Federal Purchasing Procedures 

TABLE OF CONTENTS

POLICY/PROCEDURE CODE POLICY/PROCEDURE TITLE

FG PP000 FEDERAL GRANT PURCHASING PROCEDURES MANUAL

FGP010 PURCHASING AUTHORITY

FGP020 FEDERALLY FUNDED MICRO PURCHASES

FGP030 FEDERALLY FUNDED SMALL PURCHASES LESS THAN $50,000

FGP040 FEDERALLY FUNDED SMALL PURCHASES $50,000-$150,000

FGP050 PREPARATION OF FEDERALLY FUNDED PURCHASE ORDERS

FGP060 FEDERALLY FUNDED BLANKET PURCHASE ORDERS

FGP065 REQUEST FOR PAYMENT FORM

FGP080 INTERNAL CONTROL AND REVIEW OF FEDERALLY FUNDED MAINTENANCE/CONSTRUCTION RELATED PROJECTS

FGP085 RECYCLED PRODUCTS

FGP120 FEDERALLY FUNDED DEBARMENT AND SUSPENSION CERTIFYING STATEMENT

FGP130 VENDOR RELATIONS

FGP140 VENDOR VISITATIONS

FGP150 VENDOR PERFORMANCE

EVALUATIONS

FGP160 TRANSFER AND STORAGE OF

SURPLUS MATERIAL

FGP170 DISPOSITION OF FEDERALLY FUNDED SURPLUS

MATERIAL

FGP180 STANDARDIZATION OF MATERIAL

FGP190 ETHICAL PRACTICES

FGP0200 CONSTRUCTION CONTRACTS

FGP205 PROCURING ARCHITECTURAL/

ENGINEERING SERVICES

FGP210 PAYMENT AND PERFORMANCE BONDS

FGP215 WORKER’S COMPENSATION

INSURANCE

FGP300 LEGAL CONSIDERATIONS

                           

FGP000/ FEDERAL GRANT PURCHASING PROCEDURES MANUAL 

Preamble

The District shall comply with all EDGAR federal regulations in the management of federal grant awards and state-administered grants, as designated by the TEA, except for the implementation of the Procurement Standards. The District has opted to delay implementation of the 2 CFR Part 200 Procurement Standards under the 1-year grace period extension until July 1, 2018, as permitted under Federal Register Vol. 82, No.94 (May 17, 2017).

The district has determined that implementing the additional year grace period until July 1, 2018 will provide an opportunity to continue to develop the district’s written purchasing procedures as they relate to the Part 2 CFR 200 Procurement Standards.

The District’s Standard Operating Procedures and Internal Controls has been developed and administratively approved by the Superintendent to ensure that all requirements of the EDGAR regulations are adhered to.

I. Purpose To establish uniform procedures for the procurement of federally funded material and services that are consistent with the blended state and local policies of the Harlandale Independent School District (District).

II. Scope

These procedures apply to all federally funded material and service procurement and related activities.

III. Responsibility

It is the individual responsibility of each employee involved in the procurement process to understand the policies upon which federally funded acquisitions are based, and the meaning and intent of the procedures themselves.

If there are any questions or concerns relative to either the policies or procedures, or the ability of the employee to respond effectively to the requirements of these procedures, it will be the responsibility of the employee to bring such matters to the attention of his/her immediate supervisor without delay.

The fundamental purpose of these procedures is not to restrict the performance of the individuals involved in the procurement, but to provide a foundation for effective, consistent, and complete method of operation with the expected result of fostering a positive, professional relationship between the District and the suppliers who serve us.

FGP010/PURCHASING AUTHORITY I. Purpose The purpose of this procedure is to delegate the authority to procure material and services

with District funds in accordance with the adopted Board Policy. II. Scope This procedure applies to all the purchases of materials and services. The Texas Education

Code purchasing regulations do not apply to purchases involving student activity funds recorded under an Agency Fund (865) because the bid requirements only apply to purchases under the control of the Board of Trustees. However, Campus Activity Funds (175) are subject to the state’s purchasing regulations.

III. Guidelines Without the express written consent of the Superintendent or his designee, no school

employee shall: 1. Purchase materials or services for the campus, department, or District.

2. Charge the cost of any materials or services to the campus, department, or District. 3. Purchase materials or services for personal use.

4. Permit students to purchase items for a campus or the District.

FGP020 / FEDERALLY FUNDED MICRO PURCHASES (EXPENDITURES IN THE AGGREGATE OF LESS THAN $10,000) GAR200.320(a)

I. Purpose

The purpose of this procedure is to provide guidance for the regulations that apply to the purchase of federally funded materials and non-professional services that are not required by law to be competitively bid or vendor listed.

II. Scope

These regulations and procedures apply to all purchases of material or professional services costing less than $10,0001. These contracts may be awarded without competitive quotations if the cost is reasonable.

III. Guideline

1. Personal Property When the District seeks to purchase federally funded personal property with a value less than $10,000, in the aggregate, for a 12-month period, the District may either purchase those items in accordance with General Administrative Regulation 200.320(a). To the extent practicable, the District must distribute micro purchases equitable among qualified suppliers.

2. Purchase Approval Contracts for micro purchases may be awarded without soliciting competitive quotations if the cost is reasonable. Upon securing any necessary quotations, bid, or interlocal references, a purchase order request may be electronically submitted to the Purchasing Office for review.

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FGP020 / FEDERALLY FUNDED MICRO PURCHASES (EXPENDITURES

IN THE AGGREGATE OF LESS THAN $10,000) GAR200.320(a)

3. Receiving (Campus/Department)

If a campus/department receives a vendor invoice, it will verify the vendor’s itemized gross price, the discounted amount, and the corresponding itemized net price PRIOR to submission for payment to the Business Office. The Maintenance/Transportation/Athletic Departments are required to review at least 10% of the total dollar value of each invoice over $150.00. The reviewer should sign/initial the invoice to document that the verification was performed.

4. Business Office (Accounts Payable)

In order to verify the District is charged the amount quoted by the vendor, the Accounts Payable Department will review at least 10% of the total dollar value of a reasonable amount of invoices. The Accounts Payable Department will check the quantity billed the unit cost and the extended price and will verify the amount charged against the vendor’s catalog or shelf list price as stated on the purchase order, and will initial the individual items that were reviewed. Each invoice should also be footed for mathematical accuracy. Differences that are clearly inconsequential may be disregarded. Significant differences should be communicated to the Business Office Manager, and then directly to the vendor. Unresolved discrepancies must be reported to the Purchasing Office.

5. Co-op and Interlocal Agency Purchases

Purchases made from a vendor participating in a cooperative or interlocal agency purchasing program satisfy the laws requiring to seek competitive bids. Therefore, it is not necessary for the campus/departments to obtain additional vendor quotes. However, the campus/department should clearly indicate on the Purchase Request that the vendor is a “Co-op or Interlocal Agency Vendor” and should include evidence of this fact. The campus/department should also attach the quoted price as provided by the coop, interlocal agency, or participating vendor.

FGP030 / FEDERALLY FUNDED SMALL PURCHASES (EXPENDITURES BETWEEN $10,000 & $49,99.99) GAF 200.320(b)

I. Purpose

The purpose of this procedure is to provide guidance for the regulations that apply to purchase of federally funded materials and services that are required by law to be bid.

II. Scope

These regulations and procedures apply to all purchases of material and professional services between $10,000 and $49,999.99. These contracts may be awarded with competitive quotations if the cost is reasonable.

III. Guidelines

1. Personal Property When the District seeks to purchase federally funded personal property with a value between $10,000 and $49,999.99, in the aggregate, for a 12-month period, the District may either purchase those items in accordance with General Administrative Regulation 200.320(b). To the extent practicable, the District must distribute small purchases equitable among qualified suppliers.

2. Purchase Approval Contracts for small purchases may be awarded with soliciting competitive quotations if the cost is reasonable. Upon securing any necessary quotations, bid, or interlocal references, a purchase order request may be electronically submitted to the Purchasing Office for review.

3. Receiving (Campus/Department)

If a campus/department receives a vendor invoice, it will verify the vendor’s itemized gross price, the discounted amount, and the corresponding itemized net price PRIOR to submission for payment to the Business Office. The Maintenance/Transportation/Athletic Departments are required to review at least 10% of the total dollar value of each invoice over $150.00. The reviewer should sign/initial the invoice to document that the verification was performed.

FGP030 / FEDERALLY FUNDED SMALL PURCHASES (EXPENDITURES BETWEEN $10,000 & $49,99.99) GAF 200.320(b)

4. Business Office (Accounts Payable)

In order to verify the District is charged the amount quoted by the vendor, the Accounts Payable Department will review at least 10% of the total dollar value of a reasonable amount of invoices. The Accounts Payable Department will check the quantity billed the unit cost and the extended price and will verify the amount charged against the vendor’s catalog or shelf list price as stated on the purchase order, and will initial the individual items that were reviewed. Each invoice should also be footed for mathematical accuracy. Differences that are clearly inconsequential may be disregarded. Significant differences should be communicated to the Business Office Manager, and then directly to the vendor. Unresolved discrepancies must be reported to the Purchasing Office.

5. Co-op and Interlocal Agency Purchases

Purchases made from a vendor participating in a cooperative or interlocal agency purchasing program satisfy the laws requiring to seek competitive bids. Therefore, it is not necessary for the campus/departments to obtain additional vendor quotes. However, the campus/department should clearly indicate on the Purchase Request that the vendor is a “Co-op or Interlocal Agency Vendor” and should include evidence of this fact. The campus/department should also attach the quoted price as provided by the coop, interlocal agency, or participating vendor.

FGP040 / FEDERALLY FUNDED SMALL PURCHASES (EXPENDITURES OF $50,000 AND $250,000) GAF 200.320(b)

I. Purpose

The purpose of this procedure is to provide guidance for the purchase of federally funded materials and professional services that are not required by law to be competitively bid or procured.

II. Scope

These regulations and procedures apply to all purchases of materials and professional services between $50,000 and $250,0002. The more aggressive of the local/state threshold level is followed.

III. State/Local Policy

1. Purchases of personal property and professional services of an aggregate above $50,000 must be purchased through formal competitive solicitation.

2. Two or more responsible bidders must be able to compete effectively.

3. In awarding a contract, the District may consider the following factors:

a. The purchase price. (May be made on price principally) b. The reputation of the vendor and of the vendor's goods and services. c. The quality of the vendor's goods or services. d. The extent to which the goods or services meet the District's needs. e. The vendor's past relationship with the District. f. The impact on the ability of the District to comply with laws relating to historically

underutilized businesses. g. The total long-term cost to the District to acquire the goods or services. h. Any other relevant factor specifically listed in the request for bids or proposals.

- Vendor response time - Compatibility with goods/products purchased with those already in use within the District

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FGP040 / FEDERALLY FUNDED SMALL PURCHASES (EXPENDITURES OF $50,000 AND $250,000) GAF 200.320(b)

IV. Federal Policy

Purchases of goods or services that cost $250,000 or less (General Administrative Regulation 200.88) must be purchased in accordance with locally adopted threshold of $50,000 (44.031 and CH (Legal)

IV. Board Review/Approval

All acquisitions over $50,000 must be presented to the Board of Trustees for review/approval.

FGP045 / FEDERALLY FUNDED FORMAL SOLICITATIONS (OVER $250,000) GAP 200.320 (c)

I. Purpose

The purpose of this procedure is to provide guidance for the purchase of federally funded material and services that are required by law to be completely solicited.

II. Scope

These regulations and procedures apply to all federally funded acquisitions exceeding $50,000 (CH Legal). Although, there are varying threshold limitations at the local, state, and federal level, the District implements the most aggressive solicitation amounts.

III. Local Policy

1. Purchases of personal property and professional services of an aggregate above $50,000 must be purchased through competitive solicitation.

2. Two or more responsible bidders must be able to compete effectively.

3. In awarding a contract, the District may consider the following factors:

i. The purchase price. (May be made on price principally) j. The reputation of the vendor and of the vendor's goods and services. k. The quality of the vendor's goods or services. l. The extent to which the goods or services meet the District's needs. m. The vendor's past relationship with the District. n. The impact on the ability of the District to comply with laws relating to historically

underutilized businesses. o. The total long-term cost to the District to acquire the goods or services. p. Any other relevant factor specifically listed in the request for bids or proposals.

- Vendor response time - Compatibility with goods/products purchased with those already

in use within the District

FGP045 / FEDERALLY FUNDED FORMAL SOLICITATIONS (OVER $250,000) GAP 200.320 (c)

IV. Federal Policy

1. Purchases of goods or services that cost $250,000 or less (General Administrative Regulation 200.88) must be purchased in accordance with locally adopted threshold of $50,000 (44.031 and CH (Legal)

2. District must provide sufficient time to submit bids. 3. Bids must be publicly opened at time and place advertised. 4. Any/all bids may be rejected if there is a sound documented reason. 5. An award is made to the lowest responsive and responsible bidder.

V. Methodology The District may acquire federally funded material and services via

a. Sealed bids-GAF 200.320 (c) b. Competitive proposals-GAF 200.320 (d) c. Non-competitive proposals-GAF 200.320 (f)

Sealed Bids Competitive Proposals An award is made to the vendor whose proposal is most advantageous to the program. Non-competitive proposals This methodology is appropriate when there is only one source, there is a public emergency that will not permit a delay, the Federal awarding agency expressly authorizes non-competitive proposals, or if after soliciting a number of sources, competition is deemed inadequate.

VI. Board Review/Approval

All acquisitions over $50,000 must be presented to the Board of Trustees for review/approval.

FGP050 / PREPARATION OF FEDERALLY FUNDED PURCHASE ORDERS

I. Purpose To establish a procedure for the issuance of formal purchase orders.

II. Scope This procedure applies District wide.

III. Procedure

Each campus or department must prepare their own electronic order. See Exhibit 1 All orders will become an actual contract to purchase material requested. Any orders received with an incorrect budget, misspelled words or no attachment (if applicable), may result in its return for correction. Please use the following guidelines when preparing an order: Purchase Request (WWH 6125) Date Required: Type in date that you desire delivery. Remember to give the vendor a substantial amount of time (not to exceed sixty (60) days).

Reference Number: You may type in the room number in this area. Requester Name: Originator, i.e.; Teacher, Principal

Ship To: Ship to address will appear automatically according to campus code. All Hot Items purchased will be shipped to the District Warehouse at 12115 S.E. Loop 410, San Antonio, Texas 78221. (Campus code 937).

Vendor Number: Type in the proper vendor number (vendor name and address will populate automatically).

FGP050 / PREPARATION OF FEDERALLY FUNDED PURCHASE ORDERS-CONTINUED

Bid Number: Type in the HISD bid number. If the vendor is a member of one of the Co-op bids such as Region 20, Buyboard, or TCPN, that must be stated on the request. Freight: Whenever applicable state approximate freight charges. Other Fields (Optional): Fax PO, Return PO, Attachment (click yes or no), Invoice No., Include Check (click yes or no) & Quote Number. Quantity: State the number of items desired Unit/Issue: State its corresponding unit. i.e., each, dozen, gross, etc.

Unit Price: State its corresponding unit price Account Number: Type in the proper account number in the space provided. If using multiple account numbers, type in the account number as you normally would. Then type in total amount charged to that particular account number. Description: Catalog number, Manufacturer, model number. Be specific as to size, shapes, and/or colors desired.

Vendor Notes: As an option specific instructions to vendors may be stated.

Requisition Comments: Valid Purchasing Cooperative contract numbers shall be clearly identified. As an option or any other comments may be referenced such as Campus Improvement Plans (CIP) or specific internal instructions or references Material expensed to 66XX or 6395 should designate the room/area it is targeted for. Post Req: After the purchase request/order is completed it must be POSTED prior to it’s progression to the next approval stage.

FGP050 / PREPARATION OF FEDERALLY FUNDED PURCHASE ORDERS-CONTINUED

Order of Approval: 1. The Campus Principal or Director 2. Director of Federal Programs 3. Assistant Superintendent for Education (whenever applicable) 4. Finance (whenever applicable) 5. Purchasing Department

At this point, the order will be forwarded to the Purchasing Staff for review and adherence to the aforementioned procurement laws, and for signatory approval.

The requisition is now a bona-fide purchase order. Disapproved orders will be returned to the campus or department. Approved orders will be sent by mail/fax to the appropriate vendor.

FGP060/ FEDERALLY FUNDED BLANKET PURCHASE ORDERS I. Purpose

To establish a procedure for the issuance of federally funded blanket purchase orders. II. Scope

This procedure applies to all federally funded blanket purchase orders. Procedures & Limitations

The following procedures and limitations relating to blanket purchase orders must be adhered to:

1. The list of vendors to whom blanket purchase orders are issued will be limited. 2. Those who can make purchases under blanket purchase orders will be clearly

designated.

3. Blanket purchase orders may not exceed $500 for a three month period; however the

District may establish a lower/higher threshold for each department.

4. Blanket purchase orders cannot be used for buying supplies available at the District Warehouse.

5. Blanket purchase orders cannot be used to procure capital assets (commonly referred

to as fixed assets), or “Hot Items”. See Exhibit 2

6. All corresponding invoices must be reviewed for accuracy and signed/dated accordingly and immediately submitted to the Accounts Payable Department with the matching purchase order number and bid or quote number noted.

7. Blanket purchase orders should be used sparingly and only if the items cannot be

itemized.

FGP065/REQUEST FOR PAYMENT FORM I. Purpose

To establish a procedure regarding the use of request for payments. II. Scope

This procedure applies to all campuses and departments. III. Guidelines

When procuring material, request for payments will only be used in the event a vendor does not accept a purchase order.

A limit of $150 will be imposed on all purchase transactions using a request for payments.

An employee who has made a personal expenditure under $150 may be reimbursed less any sales taxes paid.

IV. Procedure

Each school or department must immediately submit their request for payments, along with any back-up documentation such as signed invoices or order forms.

All requests for payments are due each Monday at noon.

FGP080/INTERNAL CONTROL AND REVIEW OF FEDERALLY FUNDED MAINTENANCE/CONSTRUCTION/TRANSPORTATION AND ATHLETIC

PROJECTS I. Purpose

The purpose of this procedure is to establish control regarding the acquisition and payment of maintenance material, construction contracts, transportation material and athletic purchases. II. Scope

The procedure applies to the acquisition and payment of all maintenance material and construction projects. III. Procedure

Maintenance Material - Operational control procedures regarding the acquisition and payment of maintenance material are shared amongst three (3) departments. Maintenance and Operations Department

1. Purchase requests must state the itemized gross price, the discounted amount, and the discounted net amount as determined by the current bid/catalog data or interlocal agency contract amount.

2. Open purchase requests in excess of $150 must be verified upon the receipt of the

invoice, the vendor’s itemized gross price, the discounted amount, and the corresponding itemized net price PRIOR to submission for payment to the Business Office.

3. The purchase requests made under items 1 and 2 above must be supported with current

bid/catalog data or made available for verification.

FGP080/INTERNAL CONTROL AND REVIEW OF FEDERALLY FUNDED MAINTENANCE/CONSTRUCTION/TRANSPORTATION AND ATHLETIC

PROJECTS - CONTINUED

4. Purchase requests which include individual items with a unit cost of $5,000 or more must be made in accordance with the above procedures and additionally be supported with at least three (3) written quotations from the list of approved vendors.

Purchasing Department 1. Purchase requests which include individual items with a unit cost of $5,000 or less will

be verified to ensure the proper reflection of current bid/acquisition data.

2. Purchase requests which include items with a unit cost $5,000 or more will be verified to ensure the proper reflection of current bid/acquisition data and the submission of three (3) written price quotations from the list of approved vendors.

3. Upon the verification and approval of the purchase order, the Purchasing Office will

insure that all documents pertaining to the transaction are submitted to the Business Office.

Business Office

Maintenance Material Invoices reflecting purchase orders in an amount of less than $10,000 will be reviewed and cross-referenced for accuracy. At least 10% of the line items on invoices reflecting purchase orders in an amount between $10,000 and $25,000 will be reviewed to ensure the proper quantity, unit cast and extended priced are accurate. The invoice will also be verified against the vendor’s catalog or shelf price as stated on the purchase order.

FGP080/INTERNAL CONTROL AND REVIEW OF FEDERALLY FUNDED MAINTENANCE/CONSTRUCTION/TRANSPORTATION AND ATHLETIC

PROJECTS - CONTINUED

Construction Contracts- Operational control procedures regarding construction contracts and their payments are shared amongst three (3) departments. Maintenance and Operations Department

1. Purchase requests must state the contractor’s itemized labor costs, discounted amounts, and the net cost as reflected and referenced from current bid/acquisition data.

2. Construction contracts valued at between $15,000 - $50,000 must be supported

with at least three (3) written price quotations or (1) quotations and a Job Order Contracts (JOC) vendor itemizing the labor costs, discounted amounts, and the net cost as reflected and referenced from current bid/acquisition data for those contractor’s approved from the current bid/acquisition data.

3. Construction contracts valued at above $25,000 must be entered into in accordance with

Board Policy CH (Legal). Detailed specifications for these projects must be submitted to the Purchasing Office.

4. All constructions contracts/purchase requests must be supported with either a related RS

Means report corresponding to the applicable labor costs as reflected from current bid/acquisition data or two quotations and a JOC vendor. Construction contracts may incorporate purchasing cooperatives and/or JOC vendors as supporting documentation.

 Purchasing Department

1. Construction contracts will be verified to ensure the proper reflection of current

bid/acquisition data. RS Means reports or other data corresponding to the applicable labor costs are also verified.

PP080/INTERNAL CONTROL AND REVIEW OF MAINTENANCE/CONSTRUCTION RELATED PROJECTS-

2. Construction contracts between $15,000-$50,000 will be verified to ensure the proper reflection of current bid/acquisition data. Documents submitted are verified to ensure there are at least three (3) written price quotations from the list of approved list of approved contractor’s from current bid/acquisition data. RS Means report corresponding to the applicable labor costs are also verified.

3. All construction contracts/purchase requests will be verified to ensure that a related RS

Means reports or other data corresponding to the applicable labor costs is submitted. 4. All construction contracts in excess of $50,000 will be competitively bid in accordance

with CH (Legal) and Procedures PP030, and PP200-215. 5. Upon the approval of the purchase order, ensure that all documents pertaining to the

contract will be submitted to the Business Office. Business Office

Construction Contracts The invoice will be reviewed to ensure the reflection of any contractor’s discounts in accordance with any bids or cooperative purchasing agreements.

FGP085/RECYCLED PRODUCTS I. Purpose

To provide policy and procedures in reference to the purchase of recycled products. II. Scope

This policy applies to all District purchases in an effort to ascertain if recycled products are economically and environmentally feasible to procure.

III. Procedures

1. Inventory specifications are reviewed periodically to ensure that all line items do not explicitly discriminate against products made of recycled material.

2. Whenever applicable and feasible, a statement on specifications asking vendors to

consider bidding products made of recycled material is performed.

3. Vendor shall agree in writing to comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act, where applicable. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR Part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery, and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines

FGP120/FEDERALLY FUNDED DEBARMENT AND SUSPENSION CERTIFYING STATEMENT

I. Purpose

It is the purpose of this policy to establish procedures to periodically review vendor list for debarment status of federally funded projects.

II. Scope

At a minimum, this policy applies to certain cumulative vendor transactions exceeding $50,000 in a fiscal year.

III. Procedures

To monitor vendors meeting established criteria to confirm suspension/Debarment status. 1. At a minimum, all formal solicitations will include a Debarment and Suspension

Certifying Statement. (See Exhibit 5)

FGP130/VENDOR RELATIONS I. Purpose

It is the purpose of this policy to state the basic policy concerning vendor relations. II. Scope

This policy applies to all transactions. III. General

A. It is our policy to maintain and practice the highest possible standards of business ethics, professional courtesy and competence in all of our dealings. At all times, applicable laws must be scrupulously observed. In this regard, the following should be observed when dealing with suppliers and their representatives:

1. Accord prompt and courteous reception, as well as fair and equal treatment, to all

suppliers and their representatives.

2. Provide equal opportunity for all suppliers to make price and specification quotations.

3. Guarantee the confidentiality of all price quotations made by vendors.

4. Explain as clearly and fully as possible to suppliers the reason for any rejection of

bids or quotations. The Purchasing Department should be the “spokesperson” for this process.

5. Remain scrupulously free from obligations to any supplier.

6. Keep informed about sources of supply, methods, services, and materials, and

encourage their testing.

7. If for any reason one supplier is permitted to re-quote, his competitors will be given the same opportunity. Re-quoting should be restricted to an absolute minimum.

FGP130/VENDOR RELATIONS-CONTINUED

B. Legal Requirements

1. The Texas Ethics Commission shall adopt a conflict of interest questionnaire that requires disclosure of a vendor’s affiliations or business relationships that might cause a conflict of interest with the District.

2. A vendor to the District shall file any required conflict of interest questionnaire

with the appropriate records administrator not later than the seventh business day after the date that the vendor:

a. Begins contract discussions or negotiations with the District; or

b. Submits to the District an application, response to a request for proposal or bid,

correspondence or other writing related to a potential agreement with the District.

3. The required questionnaire, including signature requirements, may be filed

electronically in a form approved by the Commission.

4. The records administrator for the District shall maintain a list of local government officers of the entity and shall make that list available to the public and any person who may be required to file a conflict of interest questionnaire.

5. The District shall provide access on the District’s Internet Web site to the required

conflict of interest statements and questionnaires filed with the records administrator.

C. District Policy

See the District’s Conflict of Interest Questionnaire at Exhibit 3. Information regarding this and a copy of the questionnaire may also be obtained at the purchasing website.

FGP140/VENDOR VISITATIONS I. Purpose

To establish policy governing vendor visitations. II. Scope

This policy applies to vendor visitations at all District facilities. III. General

Sales calls and demonstrations shall not be conducted at individual campuses or departments without approval from the Purchasing Manager or designee. Such approval may be granted to demonstrate material, equipment or publication for possible use in the District's campuses. It is required that the Purchasing Department be notified prior to any such vendor solicitations. For solicitations pertaining to employee benefits (insurance, retirement, etc.), vendors will contact the Employee Benefits Administrator. For solicitations pertaining to personal employee benefits, (retail discounts, community events, etc.) vendors will contact the Public Information Officer.

IV. Procedure

A letter of approval for sales calls shall be presented to the building Principal/Administrator if permission is granted. See Exhibit 4

FGP150/VENDOR PERFORMANCE EVALUATIONS I. Purpose

To provide procedures for conducting vendor performance evaluations. II. Scope

This procedure applies District wide. III. Procedure

Purchasing, Central Receiving, and Accounting/Finance personnel deal with vendors on a continuing basis. It is important that information be recorded about specific performance.

The Purchasing Manager welcomes any useful and constructive evaluations from campuses and departments. This information will be useful for Purchasing to monitor and effectively stimulate vendor activities and performance.

FGP160/TRANSFER AND STORAGE OF FEDERALLY FUNDED SURPLUS MATERIAL

I. Purpose

To establish the procedure for the transfer and storage of surplus material. II. Scope

This procedure applies to all material which a campus or department may consider surplus and wishes to dispose of it.

