PROCUREMENT
PURCHASING ~ Ethics & Law
BUSINESS & OPERATIONS
POLICY & PROCEDURES GUIDELINES
Purchasing Ethics
The competitive nature of the public purchasing arena and the expenditure of significant amounts of public
funds require that ethical standards be incorporated into the foundation of all purchasing functions.
Procurement personnel and other school district staff face the difficult task of developing good vendor relations
and encouraging vendor competition while avoiding even the appearance of favoritism or other ethical
misconduct.
Know the purchasing laws-the penalties for breaking them are severe. Accepting gifts from vendors is
allowed if the gift provides no real benefit and is generally valued at less than $50 (providing it is not
cash or a negotiable item). Gifts may not be accepted as consideration for a decision, recommendation,
votes, or other exercise of discretion-this is bribery, and is a second degree felony. Be sure to check state
and district policy when you are in doubt.
Ethics relating to conflicts of interest, financial interests in firms conducting business with the school
district, kickbacks, gratuities and improper use of a position or confidential information are areas to be
aware of potential problems if not handled according to the law.
Employee Requirements and Restrictions:
Refer to DBD (LOCAL) and DBD (LEGAL) in the District Policy
Sales:
An employee shall not use his or her position with the District to attempt to sell products or services. It is
against district policy for an employee of the district to sell goods or services to Frisco ISD.
Relatives of Employees ~ First Degree:
Relatives in the first degree wishing to sell to the District need to disclose the relationship through the Conflict
of Interest form.
Sales/Procurement ~ Relatives or Employees:
Close family member with any of the above interests: If a close relative of a local official has any of the above types of
interest in a business entity. A local official is considered to have the same interest in a business entity that his close
relatives have in that business entity. In this context, close relatives of an official would include persons who are
related to the office within the first degree by consanguinity (blood) or affinity (marriage). Such relatives would
include an official’s father, father-in-law, mother, mother-in-law, daughter, daughter-in-law, son, son-in-law and the
spouse of the official.
PROCUREMENT
PURCHASING ~ Ethics & Law
BUSINESS & OPERATIONS
POLICY & PROCEDURES GUIDELINES
Frisco ISD 043905
EMPLOYMENT REQUIREMENTS AND RESTRICTIONS
CONFLICT OF INTEREST
RESTRICTION ON
PUBLIC SERVANTS –
PENAL CODE
BRIBERY
DBD
(LEGAL)
“Public servant,” for purposes of the following Penal Code provisions,
includes a person elected, selected, appointed, employed, or otherwise
designated as an officer, employee, or agent of government, even if the
person has not yet qualified for office or assumed his or her duties. Penal
Code 1.07(a)(41)(A),(E)
1. A public servant shall not intentionally or knowingly offer, confer, agree
to confer on another, solicit, accept, or agree to accept a benefit:
a) As consideration for the public servant’s decision, opinion,
recommendation, vote, or other exercise of discretion as a
public servant.
b) As consideration for a violation of a duty imposed on the
public servant by law.
c) That is a political contribution as defined by Title 15 of the
Election Code or an expenditure made and reported as a
lobbying expense in accordance with Government Code,
Chapter 305, if the benefit was offered, conferred, solicited,
accepted, or agreed to pursuant to an express agreement to
take or withhold a specific exercise of official discretion, if such
exercise of official discretion would not have been taken or
withheld but for the benefit.
“Benefit” means anything reasonably regarded as pecuniary gain or
pecuniary advantage, including benefit to any other person in whose
welfare the beneficiary has a direct and substantial interest.
Penal Code 36.01(3), 36.02
ILLEGAL GIFTS
2. A public servant who exercises discretion in connection with
contracts, purchases, payments, claims, or other pecuniary transactions
shall not solicit, accept, or agree to accept any benefit from a person the
public servant knows is interested in or likely to become interested in
any such transactions of the District. Penal Code 36.08(d)
A public servant who receives an unsolicited benefit that the public
servant is prohibited from accepting under this section may donate the
benefit to a governmental entity that has the authority to accept the gift
or may donate the benefit to a recognized tax exempt charitable
organization formed for educational, religious, or scientific purposes.
Penal Code 36.08(i)
DATE ISSUED: 10/17/2011
UPDATE 91
DBD(LEGAL)-P
PROCUREMENT
PURCHASING ~ Ethics & Law
BUSINESS & OPERATIONS
POLICY & PROCEDURES GUIDELINES
Frisco ISD 043905
EMPLOYMENT REQUIREMENTS AND RESTRICTIONS
CONFLICT OF INTEREST
EXCEPTIONS
DBD
(LEGAL)
“Illegal Gifts to Public Servants” does not apply to:
a) A fee prescribed by law to be received by a public servant or any
other benefit to which the public servant is lawfully entitled
or for which he or she gives legitimate consideration in a
capacity other than as a public servant;
b) A gift or other benefit conferred on account of kinship or a
personal, professional, or business relationship independent
of the official status of the recipient;
c) A benefit to a public servant required to file a statement under
Chapter 572, Government Code, or a report under Title 15,
Election Code, that is derived from a function in honor or
appreciation of the recipient if:
1. The benefit and the source of any benefit in excess of $50 is reported in
the statement; and
2. The benefit is used solely to defray the expenses that accrue in the
performance of duties or activities in connection with the office which
are not reimbursable by the state or political subdivision;
d) A political contribution as defined by Title 15, Election Code;
e) An item with a value of less than $50, excluding cash or a
negotiable instrument as described by Business and Commerce
Code 3.104;
f) An item issued by a governmental entity that allows the use if
property or facilities owned, leased, or operated by the
governmental entity; or
g) Food, lodging, transportation, or entertainment accepted as a guest
and, if the done is required by law to report those items, reported
by the done in accordance with that law. Penal Code 36.10
HONARARIA AND
EXPENSES
DATE ISSUED: 10/17/2011
UPDATE 91
DBD(LEGAL)-P
A public servant commits a Class A misdemeanor offense if the public
servant solicits, accepts, or agrees to accept an honorarium in consideration
for services that the public servant would not have been requested to
provide but for the public servant’s official position or duties. However, a
public servant is not prohibited from accepting transportation and lodging
expenses or meals in connection with a conference or similar event in
which the public servant renders services such as addressing an audience
or engaging in a seminar services, to the extent those services are more than
merely perfunctory. Penal Code 36.07
PROCUREMENT
PURCHASING ~ Ethics & Law
BUSINESS & OPERATIONS
POLICY & PROCEDURES GUIDELINES
Frisco ISD 043905
EMPLOYMENT REQUIREMENTS AND RESTRICTIONS
CONFLICT OF INTEREST
ABUSE OF PUBLIC
EMPLOYMENT
DBD
(LEGAL)
4. A public servant shall not, with intent to obtain a benefit or with
intent to harm or defraud another, intentionally or knowingly violate a
law relating to the public servant’s office or employment, or misuse
District property, services, personnel, or any other thing of value, that
has come into his or her custody or possession by virtue of his or her
office or employment. Penal Code 39.02(a)
“Law relating to the public servant’s office or employment” means a
law that specifically applies to a person acting in the capacity of a public
servant and that directly or indirectly imposes a duty on the public
servant or governs the conduct of the public servant. Penal Code
39.01(1)
“Misuse” means to deal with property contrary to:
a) An agreement under which the public servant holds the
property;
b) A contract of employment or oath of office of a public servant;
c) A law, including provisions of the General Appropriations Act
specifically relating to government property, that prescribes the
manner of custody or disposition of the property; or
d) A limited purpose for which the property is delivered or
received.
Penal Code 39.01(2)
INSTRUCTIONAL
MATERIALS
VIOLATIONS —
COMMISSIONS
An administrator or teacher commits an offense if the person receives
any commission or rebate on any instructional materials or
technological equipment used in the schools with which the person is
associated. Education Code 31.152(a)
INSTRUCTIONAL
MATERIALS
VIOLATIONS CONFLICT
An administrator or teacher commits an offense if the person accepts a
gift, favor, or service that:
1. Is given to the person or the person’s school;
2. Might reasonably tend to influence the person in the selection of
instructional materials or technological equipment; instructional
materials or technological equipment; and
3. Could not be lawfully purchased with state instructional material
funds
DATE ISSUED: 10/17/2011
UPDATE 91
DBD(LEGAL)-P
PROCUREMENT
PURCHASING ~ Ethics & Law
BUSINESS & OPERATIONS
POLICY & PROCEDURES GUIDELINES
Frisco ISD 043905
EMPLOYMENT REQUIREMENTS AND RESTRICTIONS
CONFLICT OF INTEREST
DBD
(LEGAL)
“Gift, favor, or service” does not include staff development, in-service,
or teacher training; or ancillary materials, such as maps or worksheets,
that convey information to the student or otherwise contribute to the
learning process. Education Code 31.152(b)–(d)
INSTRUCTIONAL
MATERIALS
VIOLATIONS PURCHASE AND
DISTRIBUTION
HOLDING CIVIL
OFFICE
CONFLICT
DISCLOSURE
STATEMENT
DATE ISSUED: 10/17/2011
UPDATE 91
DBD(LEGAL)-P
A person commits a Class C misdemeanor offense if the person
knowingly violates any law providing for the purchase or distribution
of free instructional materials for the public schools.
Education Code 31.153
No person shall hold or exercise at the same time more than one civil
office of emolument, except for offices listed in the constitutional
provision, unless otherwise specifically provided. Tex. Const., Art. XVI,
Sec. 40(a); State v. Pirtle, 887 S.W.2d 291 (Tex. Ct. Crim. App. 1994); Atty.
Gen. Op. DM-212 (1993)
Individuals who receive all or part of their compensation either directly
or indirectly from funds of the state of Texas and who are not state
officers shall not be barred from serving as members of the governing
bodies of school districts (other than those in which they are employed),
cities, towns, or other local governmental districts. Such individuals
may not receive a salary for serving as members of such governing
bodies. Tex.Const., Art. XVI, Sec. 40(b); Atty. Gen. Op. DM-55 (1991)
The District may extend the requirements of Local Government Code
176 003 and 176 004 [see BBFA] to any employee of the District who has
the authority to approve contracts on behalf of the District, including a
person designated as the representative of the District for purposes of
Local Government Code Chapter 271. The District shall identify each
employee made subject to Sections 176.003 and 176.004 and shall
provide a list of the identified employees on request to any person. The
District may reprimand suspend or terminate the employment of an
employee who knowingly fails to comply with such requirements. An
employee commits a Class C misdemeanor if the employee knowingly
violates the requirements. It is an exception to the application of the
above penalty, however, that the employee filed the disclosure
statement not later than the seventh business day after the person
received notice from the District of the alleged violation. Local Gov’t
Code 176.005
PROCUREMENT
PURCHASING ~ Ethics & Law
BUSINESS & OPERATIONS
POLICY & PROCEDURES GUIDELINES
Frisco ISD 043905
EMPLOYMENT REQUIREMENTS AND RESTRICTIONS
CONFLICT OF INTEREST
DEFINITION OF
“CONTRACT”
PERSONAL SERVICES
PERFORMED BY
SUPERINTENDENT
DBD
(LEGAL)
“Contract” means a written agreement for the sale or purchase of real
property, goods, or services. Local Gov’t Code 176.001(1-d)
The Superintendent may not receive any financial benefit for personal
services performed by the Superintendent for any business entity that
conducts or solicits business with the District. Any financial benefit
received by the Superintendent for performing personal services for
any other entity, including a school district, open-enrollment charter
school, regional school district, open enrollment charter school, regional
education service center, or public or private institution of higher
education, must be approved by the Board on a case-by-case basis in an
open meeting. The receipt of reimbursement for a reasonable expense is
not considered a financial benefit. Education Code 11.201(e)
Note: See also CBB for requirements when federal funds are involved.
DATE ISSUED: 10/17/2011
UPDATE 91
DBD(LEGAL)-P
PROCUREMENT
PURCHASING ~ Ethics & Law
BUSINESS & OPERATIONS
POLICY & PROCEDURES GUIDELINES
Frisco ISD 043905
EMPLOYMENT REQUIREMENTS AND RESTRICTIONS
CONFLICT OF INTEREST
DISCLOSURE—
GENERAL STANDARD
SPECIFIC
DISCLOSURE
SUBSTANTIAL
INTEREST
DBD
(LOCAL)
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 with the
best interest of the District.
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 or 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.
INTEREST IN
PROPERTY
The Superintendent shall be required to file an affidavit disclosing
interest in property in accordance with Government Code 553.002.
CONFLICTS
DISCLOSURE
STATEMENT
No employee 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.
ANNUAL FINANCIAL
MANAGEMENT
REPORT
GIFTS
The Superintendent, as the executive officer of the District, shall
provide to the District, in a timely manner, information necessary for
the District’s annual financial management report. [See BBFA]
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. [See CAA]
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.
SALES
An employee shall not use his or her position with the District to
attempt to sell products or services.
DATE ISSUED: 6/21/2010
LDU 2010.01
DBD(LOCAL)-X
PROCUREMENT
PURCHASING ~ Ethics & Law
BUSINESS & OPERATIONS
POLICY & PROCEDURES GUIDELINES
Frisco ISD 043905
EMPLOYMENT REQUIREMENTS AND RESTRICTIONS
CONFLICT OF INTEREST
DBD
(LOCAL)
NONSCHOOL
EMPLOYMENT
An employee shall disclose in writing to his or her immediate
supervisor any outside employment that in any way creates a potential
conflict of interest with the proper discharge of assigned duties and
responsibilities or with the best interest of the District.
PRIVATE TUTORING
An employee shall disclose in writing to his or her immediate
supervisor any private tutoring of District students for pay. Teachers
shall not privately tutor their own students for pay, except during the
summer months. A District employee shall not use District facilities
when tutoring students for pay. [See GKD]
DATE ISSUED: 6/21/2010
LDU 2010.01
DBD(LOCAL)-X
PROCUREMENT
PURCHASING ~ Ethics & Law
BUSINESS & OPERATIONS
POLICY & PROCEDURES GUIDELINES
Sec. 44.031. PURCHASING CONTRACTS.
(a) Except as provided by this subchapter, all school district contracts for the purchase of goods and
services, except contracts for the purchase of produce or vehicle fuel, valued at $50,000 or more in the
aggregate for each 12-month period shall be made by the method, of the following methods, that provides
the best value for the district:
(1) Competitive bidding for services other than construction services;
(2) Competitive sealed proposals for services other than construction services;
(3) A request for proposals, for services other than construction services;
(4) An interlocal contract;
(5) A method provided by Chapter 2267, Government Code, for construction services;
(6) The reverse auction procedure as defined by Section 2155.062(d), Government Code; or
(7) The formation of a political subdivision corporation under Section 304.001, Local Government
Code.
(b) Except as provided by this subchapter, in determining to whom to award a contract, the district shall
consider:
(1) the purchase price;
(2) the reputation of the vendor and of the vendor's goods or 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 and rules relating to historically
underutilized businesses;
(7) the total long-term cost to the district to acquire the vendor's goods or services;
(8) for a contract for goods and services, other than goods and services related to telecommunications
and information services, building construction and maintenance, or instructional materials,
whether the vendor or the vendor's ultimate parent company or majority owner:
(A) has its principal place of business in this state; or
(B) employs at least 500 persons in this state; and
(9) any other relevant factor specifically listed in the request for bids or proposals.
(b-1) In awarding a contract by competitive sealed bid under this section, a school district that has its
central administrative office located in a municipality with a population of less than 250,000 may
consider a bidder's principal place of business in the manner provided by Section 271.9051, Local
Government Code. This subsection does not apply to the purchase of telecommunications services or
information services, as those terms are defined by 47 U.S.C. Section 153.
(c) The state auditor may audit purchases of goods or services by the district.
(d) The board of trustees of the district may adopt rules and procedures for the acquisition of goods or
services.
(e) To the extent of any conflict, this subchapter prevails over any other law relating to the purchasing of
goods and services except a law relating to contracting with historically underutilized businesses.
(f) This section does not apply to a contract for professional services rendered, including services of an
architect, attorney, certified public accountant, engineer, or fiscal agent. A school district may, at its option,
contract for professional services rendered by a financial consultant or a technology consultant in the
manner provided by Section 2254.003, Government Code, in lieu of the methods provided by this section.
(g) 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 in the county in which the district's central
administrative office is located, once a week for at least two weeks before the deadline for receiving bids,
proposals, or responses to a request for qualifications. If there is not a newspaper in that county, the
PROCUREMENT
PURCHASING ~ Ethics & Law
BUSINESS & OPERATIONS
POLICY & PROCEDURES GUIDELINES
Sec. 44.031. PURCHASING CONTRACTS (con’t)
advertising shall be published in a newspaper in the county nearest the county seat of the county in which
the district's central administrative office is located. In a two-step procurement process, the time and place
where the second-step bids, proposals, or responses will be received are not required to be published
separately.
Text of subsec. (h) as amended by Acts 1999, 76th Leg., ch. 922, § 1
(h) If school equipment or a part of a school facility or personal property is destroyed or severely damaged
or, as a result of an unforeseen catastrophe or emergency, undergoes major operational or structural failure,
and the board of trustees determines that the delay posed by the methods provided for in this section would
prevent or substantially impair the conduct of classes or other essential school activities, then contracts for
the replacement or repair of the equipment or the part of the school facility may be made by methods other
than those required by this section.
(i) A school district may acquire computers and computer-related equipment, including computer software,
through the Department of Information Resources under contracts entered into in accordance with Chapter
2054 or 2157, Government Code. Before issuing an invitation for bids, the department shall consult with the
agency concerning the computer and computer-related equipment needs of school districts. To the extent
possible the resulting contract shall provide for such needs.
(j) Without complying with Subsection (a), a school district may purchase an item that is available from
only one source, including:
(1) an item for which competition is precluded because of the existence of a patent, copyright, secret
process, or monopoly;
(2) a film, manuscript, or book;
(3) a utility service, including electricity, gas, or water; and
(4) a captive replacement part or component for equipment.
(k) The exceptions provided by Subsection (j) do not apply to mainframe data-processing equipment and
peripheral attachments with a single-item purchase price in excess of $15,000.
(l) Each contract proposed to be made by a school district for the purchase or lease of one or more school
buses, including a lease with an option to purchase, must be submitted to competitive bidding when the
contract is valued at $20,000 or more.
(m) If a purchase is made at the campus level in a school district with a student enrollment of 180,000 or
more that has formally adopted a site-based decision-making plan under Subchapter F, Chapter 11, that
delegates purchasing decisions to the campus level, this section applies only to the campus and does not
require the district to aggregate and jointly award purchasing contracts. A district that adopts site-based
purchasing under this subsection shall adopt a policy to ensure that campus purchases achieve the best
value to the district and are not intended or used to avoid the requirement that a district aggregate purchases
under Subsection (a).
Review CH (LOCAL) of District Policies
Sec. 44.0313. PROCEDURES FOR ELECTRONIC BIDS OR PROPOSALS
(a) A school district may receive bids or proposals under this chapter through electronic transmission if the
board of trustees of the school district adopts rules to ensure the identification, security, and confidentiality
of electronic bids or proposals and to ensure that the electronic bids or proposals remain effectively
unopened until the proper time.
(b) Notwithstanding any other provision of this chapter, an electronic bid or proposal is not required to be
sealed. A provision of this chapter that applies to a sealed bid or proposal applies to a bid or proposal
received through electronic transmission in accordance with the rules adopted under Subsection (a).
PROCUREMENT
PURCHASING ~ Ethics & Law
BUSINESS & OPERATIONS
POLICY & PROCEDURES GUIDELINES
Frisco ISD 043905
PURCHASING AUTHORITY
COMPETITIVE BIDDING
AWARD OF BIDS AND
EXECUTION OF CONTRACTS
EMERGENCY APPROVAL OF
CONTRACT
The Board delegates to the Superintendent or designee the
authority to determine the method of purchasing, in accordance
with CH(LEGAL). The Board further delegates the authority to
make budgeted purchases, unless:
State law requires the Board to make or approve a purchase; or
The purchase costs exceed $50,000, an amount that shall require
Board approval. The purchase of budgeted, regulated utility
services and payment for professional services contracts that the
Board has previously awarded shall not require additional
approval.
If competitive bidding is chosen as the purchasing method, the
Superintendent or designee shall prepare bid specifications. All
bids shall be submitted in sealed envelopes, plainly marked with
the name of the bidder and the time of opening. All bidders shall
be invited to attend the bid opening. Any bid may be withdrawn
prior to the scheduled time for opening. Bids received after the
specified time shall not be considered. All bids shall be
advertised in accordance with Education Code 44.031(g) and
CH(LEGAL).
The District may reject any and all bids.
Bids or contracts that exceed $50,000 shall be presented to the
Board for approval and award. All other bids may be awarded by
the Superintendent or designee.
All contracts authorized and awarded by the Board, as well as
contracts not requiring Board approval, shall be signed by the
Superintendent or designee. The Superintendent or designee
shall promulgate and enforce regulations for the approval and
award of contracts that are not subject to Board approval. This
policy does not apply to contracts for certified employees.
It shall be considered an emergency for the purposes of this policy
if the timely award of a bid or execution of a contract is critical to
the progress and/or completion of an existing project and such
award and/or execution cannot be made by the Board within two
weeks from the date of the bid opening or the existence of the
emergency. In such an emergency, the Superintendent or
designee shall be authorized to approve, award, and/or execute
any bid or contract. Any bid awarded under this provision shall
be reported to the Board at the next Board meeting.
PROCUREMENT
PURCHASING ~ Ethics & Law
COMPETITIVE SEALED
PROPOSALS
ELECTRONIC BIDS OR
PROPOSALS
RESPONSIBILITY FOR DEBTS
PURCHASE COMMITMENTS
PERSONAL PURCHASES
DATE ISSUED: 11/30/2012
LDU 2012.03
CH(LOCAL)-X
BUSINESS & OPERATIONS
POLICY & PROCEDURES GUIDELINES
If competitive sealed proposals are chosen as the purchasing
method, the Superintendent or designee shall prepare the request
for proposals and/or specifications for items to be purchased. All
proposals shall be submitted in sealed envelopes, plainly marked
with the name of the proposer and the time of opening. Proposals
received after the specified time shall not be considered.
Proposals shall be opened at the time specified, and all proposers
shall be invited to attend the proposal opening. Proposals may be
withdrawn prior to the scheduled time of opening. Changes in
the content of a proposal, and in prices, may be negotiated after
proposals are opened. All bids shall be advertised in accordance
with Education Code 44.031(g) and CH(LEGAL).
The District may reject any and all proposals.
The District shall accept bids or proposals through electronic
transmission in accordance with administrative regulations. Such
regulations shall safeguard the integrity of the competitive
procurement process; ensure the identification, security, and
confidentiality of electronic bids or proposals; and ensure that the
electronic bids or proposals remain effectively unopened until the
proper time.
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 such debts.
All purchase commitments shall be made by the Superintendent or
designee on a properly drawn and issued purchase order, in
accordance with administrative procedures.
District employees shall not be permitted to purchase supplies or
equipment for personal use through the District’s business office.