LANCASTER INDEPENDENT SCHOOL DISTRICT
PURCHASING PROCEDURES AND POLICIES
HANDBOOK
Revised July, 2012
Lancaster ISD Purchasing Manual 2
Lancaster Independent School District
Purchasing Policies and Procedures Handbook
Table of Contents
Introduction 3
The Procurement Cycle 4
Purchasing Overview 5
Purchasing Functions and Roles 5
Maximizing Efficiency 6
General Purchasing Procedures 7
Lancaster ISD Purchasing Policies and Procedures 8-9
Unauthorized Purchases 9
Blanket (Open) Purchase Orders
Invoices for More than the Amount of a Purchase Order
Emergency Purchases
9
9
10
Procedures for Miscellaneous Payment Requests 10
Procedures for Adding New Vendors 10
Budget Codes 11
1. Object Codes 11-12
2. Function Codes 12
Receiving Goods 12
Payment Procedures
Personal and Software Purchases
Purchases Valued at or Above $25,000
13
13
13-14
Competitive Procurement Options and Categories 14-17
Guidelines for Competitive Procurement 18-20
Vendor Performance Evaluation 21
Synopsis of Competitive Procurement Process 20
Sole Source Purchases
Vendor Performance Evaluation
20
20- 21
General Questions and Answers 21-23
Lancaster ISD Purchasing Manual 3
Introduction
The purpose of this handbook is to provide information to Lancaster ISD personnel on the correct procedures to be
used when utilizing the purchasing function and allow the district to be in compliance with state and local
purchasing statutes and policies.
This handbook is a review of the procedures to be used when ordering goods and services and an overview of the
purchasing function. Please use this handbook often as a reference for any questions relating to purchasing policy
and procedures. Quite understandably, you may still have questions after reviewing the material; please feel free to
call the Purchasing Department with any questions or concerns.
It is the goal of the Purchasing Department to assist you and enable you to make your purchases and receive your
goods as efficiently and expeditiously as possible.
It is the intent of this handbook to ensure that Lancaster ISD is able to:
1. Comply with state purchasing laws and statutes, the Board of Trustees’ policies, administrative
procedures and sound business practices.
2. Provide quality products and services that meet the specifications requested by all Lancaster
Independent School District Campuses and Departments.
3. Obtain the most competitive prices for the products and services purchased utilizing procurement
techniques that stimulate vendor competition.
It is the mission of the Purchasing Department “to maintain an accurate process for acquiring goods and services
which satisfy both internal and external needs of the District.
It is the responsibility of the Purchasing Department to provide fair and accurate purchasing guidelines and
procedures and to take care of District obligations in an efficient and timely manner with minimal interference to
campus activities.
Code of Ethics & Conflict of Interest
A special responsibility is imposed on all people who are entrusted with the disposition of the state’s funds.
Purchasing personnel are required to perform with the highest integrity while constantly being asked to manage
more effectively, to secure better economic results, to speed up the process, and to be innovative in accomplishing a
given mission. This is a great challenge and an exciting one!
The nature of purchasing functions makes it critical that all players in the process remain independent, free of
obligation or suspicion, and completely fair and impartial. Maintaining the integrity and credibility of a purchasing
program requires a clear set of guidelines, rules and responsibilities to govern the behavior of purchasing employees.
Credibility and public confidence are vital throughout the purchasing and contracting system. Any erosion of
honesty, integrity or openness tends to be more injurious to purchasing than to most other public programs. The
shadow of doubt can be as harmful as the conduct itself.
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The Procurement Cycle
Need Defined…..
Procurement Method Selected
Solicitation
Receipt of Bids
Evaluation & Awards
Inspection & Acceptance
Contract Administration
Payment
Disposal of Property
Identify End-Users Needs
The end user will communicate to the purchaser(s) the commodity or services needed. The most common
document used to identify the need is a purchase requisition. The requisition should include the
specifications of the commodity or service that an end user seeks to procure.
A specification is a detailed description of a product or service that a user seeks to procure, and
consequently, a description of what a bidder must offer to be considered for an award. Specifications are
the primary means of communication between an agency and a vendor (see Section 2.23 Specifications).
Specifications control the following procurement aspects:
the quality of the product
the amount of competition
suitability of the product or service for the job
the method of evaluation used in making an award and in determining the bid with the best value
for the purchase
Lancaster ISD Purchasing Manual 5
Purchasing Overview
The purchasing function is a major management process supporting financial accountability in Texas public schools.
Purchasing has several links to overall accountability initiatives which include the:
Strategic Link. The overall mission of purchasing is to use available fiscal resources to obtain the maximum
product or service for the resources expended.
Operational Link. Purchasing supports instructional delivery, administration, and other services. Performance
and goal achievement throughout the school district depend on its effectiveness.
Tactical Link. The purchasing process influences day-to-day financial functions including budget management,
accounting, and accurate financial reporting.
Purchasing in the public sector environment presents numerous challenges including:
The requirement to comply with numerous statutes, policies, legal interpretations, and procedures. The
complexity of these requirements demands not only knowledge of purchasing laws and standards but
compliance in implementing a purchasing system that also meets user needs.
The dynamic and diverse nature of the public education organizational environment. School districts are
complex organizations with diverse functions. Although instruction is the heart of the organization, numerous
other services—ranging from custodial services to food service to tax collection—support the overall
educational mission. These distinct organizational units need a procurement process that is responsive to their
needs.
The competition among vendors for school district business. The strong competition among vendors for school
district business may create pressure on school district personnel for product selection, bid or proposal awards,
and dispute resolution. Most school districts seek to foster both good vendor relations and strong competition
but balance them with objective purchasing decisions.
The consistent oversight by interest groups. School district purchasing is scrutinized by diverse groups
including those from the public, the media, state and federal agencies, and auditors. Strict adherence to
established guidelines and consistency in record keeping, documentation, and execution of procedures assists
the school district in withstanding this scrutiny.
There are many “gray” areas relating to purchasing methods and procedures. Complex and diverse needs
create challenges for districts to determine the appropriate purchasing methods. Ever-changing legislative,
executive, and judicial decisions at both the state and federal levels further complicate the procurement process.
Purchasing Functions and Roles
The purchasing process includes a wide range of procurement functions including planning, acquisition, quality
assurance, contract administration and distribution. Basic functions include the following:
The organization and administration of procurement/purchasing as determined by the superintendent and the
Board of Trustees.
The acquisition of goods and services requested consistent with state and federal law, board of education
policies and sound business practices.
The distribution of goods and services to users in a timely and responsive manner with assurance that quality
standards have been met.
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Maximizing Efficiency
As recommended by TEA, the purchasing function should be centralized within the district for maximum efficiency
to be achieved. Centralized purchasing and decentralized purchasing are defined by the council of State
Governments publication, State and Local Governmental Purchasing as follows:
Centralized Purchasing is defined as “a system of purchasing in which authority, responsibility, and control of
activities are concentrated in one administrative unit.”
Decentralized Purchasing is defined as “a system of purchasing in which there is a varying degree of delegation
authority, responsibility, and control of purchasing activities to the several using agencies.”
Centralized purchasing is more efficient than decentralized purchasing because it enables a district to coordinate the
common purchase requirements of campuses and departments to obtain better prices. For example, when two
campuses requisition the same goods and/or services, a centralized purchasing department may combine the
goods/services on the same purchase order and arrange for more favorable price terms. Better planning, reduced
paperwork, and reduced costs result from centralized purchasing.
Centralizing the purchasing function strengthens internal controls. A centralized purchasing department typically:
Receives and coordinates purchasing requisitions/purchase orders from campuses or departments
Communicates with vendors regarding prices and terms of purchases
Processes and approves all purchase orders
Issues purchase orders to vendors
Receives purchases at central warehouse locations ( if district has a warehouse)
Coordinates competitive procurement processes
Distributes goods based on purchase requirements
Centralizing the purchasing function does not erode the principles of site based management. Purchase requisitions
still originate at the campus or department level where needs are identified. Centralized purchasing carries out the
site-based requisitions and improves the internal controls within the purchasing function.
The area in which internal controls are improved most is in the purchase approval process. In centralized purchasing,
every purchase order within the district is reviewed by the centralized purchasing department to prevent violations
of state and federal law and local school board policies. A centralized purchasing function with varying levels of
authority and a receipt and distribution process provides another strong internal control.
In decentralized purchasing, campuses and departments may issue purchase orders, communicate directly with
vendors, and receive goods at other than central locations. If purchases are made inappropriately, violation of laws,
regulations and school board policies may result.
Quality Assurance
Appropriate steps should always be taken to assure the quality of merchandise received. The first step is to examine
the merchandise for obvious defects or damages. All defects and damage should be documented on the receiving
report; the vendor should then be contacted.
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General Purchasing Procedures
Function: The purchasing department is a part of the business services (finance) department. The function of this department
is to organize and administer purchasing procedures for the district in accordance with the responsibility and authority
delegated by the Superintendent and the Board of Education
Board Purchasing Policy: It is imperative that All Budget Managers, who are responsible for approving purchases,
familiarize themselves with the Board of Trustees purchasing policies and ensure that his/her campus/department is following
these policies explicitly.
Purchasing Commitments and Authority: “All purchasing commitments shall be made by the Superintendent or designee
on a properly drawn and issued purchase order.” Board Policy CH (Local).
Purchasing Procedure: Authority to approve expenditures is not authority to purchase. A purchase has not been authorized
until a purchase order has been issued and signed by the Coordinator of Purchasing or designee. A requisition is not a
purchase order; it is a request for a purchase order. The Coordinator of Purchasing is designated by the Superintendent for
authorizing all purchases unless an exception is made or granted by the Superintendent.
Responsibility for Debts: 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 adopted Board policy and current administrative procedures. 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 debts. Board Policy CH (Local).
Personal Purchases: District employees shall not be permitted to purchase supplies or equipment for personal use through
the District’s Business Office. Board Policy CH (Local).
Contracts: Contracts for services, supplies, or equipment, including the rental of equipment, may be entered into on behalf of
the District under the policy applicable to the purchase, i.e., a contract is a “purchase,” and a person with authority to approve
purchases has the same authority, and the same limitations, to approve contracts. The Coordinator of Purchasing shall duly
record the encumbrance and maintain files as appropriate.
The District will enter into contractual relationships only with those vendors who have through word and action, affirmed
that they comply with all applicable existing laws or executive orders to ensure equal employment opportunities, without
regard to race, creed, color, sex or national origin.
Support: As a support organization with the responsibility of acquiring goods and services requested by the various
divisions, the purchasing department will function in a manner consistent with state law, the Board of Education’s policies
and sound business practices.
Cooperative Effort: Effective purchasing is a cooperative effort between the purchasing department and other departments
within the district. These departments share the responsibility of expending district funds in such a manner that all
transactions will pass numerous audits with respect to state, federal and district procurement regulations.
Lancaster ISD Purchasing Manual 8
Lancaster ISD Purchasing Policies and Procedures
Procedures for Online Purchase Requisitions:
Lancaster ISD (CH) Local states, “All purchases shall be made by the Superintendent or designee on a properly drawn
purchase order, in accordance with administrative procedures.”
All purchases for goods and services that are to be paid from monies allocated in the annual budget shall be made through the
following process:
1. Lancaster ISD’s purchasing policy requires prior approval of any purchases that are made. The policy requires that a
purchase order be completed and approved before ordering items for the district. No verbal orders shall be made. Verbal
approval of an administrator or supervisor does not replace the need for a purchase order. If an order is made without a
purchase order, it shall be the sole responsibility of the person placing the order to make payment; it is not the
responsibility of the district to pay for an order made under these circumstances. Persons placing verbal orders shall be
reprimanded. Poor planning, which causes urgency on the part of the requesting party is not an acceptable reason for
purchasing without a purchase order.
2. Requests for all purchases shall be submitted to the purchasing department using the online requisition system, SUngard
Public Sector (Pentamation). Complete the requisition online ensuring that all required fields (indicated by an asterisk)
have been completed. Please be aware of your descriptions; if purchase orders do not have complete descriptions, the
purchase order may not be approved. Requests shall include all required information; please be sure all
shipping/handling charges are included on the requisition. A requisition must clear all of the required approval levels
before it can be processed and converted to a purchase order. Requisitions at the campus level must be approved by the
principal, assistant superintendent, and Chief Financial Officer or Senior Finance Manager. Requisitions at the
departmental level must be approved by the department director and the Chief Financial officer or Senior Finance
Manager.
3. The purchasing department will convert all approved requisitions to purchase orders on a daily basis. The Coordinator of
Purchasing will review the purchase order and approve or deny it. Approved purchase orders will be printed and
distributed on a daily basis. Please note that the Director of Purchasing does not approve requisitions except in special
and/or unusual situations.
4. Accounts Payable will receive the yellow copy; Purchasing will receive the gold copy, and the ordering campus or
department will receive the pink and white copies via interdepartmental mail. The ordering campus or department will be
responsible for faxing or mailing a copy of the purchase order to the vendor. If the merchandise is ordered through a
purchasing cooperative such as the BuyBoard or TCPN, the purchase order may be required to be faxed to the
cooperative’s headquarters; this will be done by the Purchasing Director.
5. Requisitions for materials and/or equipment shall be submitted in sufficient time to allow for the delivery of the materials
and/or equipment within that school year. Suppliers shall be informed that back orders will not be accepted unless
specific permission is granted by the Superintendent or designee. If applicable, please be sure to include all
shipping/handling charges on the requisition; this will be a separate line item.
6. When your order has been received, please verify the contents against your packing slip. After this has been done, go
online and receive your items by line items only. The items on the purchase order that have not been received will not be
paid. Multiple page purchase orders have to be received by page. The District does not accept back orders; a new
purchase order will have to be submitted.
7. If a purchase order is not used, please notify the Purchasing Department so it can be closed. If an unused purchase order
is not closed, the funds remain encumbered.
