PEARLAND ISD

PURCHASING MANUAL 2018/2019 SCHOOL YEAR

Purchasing Department

July 2018

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INTRODUCTION The Pearland ISD Purchasing Department is responsible for facilitating the acquisition of goods and services for the district in compliance with state, federal, and local laws and policies. The Purchasing Department supports the needs of campuses and departments by:

• Educating District staff involved in purchasing activities during face to face training sessions and one-and-one training opportunities as requested.

• Planning for future expenditures and budgetary purposes as well as procurement strategy.

• Procuring goods and services that provide the best value to the District while complying with federal, state, and local laws (including district policies and guidelines).

• Achieving a reliable and timely delivery for the requesting campus or department.

• Promoting competition amongst bidders.

• Ensuring equal opportunity for vendors to secure district business.

• Educating and informing vendors about district rules, regulations and methodology that are the foundation for obtaining a contract award.

The Purchasing Department and campus/department staff involved in purchasing activities share the responsibility of expending district funds in accordance with applicable laws and regulations and safeguarding the public’s trust. Successful purchasing is a collaborative venture between the Purchasing Department and the schools and departments within the district. The purpose of this document is to provide guidelines and procedures for all District staff involved in the procurement process, as well as offer practical and consistent solutions allowing staff to utilize best practices to assess their procurement needs. Naturally, when a situation not fully covered in this document arises, end users should contact the Purchasing Department for guidance. We anticipate that the explanation of processes in this manual will offer end users greater insight on how the District’s procurement process works, where the responsibilities lie, and how the process is governed by laws, ethics and diligence of the Purchasing Division staff to be good stewards of taxpayer’s dollars. Where applicable, this guide references Pearland ISD legal and local policies which can be found in their entirety at http://pol.tasb.org/Home/Index/222 PURCHASING DEPARTMENT GOALS AND OBJECTIVES It is the continuous goal of the Purchasing Department to support and be responsive to the needs of those we serve: the students, educators and administrators of Pearland ISD. Objectives include:

• Manage the uninterrupted flow of goods and services to meet the district’s needs.

• Maintain a position of leadership by striving to obtain quality products at the lowest cost in every area of our operation.

• Initiate and maintain effective and professional relationships with current and potential vendors.

• Contract with suppliers who bring value, cost effective solutions, quality products and excellent customer service to the District.

• Foster a spirit of community by encouraging local vendors to participate in the procurement process.

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• Protect the financial integrity of the district through negotiations and sound procurement practices.

• Offer an unwavering support of the District’s mission statement and the investment in our student’s futures.

GENERAL GUIDELINES District principals and directors are responsible for all expenditures made from budgets assigned to campus or department. Budget allocations are intended for expenditures for goods and services to be used during the current school year. Unused budget appropriations will lapse at the end of the fiscal year. The purchasing procedures contained in this document are intended to comply with all applicable laws, policies and procedures. In the event of conflict, the strictest law or policy shall prevail. The Purchasing Department operates under a delegated directive by the Board of Trustees of Pearland ISD as outlined in Board Policy. PURCHASING AUTHORITY The Texas Education Code (TEC), Chapter 44 encompasses the methods by which any school district in the State of Texas must procure items. The purchasing department will make the initial determination as to whether competitive bidding is required. While Purchasing is the “team lead” in this process it is important to note that this work requires input from campus and department end users to make the method successful. All District contracts shall be competitively procured for goods and/or services valued at $50,000 or more in the aggregate during a 12 month period. Exceptions to this rule include:

• Purchases from a Correctional Institution (TDCJ)

• Purchases from awarded vendors in a Purchasing Cooperative with whom the District has an Interlocal Agreement in place; including HCDE/Choice Partners, TCPN, TASB BuyBoard, Southeast Texas Purchasing Cooperative, and US Communities.

• Purchases from contracts awarded by districts that are members of the Central Texas

SUPPORTING POLICY PURCHASING AND ACQUISITION CH (LEGAL) BOARD AUTHORITY A board may adopt rules and procedures for the acquisition of goods and services. Education Code 44.031(d) DELEGATION OF AUTHORITY A board may delegate its authority regarding an action authorized or required to be taken by a district by Education Code Chapter 44, Subchapter B, to a designated person, representative, or committee. A board may not delegate the authority to act regarding an action authorized or required to be taken by the board by Education Code Chapter 44, Subchapter B.

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Purchasing Alliance with whom the District has an Interlocal Agreement in place.

• Purchases from a State Purchasing Cooperative including DIR and TXMAS.

• Professional services such as attorneys, fiscal advisor fees, architects, physicians, certified public accountants and engineers

• Emergency Purchases: If school equipment, a school facility, or a portion of a school facility is destroyed, severely damaged, or experiences a major unforeseen catastrophe or emergency, undergoes major operational or structural failure, and the Pearland ISD Board of Trustees determines that the delay posed by the contract methods prescribed by legal policy and local policy would prevent or substantially impair the conduct of classes or other essential school activities then contracts for the replacement or repair of the equipment, school facility, or the part of the school facility may be made.