III. Responsibility

The Warehouse Supervisor is responsible for the implementation of this policy. IV. Procedure

When a campus or department considers an item to be of no further benefit, arrangements for the transfer and storage of that surplus material will be as follows.

a. Each campus/department must complete an electronic Transfer of Property form and

submit this to the Purchasing Manager for approval. See Exhibit 6.

b. Upon review and approval from either the Information Systems for computers and related accessories or all other material by the Purchasing Department, our Warehouse personnel will make arrangements to transfer the material accordingly.

c. Transfer of Property forms will be used to electronically and physically transfer the

school or department’s surplus inventory to the Auxiliary Warehouse inventory for future disposal procedures.

FGP170/DISPOSITION OF FEDERALLY FUNDED SURPLUS MATERIAL I. Purpose

To establish the procedure for the disposal of federally funded surplus material. II. Scope

This procedure applies to all material which has no known use to the District and has been approved for disposition by the Board of Trustees.

III. Procedure

When surplus property is no longer needed by the original program or project, the property may be used in other activities supported by the Federal awarding agency in the following order of priority:

1. Activities under a Federal award from the Federal awarding agency which funded the original program or project, then

2. Activities under Federal awards from other Federal awarding agencies. This

includes consolidated equipment for information technology systems. IV. Guideline

1. Surplus Property Lists are sent to each department/campus requesting information to include:

a. Description of Surplus Material b. Quantity of Surplus Material c. Serial Numbers of Surplus Material d. Inventory Bar-code Number of Surplus Material

2. The Assistant Superintendent for Business or designee will inspect the property and

determine the circumstances involving the surplus nature of the property.

3. Upon the recommendation of the Assistant Superintendent or designee, the District may dispose of surplus property in accordance with federal and state regulations, as well as District policy (CI Local), which supplements this procedure.

SCHOOL PROPERTIES DISPOSAL CI Local When property other than real estate becomes obsolete or no longer needed, it may be considered surplus property. The Assistant Superintendent for business, under the direction of the

Superintendent, shall be authorized to dispose of surplus property in accordance with any state law or federal regulation. In the absence of any applicable state law or federal regulation, the District will establish procedures to properly dispose of surplus property.

Disposal will be as follows:

1) Campus Principals and Department Directors must submit an itemized Property

Transfer Form whenever they no longer have a need for specific personal property at their campus / department.

2) Campus Principals and Department Directors will be given an opportunity to review transferred material for the possible acquisition by their campus/department.

3) When surplus property accumulates in sufficient quantities to economically justify the physical removal from the District, they shall be declared as surplus property and be recommended for disposal.

4) Surplus property with a unit value with less than $200.00 will be sold in a way that will maximize the proceeds to the District.

5) Surplus property with a unit value of greater than $200.00, as determined by the administration will be sold by bids, public auction, or consignment.

6) All sales will be handled by the issuance of a receipt, and all proceeds will be deposited to the District's general fund.

7) Whenever economically justifiable, the District may transfer property with a unit value of less than $200, as determined by the administration to either a state, federal, or non-profit organization.

8) Whenever the risk of liability, which may arise through the sale of unsafe material, is greater than the potential revenue to be realized from the sale of the property, the District may either bury or destroy the material in a safe and efficient manner or allow for a controlled transfer of the property to another governmental entity.

FGP180/STANDARDIZATION OF MATERIAL I. Purpose

To provide guidance for the standardization of purchased material. II. Scope

This policy applies to all purchases. III. Responsible Party

The Purchasing Department will be responsible for the establishment and maintenance of standardized specifications.

IV. General

Standardization of all supplies, materials, and equipment is to be achieved whenever possible. District-wide effort and support to fill consolidated requirements in standard commodities (i.e., office supplies, chemicals, printing equipment), allows the purchase of useful materials and supplies on a District-wide basis and thereby optimizes cost reductions.

FGP190/ETHICAL PRACTICES I. Purpose

The purpose of this policy is to provide guidance to District employees engaged in any supplier-related activity concerning ethical practices.

II. Scope

This policy applies to all employees. III. General

The District's vendors, their products, personnel, and services are a natural extension of the District. It is the responsibility of all employees to work to maintain the good name of the District, to develop and maintain good relations between the District and its suppliers, and to keep in mind that personal contacts form much of the basis for the supplier’s opinion of the District.

IV. DBD Local Policy

1. Disclosure General Standard – An employee shall disclose to his or her immediate supervisor a personal financial interest, a business interest, or any other obligation or relationship that in any way creates a potential conflict of interest with the proper discharge of assigned duties and responsibilities or that creates a potential conflict of interest with the best interest of the District.

2. Specific Disclosures of Substantial Interest – The Superintendent shall file an affidavit

with the Board President disclosing a substantial interest, as defined by Local Government Code 171.002, in any business or real property that the Superintendent of any of his or her relatives in the first degree may have.

Any other employee who is in a position to affect a financial decision involving any business entity or real property in which the employee has a substantial interest as defined by Local Government Code 171.002 shall file an affidavit with the Superintendent; however, the employee shall not be required to file an affidavit for the substantial interest of a relative.

FGP190/ETHICAL PRACTICES - CONTINUED 3. Interest in Property – The Superintendent shall be required to file an affidavit disclosing

interest in property in accordance with Government Code 553.002.

4. Conflicts Disclosure Statements – Employees identified by the Board as local government officers other than the Superintendent shall be required to file the conflicts disclosure statement, as promulgated by the Texas Ethics Commission and as specified by Local Government Code 176.003-.004. See Exhibit 3

The following employees shall be required to meet the conflict disclosure requirement:

Principals High School/Middle School Athletic Coordinators Communications/Community Relations Director Assistant Superintendent/Administration Athletic Director Food Service Coordinator Pupil Personnel Administrator Counselor Coordinator CATCH Facilitator Assistant Superintendent/Business Fiscal Services Administrator Chief Accountant Purchasing Manager Accounting Manager Executive Director of Curriculum and Instruction Secondary Curriculum and Instruction Director Elementary Curriculum and Instruction Director Special Education Director Federal Programs Coordinator CATE Coordinator Assistant Superintendent/Operations Assistant Director/MOST

FGP190/ETHICAL PRACTICES - CONTINUED Transportation Director Police Executive Director/Human Resources Secondary Coordinator Elementary Coordinator Auxiliary Coordinator Employee Benefits/Risk Management Administrator Insurance Manager

5. Gifts – An employee shall not accept or solicit any gift, favor, service, or other benefit

that could reasonably be construed to influence the employee’s discharge of assigned duties and responsibilities.

6. Endorsements – An employee shall not recommend, endorse, or require students to

purchase any product, material, or service in which the employee has a financial interest or that is sold by a company that employs or retains the District employee during nonschool hours. No employee shall require students to purchase a specific brand of school supplies if other brands are equal and suitable for the intended instructional purpose.

7. Sales – An employee shall not use his or her position with the District to attempt to sell

products or services.

See the following pages for forms to be used by employees for disclosing potential conflicts of interest:

Affidavit Disclosing Substantial Interest in a Business Entity or in Real Property, as

defined in Local Government Code 171.002 – 2 pages

Affidavit Disclosing Interest in Property, under Government Code Chapter 553, Subchapter A – 2 pages

FGP190/ETHICAL PRACTICES - CONTINUED

ADDITIONAL DISCLOSURE: The Superintendent and any other employees identified by Board policy as being required to file the conflicts disclosure statement, in accordance with Local Government Code 176.003-.004, may access that form on the Texas Ethics Commission Web site at http://www.ethics.state.tx.us.