8. Please plan your purchases in advance. Your designated approvers may not always be available to approve everyday.
9. Do not place an order using a requisition number; this is a direct violation of purchasing policy. Please remember that a
purchasing requisition is not a purchase order and is not to be used as such; it is a request for a purchase order.
Lancaster ISD Purchasing Manual 9
10. Unauthorized purchases made outside of the requisition/purchase order process will cause the guilty party to be
personally liable for the expense.
Reimbursements
Any request for a reimbursement for a purchase made by an employee with personal funds must have approval before the
purchase is made. Please be certain prior approval is received before personal funds are used for a purchase and a
reimbursement is requested.
Please make note of the following reminders when submitting a requisition:
When submitting a requisition of $3500.00 or more, please verify the purchase can be made without a formal
procurement process in place or verify if a process is in place. There could have been other purchases in that
particular category, and the allowable spending limit could be exceeded, therefore causing a violation to occur.
Please verify that any purchase requisition in excess of $10,000.00 is allowable and that a valid purchasing contract
is in effect with the vendor. It is quite possible that a formal quote or bid may have to be conducted before the
purchase can be made. Please remember that there is not an acceptable reason for violating purchasing statutes, no
matter how badly the materials may be needed. Purchasing laws,statutes and/or policies will not be violated.
For any purchase requisition in excess of $25,000.00, a formal purchasing contract must be in place with the vendor
and the Board of Trustees will have to formally approve the purchase if it has not already done so.
If the TEA Sole Source Provision is to be used for a purchase in excess of $25,000.00, the purchase must still be
approved by the Board of Trustees.
Purchase requisitions for technology hardware and software will require the approval of the Chief Technology
Officer before they can be converted to a purchase order.
Again, please remember that a purchasing requisition is not a purchase order; it is a request for a purchase order. A
purchase order is in hard copy format with an authorized signature.
Unauthorized Purchases
Lancaster ISD (CH) Local states, “All purchase commitments shall be made by the Superintendent or designee on a properly
drawn purchase order, in accordance with administrative procedures.” The purchasing department is ensuring that campuses
and departments are adhering to this regulation through close monitoring and supervision. For any purchase requested to be
made without a purchase order, documentation must be provided that the requested items cannot be purchased from a vendor
that does accept purchase orders. Purchases made without a purchase order must have prior approval. For purchases made
without a purchase order and with no prior approval granted, the employee shall be held accountable and financially
responsible for any purchase made outside the parameters of the approved purchasing process.
Blanket (Open) Purchase Orders
A blanket purchase order is issued to a pre-approved vendor authorizing purchases from that vendor over a period of time.
Blanket purchase orders are valuable because they allow the purchase of items quickly. However, blanket purchase orders
must follow certain criteria: pre-qualification of vendors, limitation on the maximum amount for purchases, a specific time
frame for purchases covered by the blanket purchase order (usually one month), and identification of authorized purchasers.
Blanket purchase orders will only be allowed to be issued if the requesting campus/department has received prior approval
from the Coordinator of Purchasing. Unless otherwise authorized, open purchase orders shall not exceed $500.00, unless an
extenuating circumstance exists and shall be valid for one month. The user department must issue a new requisition if items
are requested beyond the specified time period. Any exception to this procedure must be requested and approved by the
Director of Purchasing.
The following controls shall be in place for the use of blanket purchase orders:
The number of vendors to whom blanket purchase orders are issued will be limited.
Those who can make purchases under blanket purchase orders will be clearly designated.
Dollar limits will be carefully observed.
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Emergency Purchases
Two types of emergency purchases are made in districts. One type results from an eminent threat to the health, safety, or
welfare of students. Such purchases must comply with state law and may be made only after a formal board action declaring
an emergency and authorizing the purchase. An example of an emergency purchase of this type is the authorization to repair a
school after a fire or natural disaster.
Emergency purchases exceeding the dollar amount triggering competitive procurement requirements shall be made in
conformance with subsection (h) Section 44.031 Texas Education Code.
The second type of emergency purchase usually is defined by local policy to provide for the acquisition of goods or services
which may imperil students or the security of the facility. For example, if windows are broken at a school by vandals, an
immediate need exists to not only secure the building, but also to protect the contents from damage by the elements. This
type emergency purchase is normally utilized after regular business hours or on weekends or holidays. After purchases of this
type are made, a purchase order should be issued after the fact on the next business day. Care should be taken that emergency
purchases do not result from improper planning rather than from a true emergency.
It is important that the district attempts to eliminate emergency purchases for nonemergency situations as much as possible
and requires that all emergency purchases be fully justified.
Invoices for More than the Amount of a Purchase Order
An amount of 10% over the stated amount on original purchase order will be approved for processing. However any amount
over the 10% will constitute the need for a new/revised purchase order.
Procedures for Miscellaneous Payment Requests (MPRs)
1. The MPR System is to be used when a check is needed that is not covered by a purchase order. Examples of this include
but are not limited to: (1) registration and membership fees, (2) newspaper ads for bids/proposals, (3) mileage, (4)
reimbursement for travel costs including meals and lodging. Do not use an MPR because it is faster or easier.
2. Please be sure than any special instructions about mailing or returning are printed legibly on your MPR. If any
paperwork needs to be returned with the check, please indicate on the MPR and provide a copy for finance records
(example: registration for conferences). Also, please be aware of your vendor numbers. Use only the master file to get
vendor numbers. Failure to do this will cause a miscellaneous vendor number of 99999; this number will not be
accepted. If a vendor is not on the Master File, please contact the Director of Purchasing so a new vendor can be set up in
the system.
3. MPR’s with proper back-up are to be signed by your principal or director and should be received by Accounts Payable
on the Monday before the Thursday check run. Planning is extremely important in order to meet your payment needs and
requirements. All requests for hand checks must be approved by Ms Kizziar, Chief Financial Officer.
4. Checks will be available for pickup at 1:00 P.M. on Thursday of each week. Principals, Directors, Secretaries or
Bookkeepers are responsible for picking up any checks. Any exceptions to this should be e-mailed to Accounts Payable.
All other checks will be mailed to the vendor on Thursday.
5. Any documentation that Accounts Payable mails to you that requires a MPR needs to be returned to Accounts Payable
within two (2) business days.
6. Accounts Payable cannot pay from a statement; please provide an invoice for all payment requests.
7. Please remember to plan in advance. Your individual approver may not always be available to approve everyday.
The number of MPRs should be very minimal.
An example of the Miscellaneous Payment Request (MPR) form is provided in Exhibit I
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Procedures for Adding New Vendors
Forward your new vendor request to Coordinator of Purchasing via e-mail: [email protected]. A W-9 form is
required to be on file before a new vendor can be added.
Please submit your request(s) in a timely manner; please do not wait until the last minute to send in your request. Please
allow 24 hours for your request to be processed.
Once your new vendor number has been established, you will be notified by e-mail.
If you have any questions or concerns, please contact Mr. Brasher via e-mail or by phone (972) 218-1412.
A new vendor desiring to do business with Lancaster ISD should complete the form displayed in Exhibit II.
