1. PURCHASING 101 for Secretaries of the Ogden School District
Intro of myself.
HOW TO BEGIN

2. Purpose of this training:
Understand the basic state and local guidelines for purchasing
Provide a foundation for making sound purchasing decisions
Hopefully prevent wasting
taxpayer dollars!
How long been in purchasing, less than a year, 2,3,5,10 etc.
Understanding some of the acronyms.
Who has buyers , who is the buyer?
Size of purchasing department?
Will try to make this informative but fun!

3. Know the Code Utah State Procurement Code Where is it found?
63G-6a-101.  Title. 
(1)
This chapter is known as the "Utah Procurement Code."
What is the rule when it comes to state code versus city , county, or school district code?

6. Know the Code
- If you think you know the code, here is a link to see the additions made since the last codification.

8. Know the Code
What is R-33?
This is the Administrative Rules portion of the code

10. Know the Code
What is R-33?
This is the Administrative Rules portion of the code

11. Know the Code
What is the difference between 63G-6A the “Administrative Code” and R-33 the “Administrative Rule”?
Think about it as 63G-6A is the policy and R-33 is the procedure for procurement.

12. Know the Code
City/County/School District Code - Each state entity has their own procurement code. Your policy can be more restrictive than the state but not less restrictive.

14. Where do I start when I am ready to make a purchase?

16. Determine total scope of the purchase.
It is against the Utah Procurement Code to artificially divide a purchase order, in order to avoid quote/bid requirements.
Try to gather all the information necessary to make a solid procurement strategy.

17. Is the Purchase on a current District or State Contract?
It is recommended that Schools and departments use District Contracts (regardless of dollar amount) when the contract offers products/services that meet specifications and/or requirements (some districts are required to).
State Contracts are an excellent source to procure goods and services, however they are not your only option.
You can access a list of the State Cooperative Contracts the Division of Purchasing and General Services website at: Click on the “State Contracts” link.
Search by keyword of products desired.

19. Is the Total Purchase Less than $5,000 cumulative or $1,000 for a single item?
School/Department may select the best source without seeking competitive quotes, however, since public funds are being used, it is encouraged that you get quotes.
* When making a purchase of a good or service for the first time, it is always a good idea to get quotes from a couple of different sources.

20. Did your quote include shipping costs?
What if shipping puts the amount over $1,000.00?
Kurt is going to go more into freight charges in 201

21. Is the Total Purchase Greater than $1,001 and Less than $5,000?
R (1) For procurement item(s) where the cost is greater than $1,000 but up to a maximum of $5,000, an entity subject to these rules shall obtain a minimum of two competitive quotes that include minimum specifications and shall purchase the procurement item from the responsible vendor offering the lowest quote that meets the specifications.
Quotes should be attached to the purchase requisition and maintained as part of public procurement record (for auditing purposes).
How long do you need to maintain those records?

22. Is the Total Purchase between $5,000 - $49,999?
R (2) For procurement item(s) where the cost is greater than $5,000 up to a maximum of $50,000, a procurement unit …, shall obtain a minimum of two competitive quotes that include minimum specifications and shall purchase the procurement item from the responsible vendor offering the lowest quote that meets the specifications.
Example of a procedure that may be in place depending on the size of your organization.
My district requires board approval for anything over $30,000.

23. Purchases over $30,000
Any purchase over $30,000 requires three written quotes and board approval.

24. Is the Total Purchase Greater than $50,000?
Must be sent to the Purchasing Department for formal bid.
Must be publicly advertised 7 calendar days before bid opening.
Current code 63G-6a says it must be published:
(i) in a newspaper of general circulation in the state
(ii) in a newspaper of local circulation in the area
(A) directly impacted by the procurement; or
(B) over which the procurement unit has jurisdiction

25. Is the Total Purchase Greater than $50,000?
(iii) on the main website for the issuing procurement unit or the procurement unit acquiring the procurement item; or
(iv) on a state website that is owned, managed by, or provided under contract with, the division for posting a public procurement notice.
Selection criteria to be determined before bid is published, and if applicable, a selection committee appointed to review the final bids.
Must receive Board of Education/Department approval.