The Purchasing Staff acts as a resource to guide users through these processes and should be consulted frequently when issues or questions arise. It is important that any campus/department staff involved with Purchasing in the solicitation/bidding/proposal process understands that their specialized expertise in the given area is a significant asset to the success of the procurement process. Here are some important facts to remember about the process:

All procurement is viewed in the aggregate for a 12-month period. For example, Campus #1 purchases $30,000 worth of furniture at the beginning of the fiscal year from ABC Furniture and Campus #2 purchases $40,000 worth of furniture form XYZ Furniture in the middle of the fiscal year; both campuses have bought $70,000 combined in the fiscal year from two separate vendors – if both vendors are Pearland ISD approved, the purchases are considered to be legal; if none or only one of the vendors is not approved, purchases from the non-awarded vendor(s) are considered to be in conflict with the laws of the Texas Education Code.

DOLLAR THRESHOLDS Dollar Thresholds are to be used as a guide when purchasing goods and/or services using District and/or Federal funds. Department staff must use district contracted vendors for products and services to ensure compliance with Texas Education Code (TEC). Purchases of similar commodities/services valued at $50,000 or more in the aggregate during a twelve-month period triggers a competitive bid process and requires approval by the Pearland ISD Board of Trustees. Use of Non-Contracted Vendor Requirements - Request to approve the use of a non-contracted vendor must be done via email to the Director of Purchasing by providing rationale for using a non-contracted vendor along with the number of quotes listed below. If approved to utilize a non-contracted vendor, a scanned copy of the approval email should be upload to the requisition for approval purposes.

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These thresholds provide guidelines to follow when procuring goods and services:

* Annual Aggregate Applies Purchases of $75,000 and Over – All purchases made with budgeted funds of $75,000 or more require approval of the Pearland ISD Board of Trustees per District Policy CH (Local). PISD policy states “Persons making unauthorized purchased shall assume full responsibility for all such debts.” No personal purchases of any nature may be made through or from the District. BIDS AND PROPOSALS

Purchase Amount

Number of Quotes Required

Notes

Vendor with District/Co-op

Awarded Contract

Non-Contracted Vendors

< $3,000 1 Quote 1 Quotes*

$3,000 - $50,000

1 Quote 3 Quotes*

$50,000-$74,999

1 Quote Procurement Solicitation Required

(RFP/Bid/CSP) & Board Approval

Procurement Solicitation/Use of an Awarded District Vendor or Cooperative Contract Required for commodity purchases that aggregate $50,000 or more during a 12-month period

$75,000 & Over 1 Quote &

Board Approval

Additional Requirements for Purchases with Federal Funds

$150,000 & Over

1 Quote & Board Approval

Procurement Solicitation &

Board Approval

Competitive Proposals/Sealed Bids for Construction

SUPPORTING POLICY PURCHASING AND ACQUISITION CH (LOCAL) The Board delegates to the Superintendent or designee the authority to make budgeted purchases for goods or services. However, any single, budgeted purchase of goods or services that costs $75,000 or more, regardless of whether the goods or services are competitively purchased, shall require Board approval before a transaction may take place. Contract Awards and Renewals - The Board delegates to the Superintendent or designee the authority to award one or more contracts resulting from a procurement solicitation that provides the best value for the District. The Board delegates to the Superintendent or designee the authority to exercise the option to execute a contract renewal that is in the best interest of the District and in accordance with the terms and conditions of a contract or procurement document. The Board delegates to the Superintendent or designee the authority to determine the method of purchasing in accordance with CH (LEGAL).

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Bids and proposals for goods and services are in place for purchases that aggregate $50,000 or more for all funds. Once a determination has been made that a bid must be in place, the Purchasing Department will require information from the budgetary authority making the purchase in order to advertise for the bid.

SUPPORTING POLICY PURCHASING AND ACQUISITION CH (LEGAL) All district contracts for the purchase of goods and services, except contracts for the purchase of produce or vehicle fuel, valued at $50,000 or more in the aggregate for each 12-month period, shall be made by the method that provides the best value for a district:

1. Competitive bidding for services other than construction services.

2. Competitive sealed proposals for services other than construction services.

3. A request for proposals for services other than construction services.

4. An Interlocal contract.

5. The reverse auction procedure as defined by Government Code 2155.062(d).

6. The formation of a political subdivision corporation under Local Government Code 304.001. Education Code 44.031(a)

SUPPORTING POLICY PURCHASING AND ACQUISITION CH (LOCAL) If competitive bidding –Request for Proposal (RFP) is chosen as the purchasing method, the Superintendent or designee shall prepare bid specifications. All bids shall be in accordance with administrative regulations, and the submission of any electronic bids shall also be in accordance with Board-adopted rules. All bidders shall be invited to attend the bid opening. Any bid may be withdrawn prior to the scheduled time for opening. Bids received after the specified time shall not be considered. If competitive sealed proposals (CSP) is chosen as the purchasing method, the Superintendent or designee shall prepare the request for proposals and/or specifications for items to be purchased. All proposals shall be in accordance with administrative regulations, and the submission of any electronic proposals shall also be in accordance with Board-adopted rules. Proposals received after the specified time shall not be considered. Proposals shall be opened at the time specified, and all proposers shall be invited to attend the proposal opening. Proposals may be withdrawn prior to the scheduled time of opening. Changes in the content of a proposal, and in prices, may be negotiated after proposals are opened. The District may reject any and all proposals.

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The Education Code further explains the criterion that is used in evaluating vendors who submit proposals to the district. All proposals use a base criterion which includes the following:

• Purchase Price

• The reputation of the vendor and the vendor’s goods and services

• The quality of the vendor’s goods and services

• The extent to which the goods or services meet the needs of the district

• The vendor’s past relationship with the district

• The impact on the ability of the District to comply with laws and rules relating to historically underutilized businesses

• Long term cost to the district to acquire vendors goods or services

• Whether the vendor or the vendor’s ultimate parent company or majority owner has its principal place of business in this state or employs at least 500 persons in this state

• Any other relevant factor specifically listed in the request for bids or proposals

These, as well as a host of other documents are the base structure for the competitive procurement of the District. APPROVED VENDORS The Purchasing Department maintains a listing of bids and proposals that have been prepared following proper procurement procedures. These bids and proposals are for common goods and services that any Texas school district would require for basic operations. They include, but are not limited to:

• Athletic and Sports Supplies

• Charter Bus Service

• Fine Arts Supplies

• Groceries, Snacks and Paper Goods

• Health & Athletic Training Supplies

• Instructional Supplies/Teaching Aids & Materials

• Library/Classroom Books & Library Supplies

• Printing Services

• Promotional, Embroidery and Screen Printing

• Office Supplies, Equipment, and Furniture Approved by the Pearland ISD Board of Trustees, these bids and proposals have been awarded to vendors using the procurement process outlined in the Texas Education Code, Chapter 44 which defines procurement utilized by school districts. These awarded vendors make up the Pearland ISD Approved Vendor List. This list can be found on the Purchasing Department’s Internal Document page.

The existence of a vendor in MUNIS does not mean that the vendor is a District Approved Vendor. A full listing of District Approved Vendors is available on the Purchasing page of the Purchasing Internal Document page. The District’s Approved Vendor list is updated frequently and users are encouraged to review it regularly.

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Many of our bids and proposals include very specific pricing or may have special instructions and vendors may have been awarded multiple contracts. For assistance in determining the appropriate contract to use, please contact the Purchasing Department. Vendors and contracts on the District’s Approved Vendor list are cleared for use by any campus or department. Should you need to contact a vendor to obtain a quote for a “related item” that may not necessarily be outlined in the bid/proposal you may contact the vendor directly, but are encouraged to explain to the vendor what specific bid/proposal you are requesting pricing on. This allows the vendor to offer you the best pricing as stated in the bid/proposals. PURCHASING COOPERATIVES (CO-OPS) AND STATE CONTRACTS Pearland ISD has approved Interlocal Agreements with purchasing cooperatives and currently participates in the Harris County Department of Education (Choice Partners), TASB’s BuyBoard, and TCPN. Procuring from State of Texas contracts is also an appropriate way to solicit competitive pricing. Cooperatives and state contracts allow the District to use vendors that have already satisfied all procurement requirements through the Co-op or the State of Texas. While these contracts allow for a more timely procurement process, it is the responsibility of the requestor to solicit quotes amongst the cooperative and state approved vendors. Exercising due diligence when using cooperatives and state contracts as a method of procurement will ensure fiscal responsibility. For purchases valued at or exceeding $50,000 please contact Purchasing to assist you. For purchases of less than $50,000 please utilize the Dollar Thresholds section of this manual.

SUPPORTING POLICY PURCHASING AND AQUISITONS CH (LEGAL) A district may participate in the purchasing program, including participation in purchases that use the reverse auction procedure, by filing with the comptroller a resolution adopted by the board requesting that the district be allowed to participate on a voluntary basis, to the extent the comptroller deems feasible, and stating that the board shall:

1. Designate an official to act for the district in all matters relating to the program, including the purchase of items from the vendor under any contract.

2. Direct the decisions of its representative.

3. Be responsible for:

a. Submitting requisitions to the commission under contract(s) and for payment directly to the vendor; and

b. Electronically sending purchase orders directly to vendors, or complying with procedures governing a reverse auction purchase, and electronically sending the comptroller reports on actual purchases.