AFFIDAVIT DISCLOSING SUBSTANTIAL INTEREST

IN A BUSINESS ENTITY OR IN REAL PROPERTY STATE OF TEXAS COUNTY OF BEXAR I, (name), as an employee of Harlandale ISD, make this affidavit and hereby on oath state the following: I have a substantial interest in: a business entity, as those terms are defined in Local Government Code Sections 171.001-

171.002, that would experience a special economic effect distinguishable from its effect on the public by an action of the Board or the District. or

real property for which it is reasonably foreseeable that an action of the Board or District will have a special economic effect on the value of the property distinguishable from its effect on the public.

The business entity or real property is (name/address of business or description of property): . I, have a substantial interest in this business entity or real property as follows: (check all that apply) Ownership of ten percent or more of the voting stock or shares of the business entity. Ownership of ten percent or more of the fair market value of the business entity. Ownership of $15,000 or more of the fair market value of the business entity. Funds received from the business entity exceed ten percent of my gross income for the

previous year. Real property is involved and I have an equitable or legal ownership with a fair market

value of at least $2,500. The statements contained herein are based on my personal knowledge and are true and correct. Signed this day of (month), (year). Signature of Employee Title

ACKNOWLEDGEMENT

STATE OF TEXAS COUNTY OF BEXAR Sworn to and subscribed before me on this day of (month), (year). , Notary Public in and for the State of Texas NOTE: This affidavit should be filed with the Superintendent, Board President, or a designee before the Board takes action concerning the business entity or real property.

AFFIDAVIT DISLCOSING INTEREST IN PROPERTY

STATE OF TEXAS COUNTY OF BEXAR I, (name), as Superintendent of Harlandale ISD, make this affidavit and hereby on oath state the following: I have a legal or equitable interest in property to be acquired with public funds, either by purchase or condemnation. The property is described as follows: . The nature, type, and amount of interest, including but not limited to percentage of owner-ship, I have in the property is: . The interest was acquired on (date). I swear that the information in this affidavit is personally known by me to be correct and contains the information required by Section 553.002, Government Code. Signed this day of (month), (year). Signature of Superintendent

ACKNOWLEDGEMENT STATE OF TEXAS COUNTY OF BEXAR BEFORE ME, (here insert the name and character of

the officer administering the oath) on this day personally appeared

(affiant) known to me (or proved to me on the oath of

or through [description of identity card or

other document] to be the person whose name is subscribed to the foregoing instrument and

acknowledged to me that he executed the same for the purposes and consideration therein

expressed.

Given under my hand and seal of office this day of

(month), (year).

, Notary Public in and for the State of Texas. NOTE: This affidavit should be filed with the county clerk(s) within ten days before the date on which the property is to be acquired, as provided by Government Code 553.002.

FGP0200/ CONSTRUCTION CONTRACTS IV. Purpose

The purpose of this procedure is to establish controls regarding the acquisition and payment of construction contracts.

V. Scope

This procedure applies to all District construction or renovation projects and applies to the acquisition and payment of all construction projects.

VI. Legal Policy CV Legal Summarized

1. Construction contracts valued at $50,000 for each 12-month period shall be made by

the method that provides the best value to the District. The Board shall, before advertising, determine which purchasing method provides the best value for the District.

a) Competitive bidding (CVA Legal) b) Competitive sealed proposals (CVB Legal) c) Request for proposals, for services other than construction services d) An interlocal contract e) A design/build contract (CVC) f) A contract to construct, rehabilitate, alter, or repair facilities that involves

using a construction manager (CVD, CVE) g) A job order contract for the minor construction, repair, rehabilitation, or

alteration of a facility (CVF) h) The reverse auction procedure (Gov’t Code Chapter 2155.062(d) (CH) i) The formation of a political subdivision corporation (Section 304.001, Local

Government Code)

2. Notice of the time by when and place where the bids or proposals, or the responses to a request for qualifications, will be received and opened shall be published once a week for at least two weeks before the deadline for receiving bids, proposals, or responses.

FGP0200/ CONSTRUCTION CONTRACTS - CONTINUED 3. The District will base its selection among offerors on weighted criteria as authorized

in Education Code 44 and will publish the criteria in the request for bids, proposals or qualifications. The criteria may be as follows:

1) The 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.

- Vendor response time - Compatibility with goods/products purchased with those already in use in the District

4. The District will document the basis of its selection and will make the evaluations public not later than the seventh day after the contract is awarded.

5. See CV Legal, PP080, PP205, PP210, and PP215, policies for additional

requirements relating to emergency construction, using registered architects and engineers, land surveying services, payment and performance bonds, prevailing wages, retainage and reimbursement, and required workers’ compensation coverage.

FGP0200/ CONSTRUCTION CONTRACTS - CONTINUED VII. Local Policies and Procedures

1. The projected expenditure on certain construction projects trigger the necessity of

contracting with outside professionals to complete the job. These limitations include:

Activity Contract With Construction costs exceeding $100,000 Registered Architect Alterations or additions exceeding $50,000 Registered Architect

Structural, electrical, and mechanical plans Registered Engineer Specifications, and estimates for construction exceeding $8,000

Construction Project not involving the above, Registered Engineer

but costing more than $20,000

2. Construction Contracts- Operational control procedures regarding construction contracts and their payments are shared among three (3) departments.

a. Maintenance and Operations Department

1) Purchase requests must state the contractor’s itemized labor costs, discounted amounts, and the net cost as reflected and referenced from current bid/acquisition data. The Supervisor submitting the information must indicate his/her approval with a signature.

2) Construction contracts valued between $15,000 - $50,000 must be

supported with at least three (3) written price quotations or one quotation with a Job Order Contracts (JOC) vendor itemizing the labor costs, discounted amounts, and the net cost as reflected and referenced from current bid/acquisition data for those contractor’s approved from the current bid/acquisition data. The Supervisor submitting the information must indicate his/her approval with a signature.

FGP0200/ CONSTRUCTION CONTRACTS - CONTINUED

3) Construction contracts valued at above $50,000 must be entered into in accordance with Board Policy CH (Legal). Detailed specifications for these projects must be submitted to the Purchasing Office.

4) All constructions contracts/ purchase requests must be supported with either

a related RS Means report corresponding to the applicable labor costs as reflected from current bid/acquisition data or one quotations and a JOC vendor. Construction contracts may incorporate purchasing cooperatives and/or JOC vendors as supporting documentation.

b. Purchasing Department

1) All construction contracts will be verified to ensure the proper reflection of

current bid/acquisition data. RS Means reports or other data corresponding to the applicable labor costs are also verified. The employee verifying the information should indicate his/her approval with a signature on the supporting documents.

2) Construction contracts between $15,000-$50,000 will be verified to ensure

the proper reflection of current bid/acquisition data. Documents submitted are verified to ensure there are at least three (3) written price quotations from the list of approved contractor’s from current bid/acquisition data. RS Means report corresponding to the applicable labor costs are also verified. The employee verifying the information should indicate his/her approval with a signature on the supporting documents.

3) All construction contracts/purchase requests will be verified to ensure that

a related RS Means reports or other data corresponding to the applicable labor costs is submitted. The employee verifying the information should indicate his/her approval with a signature on the supporting documents.

PP0200/ CONSTRUCTION CONTRACTS - CONTINUED

4) All construction contracts in excess of $50,000 will be competitively bid in

accordance with CH (Legal) and Procedures PP030, and PP200-215, and will be approved by the Board of Trustees.

5) Upon the approval of the purchase order, ensure that all documents

pertaining to the contract will be submitted to the Business Office.

c. Business Office

1) The invoice amounts will be compared to the purchase order’s net of discounted amounts.

2) The discounted amounts will also be verified that they are within the RS

Means cost report submitted with the invoice. 3) The price will also be matched to the awarded quote from the three quotes

acquired and submitted with the invoice.

4) The reviewer will initial/sign the invoice to indicate that a proper review was performed.

FGP205/PROCURING ARCHITECTURAL/ENGINEERING SERVICES I. Purpose

To establish procedures for the procurement of architectural or engineering services. II. Scope

This procedure applies to all solicitation of architectural or engineering services. III. Procedures

1. Solicit vendors to respond in a non-financial format their proposal including their demonstrated competence and qualifications.

2. Rank the best qualified firms according to their demonstrated competence.

3. Attempt to financially negotiate a contract with the highest ranking firm.

4. If a satisfactory contract cannot be achieved with the most highly qualified provider

of architectural or engineering services, the District will formally end negotiations with that firm, select the next best qualified company and attempt to negotiate a fair and reasonable price. The District shall continue this process with other firms until a contract is entered into.

FGP210/PAYMENT AND PERFORMANCE BONDS I. Purpose

To establish assurances that projects for the construction, alteration, or repairing of school facilities are bonded by fiscally responsible parties.

II. Scope

This policy applies to all construction related projects within the District. III. General

a) Performance Bond

For contracts in excess of $100,000 a performance bond shall be executed in the amount of the contract. This type of bond is solely for the protection of the District.

b) Payment Bond

For contracts in excess of $25,000, a payment bond shall be executed in the amount of the contract. This type of bond is for the protection of any sub-contractors or any parties who have a direct contractual relationship with the prime contractor.

FGP215/WORKER’S COMPENSATION INSURANCE I. Purpose

To limit the liability of the District if any person, equipment or vehicle gets or causes injury or damage on District property.

II. Scope

This policy applies to all contractors or sub-contractors who perform construction projects on District property.

III. Policy

Workers compensation insurance is required for all construction work on real property. Upon award of a construction contract, but prior to commencing any project, this proof of insurance must be submitted to the Purchasing Department and should be obtained directly from the insurance company.

A maximum number of 15 days will be granted after the award of contract to secure this document. Failure to respond to this policy will constitute a breach of contract and will result in the awarding of the project to the next best bidder.

FGP300/LEGAL CONSIDERATIONS I. Purpose

To provide a procedure to familiarize all District employees with the Uniform Commercial Code of Law (UCC).

II. Scope

This applies to all employees. III. General

In the past, purchasing law has been based on the Uniform Sales Act. Shortcomings of the Act have been recognized for many years and accordingly, a general revision of the law of sales was included in the comprehensive re-codification of commercial law.

Under the Uniform Commercial Code of Law there has been a great improvement in the law of buying and selling. This section represents only some of the basic rules pertaining to the law of buying and selling under the Uniform Commercial Code of Law, hereafter referred to as the UCC.

IV. Time

An offer by a merchant to buy or sell goods in a signed writing is not revocable during the time stated in the writing, or if no time is stated, a "reasonable" time not to exceed three months.

The Buyer's written order becomes an irrevocable offer, which the supplier can treat as firm "for a reasonable time," not to exceed three months, unless the purchase order states a definite date when shipment is required, or stipulates an early acceptance or acknowledgment date. By doing this, the Buyer protects himself against the possibility that he will be unable to cancel orders that have not been accepted by the supplier for a longer period of time than desired by the Buyer, but less than three months.

FGP300/LEGAL CONSIDERATIONS -CONTINUED V. Offer and Acceptance

Prior to the UCC, courts insisted that a contract should be recognized and enforced only if the terms of the offer and acceptance were identical. Any variation resulted in no contract. That has been changed to read, “Conduct by both parties which recognizes the existence of a contract is sufficient to establish a contract or sale, although the writings of the parties do not otherwise establish a contract." It also states that “an acknowledgment or confirmation operates as an acceptance thus, creating a contract”, even though it states terms additional or different from those offered or agreed upon." These additional terms become part of the contract unless:

a. The offer or order expressly limits acceptance to the terms of the offer and/or provides

that no variation in terms will be permitted or accepted;

b. Notice of objection to the additional or different terms is given within reasonable time after they are received;

c. The additional or different terms “materially alter the contract.”

VI. Conflicting Terms and Interpretation of Contracts

The Buyer should protect himself against unacceptable changes in purchase orders or contracts resulting from conflicting terms in the forms used by the Seller. Such protection is afforded when the Buyer does one or both of the following:

a. Examines the Seller's proposal or acknowledgment and promptly objects in writing to all unsatisfactory terms.

b. Includes a clause in the printed purchase order form which expressly limits

acceptance to the terms of the offer by providing that acceptance of order is limited to the terms and conditions shown thereon, and that no deviation from them will be accepted.

FGP300/LEGAL CONSIDERATIONS - CONTINUED What happens, then, when there are basic conflicts between the order and the acknowledgment but both parties go ahead with the transaction without objecting to the written forms involved? The UCC provides: "In such cases, the terms of the terms of the particular contract consist of those terms on which the writings of the parties agree, together with any supplementary terms incorporated under any other provisions of the UCC." This cancels out conflicting provisions in forms used by Buyer and Seller, and substitutes those provisions with the rules spelled out by the UCC. If the Buyer wants certain special terms enforced, instead of the UCC general contract law, he has the burden of making certain that the Seller accepts them.

If a conflict of terms is so great as to "materially alter" the provisions of an order so that acceptance would change the basic nature of the offer, the terms of acceptance do not become part of the contract, even though the buyer makes no objection.

Certain legal rules of interpretation may apply when contract language is uncertain or ambiguous. Such ambiguity exists when a contract is reasonably susceptible to different constructions. The following rules are basic to contract interpretation:

1. A contract will be construed to carry out the intent of the parties, so as to make it

lawful and enforceable if at all possible

2. Language is considered in its ordinary and customary sense, and technical terms are considered according to the type of transaction.

3. If the contract is on a printed form, any ambiguous clauses will be construed against

the party supplying or drawing the form.