Budget Codes
Budgets are entered according to the following format:
Fund Function Sub Object Organization Program Object Code (Account Code)
199 11 00 001 299000 6399
Object Codes: The following is a list and brief explanation of the more frequently used object codes by campuses and
departments.
Object codes are often misunderstood, because sometimes they are similar and doubt can be raised concerning what object
code should be used for a particular purchase. Listed below are some of the most frequently used object codes and an
explanation of when they should be used.
6219 – Professional Services. Expenditures/expenses for professional services rendered by personnel who are not on the
district’s payroll. Such services are paid on a fee basis for specialized services that are usually short-term or temporary in
nature, normally in areas that supplement the expertise of the school district. Professional Services are defined and listed in
the Texas Local Government Codes.
6239 – This code is used to classify all contracted services provided by the education service center.
6249 – Contracted Maintenance Repair. Expenditures to include normal contracted upkeep, repairs, maintenance and
renovation of: office equipment, furniture, computers, copiers, district-owned telephone system, facsimile machines,
maintenance agreement fees, other equipment when the repairs are provided by an outside individual or firm.
6291 - Expenditures/expenses for consulting services. Consulting services cover all functional areas such as instruction,
curriculum, and administration. Software is not a consultant and should be charged to object code 6399.
6299 – Miscellaneous Contracted Services. This code is used to classify expenditures/expenses for miscellaneous contracted
services not specified elsewhere.
6321 – Textbooks. This code is used to classify expenditure/expenses for textbooks purchased by the school district and
furnished free to students, certain classes or grades.
6329 – Reading Materials. This code is used to classify all expenditures/expenses for magazine subscriptions and newspaper
subscriptions that are placed in classrooms, offices, or libraries. Also included are reference books and other reading
materials placed in a classroom or office that are not catalogued and controlled by the library.
6339 – Testing Materials. Used to classify expenditures/expenses for testing materials such as test booklets. Test scoring is
not to be classified here.
6399 – General Supplies. This code is used to classify expenditures/expenses for those items of relatively low unit cost (even
though used in large quantities) necessary for the instruction process and/or administration. Expenditures include:
Lancaster ISD Purchasing Manual 12
consumable teaching and office items such as paper, pencils, forms postage, etc., workbooks, audio-visual aids such as VCR
tapes CD ROM disks. Also included are site licenses, single use software that has a per-unit cost of less than $5000.00, and
supplies for a satellite dish and other supplies for technology.
6411 – Travel and Subsistence – Employee only. This code is used to classify the cost of transportation, meals, room, and
other expenses associated with traveling on official school business. The cost of employee travel also includes any
registration fees associated with attending conferences, including seminars, inservice training, etc.
6412 – Travel and Subsistence – Students. This code is used to classify the cost of transportation (rental of vans, buses and
other vehicles), meals participation fees, room and other expenses associated with students traveling for school sponsored
events (Do not use function 34).
6495 – Dues paid to clubs, committees, or other organizations. Examples are: TASA, TASP, TASB and other associations.
6499 – Miscellaneous Operating Costs. This code is used to classify expenditures/expenses for all other costs not assigned to
specific object code. This account includes: fees and not associated with travel, awards, bid notices, graduation expenses,
newspaper advertisements, and food/refreshments for school-related meetings. (The term miscellaneous does not mean that
this code may be used at random. It is not to be used for supplies or furniture.
6631 – Vehicles per unit cost of $5000.00 or more. This code is used to classify expenditures for the purchase of vehicles
having a per-unit cost of $5000.00 or more and a useful life of more than one year.
6641 – Vehicles per-unit cost of less than $5000.00. This code is used to classify expenditures for the purchase of vehicles
having a per-unit cost of less than $5000.00 and a useful life of more than one year.
6649 – Capital Assets –Locally Defined Groupings . This code is used at the discretion of the school district if the school
district policy requires the capitalization of items that individually or as a group, are less than $5000.00. If a school district
does not account for these items under object code 6649, then the items are to be classified under 6399, General Supplies.
Function Codes: The following is a list of the more frequently used function codes.
11 – Instruction. This function is used for activities that deal directly with the interaction between teachers and students. This
function includes expenditures/expenses for direct classroom instruction and other activities that deliver, enhance or direct
the delivery of learning situations to students.
12 – Instructional Resources and Media Services. This function is used for expenditures/expenses that are directly and
exclusively used for resource centers, establishing and maintaining libraries and other major facilities dealing with
educational resources and media.
13 – Curriculum Development and Instructional Staff Development. This function is used for expenditures/expenses that are
directly used to aid instructional staff in planning, developing and evaluating the process of providing learning experiences
for students.
23 – Instructional Leadership. This function is used for expenditures/expenses that are used to direct and manage a school
campus. They include the activities performed by the principal, assistant principals and other assistants.
31 – Guidance, Counseling and Evaluation Services. This function is used for expenditures/expenses that are directly and
exclusively used for assessing and testing students’ abilities, aptitudes and interests; counseling students with respect to
career and educational opportunities and helping them establish realistic goals.
36 – Extracurricular Activities. This function is used for expenditures/expenses for school-sponsored activities outside of the
school day. These activities are generally designed to provide students with experiences such as motivation and the
enjoyment and improvement of skills in either a competitive or noncompetitive setting.
Lancaster ISD Purchasing Manual 13
Receiving Goods
All merchandise received by the District shall be checked immediately upon delivery for contents and condition. The
employee receiving the goods shall sign the receipt, signify the date of delivery, and note any deviation in the content or any
question about the condition of the goods received.
Payment Procedures:
District payment procedures shall be as follows:
1. Payment shall be made by proper invoice only. If the invoice is for an amount that is higher than the purchase order, the
purchasing department may approve additional costs up to $300.00. Quite often a purchase order may not include
shipping and handling costs.
2. Vendors shall be paid for goods purchased by the District after the accounts payable office has on file a copy of the
invoice and a receiving report on the items purchased.
3. After the merchandise has been received, go into the system and receive the goods. Send Accounts Payable the pink
copy of the purchase order and indicate on the PO that the items have been received and the date they were received;
please sign to verify receipt of the items
4. Payment for the purchase shall be approved by the Superintendent or designee when receipt of shipment is submitted.
5. In the instances when a purchase order cannot be issued a Manual Payment Request (MPR-direct payment) shall be
submitted for processing. This process is to be completed after the invoice has been received.
Records of all purchases, expenditures, and receipts shall be kept in accordance with TEA regulations, public law, and
the recommendations of the independent auditor. The Superintendent shall supervise the expenditure of District funds in
accordance with the proposals listed in the annual budget adopted for the current school year.
Personal Purchases
District employees shall not be permitted to purchase supplies for personal use through the District’s business office.
Software Purchases
Because of network and compatibility issues, the purchase of any software must have prior approval from the District’s Chief
Technology Officer. Also, other technology items, such as printers, scanners, etc may also require this approval.