4. Be responsible for the vendor’s compliance with all conditions of delivery and quality of the purchased item.

A purchase made through participation in this program meets any state requirement to seek competitive bids for the purchase of the item. Local Gov’t Code 27

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Sales Tax Federal excise taxes, State taxes, or District sales taxes shall not be included in the requisition/purchase order; the District is not liable for these taxes. Staff members shall use the District’s Tax Exempt Form when authorized to make a purchase with personal funds from an approved vendor and then seek reimbursement for such purchase. Staff members may not use the District’s tax exempt status for purchases of personal property. Anyone avoiding the payment of sales tax by using this exemption for personal purchases may be liable and subject to prosecutions under Texas Tax Code - TAX § 151.707. Resale or Exemption Certificate; Criminal Penalty (a) A person commits an offense if the person:

1) intentionally or knowingly makes a false entry in, or a fraudulent alteration of, an exemption or resale certificate;

2) makes, presents, or uses an exemption certificate or resale certificate with knowledge that it is false and with the intent that it be accepted as a valid resale or exemption certificate;  or

3) intentionally conceals, removes, or impairs the verity or legibility of an exemption or resale certificate or unreasonably impedes the availability of an exemption or resale certificate.

(b) An offense under Subsection (a) is:

1) a Class C misdemeanor if the tax avoided by the use of the exemption or resale certificate is less than $20;

2) a Class B misdemeanor if the tax avoided by the use of the exemption or resale certificate is $20 or more, but less than $200;

3) a Class A misdemeanor if the tax avoided by the use of the exemption or resale certificate is $200 or more, but less than $750;

4) a felony of the third degree if the tax avoided by the use of the exemption or resale certificate is $750 or more, but less than $20,000;  or

SUPPORTING POLICY PURCHASING AND AQUISITONS CH (LEGAL) A district may participate in a cooperative purchasing program with another local government of this state or another state or with a local cooperative organization of this state or another state. If a district does so, it may sign an agreement with another participating local government or a local cooperative stating that the district will: 1. Designate a person to act on behalf of the district in all matters relating to the program. 2. Make payments to another participating local government or local cooperative organization or

directly under a contract, as provided in the agreement. 3. Be responsible for the vendor’s compliance. 4. If a district participates in a cooperative purchasing program, it satisfies any law requiring it to

seek competitive bids. Local Gov’t Code 271.102; Atty. Gen. Op. JC-37 (1999)

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5) a felony of the second degree if the tax avoided by the use of the exemption or resale certificate is $20,000 or more.

SOLICITATION PROCESS Bid Advertising As required by the Texas Education Code 44.031 Texas school districts must advertise in a locally published newspaper, once a week for at least two weeks, the time, date and location of where bids/proposals will be received. Vendor Registration - Electronic Bidding System (Ion Wave) Pearland ISD uses an electronic process for registering potential vendors and submitting bids. In order to download solicitation documents, interested vendors must register on Pearland ISD’s online bidding system. Vendors may access the portal by going to https://pearlandisd.ionwave.net. Bid Notification Notification of bid openings will be conducted via email. The Purchasing Department will require information from the budgetary authority making the purchase in order to complete the bid package.

• The budgetary authority making the purchase is responsible for providing a bid list of vendors with current email addresses to whom notices of the bid are to be sent and complete bid specifications. Bid specifications generally will include a description of the required item, the characteristics or functions of the item, and the terms and conditions under which the procurement will be made.

• Specifications must be drafted to allow vendors supplying reasonably equivalent items to compete on an equal basis. Specifications should not be so vague that bidders do not have enough information on which to draw intelligent bids nor should they be unduly restrictive.

• Specifications that tend to favor a particular bidder, not for any reason in the public interest, but rather to ensure the award of the contract to a particular vendor, are improper.

• If a brand name represents an industry wide standard, the brand name product may be

specified as long as the specifications provide an "equivalency clause," that is, a statement that products reasonably equivalent to the standard are acceptable. Samples may be required in order to determine equivalency from a vendor.

Bid Opening Bid documents shall be opened at the designated date and time and shall be logged in with the name of the vendor along with the date and time the bid was opened. If the bid is opened via our electronic bidding system (Ion Wave) a participation list shall be kept on file with details regarding participation. Review & Award Awarding of bids shall be made to the lowest priced vendor meeting the specifications outlined in the proposal. Hence, the specifications are crucial to ensure an accurate award as well as other relevant factors to be used in the determination of the awarded vendor(s).

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Bids may be awarded as an "all or none" bid giving all items awarded to one vendor or by line item award to multiple vendors. When a bid has been opened and tabulated by the purchasing department, a copy of the Recap of Bids along with a copy of each bid received will be furnished to the originating organization director. Evaluation of the bids or proposals received will be performed by member(s) of the originating organization and a member of the Purchasing Department. The Purchasing Department will prepare the agenda item to be presented for approval by the Board of Trustees at the next scheduled board meeting or an internal agenda item for approval by the Superintendent or designee. The organization director is required to attend the board meeting to be available to answer detailed/specific questions from board members. Timeline for a Bid Process A three month minimum should be allowed for the bid process once a purchase is determined to require a bid. PURCHASING PROCESS Requisition vs. Purchase Order A Requisition is a request for a Purchase Order. It is an internal document and should not be used to purchase goods or services.

SUPPORTING POLICY PURCHASING AND ACQUISITION CH (LEGAL) In awarding a contract, a district shall consider: 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 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 relating to historically

underutilized businesses. 7. The total long-term cost to the district to acquire the goods or services. 8. Any other relevant factor specifically listed in the request for bids or proposals. Education Code 44.031(b) In awarding a contract by competitive sealed bid under Education Code 44.031, a district that has its central administrative office located in a municipality with a population of less than 250,000 may consider a bidder’s principal place of business in the manner provided by Local Government Code 271.9051. This section does not apply to the purchase of telecommunications services or information services, as those terms are defined by 47 U.S.C. Section 153. Education Code 44.031(b-1) The factors listed above are the only criteria that may be considered by a district in its decision to award a contract. R.G.V. Vending v. Weslaco Indep. Sch. Dist., 995 S.W.2d 897 (Tex. App.—Corpus Christi 1999, no pet.).

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A Purchase Order is a binding commitment for a district to remit payment to a vendor for goods or services after they have been provided and invoiced. It is important to remember that a Requisition should never be sent to a vendor. The vendor can only provide goods and services with a District Purchase Order. Once all procurement policies and procedures have been followed, the end user will enter a Requisition into MUNIS; which will follow a preset approval path. Once all approvers have viewed the requisition and approved it, it will then be forwarded to the Purchasing Department. Purchasing will review the requisition for accuracy and to ensure all applicable laws were followed prior to converting it into a Purchase Order. Requisition Process

1. The purchase order requisition is entered online by the individual requesting the goods or services, approved by the authorized department(s) or campus administrator and then approved and converted to a purchase order by the purchasing department.

2. The budget account the goods or services will be charged to on the purchase order requisition

must have sufficient funds in order to release the requisition for approval. Refer to your copy of the annual Budget Manual for procedures on preparing budget amendment/change requests.

3. Applicable freight charges should be listed on the purchase order requisition as a separate line

item. If there will be no freight charges, enter a vendor sourcing note on your purchase order requisition. Do not pay freight charges to a delivery company on any order delivered to your school on a district purchase order.

4. Required backup documentation for the purchase should be scanned and attached to the

requisition in Munis. If the attachment should be sent to the vendor with the purchase order, a general note should be entered on your requisition in Munis requesting that it be attached to the purchase order when transmitted to the vendor. If the purchase requisition is for a registration to a workshop or seminar, a scanned copy of the registration form is required to be attached to the requisition in Munis (the registration form should be attached in TCM even if you are registering online).

5. Always use detailed descriptions for each item ordered in addition to the product number. Do

not only use the product number. Do not use the information that automatically populates the item description when the commodity code is entered. Delete that information and enter the product information from the vendor.

6. When inputting your requisition include a vendor sourcing note stating the contract number

for the bid being used for the purchase. The contract number should be a Pearland ISD contract number or the contract number as it appears on a purchasing cooperative’s web page. Contract must be valid at the time the purchase order is completed.

7. In the event it is necessary to cancel a purchase order, the originator must email or fax the

Purchasing Department a completed Change Order Request Form to cancel it once the vendor has been notified.

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8. E-Procurement (Online Shopping) – Contact the Purchasing Department for training on utilizing the Online Shopping module in Munis. The Purchasing Department will provide online shopping process and procedure documents to submit requisitions through online shopping.

Walk-In Purchase Orders – Local Vendors

Walk-in purchase orders may only be used one time. If more purchases are needed from the same vendor after the purchase order has been used once, a new purchase order requisition must be submitted. If the purchase order was not used, submit the original purchase order and PO Change Order Request Form to the Purchasing Department to request that the PO be closed – only if the purchase order was not used. The following is a list of local vendors with whom we can make in-store purchases with Pearland ISD purchase orders along with instructions for doing so:

1. Walmart (PER Pearland ISD Contract #18-0419-15) - At this time, the only Walmart accepting

our purchase orders is the one located on Telephone Road/Main Street. Budgeted fund (199) and campus activity funds (461) purchases must be made with purchase orders at the Telephone Road/Main Street store location because they submitted a bid, which was awarded by our Board of Trustees (catalog and store/shelf discount). Select purchases from store and take to Customer Service Desk and inform customer service clerk of intention to make your purchase with a tax exempt Pearland ISD purchase order. Please advise the customer service clerk that the Pearland ISD’s Walmart account code is printed on the purchase order along with our Pearland ISD tax exempt code. The customer service clerk should input our account code, our tax exempt code, and the purchase order number, have you sign a charge slip, keep the original purchase order, and provide you with a receipt and a copy of the charge slip. Please scan the receipt and copy of the charge slip into a receiving record in Munis for your PO, and send the original receipt and charge slip to Accounts Payable in the Business Office within 3 business days of purchase.

2. Office Depot (PER PISD #18-0419-15) – Only to be used for small emergency purchases at local store. We are limited to $100 per day district wide. Add a general note on your requisition for an in-store Office Depot purchase stating “return purchase order to campus for an in-store purchase.” We only have arrangements with the Telephone Road Office Depot to accept our purchase orders. To make an in-store purchase, select your purchases and take to the Customer Service Desk and state that you are making a purchase with a Pearland ISD purchase order. Once the cashier begins entering the order, their register should prompt them to input your purchase order number. The cashier will give you a receipt. Please scan the receipt into a receiving record in Munis for your purchase order and send the original receipt to Accounts Payable in the Business Office as soon as possible. In-store Office Depot purchases are limited to small dollar amounts. Large purchases must be submitted by fax to their customer service department by PISD Purchasing Department.

3. Kroger (PER PISD #18-0419-15) We only have arrangements with the Kroger located in Pearland on FM 518 in the shopping center with Harbor Freight Tools to accept our purchase orders. Select purchases and take to the Customer Service Desk and state that you are making a purchase with a Pearland ISD purchase order. The cashier should take your purchase order, have you sign a receipt, and give you a copy of the receipt. Please scan the receipt into a receiving record for your purchase order and send the original receipt to Accounts Payable in the Business Office as soon as possible.

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4. Lowe’s (PER TCPN #R142104) We only have arrangements with the Pearland Lowe’s to accept our purchase orders. Select purchases and take to the Pro Desk and state that you are making a purchase with a Pearland ISD purchase order. The cashier should take your purchase order, have you sign a receipt, and give you a copy of the receipt. Please scan the receipt into a receiving record for your purchase order and send the original receipt to Accounts Payable in the Business Office as soon as possible.

Contact the Purchasing Department to inform of any difficulties experienced while using a purchase order at the above stores.

Requisition procedures for charter bus services, membership fees and travel:

• Charter Buses Services (PER PISD #18-0322-14)

1. Please refer to the administrative guidelines for procedures (see attachment of select copies from administrative guidelines) and scan appropriate signed form (s) and attach to your purchase order requisition in Munis. Your purchase order should be made payable to one of the awarded charter bus vendors listed on our website. Please call Purchasing for assistance in locating the awarded vendors if needed.

• Membership Fees

If purchase requisition is for membership fees, scan a copy of application form for new membership, attach to your purchase order requisition in Munis, and enter a receiving record in Munis for the purchase order as soon as the requisition is converted to a purchase order so that a check can be issued. A purchase order requisition should be issued at the beginning of the year for vendors who automatically issue an invoice as the renewal notice. Once an invoice is received a check requisition must be issued for payment because the invoice will be dated before the purchase order requisition date.

PISD only pays for one (1) membership fee per year and the organization must be listed in the administrative guidelines under Membership Fees for Administrators. (See attachment of select copies from administrative guidelines)

• Travel Out-of-State

Please refer to the administrative guidelines for procedures and scan appropriate signed form(s) and attach to your purchase order requisition in Munis. (See attachment of select copies from administrative guidelines)

Food Purchases – Administrative Guidelines

Only approved vendors may be used for the purchase of food. Please refer to proposal recap to ensure the vendor you are interested in using is a Pearland ISD approved vendor. If food is purchased for a valid campus or department meeting during the school day then it may be funded through the campus budget. The meeting shall have an agenda with mandatory attendance by the staff. If food is purchased for a campus or department retreat or a holiday staff party, whether it is on or off the campus and during a weekend, holiday or the summer it shall be funded with campus activity funds. When using budgeted funds to cater a meal from a local restaurants, the campus or department shall request a purchase order utilizing an awarded vendor approved by the school board.

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Budgeted funds may not be used to reimburse meals while dining at a local restaurants without prior permission from the superintendent. Purchases from vendors not accepting purchase orders

1. PISD policy requires the use of a purchase order for district purchases. If a vendor does not accept our purchase order, i.e. hotels, a purchase requisition should be entered in Munis with a vendor note stating “vendor does not accept purchase order, please mail check” or “vendor does not accept purchase order, please return check to secretary.”

2. Back-up is required, i.e. hotel confirmation number and paperwork on workshop, seminar, or

event requiring overnight travel. Remember to scan a copy of the back-up and attach it to your purchase order requisition in Munis.

3. Enter a receiving record in Munis for the purchase order as soon as the requisition is converted to a purchase order so that a check can be issued.

Obtaining new or current vendor numbers

• Contracted Vendor (Awarded Vendor) Use the vendor search feature in Munis to search for your vendor number. If the vendor cannot be located by vendor name or doing business as name, e-mail the Purchasing Clerk the name of the vendor and the contract the vendor is on so we can proceed with establishing the vendor number.

• Non-Contracted Vendor If you are requesting a vendor number for a non-contract vendor you will need to provide the following information to the purchasing clerk: name of vendor, amount of purchase and brief description of purchase, and whether the purchase will be made with activity funds or budgeted funds. In addition, non-contracted vendors require a “New Vendor Packet” in order to be setup in the Munis System.

New Vendor Packet

Non-contracted vendors will need to complete and return a vendor packet (located on the purchasing webpage) which includes the following forms:

• Vendor Information Form

• IRS Form W-9

• Conflict of Interest Disclosure Form

• Felony Conviction Form

• SB9 Contractor and Subcontractor Certification Statement (If applicable)

We encourage you to use the vendor contracts located on our purchasing web page, which have been board approved contracted vendors, or purchasing cooperative contracted vendors. Our web page also includes our bid calendar as well as recaps of the awarded vendors’ pricing or discounts. http://www.pearlandisd.org/Page/1902 Change Orders Purchase orders are not to be modified with the vendor by schools or departments directly. If it becomes necessary to change the terms of a purchase order, the school or department must email or fax the Purchasing Department a completed Change Order Request Form.

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Purchasing Assistance Contact the Purchasing Department for training and assistance with inputting and posting purchase order requisitions in Munis. CONFLICT OF INTEREST - Local Government Code 176 provides information regarding conflict of interest statements to be filed by vendors and certain school district employees. ETHICS – The Code of Ethics should be followed by any district employee involved in purchasing goods or services for the district.

SUPPORTING POLICY EMPLOYEE STANDARD OF CONDUCT DH (LEGAL) All district employees are “public servants” and therefore subject to Title VIII of the Penal Code, regarding offenses against public administration, including restrictions on the acceptance of illegal gifts, honoraria and expenses, and abuse of office. Penal Code 1.07(a)(41), Title VIII [See DBD and BBFA]

SUPPORTING POLICY ETHICS CONFLICTS OF INTEREST DISCLOSURE BBFA (LEGAL)

A local government officer shall file a conflicts disclosure statement, as adopted by the Texas Ethics Commission, with respect to a vendor if the vendor enters into a contract with the district or the district is considering entering into a contract with the vendor; and the vendor:

BUSINESS RELATIONSHIP • Has an employment or other business relationship with the local government officer or a

family member of the officer, and the business relationship results in the officer or family member receiving taxable income, other than investment income, that exceeds $2,500 during the 12-month period preceding the date that the officer becomes aware that:

o A contract between the district and the vendor has been executed; or o The district is considering entering into a contract with the vendor;

GIFTS • Has given to the local government officer or a family member of the officer one or more gifts,

and the gift or gifts have an aggregate value of more than $100 in the 12-month period preceding the date the officer becomes aware that:

o A contract between the district and the vendor has been executed; or o The district is considering entering into a contract with the vendor; or

FAMILY RELATIONSHIP • Has a family relationship with the local government officer.

GIFTS—EXCEPTION A local government officer is not required to file a conflicts disclosure statement in relation to a gift, as defined by law, accepted by the officer or a family member of the officer if the gift is:

• A political contribution as defined by Title 15, Election Code; or • Food accepted as a guest.

A local government officer shall file the conflicts disclosure statement with the records administrator of a district not later than 5:00 p.m. on the seventh business day after the date on which the officer becomes aware of the facts that require the filing of the statement. Local Gov’t Code 176.003(b)

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CODE OF ETHICS • Staff should strive to avoid any appearance of unethical or compromising practices in

associations, actions and communications.

• Always demonstrate “due diligence” by adhering to the procurement guidelines, procedures and policies while exercising only the authority which has been delegated to you.

• Refrain from any private business or professional activity that would create a conflict between

personal interest and the interests of the District. • Refrain from soliciting or accepting money, discounts, gifts, entertainment, favors or services

from present or potential vendors. • Handle confidential or proprietary information with due care and proper consideration of

ethical and legal ramifications and government regulation. • Promote positive supplier relationships through respect and impartiality.

• Know and follow laws and guidelines that govern the purchasing function while maintaining

attentiveness to the legal ramifications of all purchasing decisions. • Conduct yourself in a manner becoming an employee of Pearland ISD acknowledging the

representation you give the district in your business methods.

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DEFINITIONS Addendum An addition or supplement to a solicitation document issued prior to the opening date. Advertise To make a public announcement of the intention to purchase goods or services. Bid An offer to contract with the District, submitted in response to a bid invitation. Bids are usually non-negotiable. Bidder An individual or entity that submits a bid. The term includes anyone acting on behalf of the individual or other entity that submits a bid, such as agents, employees and representatives. Bidders List A list of potential contractors who have expressed an interest in doing business with the PISD. Bid Opening The public opening of bids, in which the names of the bidders responding to a bid solicitation and prices of the bidders are publicly read and recorded. See Proposal Opening. Bid Specifications A listing of reasonable standards and limitations which bidders are obliged to observe. Bid Tabulation The recording of bids and bid data submitted in response to a solicitation. The bid tabulation is used for comparison, analysis and record keeping. Competitive Sealed Bidding Process of conducting a public bid opening and awarding of a purchase order/contract to the lowest responsive, responsible bidder in accordance with Federal, State and local laws and policies. Consultant A person that provides or proposes to provide a consulting service. Contract A written agreement where a contractor provides services in accordance with the established price, terms and conditions. Contractor A business entity or individual that has a contract to provide goods or services. Used interchangeably with the term “vendor”. Deliverable A unit or increment of work required by the contract, including such items as goods, services, reports, or documents. Goods A transportable article of trade or commerce that can be bartered or sold. Goods do not include services or real property. Historically Underutilized Business A minority or women-owned business as defined by Texas Government Code, Title 10, Subtitle D, Chapter 2161. (http://comptroller.texas.gov/procurement/prog/hub/) Negotiations A consensual bargaining process in which the parties attempt to reach agreement on a disputed or potentially disputed matter. In a contractual sense, negotiation means the “dealings conducted between two or more parties for the purpose of reaching an understanding”.

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Payment Bond A bond executed in connection with a contract which secures the payment requirements of the contractor. Performance Bond A surety bond which provides assurance of a bidder’s performance of a certain contract. Construction, installation and service contracts (including repair and alteration) exceeding $100,000 requires that a 100% Performance Bond be furnished by the successful bidder (contractor). Contracts exceeding $25,000 require that a 100% Payment Bond be furnished by the successful bidder (contractor). All such bids must include a 5% Bid Bond. Professional Services directly related to professional practices as defined by the Professional Services Procurement Act (Government Code, Section 2254.002) or services authorized by rule by the Department of State Health Services pursuant to Health and Safety Code, Section 12.0121. These include services within the scope of the practice of: accounting; architecture; optometry; medicine; land surveying; and professional engineering. Services provided by professionals outside the scope of their profession, e.g., management consulting services provided by accounting firms, are not considered professional services. Proposal An executed offer submitted by a respondent in response to a Request for Proposals (RFP) and intended to be used as a basis to negotiate a contract award. Proposal Opening The public opening of proposals, in which the names of the respondents to a solicitation are publicly read and recorded. No prices are divulged at a proposal opening as these types of solicitations are subject to negotiation. Exceptions are Construction Proposals. All information is read aloud per TEA Code 44.039, (e). Purchase Order Formal order for goods, materials and/or services from a Vendor; a binding commitment for the District to remit payment to the Vendor after the specified goods and/or services, and an invoice for the same are received by the District. Request for Information (RFI) A general invitation to contractors requesting information for a potential future solicitation. The RFI is typically used as a research and information gathering tool for preparation of a solicitation. Request for Proposal (RFP) Request for Proposal. Solicitation method used to acquire highly technical, negotiated goods or services. Standard RFPs will allow for evaluations based on specific criteria established within the RFP. Used primarily for higher dollar valued purchases, but may be used for smaller purchases where requirements warrant this Solicitation method such as catalog bids. Negotiations are allowed prior to the award. Request for Qualifications (RFQ) A solicitation document requesting submittal of qualifications or specialized expertise in response to the scope of services required. No pricing is solicited with an RFQ. Request for Quote (RFQ) An informal solicitation document requesting pricing on small dollar purchases. Request for Competitive Sealed Proposal (CSP) Solicitation method used primarily for construction projects. Allows for the use of the formal evaluation process and uses the Best Value Determinations for an award. Negotiations are allowed prior to the award.

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Service The furnishing of labor by a contractor which may not include the delivery of a tangible end product. In some cases, services and goods may be combined such as film processing. In these instances, agencies determine whether labor or goods is the primary factor. In the case of film processing, the labor to process the film is the primary factor, therefore film processing is considered a service. Solicitation General Term used to refer to a RFP. CSP, RFCSP, and CMAR. Solicitation Conference A meeting chaired by a member of the PISD Purchasing Department which is designed to help potential bidders/respondents understand the requirements of a solicitation. Also known as a pre-bid or proposal conference. Vendor A business entity or individual that has a contract to provide goods or services to the District. Used interchangeably with the term(s) Bidder, Vendor, Offeror, Proposer, or Contractor.