26. Common Procurement Methods
Request for Information (RFI)
Request for Proposal (RFP)
Multi-Step Bid (MSB)
Sole Source
*This is not a comprehensive list. There are other forms of procurement but these are the most common.

27. Things to Consider:
Make sure each vendor receives the same specifications, i.e. brand, model number, color, etc.
Be wary of awarding due to differences in personal preference or perceived quality.
Always be able to reasonably justify your decision.

28. Request for Information (RFI):
Surveying the marketplace to assist with future specification development
Determine qualifications of potential vendors
Verify that the solution will meet the need
No pricing is to be requested
No Award
Give me examples of when an RFI might be appropriate.

29. Request for Proposal (RFP)
Uses:
Specifications can’t be clearly defined.
Several possible solutions
may meet required needs.
Cost is only one factor in determining award.
Method of Award:
Best Offer (Best Value)
Point Based Evaluation (determined before RFP is posted).
Evaluation Team or committee
Evaluation:
Technical Evaluation (per criteria and points posted in the RFP specifications)
Cost Proposal Evaluation
Opportunity for Best and Final Offers (BAFO)
Award to Offeror receiving the Highest Total Points Or
Cost Justification Statement must be written showing how the award is “most advantageous” to the state (Trade-Off Process)

30. Multi-Step Bid Process (MSB)
Obtain benefits of the competitive sealed proposal procedure through the solicitation of technical offers and Invitation for Bid procedure through pricing offered.
Combination of the RFP and IFB process
Method of Award: Two phase/step process
Step One – Technical proposal (any vendor meeting the
technical requirements moves to step two).
Step Two – Bid Process (low bid receives award)

31. Sole Source Procurement A Product or Service Unique and Easily Established as One of a Kind
*Utah Code R Conditions for use of sole source procurement.
Sole source procurement shall be used only if a requirement is reasonably available from a single supplier.
A requirement for a particular proprietary item does not justify a sole source procurement if there is more than one potential vendor or bidder for that item. In other words, it is not a Sole Source if multiple distributors exist.
Is an iPad a sole source item?

32. Sole Source Determination
All sole source requests estimated to be $[25,000] and above must be posted for public comment, by the Purchasing Department, through public advertisement.
Questions to ask regarding sole source:
Can program requirements be modified so that competitive products or services be used?
Is product available from only one source and not merchandised through wholesalers, jobbers or retailers?
Must items be interchangeable or compatible with in-place items?
Is item/service unique and possess specific characteristics that can be filled by only one source?

33. Competition and Ethics
Make sure specifications are written to obtain adequate competition (vendors should not write specifications).
Planning a procurement – Allow sufficient time to follow purchasing requirements and procedures.
“Lack of planning on your part does not justify an emergency on our part.”
Keep good documentation on your purchases.
What time factors do you need to consider for procurement?
Cost, board approval, scope of project, etc.

34. Be Independent
Act Only in the Public Interest
You are a Trustee of the Public’s Money
Follow the Law
Strive for Efficiency
Do Not Accept Gifts from Vendors
Do Not Socialize with Vendors
Maintain Confidentiality
Do Not Play Favorites

35. Strategies for Best Use of Funds
a. Davis Warehouse
b. Office Depot
c. Mountain States Schoolbook Depository
d. Amazon Corporate Account
e. Technology Purchases

36. Amazon Business
Free Two-Day Shipping on orders over $49 Business Pricing and quantity discounts on select items
Business-tailored search and browse functionality
Access to a specialized Customer Service team for business customers only
Everything else you know and love about shopping on Amazon.com will remain the same.
Excludes Tax

38. Technology APPENDIX 9 – TECHNOLOGY PURCHASING FORM
Must be filled out and submitted to IT before technology purchases are made.
VALCOM
APPLE

39. Ken Crawford-Ogden School District
Any Questions?
Ken Crawford-Ogden School District