4. The contract will be construed as a whole and effect given to all its parts.

5. Inconsistencies partly printed, typewritten, and/or handwritten will be resolved in favor of handwriting over the typewritten form.

6. Words control over figures when number inconsistencies occur.

FGP300/LEGAL CONSIDERATIONS - CONTINUED

7. When two meanings are possible from words, phrases, etc., the interpretation that upholds the contract as valid and enforceable is favored.

VII. Acceptance of Shipment

The UCC provides:

"An order or other offer to buy goods for prompt or current shipments shall be construed as inviting acceptance either by a promise to ship, or by prompt or current shipment of conforming...goods."

Under this rule, a contract binding on both parties comes into being when shipment is made, even though the Seller made no written or oral promise to ship. It also provides that the Seller both accepts the contract and breaches it (and may be liable for damages) by shipping non-goods. It says, however, that "A shipment of non-conforming goods does not constitute an acceptance if the Seller reasonably notifies the Buyer that the shipment is offered only as an accommodation to the Buyer." In other words, the Seller is not guilty of breaching the contract if he offers goods to the Buyer in substitution and in effect tells the Buyer," try this and see whether it will do the job."

VIII. Custom-Made Goods

When a Buyer issues an order for custom-made goods, and the Supplier begins performance, his act in so performing constitutes acceptance of the order, and creates a contract, only if he notifies the Buyer of acceptance "within a reasonable time." If such notice is not given, the Buyer may treat the offer as having "lapsed before acceptance" and can cancel the order without liability.

IX. Warranty Protection

Warranty protection afforded to Buyers has been enlarged and improved in the UCC. It is also more difficult for sellers to escape their warranty obligations through "fine print" sales contracts. The UCC provides three types of warranties, as follows:

FGP300/LEGAL CONSIDERATIONS - CONTINUED

1. Express Warranty 2. Implied Warranty of Merchantability 3. Implied Warranty of Fitness for a Particular Purpose

An express warranty is any statement of fact or promise concerning the specifications of goods. The pertinent parts of the statute are as follows

(a) Express Warranties by the Seller are created as follows:

(b) Any affirmation of fact or promise made by the Seller to the buyer which

relates to the goods, and becomes part of the basis of the bargain, creates an express warranty that the goods will confirm to the affirmation or promise.

(c) Any description of the goods which is made part of the basis of the bargain

creates an express warranty that the goods shall conform to the prescription.

(d) Any sample or model which is made part of the basis of the bargain, creates an express warranty that the whole of the goods shall conform to the sample or model...

A written agreement ordinarily puts the Buyer in a much better position than an oral agreement. It may be in the form of the Seller's quotation or proposal, or in the form of an acknowledgment.

Local & Legal Policy References (see on online Board Policy Manual) POLICY/PROCEDURE CODE POLICY/PROCEDURE TITLE

CH (LEGAL) PURCHASING AND ACQUISITION CH (LOCAL) PURCHASING AND ACQUISITION

CHF (LEGAL) PAYMENT PROCEDURES CHG (LEGAL) REAL PROPERTY AND IMPROVEMENTS

CS (LEGAL) FACILITY STANDARDS CI (LEGAL) SCHOOL PROPERTIES DISPOSAL CI (LOCAL) SCHOOL PROPERTIES DISPOSAL

CV (EXHIBIT) FACILITIES CONSTRUCTION CV (LEGAL) FACILITIES CONSTRUCTION CV (LOCAL) FACILITIES CONSTRUCTION CVA (LEGAL) FACILITIES CONSTRUCTION -

COMPETITIVE BIDDING CVA (LOCAL) FACILITIES CONSTRUCTION -

COMPETITIVE BIDDING CVB (LEGAL) FACILITIES CONSTRUCTION –

COMPETITIVE SEALED PROPOSALS CVC (LEGAL) FACILITIES CONSTRUCTION –

CONSTRUCTION MANAGER - AGENT CVD (LEGAL) FACILITIES CONSTRUCTION –

CONSTRUCTION MANAGER – AT RISK CVE (LEGAL) FACILITIES CONSTRUCTION –

DESIGN-BUILD CVF (LEGAL) FACILITIES CONSTRUCTION –

JOB ORDER CONTRACTS COA (LEGAL) FOOD SERVICES MANAGEMENT –

FOOD PURCHASING

EXHIBIT 2

HARLANDALE INDEPENDENT SCHOOL DISTRICT

Hot Item List Appliances (Unit Cost of $100.00 or more) Calculators (Unit Cost of $250.00 or more) Compact Disc Players/Recorder Computer Systems Copiers Digital Cameras Digital Video Disc Players/Recorders Fax Machines iPod/iPod Doc Speaker Systems Laser Disc players LCD Projectors Marker Boards w/Printer Mowers (Unit Cost of $500.00 or more) Musical Instruments Overhead Projectors Portable Stereo Systems Power Tools (Unit Cost of $500.00 or more) Printers Scanners Television Sets Two-Way Radios Video Cameras/ Camcorders Video Equipment Video Game Stations

NOTE: Any one piece of furniture under the amount of $5,000 is considered supplies (6399).

This list is not all inclusive. Please direct questions to the Purchasing Office.

EXHIBIT 3

EXHIBIT 4

Date Issued:

Campus: Subject:

Representative:

Vendor:

Visitation Date(s): In a Time Period Not To Exceed Thirty (30) Days.

Time: Coordinate with Administrative Assistant

Please allow this document to serve as approval to allow the representative stated above to visit your campus. It is understood that the representative will check in and be identified at the Front Desk of your campus upon arrival and check out accordingly.

Any request to visit with District staff must be requested and authorized by the Purchasing Office.

This authorization does not imply approval or endorsement of the product/service and will be effective for thirty (30) days from the date of this letter.

Approval Authorizing Signature

EXHIBIT 5

DEBARMENT AND SUSPENSION CERTIFYING STATEMENT

VENDOR NAME

ADDRESS

TELEPHONE NUMBER

FAX NUMBER

COMPANY OFFICIAL (SIGNATURE)

COMPANY OFFICIAL (PRINT NAME)

POSITION WITH COMPANY

In accordance with Executive Order 12549, Debarment and Suspension, 7 CFR Part 3017, Section 3017.510 the contractedcertifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, orvoluntarily excluded from participation in this transaction by any Federal Department or Agency.

The Harlandale Independent School District hereby agrees to abide by the aforementioned terms and conditions.

EXHIBIT 6

HARLANDALE INDEPENDENT SCHOOL DISTRICT

DISTRICT PROPERTY TRANSFER FORM

bed below be declared as surplus property for the following reasons:

PRINCIPAL/DIRECTOR: DATE:

(SCHOOL/DEPARTMENT)

ENIED: INFORMATION SERVICES: DATE:

ENIED: PURCHASING MANAGER: DATE:

IPTION BRAND/ SZ/

MODEL # OF

ITEMS: SERIAL #:

CONDITION GOOD / BAD

SURPLUS TRANSFER TO

ORG.

DATE: HOUSE SUPERVISOR'S TURE)

DATE: