Murray Independent
School District
Purchasing Manual
Model Procurement (KRS 45A)
Revised 7/17/2007
Contents
Murray Independent Schools and the Kentucky Model Procurement Code
What must be bid?
Non-competitive negotiations
Monetary limits on non-bid items
Small purchase procedure policy
Bidding
state/federal price contracts
cooperative bids
local bids
Placing an order
Paying for an order
Travel
Appendix A
Sample copies:
Purchase request form
Significant Savings Form (Purchase Certification: House Bill 218)
Competitive Quote Form
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Murray Independent Schools and the
Kentucky Model Procurement Code
Kentucky law provides two basic methods of procurement for local school
districts. These methods are Model Procurement (KRS 45A) and the Bid
Law (KRS 424.260). The Bid Law requires less record keeping but very
little flexibility. Model Procurement requires more written documentation
but provides more purchase options. The KDE Division of Finance
recommends Model Procurement for school districts. As of July 1, 2001,
Murray Independent Schools has been operating under the Model
Procurement code (see Appendix B).
The superintendent is hereby designated as the chief purchasing officer for
Murray Independent Schools. The superintendent delegates the finance
officer to act as purchasing officer with authority to oversee purchasing and
to make written determinations and findings with respect thereto.
All contracts shall be entered into, not by individuals, but rather by the
Board at a regularly scheduled or special meeting.
Staff with purchasing authority are encouraged to acquire goods, services or
construction through local bids, cooperative bids or state price contract.
This is the most efficient method of procurement. If these methods are not
feasible, non-competitive negotiations or small purchase policy may be used.
Note that there are different levels of documentation required for alternative
procurement methods. Please refer to applicable sections of the purchasing
manual for more information.
What must be bid?
Any group of like items that total more than $20,000 (effective July 1, 2002)
district wide in one fiscal year must be bid either through one of our Board
approved cooperatives, locally or through a state price contract. Artificially
splitting an order to avoid the total is illegal and is punishable by fine and/or
imprisonment. ‘Aggregate amount’ (as defined in 45A.345) means the total
dollar amount during a fiscal year of items of a like nature, function and use,
which can be reasonably determined at the beginning of the fiscal year.
Items, the need for which could not reasonably be established in advance,
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need not be included in the aggregate amount. The $20,000 amount is that
amount purchased by the total district (including activity funds) in a fiscal
year, not just the purchases of one location.
If a bid vendor offers the item, it must be purchased from the bid
vendor unless the item meets applicable criteria. Often, the same item
may appear to be cheaper from another source. Bidding is meant to ensure
fairness in the marketplace and to produce the least expensive price for the
length of the contract. The item may be cheaper because of cash and carry
or a discount store that does not provide ordering, delivery, and/or billing. If
you consider employee time to make the purchase and travel cost, the cost of
the item increases.
The following are not required to be bid under the terms of the Kentucky
Model Procurement code but may be bid if it is determined by the local
district that it is in the best interest to do so:
Non-Competitive Negotiations
A local public agency may purchase through noncompetitive negotiation
only when a written determination is made that competition is not feasible
and it is further determined in writing that:
1. An emergency* exists which will cause public harm as a result of the
delay in competitive procedures; or
2. The item is from sole manufacturer (not available from any other source)
(not by brand, but by salient features); copyright materials (source must
be the holder or owner of the copyright);
3. The purchase is for the services of a licensed professional, such as an
attorney, physician, psychiatrist, CPA, RN, an educational specialist or
an artist such as a sculptor, aesthetic painter or musician; or
4. The purchase is for perishable items purchased on a weekly or more
frequent basis, such as fresh fruits or vegetables (not canned items);
5. The purchase is for replacement parts where the manufacturer or
franchise is the only source available to supply parts for manufacturer’s
equipment;
6. The purchase is for proprietary items for resale;
7. The purchase is for reasonable expenditures made on authorized trips
outside of the boundaries of the local public agency;
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8. The purchase is for supplies which are sold at public auction;
9. The contract is for life, health, accident, liability, workers compensation
and unemployment insurance
10. The purchase is for supplies at reduced prices that will afford a purchase
savings** to the local public agency
*An emergency must be documented in writing and documentation attached
to the invoice and purchase requisition and retained in the paid invoice file.
Emergency procedures may be used for things like a boiler explosion or
waterline break. The superintendent would use emergency procedures when
the delay caused by competitive procedures might result in harm to students,
staff or the general public. Only the Superintendent has the authority to
declare something an emergency.
**Both the Model Procurement Law and the Board’s Model Procurement
Policy allow for the purchase of supplies at reduced prices that will afford a
purchase at a significant savings to the district. A purchase of items at
reduced costs will be treated in the same manner as small purchase items,
and written justification and documentation will be with the paid invoice
file. (see Appendix A for the price quote/significant savings form)
The determination as to the level of savings which allows a staff member to
purchase outside bid prices contract, etc., is subjective. It is difficult to
determine to what extent 45A.380, which authorizes purchases at reduced
prices/savings, supersedes 45A.345 aggregate amount, which refers to like
items with a cost of $20,000 or more. Attorney General Opinion states that
“a local public agency may enter into contracts by noncompetitive
negotiations and without bidding, if it simply makes a written determination
that competitive negotiations are not feasible and the contract is for a sale of
supplies at reduced prices that will afford a purchase at savings to the local
public agency.”
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Monetary Limits on Purchases
1. $0 - $249.99 requires purchase order signed by the Superintendent.
2. $250 - $1,999.99 requires signed purchase order and documented three
telephone quotes or three prices from competitive catalogs.
3. $2,000 - $19,999.99 requires signed purchase order and three written
quotes from competitive vendors or suppliers.
4. $20,000 and over requires formal bidding by the Office of the
superintendent.
(see Appendix A for the price quote/significant savings form)
Small Purchase Procedure Policy
a.
Small purchases are hereby authorized for the procurement of
necessary supplies, service or construction, the cost and quality of
which are such that any possible savings of public funds realized
through the practice of other procurement procedures would not
justify the administrative time and expense necessary for the
conduct of competitive sealed bidding.
Some confusion exists as to the extent that small purchase
procedures can be utilized. The General Assembly authorized
small purchase procedures to save governmental agencies from
spending valuable resources and staff time on bidding incidental
items and services. Staff members should check all other
procurement options before authorizing the small purchase
procedure.
b.
Purchases shall not be fragmented or artificially divided to avoid
use of appropriate procurement methods. For example, the
purchase of the same product from four different suppliers for
$3,000 each is an obvious violation. The contract shall be for a
period of time that will provide the most beneficial market price to
the local school district (not to exceed three years), provided no
time period shall be fixed for the sole purpose of avoiding the
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requirements of competitive sealed bidding. In determining
whether supplies, services or construction is normally supplied as a
unit, the test is not whether a particular vendor does furnish such
supplies, services or construction, but rather whether supplies,
services or construction are closely related in their function and use.
c.
No employee should use the small purchase procedure to bypass
state price contracts, bids, etc., or to bypass conflict of interest
regulations.
Individuals with authority to purchase must become aware of
approved suppliers and products offered before authorizing
purchases outside bids, price contract or negotiated pricing.
Staff members with the authority to make small purchases are
responsible for those individuals under him/her substituting small
purchases for items listed on bid list price contract, etc. It is
suggested that purchasing authority be given only to those who
have an understanding of Model Procurement and purchasing
procedures.
d. KRS 45A.445 through KRS 45A.455 are applicable to all small
purchases and are incorporated herewith for specific notice to
small purchasing agents, vendors, and the general public.
e. Written documentation must be maintained to justify small
purchases. Schools shall maintain a small purchase file for
purchases from school activity account. All other staff members
authorized to make small purchases shall maintain a small
purchase file at their office of operation or the central office.
Documentation must include the following information:
1. Copy of purchase order form.
2. Written justification. May be written on the purchase order
form if purchase is not significant. Attach price quotes if
obtained. (see Appendix A for the price quote/significant
savings form)
3. Any other documentation that justifies the purchase.
4. Copy of any Board approved contract.
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This documentation must be kept on file for 5 years.
Examples:
Example 1: Plastic storage bins cost $3-$4 each through Virco
(State Price Contract) and School Specialty (Catalog Bid). Similar
storage bins can be purchased at a local store for $1. The savings
is significant and easily justified.
Example 2: Blank videotapes are on the Co-op bid at $2.44
through Central School Supply. The price at a local discount store
is $2.25 each. The purchase should be made through Central
School Supply because the purchase does not have to be justified;
the time and expense to travel to the discount store is much greater
than the few cents saved on the purchase; and purchases from
approved bidders will help guarantee future competitive bidding.
Bidding Information (State, Coop, Local)
Murray Independent Schools use three types of bids in its purchasing
process: State price contracts, cooperative bids and local bids.
• State/Federal Price Contracts
The school district is considered a political subdivision of the state.
Therefore, we can purchase under the terms of many state, GSA and other
multi-agency contracts. These contracts, when in place, meet all bidding
requirements of the Kentucky Model Procurement Code and therefore no
local bid is required for those items unless deemed in the best interest of the
school district. A copy of applicable State, GSA and other contracts are
available in the district finance office. State agency price contract awards
are made on hundreds of items annually. School systems are afforded the
right to purchase under the terms of the contract.
State/Federal Price Contracts are contracts that have been established by
state or federal agencies to ensure that goods and services are being acquired
at a rate that overall is in the best interest of the Commonwealth. These
contracts ensure that common products are being acquired at a favorable
price. They are established for goods and services that are likely to be
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purchased universally by agencies or sub-units of governments. KRS
156.076 permits local Boards of Education to purchase from vendors who
have contracts with the state. Items such as computer equipment,
typewriters, chairs, and file cabinets are typical products for which
state/federal contracts are established.
State Price Contracts may be accessed via the following website:
https://emars.ky.gov/online/vss/Advantage
• Cooperative Bids
Cooperative groups of school districts also bid items, typically on an annual
basis in an attempt to obtain better pricing. The Murray Independent Board
of Education currently is a cooperative member.
Cooperatives bid various items in large quantities in an effort to provide cost
savings for its member school districts. Cooperative bids for member
districts meet all bid requirements per the Kentucky Model Procurement
Code. Therefore, no local bid is required for those items unless deemed in
the best interest of the school district. All items offered by these bids must
be purchased through these vendors unless it meets one of the following
criteria:
a.
b.
c.
local bid award is in place for like items.
state, GSA or other multi-agency contract is available for
similar items that would afford savings to the district.
significant savings to the district.
A list of all applicable cooperative contracts is available in the district
finance office.
• Local Bids
The Murray Independent School District may award local bids when a
cooperative bid or state price contract etc. is not available and/or the
superintendent feels it is in the best interest of the school district. A copy or
listing of all local bid awards is available in the district finance office. All
such bids must be approved at a meeting of the Board of Education.
The length of the contract will be determined by the superintendent/designee
as deemed in the best interest of the district, not to exceed three years.
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Placing an Order
1.
2.
3.
4.
5.
6.
7.
8.
Fill in vendor name
Put your name in the blank
Fill in the ‘Ship To’ and ‘Attention’
List individuals items to be purchased, quantity and price
Estimate shipping & handling charge (if any)
Fill in the full account code
Total your purchase order.
If the purchasing method is outside of the regular purchasing
methods (i.e. not a local or state price contract), the reason
must be documented.
9. Give to principal, budget coordinator, etc. for approval
10. Send purchase order to the finance department for
processing
11. Place order by phone, fax or mail after purchase order is
returned to you
Reminder: the invoice date cannot be prior to the purchase order date
Paying for an order
When you receive an invoice or packing list:
1. Sign the pink copy of the purchase order, indicating receipt
of goods
2. If the invoice amount is different than the encumbered
amount, initial the new amount
3. Give the invoice and matching purchase order to the
bookkeeper, budget coordinator, etc. promptly.
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Travel
The Murray Board of Education has adopted the following policy for
Certified (Board policy 03.125) and Classified staff (Board policy 03.225).
The Board shall reimburse school personnel for school-related travel when
such travel is a required part of the duties of the employee or for schoolrelated activities approved by the appropriate personnel. Allowable
expenses are:
Mileage – Actual mileage for approved trips outside the school system will
be reimbursed at a Board approved rate when an employee is required to
take a personal vehicle because a Board vehicle is not available.
Gasoline - Actual cost of gasoline and oil purchased and placed in a
Board-owned vehicle by an employee while engaged in school-related travel
will be reimbursed when purchase is substantiated by a receipt showing total
gallons and total charges.
Tolls and Fees – All tolls and parking fees incurred in school-related travel.
Parking fees must be substantiated by a ticket or receipt. No tolls should be
charged for School District vehicles traveling in state in an official
capacity.
Car Rental – Car rental charges when approved by the superintendent. A
receipt must substantiate charges.
Common Carriers – All charges or fares for necessary travel on common
carriers (plane, bus, train, subway, taxi, ferry, etc.) A receipt should
substantiate charges. Sight-seeing and pleasure tours are not reimbursable.
Food and Lodging – Actual monies spent for food while on out-of-District
trips, when an overnight stay is required. Any meal exceeding $2.00 must be
substantiated by a detailed receipt listing actual food items. Maximum
allowable food expenditure per day shall be $35.00 for in- state travel and
$40 per day for out-of-state travel including up to 15% for tips unless an
exception is approved by the Superintendent or the Board. Alcoholic
beverages shall be excluded from expenses and will not be reimbursed.
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Hotel or motel charges (not including food or other charges) incurred in
school-related travel. Charges must be substantiated by a receipt.
Emergency Repairs to Vehicles – Reimbursement will be made for
emergency repairs or road service to Board-owned vehicles if incapacitated
while out of district. Drivers may not obligate the Board for major repairs
without the permission of the director of transportation or superintendent.
REIMBURSEMENT FORM
No requests for travel reimbursement will be considered unless filed on the
proper form and accompanied by the proper receipts.
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Appendix A
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MURRAY INDEPENDENT SCHOOL DISTRICT
Request to Purchase
Note to vendors: This is not an authorized purchase order. Orders filled using this form will be
considered null and void.
PURCHASE
REQUISITION
Murray Board of Education
208 South 13th Street
Murray, Kentucky 42071
270.753.4363 Fax270.759.4906
FOR OFFICE USE ONLY
Date Received: _________________________
Purchase Order # ________________________
Date _______________ Tax Exempt #C-510
Requested by _______________________________
Phone # ___________________________________
VendorName & Address:
Vendor #____________
Ship To/Bill To:
__________________________________________
___________________________________________
__________________________________________
___________________________________________
__________________________________________
___________________________________________
__________________________________________
___________________________________________
Vendor
Catalog
Number
Description
Quantity
Unit
Unit
Price
Amount
Shipping and Handling (Estimate)
$
Requisition Total
$
A signed purchase order must be obtained prior to ordering goods and services.
Items must be purchased from bid vendors unless the item meets applicable criteria. See purchasing
manual.
Procurement Method (check one)
MISD Bid List Contract #_________________
Replacement Parts (Food Service, Maintenance, Vehicles)
Small Purchase (See purchasing manual re: required documentation)
Professional Services (licensed professional, specialist or artist)
State/Federal/WKEC/KPC Price Contract # _____________________
Travel
Emergency (Declaration by Superintendent required & attached)
Competitive Negotiations (Attach Documentation)
Single Source (Documentation must be attached showing sole manufacturer, copyright materials or Limited availability)
Significant Savings (Price certification signed by District Finance Officer must be attached)
Books (Text or Library)
ACCOUNT CODE: ________________________________________________________________________
COMMODITY CODE (ALL TECHNOLOGY PURCHASES): ____________________________________________
_______________________________________________________
Superintendent, Principal or Supervisor
PURCHASE CERTIFICATION
HOUSE BILL 218
School/Unit: __________________________________________________________
Purchase Date: _____________ (Certification date MUST precede purchase date!)
Vendor: ______________________________________________________________
LIST ITEM(S) TO BE PURCHASED:
DESCRIPTION
COST
BID PRICE
1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
TOTAL
$_________
$__________
I certify that the item(s) listed above meet or exceed the standards and
specifications fixed by the following (check the appropriate box):
_____
State Price Contract No. _____________________
_____
Federal (GSA) Price Contract No. ________________
_____
Local School District Bid No. ___________________
_____
Other Entity Bid (Provide entity name & bid number):
__________________________________________
I further certify that the sales price of this purchase is lower than the
sales price in the noted bid and/or contract.
______________________________
District Finance Officer
______________________
Certification Date
Murray Independent Schools
Competitive Quote
In compliance with Kentucky statues KRS 424.260, the following determination is made. This determination is in compliance with approved
school board policy and regulations. Items recorded are not fragmented or artificially divided to avoid use of other
I determine that the following company provided the best purchase offers in regards to the best interest of the Murray
Independent Schools. (Select from vendor list below)
Company Name:
Address
I did not obtain quotations because:
1.
2.
3.
4.
5.
6.
Item(s) is/are a single source.
Item(s) purchased will be for resale.
Item(s) purchased were perishable.
Services required are professional and exempt from bidding.
The total purchase and time available did not warrant competitive quotation on bidding.
The item was on bid. Circle one (state, local, WKEC, GSA)
If the item was not on bid or exempt from bidding based on the above criteria, three quotations from the most
competitive vendors must be obtained. If lowest quote is not chosen state reason on back.
Vendor 1
Vendor 2
Vendor 3
ITEM
Unit Cost Quantity
Conflicts of Interest, Gratuities and Kickbacks as
defined in KY Revised Statutes (KRS) 45A.445 and as
provided for in 45A.445 and 424.260 are absolutely
prohibited.
Total
Unit Cost Quantity
Total
Unit Cost Quantity
Signature of Authorized Agent
Date
Total