Annual Business Meeting June 9, 2014

1. Annual Business MeetingJune 9, 2014 Purchasing Department

2. Purchasing

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

4. Request for Proposal (RFP)

5. When to Choose • 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

6. The New Procurement Code Specifies Requirements for RFPs NOT Suggestions • 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

7. Evaluation of Proposals 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

8. Evaluation of Proposals – cont. 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

9. Evaluation of Proposals – cont. 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

10. Awarding of Contract 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

11. Small Purchases63G-6a-408

12. Small Purchases63G-6a-408 (1) As used in section: (a) "Annual Cumulative Threshold" means the maximum total annual amount, established by the applicable rulemaking authority under Subsection (2)(a)(i), that a procurement unit may expend to obtain procurement items from the same source under this section. (b) "Individual Procurement Threshold" means the maximum amount, established by the applicable rulemaking authority under Subsection (2)(a)(ii), for which a procurement unit may purchase a procurement item under this section. (c) "Single procurement aggregate threshold" means the maximum total 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.

13. Small Purchases63G-6a-408 (2) The applicable rulemaking authority may make rules governing small purchases, including: (a) establishing expenditure thresholds, including: (i) an annual cumulative threshold; (ii) an individual procurement threshold; and (iii) a single procurement aggregate threshold; (b) establishing procurement requirements relating to the thresholds described in Subsection (2)(a); and (c) the use of electronic, telephone, or written quotes.

14. JSD Procurement Guidlines Small Purchases: Procurement Item Thresholds $1,000 = Individual Procurement Threshold63G-6a-408 $2,000 = Single Procurement Aggregate Threshold 63G-6a-408 $50,000 = Annual Cumulative Threshold63G-6a-408

15. Small Purchases63G-6a-408 $1,000 = Individual Procurement Item Threshold Any Procurement Item Costing Less Than $1,000 Examples: One artificial plant costing $999 One package of printer ink cartridges costing $70 One ream of special bond paper costing $30 One laptop computer costing $875

16. Small Purchases63G-6a-408 $2,000 = Single Individual Procurement Item Aggregate Threshold Any Combination of Individual Procurement Items Costing Less Than $1,000 Purchased From One Source at One Time Up To $2,000. Examples: Two artificial plants each costing $999, totaling $1,998 Twenty packages of printer ink cartridges costing $70, totaling $1,400 Fifty reams of special bond paper costing $30, totaling $1,500 Two laptop computers each costing $875, totaling $1,750

17. Small Purchases63G-6a-408 $50,000 = Annual Cumulative Individual Procurement Item Threshold Total Individual Procurement Items Costing Less Than $1,000 Purchased From One Source During A Fiscal Year Not To Exceed $50,000. Examples: 60 Artificial plants each costing $999, totaling $59,940 = Contract 1000 Packages of printer ink cartridges costing $70, totaling $70,000 = Contract 2000 Cases of paper each costing $30, totaling $60,000 = Contract 100 Laptop computers each costing $875, totaling $87,500 = Contract

18. Small PurchasesObtaining Quotes 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.

19. Small PurchasesShipping/Freight Charges 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.

20. Unlawful Conduct andPenalties

21. S.B. 179 Revisions • 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

22. UCA Definitions • “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.

23. UCA Definitions – cont. • “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.

24. UCA Definitions – cont. • “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

25. S.B. 179 Revisions • 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.

26. S.B. 179 Revisions • 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

27. P-Card Update • 2013-14 Spend $1,125,134 • 194 Cardholders • 1,000’s of transactions • Hundreds of hours saved instead of processing POs and NPOs