Purchasing Policy and Procedures Guidelines

This purchasing manual will:

• Provide guidance to school district employees at the campus and department levels in requisitioning materials, equipment, and services.
• Inform district staff of the appropriate purchasing laws for district purchases.
• Promote consistency in purchasing applications throughout the school district.

All district staff with purchasing authority should be familiar with the legal requirements for purchasing prescribed in Education Code Chapter 44.031 and Board of Trustees Policy CH’s. All Cleburne ISD purchases and acquisitions must meet legal requirements. In order to assure legal compliance with purchasing law, the district has elected under Texas Government Code 2155, Subchapter I to participate in cooperative purchasing programs.

If you have any questions, please contact the Business Office.  

If you find yourself asking the above question, here are some Purchasing Pointers to make it happen:  

1. Is the item available from a District Proposal?

This is the first option that should be considered in making your purchasing decision. The Purchasing Office has established a large variety of annual proposals covering many of the products and services required by campuses and departments. All relevant statute and policy requirements have been met by Purchasing in establishing these proposals/contracts. Purchases must be made utilizing a purchase order. Contract types primarily used: discount from catalog      office supplies, instructional supplies, classroom supplies, athletic supplies, etc. You can find a list of approved vendors on the Intranet, under Purchasing, Items Bid.

2. Is this item available from a Cooperative contract?  

The next option available in making purchasing decisions in interlocal purchasing  cooperative contracts. Title 7, Chapter 791 of the Texas Government Code grants  school districts the authority to participate in purchasing cooperatives. Currently,  the district is authorized to participate in several purchasing cooperatives. See  Cooperative Purchasing, pages 5-6.

3. Is this item or service only available through sole source provider?  

For a purchase to meet the requirements of sole source, it must meet legal and  policy requirements. See Sole Source, page 7.

4. The product or service that I need is not available from any of the above. Now what do I do?  

If none of the above procurement services cover your particular requirements you  will need to determine if quotes or proposals are necessary, whether or not you  need help in developing specifications and if you need assistance in identifying a  potential source of supply. Contact the purchasing department for assistance. 

The following guidelines are established based on State of Texas statues, and District Policy CH(Local), and these requirements are to assist District personnel in making a purchase using District managed funds.  

It is important to remember that individual schools and departments are not separate legal entities. When determining what sort of competitive process will be required for the purchase of quantities of an item or a category of similar items the entire district’s purchases are considered.

Generally speaking, the aggregate purchases of a particular category of related items such as office supplies, athletic supplies or instructional supplies must be submitted to competitive bidding when the aggregate purchase will total $50,000 or more over a twelve-month period. For example, if the total purchases of office supplies made by all departments and campuses in the district over a twelve-month period will amount to $50,000 or more, those office supplies must be submitted to competition as required by the Texas Education Code.

The Texas Education Code provided for criminal penalties for persons who intentionally circumvent the purchasing contracts law by making split, separate, sequential, or component purchases.  

The Purchasing Office can provide purchasing guidance – both legally and procedurally for assistance in the preparation of Bids – Quotes – RFP’s. The Purchasing Department solicits Proposals every year (approximately April) for the following categories: Athletic Supplies, Custodial Supplies, Property/Liability Insurance, Copy Paper Supply, Office/Classroom/Teaching Supplies, and Fuel Supply. Purchases in these categories must come from the awarded vendors (approved vendor list). These purchases require newspaper advertisements for two consecutive weeks and board approval prior to purchase.

Purchases of $10,000.00 or more require 3 quotes. These quotes need to be attached to the requisition. Purchases of $50,000 or more must be approved by the Board of Trustees.  

The district is a member of numerous purchasing cooperatives, which are listed below along with their respective websites.

Purchase Orders may be processed from any of the approved vendors listed on a purchasing cooperative that the district is a member without going through additional vendor approval. The purchasing cooperative name and contract number, (if applicable), MUST be referenced on the purchase order. Not all vendor’s products and services are covered under the contract number. You must verify the contract number is valid on the products or services which you are purchasing.

One of the benefits for a cooperative purchase is the cost savings of products and services due to the greater volume of purchases of the combined members’ purchasing power. Another benefit is the savings on administrative costs. The individual district cooperative member does not have to go through the proposal process as an individual because the purchasing cooperative performs the proposal function for the members as a whole. This will assist the individual district/district staff in reducing redundant costs associated with individual district proposals. Finally, the member districts have the ability to purchase greater variety of products and services, hopefully at a lower price.

There are many approved vendors available for your procurement needs through the purchasing cooperatives. Contact Heidi Todd at 1118 if there is a need for assistance with this option for district purchasing.  

• All items must be ordered directly from the CPS website. For detailed instructions, please see the CO-OP Manual available via the following website. http://www.window.state.tx.us//procurement/prog/coop/coop_manual.pdf

• POs are sent directly to the vendor and must reference “Per TCPN Contract” along with the contract number. See each vendor’s personal contact pages at www.tcpn.org for further information.

• Purchase Orders should be made out to the vendor and faxed to the BuyBoard for processing. The fax number is 800-211-5454. Please include for “Confimation Only” on PO in the vendor comment box, along with “Buyboard Contract #”

• Ordering is done directly from each supplier. Depending on the supplier, agencies can order either online, via phone, fax, or email. U.S. Communities is currently working on an eCommerce portal where Agencies will be able to log in through the U.S. Communities site and order from the U.S. Communities suppliers. Always put in vendor comment box “US Communities Vendor.”

• Customers order by issuing a purchase order directly to the vendor of their choice. Reference the DIR contract number in the Vendor Comment box on the PO. This should be done through the Technology Department. 

• Customer order by issuing purchase order directly to vendor. You may want to contact the vendor to see if they have any ordering instructions that need to be added to PO. Always put in vendor comments “EPCNT Vendor.”

• This site wi11 have all approved vendors. You will need to contact the vendor directly. Always put in vendor comment box “Region XI Co-op.”

• TIPS members contact the TIPS Awarded Vendors. Purchase Orders are prepared to the Awarded Vendor and FAXED according to the vendor page in the TIPS website. If POs are to be faxed directly to vendor, then a copy needs to be faxed to TIPS. Always put in vendor comment box “TIPS Contract #.”

• You must enter the items you are wanting and create a PO with the state. Once you have that PO and CISD PO you may order directly from the vendor. For detailed instructions, please see the CO-OP Manual available via the following website. http://comptroller.texas.gov/procurement/pub/manual/2-81.pdf

• Contact Heidi Todd  

• You may visit website to look for vendors. Contact vendor and get pricing, quote must say Choice Partners pricing. You may send PO directly to vendor.  As always, put Choice Partners in Vendor Comment Box on PO.

• You can visit website to look for vendors. Contact vendor and get pricing, quote must say E&I Coop pricing. You may send PO directly to vendor. As always, put E&I Coop in Vendor Comment Box on PO.

• You can visit website to look for vendors. Contact vendor and get pricing, quote must reference Co-op pricing. You may send PO directly to vendor. As always, put Region 19 Coop in Vendor Comment Box on PO.

• Look up vendor on PACE and look at order procedures. As always, put PACE Coop in Vendor Comment Box on PO.

• Contact Heidi Todd

• Go to Epic6, Click on awarded vendors

• Click on Active contracts

• Main page has list of categories and vendors.  

Please contact Heidi Todd at 1118 if you need assistance with any Co-op purchase. 

The District has developed and implemented a standardized sole source affidavit form for vendors to complete to declare their sole source status. Sole source purchases must be supported by a notarized form from a vendor. This is required regardless of the amount of the purchase. The sole source form can be found on the Intranet under the Purchasing Department, Documents and Forms. It is attached to the Vendor Application Form that also needs to be filled out when adding a new vendor.

The Purchasing Department will maintain these notarized forms from vendors on file. The notarized forms must be submitted to the Purchasing Department along with all other required documents for processing. If necessary, due to time constraints, the vendor’s form may be received by fax, to be followed with an original by mail. By definition, the vendor must be the only source for that item. These items are usually protected because of the existence of a patent, copyright, secret process, or monopoly. State Laws defines a sole source as:

• An item for which competition is precluded because of the existence of a patent, copyright, secret process, or monopoly.
• A film, manuscript, or book.
• A utility service.
• A captive replacement part of equipment.

Reason for Use

• There is no competitive product. The good/service is a one-of-a-kind or patented product, a copyrighted publication available from only one source, or a unique item such as artwork.
• The product is only available from a regulated or natural monopoly. For example, utilities, gravel from the only pit in the area or some similar situation.
• The product is a component of an existing system that is only available from one supplier. The replacement of a component or a repair part may only be available from the original supplier.