Purchases Valued at or Above $25,000.00
In accordance with local Board of Trustees policy (CH) Local, all District contracts, except for the purchase of produce or
vehicle fuel, valued at $25,000.00 or more in the aggregate for each 12-month period, shall be made by the method that
provides the best value to the district:
1. Competitive bidding;
2. Competitive sealed proposals;
3. A request for proposals for services other than construction services;
4. An interlocal contract;
5. A design/build contract;
6. A contract to construct, rehabilitate, 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;
Lancaster ISD Purchasing Manual 14
8. The reverse auction procedure as defined by Section 2155.062(d), Government Code; or
9. The formation of a political subdivision corporation under section 304.001, Local Government Code.
The Board shall assume full responsibility for debts incurred in the name of the District so long as those debts are for
purchases made in accordance with adopted Board policy and current administrative procedures. 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.
Competitive Procurement Options
Board Policy (CH) Local states that all contracts, except contracts for the purchase of produce, or vehicle fuel, valued at
$25,000 or more for each 12-month period are to be made by the method or methods that provide the best value to school
districts. These options include:
Competitive Bidding
Competitive Sealed Proposals
Request for Proposals
Catalog purchases through Texas Procurement and Support Service (TPASS) administered through the Office of the
State Comptroller
Inter-local Contracts
1. Competitive Bidding
Competitive bidding is a formal process that may also be referred to as competitive sealed bidding, sealed bidding, or
formal bidding. The competitive bidding process requires that bids be evaluated and awards made based solely upon bid
specifications.
1.1 The Bid Process
The Board of Trustees has provided the Purchasing Department with established bidding requirements, which are
revised periodically as the need arises. The basic rule on the bidding is that all purchases in a category in an
aggregate amount over $25,000 must be submitted to competitive procurement procedures. Exceptions to this rule
are emergency purchases and fees paid for professional services or purchases that qualify under the TEA sole
source provision. However, purchases under $25,000 may be submitted to the competitive bid process if it is in
the best interest of the District.
Bids must be advertised as required by the Texas Education Code, Sec. § 44.031 (a). The requirements for the bid
advertisement are:
1.11 Advertisements for bids are to be advertised in the county where the district’s central administrative
office is located once a week for at least two weeks before the deadline for receiving bids.
1.12 Bids on construction Projects of $15,000 or more are to be advertised, along the standard advertising
procedure on publications directed to organizations in the trade such as to the Dodge Report. The
advertisement must be published at least twice in one or more newspapers of general circulation in the
county or counties in which the work is to be performed. The second publication must be on or before the
10th day before the first date bids may be submitted (Art. 271.025b).
The procedures in the advertising process determine the number issued to bids/proposals. Numbers
assigned to bids are composed of eight (8) digits and are arranged according to the following sequence:
Example:Arts & Crafts Supplies – Catalog Discount 12-06-0133
12 The first two digits indicate the year 2012
06 Indicates the month of the bid submittal deadline – June
0133 Indicates the numerical sequence of the bids/proposals that have been issued
Lancaster ISD Purchasing Manual 15
1.2 Bids/Proposals Opening Procedures (Please note for this section that the terms bid and proposal are
interchangeable).
The following steps are followed on all bid openings:
1.2.1 When a bid or proposal is submitted and received prior to the advertised deadline, it is stamped with
the time and date of receipt, received to ensure that the bids/proposals are sealed, addressed as
required and placed in the bid file.
1.2.2 Upon arrival of the specified deadline for the submittal, the Coordinator of Purchasing shall
introduce himself to the vendor representatives that are present. It is then announced that the
deadline for submitting a bid has passed and that no more bids will be accepted for consideration.
1.2.3 The opening of the bids requires that the Coordinator of Purchasing break the seal, check to ensure
that the bid/proposal is properly signed by an authorized officer of the organization, and that all
special requirements have been met before reading the bids aloud. Failure to meet all of the
requirements outlined in the bid documents disqualifies the bid from being considered.
1.2.4 All bids submitted and recorded are final and may not be altered, except for competitive sealed
proposals. Proposals are negotiable. If allowed, vendors may submit an alternate sealed bid before
the arrival of the bid deadline.
1.2.5 Any bid received later than the specified deadline, whether delivered in person or mailed, shall be
disqualified and will not be considered under any circumstances. Late bids received in the mail may
be returned to the bidder unopened with a notation indicating the bid was received late. It shall be
the sole responsibility of the bidder to ensure his/her proposal arrives at the appropriate location by
the specified deadline regardless of delivery method. At this point, the bid file contains the
following:
Advertisement
Bidder’s List
Tabulation Form
Copy of the Bid Packet
All Bids received by the specified deadline
1.3 The Bid Evaluation Process:
After it has been determined to which vendor(s) bid award shall be made, the Coordinator of Purchasing will
prepare a formal recommendation for bid award to be presented to the Board of Trustees for approval. The
recommendation for award shall include a bid summary, justification of award to other than the low bidder (if
applicable) a copy of the bid tabulation, and any other information pertinent to the recommendation for
award.
2. Competitive Sealed Proposals
The Competitive Sealed Proposal process is an alternative to competitive bidding. The terms and conditions of
competitive sealed proposals are identical to those of a competitive sealed bid, except the finality of initial offers and
the public reading of the proposals, By utilizing a competitive sealed proposal, changes in the nature of the proposal
and the prices submitted may be negotiated after the proposals have been opened. A competitive bid does not allow
for any negotiations of the above components. Competitive sealed proposals are recommended when other
procurement options are not required according to state or federal laws, or regulations in order to stimulate
competitive prices for goods and services.
A Request for Proposals (RFP) is a part of the competitive proposal process. The RFP is the mechanism that
generates the receipt of competitive sealed proposals and should contain the following key elements:
Lancaster ISD Purchasing Manual 16
Newspaper Advertisement
Notice to Proposers
Standard Terms and conditions
Scope of Work
Scope and Intent
Definitions and Applicable Documents
Quality Assurance
Acknowledgement of Bid/Proposal
Statement of Non-collusion
Felony Conviction Notice
Conflict of Interest
Contract Clause
3. Catalogue Purchases
School districts may participate in the catalogue purchasing program of the Comptroller’s Office which provides
purchasing services for local governments. Catalogue purchases are an alternative to other procurement methods if
the catalogue purchasing process provides the best value to the district. Purchasing through the Comptroller’s Office
satisfies all competitive procurement requirements stated in TEC §44.031.
4. Interlocal (Cooperative) Contract Agreement/Purchases
A school district may contract or agree with another local government, the state, or a state agency, including the
Office of the Comptroller, or a national cooperative to perform governmental functions and services. The purpose of
an interlocal contract may be to study the feasibility of using an interlocal contract to perform a governmental
function or service, or to provide a governmental function or service that each party to the contract is authorized to
perform individually.
4.1 Requirements for interlocal contracts include:
Authorization by the governing body of each party to the contract;
Statement of the purpose, terms, rights and duties of the contracting party;
Specification that each party paying for the performance of governmental functions or services must
make those payments from current revenues available to the party.
Interlocal contractual payments must fairly compensate the party who performs the services or functions under the
contract. In addition, the parties to an interlocal contract may create an administrative agency or designate an
existing local government to supervise the performance of the contract. Consequently, the agency or designated
local government can employ personnel perform administrative activities and provide administrative services
necessary to perform the interlocal contract (Government Code 791.011-791.025).
