan participate in a procurement transaction if he/she has a personal financial interest in the firm supplying the goods/services. ● NoPWCS employeecan accept anything from a vendor unless consideration of equal value is exchanged. ● Contact Purchasing for guidance/advice.

20. AUDIT/REVIEW ● Purchasing is responsible for conducting periodic audits/reviews of procurement transactions made by budget holders. ● Findings are documentedand discussedwith Budget Holdersand their respective Associate Superintendentfor appropriate action.

21. Role of the Division Counsel ● Assist with interpretations of the Division’s purchasing policies, regulations, and the Virginia Public Procurement Act to foster compliance with procurement law and policy ● Review contracts as to form ● Assist with the negotiation of non-form contracts ● Respond to legislative changes

22. Unauthorized Procurements The School Division is not boundby unauthorized procurements. No purchase order or contract made in violation of Division policy or Virginia law can bind the School Board; however, the School Board (or its authorized agent) could choose to ratify the purchase.

23. Unauthorized Procurements (Continued) The School Division may choose to hold an official or employee personally responsible for an unauthorized purchase or contract, and if already paidout of Division funds, the amount may be recovered from the individual.

24. Unauthorized Procurements (Continued) ● County of York v. King’s Villa, 226 Va. 447, 450 (1983) “However, we have cautioned in several cases that those who deal with public officials must, at their peril, take cognizance of their power and its limits.” ●American-LaFrance v. Arlington County, 164 Va. 1, 6 (1935) “All persons dealing with a municipal corporation are charged with notice of the limitations upon its power.  Those limitations may not be exceeded, defeated, evaded, or nullified under the guise of implying a contract.” ● Deal v. Commonwealth, 224 Va. 618, 623 (1983) “[t]hose who deal with public officials must at their peril take cognizance of their power and its limits.”

25. QUESTIONS