Caution

• A vendor, who markets a product through distributors, or more than one outlet, is not a sole source because the products are available from more than one source.
• Care must be taken to avoid making sole source purchases because there is a preference for a particular brand. 

Vendor Selection

The Business Office encourages an open and professional relationship with each vendor while maintaining total independence and objectivity. Every effort must be made to use an awarded contract vendor. This provides compliance with applicable statutes and regulations. Awarded vendors normally give discounts off catalog prices and many provide free shipping; therefore, it is in the district’s advantage if they are consistently being used.

In some cases, however, a new vendor must be added because the item needed is a:

• Sole Source Item
• Consultant or Staff development presenter
• New workshop, membership, or conference registration
• New Employee

To add a new vendor, the following paperwork needs to be sent to the Purchasing Department. 

• Vendor Application
• W-9
• Conflict of Interest Questionnaire (CIQ)
• EDGAR Provision
• Felony Notification

You may find these form on the District website under the Purchasing Department.  

Prospective Vendor List

One of the primary duties of the Purchasing Department is to maintain a Prospective vendor list. The vendor list includes the names and addresses of vendors and the products and services they offer. Vendors interested in providing commodities or services to the Cleburne Independent School District must complete a Vendor Application Form.  

The commodities or services include, but are not limited to the following:

• Art Supplies
• Athletic Supplies (including Cheer)
• Curriculum Supplies
• Equipment Rental and Repair
• Furniture (classroom, library, and office)
• Instructional Supplies (teaching aids)
• Insurance
• Maintenance Supplies (electrical, HVAC, plumbing, lumber & building materials, grounds & shop equipment, paint, flooring, paving, concrete, parts, mowers, ice machines, roofing, etc.)
• Musical Instruments
• Office Supplies and equipment (copiers, shredders, fax machines, etc.) 
• Nursing Supplies
• Science Supplies 
• Vehicles

This list must be used when sending out quotes for purchases or services that fall under the $50,000 threshold. Since this list is frequently updated, it will be necessary to verify with the Purchasing Department that a vendor application is on file.

A vendor may be removed from the list by failing to respond to three consecutive proposals or quotes, failing to update addresses and telephone numbers, withdrawing a proposal or quote, failing to honor a proposal or quote, failing to honor contracts or warranties, or making false or misleading statements during any business negotiation with the District.

Approved Vendor List

Approved vendors are those vendors that have been awarded contracts for goods or services, through a district specified solicitation process, for either a one-time purchase or the purchase of certain goods and services for a specified contract period. Once a category specific proposal has been awarded, purchases in these categories must be made from the approved vendor list for the contract time period. The approved vendor list can be found on the CISD website under the Purchasing Department.

Vendor Notice

Cleburne ISD publishes a notice in two successive issues of the Cleburne Times Review newspaper specifying the categories of personal property to be purchased for a twelve-month period. This annual solicitation invites vendors to become a Prospective vendor. Vendors are informed of proposal or quote opportunities via mail, email, or fax. To request an advertisement proposal, a vendor must contact the purchasing agent.  

Vendor Gifts and Relations  

Per local policy, DBD, an employee shall not accept or solicit any gift, favor, service, or other benefit that could be construed to influence the employee’s discharge of assigned duties and responsibilities. (See CAA, CB and CBB)  

Vendor Performance/Problems

If your department/campus is having a problem with a vendor, notify the purchasing department in writing or by e-mail. Document the problem, noting the date and an accurate description of the problem. Contact the vendor immediately. Keep a record of all phone calls, including dates and what was discussed. Potential problems are:

• Late delivery
• Poor Service
• Poor quality of good or service
• Overages/shortages in amount ordered
• Missing items
• Difficult salespeople
• Unsafe products or service

If a problem is not resolved, the Chief Financial Officer will contact the vendor with written notification stating the problem, corrective action required, and length of time (10 working days) to reasonable rectify the performance or problem. Your input helps us eliminate poor vendors and products. 

CISD Board Policy CH (Local) under Purchase Commitments states:

The Board shall assume responsibility for debts incurred in the name of the District so long as those debts are for purchases made in accordance with the adopted budget, state law, Board policy, and the District's purchasing procedures. [See CE] The Board shall not be responsible for debts incurred by persons or organizations not directly under Board control. Persons making unauthorized purchases shall assume full responsibility for all such debts.

Reimbursements for goods/services purchased personally will be reimbursed only if an approved Purchase Order is in place prior to the purchase of goods or services, a properly prepared and submitted purchase order shall be required. All purchase orders shall require approval by the principal in accordance with administrative procedures. Within CISD, a PURCHASE ORDER shall always be used. Purchase orders must be obtained before the order is placed. Cleburne ISD will not pay for purchases (any commitment of  10 District dollars) made unless a purchase order was issued first. No confirmation (after the fact) purchase orders will be allowed. As its name implies, this document serves as a formal order (contract offer) for goods, materials and/or services from a vendor. A PO, after the final approval process, is a binding commitment for a district to remit payment to the vendor after the district receives the items. A PO is also an important accounting document. It should contain information on the expenditure to be made and the account code to be charged. Once, issued, the PO encumbers funds, which serve as an expenditure control mechanism. Finally, the PO is utilized in the accounts payable process as it documents that an order has been placed and is acceptable by the user, and the user can make payment to the vendor upon verified receipt. Phoning in to vendor a requisition number in lieu of a PO number prior to final approval, or faxing a “print screen” of the entered requisition or any other unauthorized document(s) is a violation of these administrative regulations.

Section 44.052 of the Texas Education Code makes it illegal to approve an expenditure of school funds in excess of the amount appropriated for the item(s) in the adopted budget. Consequently, close supervision and monitoring of the availability of budget dollars and of the approval process for requisitions in an important element of a district’s purchasing process.

• A description of the items to be purchased (the description should be complete enough for anyone to understand the item(s) being purchased)
• The quantity needed/requested
• The proposal number included (if applicable)
• An approved vendor (from the District’s approved vendor list, making sure a bid vendor is used if applicable)
• The appropriate code of the account to be charged
• Pricing / per unit, extended and in total
• Any applicable payment terms
• Discounts if applicable
• Shipping arrangements if applicable
• Any other pertinent factors such as color selections, etc.

Once all the above are in place, the pre-acquisition/requisition is approved and entered into MUNIS for a PO and final approval. It is then printed and transmitted back to the campus and orders can be placed.

In the event it is necessary to cancel a purchase order, the secretary/bookkeeper must advise the Accounts Payable department and they will liquidate the encumbrance.  

The following code was derived from the Texas Education Agency Financial Accountability System Resource Guide. 

There are certain common standards of ethics that govern the conduct of employees involved in the purchasing function, as follows: 

1. It is a breach of ethics to attempt to realize personal gain through public employment with the school district by any conduct inconsistent with the proper discharge of the employee’s duties.
2. It is a breach of ethics to attempt to influence any public employee of the school district to breach the standards of ethical conduct set forth in the code.
3. It is a breach of ethics for any employee of a school district to participate directly or indirectly in procurement when the employee knows that:
   1. The employee or any member of the employee’s immediate family has a financial interest pertaining to procurement;
   2. A business or organization in which the employee, or any member of the employee’s immediate family, has financial interest pertaining to the procurement; or
   3. Any other person, business, or organization with whom the employee or any member of the employee’s immediate family is negotiating or has an arrangement concerning prospective employment is involved in the procurement.
   4. If a school district board member or other official has a substantial interest in procurement, that person shall abstain from discussion and decisions regarding the award of the procurement contract. In addition, the board member should disclose the substantial interest by filing an affidavit with the district.
4. Gratuities It is a breach of ethics to offer, give or agree to give an employee or former employee of the school district, or for any employee or former employee of the school district to solicit, demand, accept or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation, preparation of any part of a program requirement for purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any proceeding or application, request for ruling, determination, claim or controversy, or other particular matter pertaining to any program requirement or a contract or subcontract, or to any solicitation or proposal therefore opening before this government. Acceptance of gratuities may be construed as a criminal offense.
5. Kickbacks It is a breach of ethics for any payment, gratuity or offer of employment to be made by or on behalf of a subcontractor under a contract to the prime contractor or higher tier subcontractor for any contract of a school district, or any person associated therewith, as an inducement for the award of a subcontract or order.

It is a breach of ethics for any employee for former employee of the school district to knowingly use confidential information for actual or anticipated personal gain, or for the actual or anticipated gain of any person.