Benefits of cooperative purchasing include:
Cost savings on products or services. A cooperative purchasing arrangement can increase the buying power of a
single district with volume discounts
Savings on administrative costs. A cooperative arrangement can reduce administrative costs relating to
performing the purchasing function Cost savings can include major areas such as salaries and benefits, supplies,
office equipment and contracted services. A cooperative can result in the elimination of redundant costs which
may be associated with individual districts performing their own purchasing functions.
Accessibility to more products and services. A cooperative may provide districts the opportunity to buy a
greater variety of products and services. The district chooses what is best for its needs at lower costs.
A district that enters into a purchasing contract valued at $25,000 or more under certain cooperative purchasing
contracts must document any contract-related fees, including management fees, and the purpose of each fee. The
Lancaster ISD Purchasing Manual 17
amount, purpose, and disposition of any fee must be presented in a written report annually as an agenda item in an
open meeting of the Board of Trustees. This written report may be audited by the commissioner. (HB 273)
5. The Quote Process
Some items require price quotes whereby the school district requests prices either written or verbal from the
vendor(s). If the purchase of personal property cost at least $10,000.00 but less than $25,000.oo over a twelve (12)
month aggregate period, the school district must solicit vendors to supply the particular items through a formal
newspaper advertisement. In the procurement of the items, the district must obtain price quotes from at least three
applicable vendors (or every vendor if fewer than three vendors respond to the advertisement for inclusion on the
vendor list. Quotes should be written and maintained in the purchasing office. If telephone quotes are received, then
written quotes from all participating vendors should be submitted as a follow up procedure and documentation.
5.1 All quotations whether written or received by telephone must consist of:
Quotation number (maintained in the purchasing department
Quotation Date and Time
Delivery date required
Reply date
Requisitioner (School or Department)
Quantity needed
Complete description of items needed
Competitive Procurement Categories
“The following is a partial list of related categories to be used as a guide to determine requirements under the Texas
Education Code District purchasing law. Districts shall add to this list as aggregate dollars of contracts that exceed
the threshold amount. This list is non-inclusive. Note: Items in the supplies and materials sub-categories or within
each equipment/non-consumable category listed below must be considered as an aggregate purchase if available
from a single source vendor; however, contracts may be split into seasonal purchases.” – TEA Financial
Accountability Resource Guide.
Athletic/Trainer Supplies
Various Sports and Supplies
Uniforms
Custodial chemicals/janitorial supplies/paper products/can liners
Contracted services
Audio Visual equipment
Telephone equipment
Instructional/General Supplies
Instructional Teaching Aids/Supplies
Office Supplies
Maintenance Supplies
Buses (leases/Rent/Lease Purchase/Buy
Lancaster ISD Purchasing Manual 18
Guidelines for Competitive Procurement
When Purchasing Personal Property or Services
Definitions:
Competitive Bidding: a formal process consisting of procedures that may also be referred to as
competitive sealed bidding or formal bidding. According to the American Bar Association Model
Procurement Code, “Competitive Bidding……is the preferred method of procurement.”
Personal Property: personal property includes, but is not limited to any item or thing that can be moved
from one location to another or is consumable and does not include real property such as land,
buildings, and repair or renovation to any building. The term “personal property” includes related
classes or types or items or consumable supplies, such as athletic equipment, automotive supplies,
office supplies, cafeteria equipment, instructional supplies etc.
Right of Inspection: the buyer’s right to inspect the goods at delivery before accepting them.
Terms and Conditions: requirements that are binding upon the vendor who is awarded the bid; they also
communicate the district’s expectations in regard to the bidder’s performance in connection with the
district’s purchase.
Purpose and Intent of Competitive Bidding for the Purchase of Personal Property:
The purpose and intent of competitive bidding is to help public schools secure the best work and
materials at the lowest practical prices by stimulating competition. If a district advertises purchasing
needs relating to large expenditures, then economies of scale – purchasing in large quantities – will
probably result in lower costs either per unit item or in the aggregate. Another reason for competitive
bidding – it is an open process.
Why Lancaster ISD Must Bid:
Not everyone understands why public school districts must conduct a formal bid process when
certain items are to be purchased. The simple answer is that “It is the Law.” State Law, § 44.031 of
the Texas Education Code states, “Except as provided by this subchapter, all school district
contracts, except the purchase of produce and 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 to the
district. Local Policy (CH) Local state that Lancaster ISD must be competitively procured for
aggregate purchases in excess of $25,000.
Advantages of Competitive Procurement
(1) Provides for more competition;
(2) Better prices;
(3) Compliance with state law and local policy.
Other areas of Consideration for Purchasing in the Public Sector
The requirement to comply with numerous statutes, policies, legal interpretations, and
procedures. The complexity of these requirements demands not only knowledge of purchasing
laws and standards, but compliance in implementing a purchasing system that also meets user
needs.
The dynamic and diverse nature of public education organizational environment. School
districts are complex organizations with diverse functions. Although instruction is the heart of
the organization, numerous other services-ranging from custodial services to food service to tax
collection – support the overall educational mission. These distinct organizational units need a
procurement process that is responsive to their needs.
Lancaster ISD Purchasing Manual 19
The competition among vendors for school district business. The strong competition among
vendors for school district business may create pressure on school district personnel for product
selection, bid awards and dispute resolution. Most school districts seek to foster both good
vendor relations and strong competition but balance them with objective purchasing decisions.
The consistent oversight by interest groups. School district purchasing is scrutinized by diverse
groups including those from the public, media, state, and federal agencies, and auditors. Strict
adherence to established guidelines and consistency in record keeping, documentation, and
execution of procedures assist the school district in withstanding this scrutiny.
There are “gray” areas relating to purchasing methods and procedures. Complex and diverse
needs create challenges for districts to determine the appropriate purchasing methods. Ever-
changing legislative executive and judicial decisions at both the state and federal levels further
complicate the procurement process.
Essential Processes of Competitive Bidding
Requirements Planning: A district plans for major purchases to be made during the next twelve
months identifying the products or services and when they are needed. The award of bids is
scheduled to ensure timely delivery so that operations are not interrupted. From that schedule, a
mechanism for coordinating bidding of like or similar items on a district-wide basis is developed.
Requirements planning also enables the district’s purchasing officials to analyze and plan their
workloads.
Activites and Responsibilities for Bid specifications and Bid Award: This process structures the total
bid package which includes developing and reviewing specifications, incorporating these
specifications into a standard bid form, determining objective bid award criteria, advertising the bid,
responding to vendor questions, and recommending a vendor for bid award. Establishing time
frames and defining responsibility for each activity is crucial.
Development of an approved Vendor List: The identification and qualification of vendors for
specific products can facilitate the bid process in two ways. First, the District can identify vendors
who are interested in doing business with the District and their products and services. Second, the
district can monitor the vendor’s responses to bids and performance when they are awarded the bid.
Essential Elements of a Competitive Bid Advertisement and Structure of the Bid Process:
Essential Elements:
Purchase description or specifications covering the item(s) to be obtained;
Address where bid documents may be obtained or viewed;
Work or services needed;
Terms and conditions for the proposal bid contract;
Time and place for opening bids and other provisions.
Structure of the Bid Process:
Development of clear specifications
Advertising for competitive bids
Responding to vendor questions
Procedures for opening and tabulating the bids
Analysis of the bids to ensure compliance with requirements
Recommending the vendor(s) for bid award
Award of the bids by the Board of Trustees
Lancaster ISD Purchasing Manual 20
Synopsis of the Competitive Procurement Process:
Unfortunately, the competitive procurement process cannot be conducted overnight. From start to finish, the process
can be quite lengthy and involved. Here is a synopsis of what is involved in the competitive procurement process:
A legal notice advertising the bid/proposal must be placed in a newspaper located in Dallas County for two
successive weeks. While no specific time period to wait after the second advertisement to open the bids is
required, purchasing officials are strongly urged to allow a reasonable amount of time after the second
advertisement to open the bids. Ten (10) to (fourteen (14) days after the second advertisement is generally
considered to be a reasonable time period.
After the bids have been opened, a bid tabulation will be completed for review and recommendation(s) for
award will be made by the appropriate department for which the bid has been conducted. Quite often the
tabulation and analysis can take one full day or longer to complete. The number of vendors responding to
the bid solicitation will also affect the length of time to complete the tabulation and analysis.
After the recommendations for bid award of contract are completed, they are place on the agenda for the
next regularly scheduled Board meeting for formal approval by the Board of Trustees. The Board of
Trustees is the only entity within the District authorized to officially award the bid(s). The documents
presented to them are only recommendations. Once the bids have been awarded by the Board of Trustees,
orders for the items may be placed by submitting a purchase order.
Sole Source Purchases:
Compliance with Texas Education Code §44.031 is not required for purchases that are available from only
one source including:
Identification and confirmation that competition in providing the item or product to be purchased is
precluded by the existence of a patent, copyright, secret process or monopoly;
A film, manuscript, or book.
Sole source does not apply to mainframe data processing equipment and peripheral attachments with a
single item purchase price in excess of $15,000.
It is incumbent on the District to obtain and retain documentation from the vendor which clearly
defines the reason(s), which qualify the purchase to be made on a sole source basis. Lancaster ISD
requires the sole source affidavit on the next page be completed and notarized by the vendor before it
can be considered for sole source status (see Exhibit IV).
Vendor Performance Evaluation
A system for the evaluation of vendors and their performance is important to support an effective purchasing
function. Factors to consider are:
Timeliness of deliveries
Service availability
Completeness and accuracy of order
Quality of products or services received
Whenever problems are encountered with a vendor, (i.e., a vendor fails to deliver certain items or delivery does not
meet specifications) it is important to document the problem, noting the date and an accurate description of the
problem The vendor should then be contacted by telephone and told specifically how the school district wants the
problem corrected. The school district should keep a record of all phone calls, including the dates and what was
discussed. If the problem is not resolved or continues, written notification stating the problem, the corrective action
Lancaster ISD Purchasing Manual 21
required and that the vendor’s failure to correct the problem will be considered a breach of contract and result in the
cancellation of the contract should be given the vendor. This record of information about the vendor performance is
very important in the evaluation of the vendor.
If significant problems are encountered with the vendor, the school district should consult with legal counsel
concerning the removal of the vendor from the vendor approved vendor list and discontinuing business with the
vendor.
Finally, the school district should try to develop an open and professional relationship with each vendor while still
maintaining total independence and objectivity.
Please see Vendor Evaluation Performance form on page 27.
General Questions and Answers
Regarding Personal Property
This section is taken from the TEA Accountability System Resource Guide – Purchasing
1. Is direct mailing of specifications to vendor required in addition to the advertisement in a newspaper?
No. The Texas Education Code District purchasing law only requires districts to publish notice; however, in
most circumstances, districts will enhance the effectiveness of the process if notices are mailed to businesses
that have had or may have an interest in offering bids/proposals.
2. Are brand names allowed in the specifications?
Yes. Specifications may include brand names. All efforts should be made to describe in a practical or
economical manner the item(s) being purchased, if not, then brand names may be used if followed by the
words, “or equal.” In connection with “or equal,” the contract specifications, district’s decisions regarding
comparability of products are final, but should be based upon defined performance criteria.
3. If a brand is specified, what other information must be included in the specifications?
It is recommended that the specifications must clearly set forth and convey to prospective vendors the general
style, type, character, and quality of the brand desired and that equivalent products will be acceptable.
4. Must an award of contract for personal property automatically be to the lowest vendor?
No. For purchases of personal property, there is no requirement to award a contract to the lowest vendor;
however according to the Texas Supreme Court, board members are required “to act faithfully in the
exercise of their best judgment so as to best serve the interests of the district.”
5. What additional criteria constitute adequate justification for awarding a contract to other than the lowest
bidder?
In regard to the Texas Education Code purchasing law, there is no requirement in state law that a contract for
personal property be awarded to the lowest vendor; however, a decision to award a contract to a vendor other
than the lowest bidder should reflect the exercise of sound discretion by the district.
Additional criteria for selecting an offer higher than the lowest offer might be:
The item or service offer is not responsive to the specifications, to the invitation to bid/proposal or
to the general instructions.
The vendor is not responsible (vendor integrity documented by record of past performance).
The contract is awarded because of the bidding preference law, Government Code, Title 10,
Section 2252.003.
Lancaster ISD Purchasing Manual 22
The financial and technical resources of the vendor are not adequate to service the contract.
There is evidence of noncompliance with public policy or federal and state laws.
Delivery or service requirements create the need for award to a local vendor.
The safety record of the vendor.
6. Is the lowest vendor that is not awarded a bid required to be notified and provided a public hearing.
No. There is no requirement in law, §44.031, Texas Education Code, that the lowest vendor be notified or
provided a public hearing, prior to the award of a contract for personal property to a vendor who was not the
lowest bidder.
7. Can a district avoid the need to competitively purchase items through sequential purchases?
No. Sequential purchases of related items within a fiscal year with the intent to circumvent the Texas
Education Code district purchasing law constitute a criminal offense.
8. How should a district handle a vendor, who received an award, and failed to deliver certain items, and in
several instances, items delivered were different from the items that were specified or vendor delivered
substituted products other than those specified?
a. Document the problem, noting the date and writing an accurate description of the problem.
b. Next, notify the vendor by telephone of the problem and tell the vendor specifically how the district
wants the problem corrected.
c. A district should keep a record of the dates of all phone calls and what was discussed in the event that
talking with the vendor written notification of the problem
d. If the problem continues, give the vendor written notification of the problem, state that the district
expects immediate correction, and that failure to do so will be considered a breach of contract and could
result in the cancellation of the contract.