For definition of penalties, go to Texas Education Code-Subchapter B. –SEC. 44.032 and Local Government Code 271.029. 

The competitive nature of the public purchasing arena and the expenditure of significant amounts of public fund require that ethical standards be incorporated into the foundation of all purchasing functions. Purchasing personnel and other school district staff face the challenging task of developing good vendor relations and encouraging vendor competition while avoiding even the appearance of favoritism or other ethical misconduct.

Know the purchasing laws-the penalties for breaking them are severe. Accepting gifts from vendors is allowed if the gift provides no real benefit and is valued at less than $50 (providing it is not cash or a negotiable item). Gifts may not be accepted as consideration for a decision, recommendation, votes, or other exercise of discretion-this is bribery, and is a second-degree felony. Be sure to check state and district policy when you are in doubt. 

New conflict of interest legislation was introduced on the 84th legislative that provides clarity on the aforementioned, and the new laws substantially increases the potential to need to complete information on the form “CIS” and provide to the Business Department.  

Conflicts Disclosure Statement (§176.003). If a local government entity enters into or is considering entering into a contract for the sale or purchase of real property, goods, and services with a person (including an agent of a person), an officer of the local government is required to file a Conflicts Disclosure Statement of the officer or a family member of an officer:

1. is receiving taxable income from an employment or other business relationship with the person, other than investment income, that exceeds $2,500 during the twelve (12) month period preceding the officer’s awareness of the contract or consideration of the person; or
2. has received gifts with an aggregate value more than $100 in the twelve (12) month period before the officer became aware of the contract or consideration of the person.

This form is required to be filed with the records administrator of the local governmental entity not later than 5 p.m. on the seventh business day after the date on which the officer becomes aware of the facts that require the filing of this statement.  

A “local government officer” is defined as a member of the governing body of a local governmental entity; a director, superintendent, administrator, president, or other person designated as the executive officer of a local governmental entity; or an agent of a local governmental entity who exercises discretion in the panning, recommending, selecting, or contracting of a vendor. In “lay terms,” if you are the person initiating a purchase/deciding who to purchase from, the information above applies to you. Please contact Heidi Todd if you think there may be an issue to address.  

FORM CIS 

EDUCATION CODE  

§ 44.031. Purchasing Contracts

(a) Except as provided by this subchapter, all school district contracts, except contracts for the purchase of produce or vehicle fuel, valued at $50,000 or more in aggregate for each 12-month period shall be made by the method, of the following methods, that provides the best value for the district:

1. competitive bidding;
2. competitive sealed proposals;
3. a request for proposals, for services other than construction service;
4. an interlocal contract;
5. a design/build contract;
6. a contract to construct, rehabilitates, alter, or repair facilities that involves using a construction manager;
7. a job order contract for the minor construction, repair, rehabilitation, or alteration of a facility; or
8. the reverse auction procedures as defined by Section 2155.062(d), Government Code

(b) Except as provided by this subchapter, in determining to whom to award a contract, the district will consider:

1. the purchase price;
2. the reputation of the vendor and of the vendor’s goods or services;
3. the quality of the vendor’s goods or 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 and rules relating to historically underutilized businesses;
7. the total long-term cost to the district to acquire the vendor’s goods or services; and
8. any other relevant factor specifically listed in the request for proposal or proposals.

(c) The state auditor may audit purchases of goods or services by the district.

(d) The Board of Trustees of the district may adopt rules and procedures for the acquisition of goods and service.

(e) To the extent of any conflict, this subchapter prevails over any other law relating to the purchasing of goods and services except a law relating to contracting with historically underutilized businesses.

(f) This section does not apply to a contract for professional services rendered, including services of an architect, attorney, or fiscal agent. A school district may, at its option, contract for professional services rendered by a financial consultant or a technology consultant in the manner provided by Section 2254.003, Government Code, in lieu of the methods provided by this section. 

Texas Ethic Commission also requires vendors to report conflicts of interest utilizing the form CIQ provided by the Texas Ethic Commission.  

Form CIQ  

All purchases that require board approval will also be required to follow the Texas Ethic Commission rules by having the vendor file form 1295 before a purchase can be made. To access information directly provided by the Texas Ethic Commission on this, please go to the following site: https://www.ethics.state.tx.us/tec/1295-Info.htm

EDGAR (Education Department General Administrative Regulations)  

EDGAR laws pertain to state and federal grant funds.