9. How does a district determine a category of related classes or types of items?
Competitive procurement categories, which will vary for individual districts, are determined by
grouping related items that have a common purpose or function in district operations. Vendor and
market availability also affect the determination of competitive procurement categories and result in
several specific sub-categories of items within a broad functional area of district operations. For
example, there are several sub-categories for food service operations, including milk, bread, fresh
meats and poultry, and canned/dried/frozen foods and non-food supplies. In connection with
automotive supplies there are a few specific sub-categories, including for example, original
equipment manufacturer parts (OEM), after market parts, and lubricants. Proper planning which
includes a review of the past year's historical usage levels will minimize the number of purchases
that cannot be anticipated for the fiscal year.
10. What are some exemptions for a district to the Texas Education Code District purchasing law?
Purchases from the State Bid Contract and State Catalog of the General Services Commission.
Purchases from the Texas Department of Corrections.
Purchases from the Texas Blind and Handicapped.
Lancaster ISD Purchasing Manual 23
Purchases through cooperative purchasing pools under interlocal agreements. (Chapter 791, Texas
Government Code)
11. How does the federal conflict of interest rule apply to purchases?
The federal conflict of interest rules apply to expenditures involving federal funds. The federal
conflict of interest rules are much more stringent than state conflict of interest law. Under the
common rule and other federal regulations, the conflict of interest prohibitions extend to employees
of districts whereas state law applies only to board members. If an employee is involved in
administering, directing, or authorizing a transaction funded by a federal program, that employee and
members of the employee's immediate family cannot have a financial interest in a vendor associated
with transactions funded by the federal program. This prohibition applies to employees and their
immediate families who are, for example, sales representatives for computer manufacturers or food
distribution companies. (34 CFR 80.36(3))
12. Are competitive procurement offers required to be date-stamped?
No, however this practice is recommended in order to help document that the integrity of the
competitive procurement process was not affected by allowing vendors to submit late competitive
procurement offers.
13. How should a district handle a vendor, who received an award, and failed to deliver certain items
and, in several instances, items delivered were different from the items that were specified or vender
delivered substituted products other than specified?
If a vendor fails to deliver certain items or delivers substituted items that do not meet specifications
the district should do the following:
a. Document the problem, noting the date and writing an accurate description of the problem.
b. Next, notify the vendor by telephone of the problem and tell the vendor specifically how the
district wants the problem corrected. With even the best vendors, problems occasionally arise
and frequently a single phone call is all that is needed to correct a problem.
c. A district should keep a record of the dates of all phone calls and what was discussed in the
event that talking with the vendor does not resolve the problem.
d. If the problem continues, consult with the district's legal counsel, give the vendor written
notification of the problem, state that the district expects immediate correction, and that failure
to do so will be considered a breach of contract and could result in the cancellation of the
contract.
e. If the vendor seems to be making little effort to resolve the problem to your satisfaction, you
should discuss the problem with the district's attorney and explore options open to the district.
f. If cancellation of the contract becomes necessary, a district should also take steps to disqualify
the vendor from future competitive procurement process. Even if the contract is not canceled,
district may want to consider taking action to disqualify the vendor from future competitive
procurement process.
Lancaster ISD Purchasing Manual 24
Exhibit I
Lancaster Independent School District
Manual Payment Request Authorization
Date: Vendor No. or SSN
Vendor Name:
Address:
City State Zip
Total Amount of Check: $
Fund code: (Budget amendment must be attached if account is
overdrawn or the invoice will not be paid. If more than one fund code is
needed, please fill in the amount charged to each code).
Explanation:
Requested by:
Approved by:
Office of CFO Approval:
Note: Fill out this form when:
1. Check is needed for travel/reimbursement/advance
2. Company will not accept purchase orders.
No Exceptions: purchase requisitions must be used for all other purchase or LISD
will not pay.
Lancaster ISD Purchasing Manual 25
Exhibit II
Lancaster Independent School District
Office of the Coordinator of Purchasing
422 S. Centre Avenue
Lancaster, Texas 75146
(972) 218-1412 – Phone
(972) 218-1401 - Fax
Vendor Request Form
Name of Company/Firm:
Address:
City/State/Zip:
Name of Representative/Contact:
Title:
Telephone No: Fax No:
E-mail Address:
Area(s) of Procurement for which the company is requesting consideration:
Does your company have a website? If the answer is yes, please provide the address:
Is your company a member of any Purchasing Cooperatives (ex., TCPN, BuyBoard, TIPS/TAPS etc)?
If the answer is yes, please list your company’s purchasing cooperative affiliations:
Are you a sole source vendor for the procurement area(s) you have listed?
If the answer is yes, and you would like to sell goods and/or services to Lancaster ISD as a sole source vendor,
you will need to do the following:
Request a sole source affidavit form from the Purchasing Department
Complete the form and have it notarized (forms that are not notarized will not be considered).
Return the completed form to the Purchasing Department for review and formal approval as a sole source
vendor. You will be notified whether or not your company qualifies for sole source status.
Please check any of the following that apply to your company:
Women Owned Minority Owned Historically Underutilized Business
Lancaster ISD Purchasing Manual 26
Exhibit III
LANCASTER INDEPENDENT SCHOOL DISTRICT
VENDOR PERFORMANCE EVALUATION
Vendor: Date:
Summary Department Evaluation: Acceptable Unacceptable Not Applicable
Contract Administration
Internal Customer Service
Accounting
Performance Factors
Contract Administration:
Performs on schedule
Performs at quoted/contract prices
Company representatives are readily available
Prompt and accurate with routine documents
Anticipates District’s needs
Offers quick and effective assistance in emergencies
Does not request special consideration
Furnishes specially requested information promptly
Advises of potential problems
Performs with constant follow-up
Fixes problems promptly and efficiently
Internal Customer Services:
Provides quality service
Responds to requests promptly – good response time
Readily accepts responsibility for correcting a problem
Has proven ability for completing difficult tasks
Furnishes requested data promptly
When required, responds with corrective action in a timely manner
Accounting:
Invoices correctly
Issues credit memos promptly
Does not ask for special financial consideration
Lancaster ISD Purchasing Manual 27
Additional Comments:
Exhibit IV
SOLE SOURCE AFFIDAVIT
Before me, the undersigned official, on this day, personally appeared ______________________________
a person known to me to be the person whose signature appears below, whom after being duly sworn upon
his oath deposed and said:
1. My name is ______________________________, I am over 18, have never been convicted of a crime
and being competent to make affidavit.
2. I am an authorized representative of the following company or firm:
________________________________________________________________________
3. The above named company or firm is the sole source of the following item(s), and no other company
or firm in the United States of America sales or distributes the product(s) listed Below:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
4. Competition in providing the above named item(s) or product is precluded by the existence of a patent,
copyright, secret process, or monopoly.
5. There is no other like item(s) or product(s) available for purchase that would serve the same purpose or
function and there is only one price for the above named item(s) or product(s) because of exclusive
distribution or marketing rights.
Signature of Authorized Official Title of Authorized Signature
Affidavit will be valid for three (3) years from date subscribed and sworn.
SUBSCRIBED AND SWORN to before me on this _______ day of ______________, _______.
(seal) _________________________________.
Notary Public Signature
Print Name: _________________________________.
My Commission Expires: ___________________________.
Company:
Address:
City, State, and Zip:
Telephone Number: Fax:
Contact Person: