6320 - PURCHASES

Grant County School

Bylaws & Policies

6320 - PURCHASES
Introduction

	A.	The overall objective of the purchasing function is to acquire the goods and services necessary to provide the essential services for which an organization is responsible.
	B.	All procurement transactions must be conducted in a manner that provides full and open competition, consistent with the ethical standards specified in State and Federal statutes, this policy, and all local practices and procedures.
	C.	Procedures for the review of all proposed procurements must be established to ensure that only necessary items are purchased.
	D.	If written specifications are required, they must be written in such a manner as to maximize and encourage competition.
	E.	No Board of Education member, officer or employee shall participate in the selection, award, or administration of a contract or purchase order with a related party, or where a conflict of interest, real or apparent, exists.
	F.	No Board member, officer, or employee shall solicit or accept gratuities, favors, or anything of monetary value from contractors, vendors, or parties to any awards, agreements, or contracts. This prohibition does not apply to unsolicited gifts of nominal value, which is recognized by the West Virginia Ethics Commission to be a gift whose value is less than $25.00.
	G.	Awards will be made only to responsible contractors possessing the ability to perform successfully under the terms and conditions of the proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.
	H.	The County is encouraged to explore whether the goods and services being purchased are available from a statewide contract or a purchasing alliance, such as the Government Purchasing Alliance or the Southern Region Education Board, before going to the open market.

Purchase Responsibilities.

The County shall not expend money or incur obligations: (WV Code 11-8-26)

		1.	in an unauthorized manner;
		2.	for an unauthorized purpose;
		3.	in excess of the amount allocated to the fund in the levy order;
		4.	in excess of the funds available for current expenses.

The County shall: (WV Code 18-9B-10)

		1.	authorize the expenditure of funds and incur obligations only in accordance with the budget and the expenditure schedule;
		2.	make transfers between items of appropriation only with the prior written approval of the State Board of Education.

Quotations and Bids
Purchases of Commodities.

	A.	Commodities are to be purchased in accordance with the procedures specified in this policy.
	B.	The competitive method used is determined by the threshold limits below. These limits are based on the best estimate of the Superintendent at the time the bid prices are solicited.
	C.	The threshold level to be used is determined by the total estimated cost of the item being purchased, which is the unit cost multiplied by the quantity.
	D.	The bid method selected will be considered to be the appropriate method unless the lowest bid received exceeds the maximum dollar threshold of the bidding method selected by ten percent (10%). If the lowest bid exceeds the threshold by more than ten percent (10%), the bid must be re-bid using bid requirements with a higher dollar threshold level.
	E.	Purchases cannot be separated into a series of separate requisitions or purchase orders, called stringing, for the purpose of circumventing the applicable threshold limits of these competitive bidding procedures.
	F.	Commodities may be purchased from a retail outlet that charges a membership fee, whenever it is determined to be in the best interest of the County. The membership fee is another cost associated with the purchase and needs to be taken into consideration in making the determination. Membership fees cannot be paid for individual employees to become members, nor can a County’s membership card be used by employees for personal purchases, even if the retail outlet does not charge an additional fee for employees to be members.

The following limits are adopted in compliance with Federal and State law, regulations and policies.

Competitive Bid Threshold Limits:

Purchases of commodities costing less than $5,000:

		1.	Competitive bids are encouraged but not required.
		2.	An approved purchase order is required before the merchandise or services are ordered.

Purchases of commodities costing $5,000 or more but less than $10,000:

		1.	Competitive bids are required.
		2.	A minimum of three (3) verbal quotes must be obtained, whenever practical.
		3.	Bids may be solicited by telephone, internet, mail, or by visiting the vendor.
		4.	Documentation must be maintained of all quotes obtained, recording the name of the vendor, name of the vendor’s representative, name of the County’s representative seeking the quote, date, commodity, and price.
		5.	Refer to the Records Retention Manual issued by the Office of School Finance for the period of time that the documentation is to be retained.
		6.	A form for recording these quotes is provided in AG 6320.
		7.	An approved purchase order is required before the merchandise or service is ordered.

Purchases of commodities costing $10,000 or more but less than $25,000:

		1.	Competitive bids are required.
		2.	A minimum of three (3) written bids must be obtained, whenever practical.
		3.	Bids may be solicited by telephone, internet, or mail, but a written bid must be submitted by the vendor.
		4.	A "No bid" is not to be considered a received bid, so sufficient requests should be solicited to assure that at least three (3) actual bids are received, whenever practical.
		5.	All bids received must be retained for public review and inspection during normal business hours. Refer to the Records Retention Manual issued by the Office of School Finance for the period of time that the bids are to be retained.
		6.	An approved purchase order is required before the merchandise or service is ordered.

Purchases of commodities costing $25,000 or more but less than $50,000:

		1.	Competitive bids are required and bids shall be solicited from at least three (3) known suppliers whenever practical, using advertising media such as newspapers, the internet, trade journals, purchasing bulletins, other media considered advisable, or mass mailings.
		2.	If a vendor list is maintained, this requirement may be met by submitting the bid request to the vendors on the list.
		3.	If a vendor list is not maintained, a good faith effort must be made to solicit as many competitive bids as practical, providing them adequate time to submit proposals.
		4.	The invitation for bids, must include all specifications and pertinent attachments, and shall define the items or services in order for the bidder to properly respond.
		5.	The County may waive the requirement to advertise when a vendor is considered to be the sole source for the item being purchased, when it is determined to be in the best interest of the County, or when professional, technical, or specialized services are being acquired under an agreement. All waivers must be well documented and those based on a best interest determination must be approved by the county superintendent.
		6.	Any and all bids may be rejected if there is a sound documented reason.
		7.	The request for bids must be retained for public review and inspection during normal business hours. After the bid is awarded, all criteria and evaluations used in making the selection, as well as all bids received from vendors, must be retained for public review. Refer to the Records Retention Manual issued by the Office of School Finance for the period of time that the bids are to be retained.
		8.	An approved purchase order is required before the merchandise or service is ordered.

Purchases of commodities costing $50,000 or more:

		1.	The solicitation for bids must specify that the bids are to be received in the form of sealed bids.
		2.	The request for bids must be publicly advertised using such media as legal advertisements in local newspapers, the internet, trade journals, purchasing bulletins, mass mailings or other media considered advisable, and adequate time must be provided to allow interested bidders sufficient time to submit their responses prior to the date set for the opening of bids.
		3.	The invitation for bids must include all specifications and pertinent attachments and must define the items or services in order for the bidder to properly respond.
		4.	All bids will be publicly opened at the time and place specified in the invitation for bids.
		5.	The County may waive the requirement to advertise when a vendor is considered to be the sole source for the item, when it is determined to be in the best interest of the County, or when professional, technical, or specialized services are being acquired under an agreement. All waivers must be well documented, and those based on a best interest determination must be approved by the governing body.
		6.	Any and all bids may be rejected if there is a sound documented reason.
		7.	The request for bids must be retained for public review and inspection during normal business hours. After the bid is awarded, all criteria and evaluations used in making the selection, as well as all bids received from vendors, must be retained for public review. Refer to the Records Retention Manual issued by the Office of School Finance for the period of time that the bids are to be retained.
		8.	An approved purchase order is required before the merchandise or service is ordered.

Open Ended Contracts, Price Agreements, and Blanket Purchase Orders.

	A.	The County may use open-ended contracts, price agreements, or blanket purchase orders to obtain commodities or services of a repetitive nature rather than issue a purchase order for each individual purchase.
	B.	The Superintendent may solicit requirements for similar commodities and services to determine the best methods for acquisition.
	C.	Open-ended contracts or price agreements may be used only in situations where the commodity and price are known through a competitive bid process, but the quantity needed is not, such as food products used by child nutrition program.
	D.	Blanket purchase orders may be used in situations where there is normally a large volume of small dollar purchases of a repetitive nature and it is difficult to determine in advance exactly which products are needed, such as in facility or vehicle maintenance activities. Whenever practical, blanket purchase orders should be issued, with consideration of the bidding requirements, on a periodic basis throughout the year, such as on a monthly or quarterly basis, to maintain budgetary controls.

Non-Competitive Procurement.

The County may purchase equipment and other commodities or services directly from a vendor without competitive bidding, if any of the following conditions exist:

		1.	The item cannot be obtained through ordinary purchasing procedures, such as in situations where no bidders respond to a request for bids.
		2.	The item is unique, or is not available from any other source (sole source). This can include copyrighted materials, conference facilities, lecturers, and workshop presenters.
		3.	The item is technology related (computer equipment, software and services, telecommunications, or medical equipment).
		4.	The item is available from the State or another County, provided the price, availability, and quality are comparable to those in the open market.
		5.	The item is available from a statewide contract and "piggybacking" by local governmental entities is permitted in the contract.
		6.	The item is available from a Federal or GSA contract and the supplier is willing to sell to a County in the State at the same or lower price.
		7.	The item is available from a sheltered workshop.
		8.	The item is available from an internet website maintained by a legitimate government purchasing cooperative, such as the one maintained by the Government Purchasing Alliance or the Southern Region Education Board, where competitive bids have already been obtained.
		9.	The item is a used vehicle or piece of equipment and its purchase is determined by the Superintendent to be in the best interest of the LEA.

Documentation of the justification for not following the competitive procurement procedures must be maintained.

Purchase of Services.

	A.	Since the variety of services can vary significantly among service providers, services may be procured without basing the selection of the vendor solely on price. The cost can be negotiated without the use of competitive bids, however, RFPs are encouraged whenever possible.
	B.	If the price is not the sole determining factor in making the selection, the LEA must establish the procedures and criteria for evaluating the proposals received.
	C.	Documentation of the criteria and selection process must be retained for review. See the Records Retention Schedule published by the Office of School Finance for the period of time that the records must be retained.

Agreements.

	A.	An agreement is a procurement device used for obtaining professional, technical, or other specialized services where the scope of the services is known but the price is not the sole factor in determining the award. The services can include such activities as legal counsel; accounting services; presenters for continuing professional development activities; technology installation, repair and maintenance; and conference meeting facilities.
	B.	The agreement must be in writing and the total cost must be stated either as a "sum certain", or at a fixed rate, if the number of hours of service being acquired is not known, such as for legal services.
	C.	The agreement amount must also include the total being paid for any anticipated travel expenses incurred by the service provider. The payment of travel expenses for an independent contractor has Federal and State income tax implications. Room or travel accommodations are not to be paid directly by the County for contract service providers.

D. If using an agreement provided by the vendor, care must be exercised to ensure that the agreement does not contain contractual requirements that are violate State statutes, such as any clause that requires a prepayment, the imposition of a penalty or termination charge should the County cancel the agreement, or the requirement that the County indemnify or hold harmless the vendor. A sample of an agreement addendum is included in 6320A that can be attached to any agreement to modify common requirements that are not acceptable.

Request for Proposals and Expressions of Interest.

	A.	A request for proposal is a procurement device used to acquire professional and other services where the specific scope of the work may not be comparable and the cost is not the sole factor in determining the award.
	B.	Expressions of interest are used for the procurement of architectural and engineering services.
	C.	The use of the RFP (or EOI in the case of architectural or engineering services) is optional. The purchase director may select the vendor for services without the RFP process. Documentation must be retained to support the selection if RFPs are not used.
	D.	All criteria by which the bidders will be evaluated must be contained within the bid document.
	E.	Documentation of the criteria and selections process must be retained for review. See the Records Retention Schedule published by the Office of School Finance for the period of time that the records must be retained.

Construction Projects.

	A.	The County must, except as provided in the code, solicit competitive bids for every construction project exceeding $25,000 in total cost. Following the solicitation of such bids, the contract shall be awarded to the lowest qualified responsible bidder, who shall furnish a sufficient performance and payment bond. The County may reject any or all bids and solicit new bids on the project. (WV Code 5-22-1 et seq.)
	B.	Before advertising for bids for the construction of a public improvement, the County must ascertain from the State Commissioner of labor the prevailing wages to be paid by the successful bidder to the laborers, workmen or mechanics in the various branches or classes of the construction to be performed, and such schedule of wages must be made a part of the specifications. All construction contracts in excess of $10,000 must be in writing. (WV Code 21-5A-1 et seq.)
	C.	The County shall, except as provided in subsection (c) of WV Code 31-15A-15, solicit competitive bids and require the payment of prevailing wage rates. This does not apply to work performed on construction or repair projects not exceeding a total cost of $50,000 by regular full-time employees of the County; students enrolled in vocational education schools when such use is a part of the students’ training program; emergency repairs to building components and systems, use of volunteers where the total cost of the construction or repair project does not exceed $50,000, or to privately owned projects constructed on lands not owned by the State or a subdivision.

Architectural and Engineering Services.

The County must procure architectural or engineering services on the basis of demonstrated competence and qualifications for the type of professional services required. (WV Code 5G-1-1 et seq.)

	A.	For projects estimated to cost less than $250,000, competition must be sought. The County must conduct discussions with three (3) or more professional firms solicited on the basis of known or submitted qualifications for the assignment prior to the awarding of any contract. If it is determined that seeking competition is not practical, the County may, with the prior approval of the State Director of Purchasing select a firm on the basis of previous satisfactory performance, and knowledge of the agency’s facilities and needs.
	B.	For projects estimated to cost $250,000 or more, architectural and engineering firms are to be encouraged to submit an expression of interest, which shall include a statement of qualifications and performance data, and may include anticipated concepts and proposed methods or approach to the project. All jobs must be announced by public notice published as a Class II legal advertisement in compliance with WV Code 59-1-1, et seq.
	C.	A committee of three (3) to five (5) representatives of the County shall evaluate these statements and select three (3) firms, which, in the committees opinion, are best qualified to perform the desired service, provided that, on projects funded wholly or in part by the West Virginia School Building Authority, two (2) of the three (3) firms selected must have had offices within the State for at least one (1) year prior to submitting the expression of interest.
	D.	The committee shall then rank, in order of preference, no less than three (3) of the firms selected, and shall commence negotiations with the firms in the order of preference the scope of services and price for the work to be performed.

Leases and Lease Purchase Agreements.

	A.	Lease and lease purchase of equipment are methods by which a County may obtain equipment and make payments for the use of the equipment over a period of time.
	B.	In a lease purchase agreement, the County reserves the right to exercise an option, normally at the time of the last installment payment, to have the lease payments apply, in whole or in part, as installment payments towards ownership of the equipment.
	C.	Leases and lease purchase agreements may be negotiated with the vendor providing the original product being acquired, or with another vendor that provides only the financing arrangement. In the later case, the lease arrangement becomes a service agreement rather than a commodity purchase.
	D.	Competitive bids are encouraged but not required for leases and lease purchase agreements.
	E.	In lease purchase agreements, the agreement must be for the acquisition of the commodity being acquired; the collateral for the agreement cannot be property that is already owned by the County.
	F.	Title cannot transfer from the lessor to the lessee until the option to purchase the commodity is exercised, normally at the time the last installment payment is made.
	G.	The County cannot expend funds or incurring obligations from future levies. (State Constitution and WV Code 11-8-26)
	H.	A lease purchase agreement extending beyond the fiscal year must contain a non-binding cancellation clause where the contract can be terminated at the end of each fiscal year, at the County’s discretion, without creating a present indebtedness for the aggregate of the installment payments.
	I.	Any language in a lease purchase agreement that might require the County to give notice to the lessor or be liable for future payments before terminating the agreement at the end of a fiscal year is void.

Purchases of Textbooks, Instructional Materials and Learning Technologies.

	A.	All textbooks are to be purchased in accordance with procedures prescribed in WV Code 18-2A-1 et seq. No textbook, instructional materials, or learning technologies may be purchased for use in the public school in the State of West Virginia as the primary source of delivery of the instructional goals and objectives for State required courses unless the materials have been approved and listed on the State multiple list by the West Virginia Board of Education (hereinafter State Board), except for the provisions included in WV Code 18-2A-8. Magazines, newspapers and other periodicals may be purchased for classroom use to supplement those items on the State multiple list.
	B.	No later than May 1st of each year, the Superintendent shall recommend to the Board one (1) or more items from the State Board multiple list of texts to deliver instruction. The Superintendent’s recommendation shall be made with the aid of the School Curriculum Team and a committee of teachers. Nonvoting advisors from the public may be included in the selection process.

Online Procurement.

	A.	Online procurement is the process of comparing prices, requisitioning, purchasing, and paying for commodities and services using the Internet.
	B.	Online procurement products include: bid process acquisition system for purchases requiring a quote or competitive bid process; direct purchase system for purchases not requiring a quote or bid; purchasing card payment process, if desired; and purchasing card reporting system.
	C.	If online procurement is used, all purchasing policies must be followed, including the issuance of purchase orders prior to the time the commodities or services are ordered. The purchase order must be issued to the vendor from whom the commodities or services are being purchased, and not to the online procurement provider.

Compliance With Federal Procurement Requirements.

	A.	Whenever procuring commodities and services with Federal grant proceeds, the County must use the procurement procedures specified in this policy and all locally adopted procedures.
	B.	Any requisition utilizing Federal funding which includes special requirements in addition to or different than normal purchasing requirements must be identified when the requisition is submitted to the Superintendent.
	C.	Procedures for the procurement of commodities and services with funds from the U.S. Department of Education are included in that agency’s regulations entitled, United States Education Department General Administrative Regulations (EDGAR), sections 74.41 through 74.48.
	D.	Procedures for the procurement of commodities and services with funds from other Federal agencies can be found in that agency’s administrative regulations.
	E.	The County is prohibited from purchasing commodities or services, or entering into construction contracts, from a vendor that has been debarred by the Federal government.

Submission of Sealed Bids.

	A.	All sealed bids are to be submitted at the vendors’ expense.
	B.	Bidders must submit their bids and/or proposals prior to the date and time of the bid opening in the format prescribed by the County. Substitutions for the prescribed format are acceptable only if the substituted terms, conditions, and/or provisions have been approved in advance by the Superintendent or designated purchasing director.
	C.	Bidders shall submit their bids and/or proposals to the Superintendent or designated purchasing director. The director shall reject all bids not received by the specified date and time.
	D.	An authorized representative of the bidder shall sign all bids before submission. A corporate signature without an individual name is not an acceptable signature.
	E.	The County may accept the submission of bids by facsimile transmission. The completed facsimile transmission must be received by the County prior to the specified date and time for submission of the bid. A vendor choosing to submit a bid or a written change to a bid by facsimile transmission accepts full responsibility for the transmission and receipt of the bid or change. The County accepts no responsibility for the unsuccessful and/or incomplete transmission of bids by facsimile machine. An original document and a copy of a bid that is initially sent by facsimile transmission shall be sent to the Superintendent or designated purchasing director within two (2) working days after the bid opening date and must be identical to the bid submitted by facsimile transmission.
	F.	Copies of bids may be open for public inspection in the office of the Superintendent or designated purchasing director immediately after bid opening. All files related to the evaluation and awarding of the bids are open for public inspection after the award has been made.
	G.	A bidder may make a written change of a sealed bid before the bid opening. A bidder shall submit written changes to the Superintendent or designated purchasing director prior to the date and time of the bid opening. A bidder may submit changes by facsimile transmission.
	H.	The County may reject an erroneous bid after the bid opening if all of the following conditions exist: (1) an error was made; (2) the error materially affected the bid; (3) rejection of the bid would not cause a hardship on the County, other than losing an opportunity to receive commodities at a reduced cost; and (4) enforcement of the part of the bid in error would be unconscionable. In order for the County to reject a bid, documented evidence shall be maintained that all of the conditions set forth in this subdivision exist.
	I.	If there is a conflict between the extension price and the unit price, or other minor errors exist that are not sufficient to cause the bid to be rejected, the unit price prevails.
	J.	A bidder may make a price adjustment on any purchase order if specific provisions for price adjustments have been incorporated in the RFQ and purchase order. A bidder shall make a request for price adjustment in accordance with the specific terms and conditions of the individual purchase order. In the event no provisions for price adjustment has been made, discretion to grant a price adjustment rests with the LEA.

Resident Vendor Preference.

	A.	Preference for resident vendors of the State of West Virginia or preference for vendors employing State residents will be granted in the purchase of commodities or printing. (WV Code 5A-3-37)
	B.	There is no statutory authority that permits the County to grant local residential preference to vendors of a county or a local community within a county.
	C.	The County may establish by local Board policy, procedures for granting preference to resident vendors of the State in the awarding of a bid for the purchase of commodities and printing made upon competitive bids, with the exception of purchases made with Federal funds where the Federal program regulations prohibit the granting of such vendor preference. Care should be taken in establishing such procedures, however, because it can result in a higher purchase price for the County. Vendor preference cannot exceed five percent (5%) of the lowest bid submitted by a qualified bidder.
	D.	A qualifying resident vendor may include but not be limited to one who maintains the following business activities or has paid the indicated taxes within the State:

		1.	is authorized to transact business within the State by appropriate authorities;
		2.	maintains an office in the State;
		3.	has actually paid real or personal property taxes on real estate or equipment used in the regular course of business related to the commodities or services offered;
		4.	has paid business taxes to the State and to municipalities;
		5.	when selling tangible personal property, has available for delivery a stock of materials of the type being offered and of a reasonable quantity.

Approval.

	A.	In order to ensure that only necessary purchases are made, all purchases must have the prior approval of an employee who has supervisory authority over the individual initiating the purchase request. Purchases by employees who have the authority to approve purchase requisitions must have the approval of the county superintendent or designee, or director of a Multi-County Vocational Center, except purchases of expendable supplies by schools.
	B.	The purchase of commodities or services costing less than $5,000 must have the prior approval of an employee who has supervisory authority over the individual initiating the purchase request.
	C.	All contracts for the purchase of commodities or services, with the exception of consumable supplies, that involve the expenditure of $5,000 or more but less then $25,000 must have the prior approval of the Superintendent or other designee.
	D.	All contracts for the purchase of commodities or services, with the exception of consumable supplies, that involve the expenditure of $25,000 or more but less than $100,000 must have the prior approval of the county superintendent or director of a Multi-County Vocational Center.
	E.	All contracts for the purchase of commodities or services, with the exception of consumable supplies, that involve the expenditure of $100,000 or more must have the prior approval of the County’s governing board. The approval can be granted either as a consent agenda item or by a separate motion of the Board.

Awarding.

Commodities

		1.	The award for the purchase of commodities shall be made to the lowest responsible bidder.
		2.	In making such award, the Superintendent shall consider such factors as quality (meeting specifications), price, time of delivery, cost of delivery, and other terms and conditions considered prudent.
		3.	In situations of discrepancies in bid documents, unit prices shall prevail in all cases.
		4.	In some cases the Superintendent shall make multiple and/or split awards when it is in the best interest of the County to do so.

Agreements

		1.	The award of agreements that are used for obtaining professional, technical, or other specialized services may be negotiated and need not be competitively bid, since the variety of the services can vary significantly among providers.
		2.	Locally developed criteria may be established for evaluating and negotiating such agreements. Competitive bids may be solicited, but the award need not be awarded to the lowest bidder.

Accounting and Auditing Services Contracts

		1.	Contracts for the annual audit of the County are to be awarded in accordance with the instructions issued by the State Auditor’s Office.
		2.	Contracts for accounting services may be issued by the County using the procedures specified above for agreements.

Construction Contracts

		1.	The award of every construction contract that exceeds $25,000 in total cost must be awarded to the lowest qualified responsible bidder, who shall furnish a sufficient performance and payment bond. (WV Code 5-22-1 et seq)
		2.	The County may establish by local procedures the criteria for determining whether a bidder is considered a qualified responsible bidder. The determination is to be made during the evaluation process and not at the time the bids are opened.
		3.	The County may reject any or all bids and solicit new bids on the project.

Architectural or Engineering Services

		1.	The County must procure architectural or engineering services on the basis of demonstrated competence and qualifications for the type of professional services required as discussed in that section. (WV Code 5G-1-1 et seq)
		2.	The County may accept or reject, in whole or in part, any bid when it is determined to be in the best interest of the County. If any bid is rejected, the Superintendent or designated purchasing director shall place a written explanation in the purchase order file.

	F.	Tied Bids
		When tie bids are received, the award can be made by allowing the tied vendors to make a "last and final offer", by flip of a coin, draw of the cards, or any other impartial method considered prudent by the Superintendent or designated purchasing director.

Requirement for Bonds and Deposits.

	A.	The Superintendent shall determine the applicability and amount of bonds and/or deposit required of a vendor at any time, if; it is judged that security is necessary to safeguard the County from undue risk.
	B.	The types of bonds that may be required include bid bonds, performance, surety bonds, litigation bonds, or maintenance bonds.
	C.	The Superintendent may require the vendor to submit a certified check, certificate of deposit, bond, or any other security acceptable to the Superintendent, payable to the County. Personal checks and/or company checks are not acceptable.
	D.	The provisions for these requirements should be incorporated into the request for quotation and purchase order. When any contract is satisfactorily completed on which a surety bond or other deposit has been previously submitted, the individual originating the purchase shall certify the satisfactory completion or acceptance of the commodities or services being purchased in writing to the Superintendent.
	E.	Upon receipt of the notification, the Superintendent shall return the check or deposit to the vendor.

Vendors’ Rights and Duties.

	A.	Each vendor is solely responsible for the delivery of the bid proposal in writing to the place and location specified by the County in the bid requisition. The bid must be received by an authorized employee of the County prior to the specified date and time specified in the bid opening.
	B.	The official time clock for the purpose of receipt of bids, shall be displayed in the office of the Superintendent or designated purchasing director.
	C.	Vendors are responsible for the accuracy of the information in the bid.
	D.	A vendor who fails to return all required forms and materials with their bid may be suspended from the bidding list.
	E.	If there is a conflict between the extension price and the unit price, the unit price prevails.
	F.	Each vendor must honor any contractual term or condition included in the bid document.
	G.	Each vendor must indicate a definite shipping date on all bids after receipt of the purchase order. If not indicated on the vendor’s response, the County may require delivery within ten (10) days after receipt of the order.
	H.	Any changes made by the vendor in the specifications listed in the bid request shall be clearly stated by the vendor. If changes are not stated, the County shall assume that items offered meet the specifications.
	I.	If a vendor is suspended and requests a hearing, one will be scheduled with the county superintendent, or MCVC director, or his/her designee. The vendor shall be notified, in writing, of the date, time and place of the hearing.

Remedies and Suspensions.

	A.	Remedies
		In the event that a vendor fails to honor any contractual term or condition, the LEA may:

		1.	cancel the contract and re-award the purchase order to the next lowest bidder. The vendor failing to honor contractual obligations is responsible for all differences in cost;
		2.	declare a vendor non-responsible or non-responsive and refuse to award a purchase order. All such instances shall be substantiated in writing. The documentation shall be considered a public document and shall be available for inspection at all reasonable times; or
		3.	suspend, for a period not to exceed one (1) year, the right of a vendor to bid on purchases when there is reason to believe the vendor has violated any of the provisions, terms, or conditions of a contract, this rule, and/or State law. A suspended vendor may appeal the decision of the Superintendent to the County’s Board.

	B.	Suspensions
		The following are adequate grounds for suspension:

		1.	A vendor has exhibited a pattern of poor performance in fulfilling his/her contractual obligations to the County. Poor performance includes, but is not limited to, a vendor providing or furnishing commodities, materials, or services late, or at a quantity or quality level below that which is specified in the contract.
		2.	A vendor has breached any contract entered into pursuant to the provisions of WV Code 5A-3-1 et seq. or this rule.
		3.	A vendor has been convicted of a Federal, State, or local crime punishable as a felony, directly related to the performance of a contract entered into pursuant to this rule.

Protests.

Submission of a Protest

		1.	Protests based on bid specifications must be submitted no later than five (5) working days prior to bid opening. Protest of purchase order/contract awards must be submitted no later than five (5) working days after the award. The vendor is responsible for knowing the bid opening and award dates. Protests received after these dates may be rejected at the option of the Superintendent.
		2.	All protests shall be submitted in writing to the Superintendent and contain the following information:

			a.	the name and address of the protestor;
			b.	the requisition, purchase order/contract numbers;
			c.	a statement of the grounds of protest;
			d.	supporting documentation (if necessary);
			e.	the resolution or relief sought.

Failure to submit this information shall be grounds for rejection of the protest by the Superintendent.

Review of Protest

		1.	The Superintendent or his/her designee shall review the matter of protest and issue a written decision. A hearing may be conducted at the option of the Superintendent or assigned designee. Continuation or delay of purchase order/contract award is at the discretion of the Superintendent.
		2.	The Superintendent may refuse to review any protests when the matter involved is the subject of litigation before a court of competent jurisdiction; if the merits have previously been decided by a court of competent jurisdiction; or if it has been decided in a previous protest by the Superintendent. The provisions of this subsection do not apply where the court requests, expects, or otherwise expresses interest in the decision of the County.

Receipt of Deliveries.

Deliveries to a warehouse

		1.	When deliveries are made to a central warehouse, or directly to a school or other cost center, personnel receiving the commodities are responsible for the inspecting of goods, ensuring that purchases meet contractual requirements, signing for the commodities, and forwarding the receipting documents to the business office for payment of the invoice.
		2.	The Superintendent must develop local procedures for receiving merchandise shipped from vendors to a central warehouse for subsequent delivery to a school or other cost center. These procedures must include the steps to be followed in the following circumstances:

			a.	when the complete order is received and the warehouse personnel are able to verify that all items ordered are received;
			b.	when the complete order is received but the warehouse personnel are not able to verify that all items ordered are received, such as when the computer hardware is ordered with specified pre-loaded software;
			c.	when all items are not shipped and backorders will not be accepted;
			d.	when al items are not shipped and backorders will be accepted.

	B.	Deliveries shipped directly to a school or other cost center
		The County must also develop local procedures for receiving merchandise shipped from vendors directly to a school or other cost center. These procedures must include the steps to be followed in the same circumstances discussed in the preceding paragraph.
	C.	Deliveries received that are not of acceptable quantity or quality
		Any problems with quality, quantity, performance, and lack of conformity to specifications, should be reported to the Superintendent or designated purchasing director immediately. Poor quality items that do not meet specifications should not be accepted and approved for payment. This applies also to term contract items. It is always best to resolve problems before final payment has been made, whenever possible. Retain all shipping documents and packing containers.

Payment for Commodities or Services.

	A.	It is unlawful for a Board to pay any claim for services rendered or materials furnished unless an itemized account of the claim is filed by the claimant. (WV Code 12-3-18)
	B.	The account shall be itemized in detail, and shall show, among other things, the following:

		1.	If the claim is for services, the claim shall show the kind of services, the dates when the services were performed, and the name of the person performing the services.
		2.	If the claim is for materials or supplies furnished, the claim shall show in detail the kind of material or supplies, the quantity, dates of delivery, and to whom delivered.

	C.	Consequently, the County cannot make payments from a summarized statement, but must make all payments for materials furnished and services rendered from an itemized invoice.
	D.	In addition, payments cannot be made in advance of the materials being furnished or the services rendered.
	E.	The County must withhold payment in the final settlement of any contract, until the receipt of a certificate from the tax commissioner to the effect that all taxes against the contractor have been paid or provided for. A copy of the "Release of Final Settlement" form is included in 6320B (WV Code 11-10-11(d))
	F.	In addition, if the contract is subject to county or municipal business and occupation taxes, the payment must also be withheld until receipt of a release from the applicable county or municipality to the effect that all county or municipal business and occupation taxes levied or accrued against the contractor have been paid.
	G.	Credit Cards

		1.	The County may establish by Board policy a credit card program as an alternative payment method when making small purchases of commodities and services, or for the payment of authorized travel expenses. Refer to Policy 6423 for more detail.
		2.	A credit card program can include purchasing cards, bank or vendor issued credit cards for the incidental purchase of commodities of a small dollar value, or corporate credit cards for the payment of authorized travel related expenses.
		3.	Bank or vendor issued credit cards are used in the same manner as a purchase card to pay for purchases made by the County. The cards can be issued in the name of the County or to individual employees.
		4.	If a credit card is issued in the name of the County, the County must establish by Board policy the procedures to be followed for the control and safeguarding of the card to preclude the use of the card by unauthorized personnel or for unauthorized purposes, and to establish single transaction and monthly limits.

Emergency Procurement.

Declared Emergencies

		1.	The Governor of the State of West Virginia has the inherent constitutional authority to declare an emergency situation. In the event the Governor declares such an emergency, the Governor has the authority to suspend certain laws, rules and/or regulations relating to the acquisition of commodities and service by public organizations pursuant to WV Code 15-5-6(g).
		2.	It is of the highest importance that State government responds quickly and effectively to safeguard the public safety and welfare during states of emergency. Yet, even under those circumstances, the acquisitions of commodities and services must be effectuated in a fair and accountable manner.
		3.	Accordingly, should the Governor suspend said laws, rules and/or regulations, the following procedures shall apply:

			a.	The employees or representatives of the County shall exercise sound judgment and discretion when acquiring commodities and services related to the emergency.
			b.	The employees or representatives of the County shall operate with highest ideals of honor and integrity and strive to avoid the appearance of perceived impropriety.
			c.	No person shall corruptly combine, collude, or conspire with one (1) or more persons to lessen competition, or cause a higher price to be paid or cause one vendor to be unjustifiably preferred over one (1) or more other prospective vendors.
			d.	No person shall solicit or receive anything of value, directly or indirectly, now or in the future, from any vendor or person supplying commodities or services in relation to the emergency.
			e.	The County shall be responsible for developing specifications for commodities and services that do not favor a particular brand or vendor.
			f.	Any contract and/or purchase order in excess of $100,000 shall be reviewed, approved and signed by the county superintendent, or director of a multi-county vocational center, whichever the case may be.
			g.	The acquisition of commodities and services not on contract that is estimated to cost in excess of $1,000 but less than $5,000 shall at all times be based on three (3) competitive bids. Bids may be verbal but shall be summarized and documented and include the date of contact, vendor, dollar amount, commodity or service description, quantity, number of bids obtained and whether the award was made to the low bidder.
			h.	The acquisition of commodities and services not on contract that is estimated to cost in excess of $5,000 shall be based on three (3) written bids which shall documented and include the date of contact, vendor, dollar amount, commodity or service description, quantity, number of bids obtained and whether the award was made to the low bidder.
			i.	If, in the opinion of the County, using sound judgment and discretion, time does not permit written bids to be received, verbal bids shall be obtained and documented, with written bids received within five (5) working days of the request.
			j.	If, in the opinion of the County, using sound judgment and discretion, time does not permit verbal bids to be received, the public organization must secure written approval from the chief executive officer of the State agency to secure necessary services and supplies without bids for only that period of time absolutely necessary to abate the emergency.
			k.	All purchase order and/or contract awards shall be made to the lowest, responsible bidder meeting specifications.
			l.	Should the award not be made to the lowest priced bidder, a written justification shall be placed on file with the bids that documents the reason the low price was rejected. This justification must be signed by the County Superintendent, or multi-county vocational center, whichever the case may be.
			m.	The County shall document each expenditure and include specifications, bids, no-bids, award justifications and any other relevant data.
			n.	The documentation for each expenditure shall be complete and shall be kept in an orderly manner that will enable any interested party to understand the specifics of the expenditure.
			o.	A complete written record of all expenditures relating to the emergency shall be submitted to the Governor within thirty (30) days of the expiration of the declaration of the emergency.
			p.	The written record shall include a summary sheet that details all acquisitions for the emergency and list date of purchase, vendor, dollar amount, commodity or service description, quantity, number of bids obtained and whether the award was made to the low bidder.
			q.	The Governor reserves the right to remove the spending authority at any time during the emergency and appoint a person or organization to manage the emergency expenditures and/or transfer that authority to another organization.
			r.	All emergency expenditures are subject to complete review and/or thorough audit as requested by the Governor.
			s.	The Governor has reserved the right to amend, alter, or cancel the preceding procedures as necessary through written amendments, alterations or cancellations with justification and documentation of specific situations and reasons.

Local Emergencies

		1.	The County shall establish by local Board policy the procedures to be followed in the case of an emergency at the local level that has not been declared an emergency by the Governor.
		2.	The Superintendent or appointed designee shall issue prior written approval for purchases in emergency situations. These situations can arise from acts of nature, conditions that are detrimental to the health, safety, or welfare of employees or students, or other unforeseen events that threaten the termination of essential services. These can include unforeseen delays by contractors or delays in the transportation of indispensable goods and materials. Emergency purchases are not to be used for hardships created by neglect, poor planning, or lack of organization.
		3.	Competitive bids must be obtained whenever possible. If, in the opinion of the County, using sound judgment and discretion, time does not permit verbal bids to be received, written approval from the Superintendent to secure necessary services and supplies without bids for only that period of time absolutely necessary to abate the emergency.

Purchases by Schools.

	A.	All purchases by the schools are to be made in accordance with the procedures specified in State Board Policy 1224.1 and the incorporated manual entitled Accounting Procedures Manual for the Public Schools in the State of West Virginia and all locally established purchasing procedures.
	B.	Public schools are not legal entities and school personnel do not have the statutory authority to enter into binding contracts or obligate Board funds. All contracts must be approved and signed by the County Board or the County Superintendent, if approval authority has been delegated to the Superintendent. Except for the funds discussed in the succeeding paragraph, individual schools have the authority to expend only the "quasi-public" funds received by the school from curricular or noncurricular activities.
	C.	The County is not permitted to distribute public funds to individual schools for expenditure. Funds may be allocated to each school, but the actual procurement transactions are to be handled through the County’s central business office. Exceptions to this general rule are:

		1.	the distribution of funds appropriated for faculty senates through the Public School Support Program (PSSP) and supplemental allocations by the County to provide the basic allocation for teachers not funded through the PSSP;
		2.	the occasional or infrequent reimbursement of an expense unintentionally paid by a school;
		3.	the disbursement of funds to a school for the repetitive purchase of a specific item, such as postage, where it is impractical to handle the transaction in any other manner. Supplemental allocations by the County to the appropriated amount provided to each teacher through the PSSP are not to be distributed to the schools for expenditure. The latter two (2) exceptions are for small dollar amounts and are not to be extended to the routine distribution of funds to all schools in the County on a formula or predetermined basis for the schools to determine how the funds are expended.

	D.	All State or Federal grant funds received directly by an individual school are to be remitted immediately to the Board office. The funds are to be allotted to the school for expenditure for the purposes identified in the grant award, but the procurement transactions are to be handled through the County’s central business office.
	E.	Schools making purchases using "quasi-public" funds or student activity funds should explore whether the goods and services are available from a contract negotiated by the County or a cooperative contract with a RESA or other Countys before going to the open market.

Inventory Control Function.

An adequate inventory control system of all capital assets, equipment and disposal supplies and commodities purchased must be maintained to safeguard the assets on hand and to ensure that those that are placed into service or consumed have been used for an authorized purpose. The maintenance of inventory records is an integral part of this system, providing an accounting of all assets purchased and consumed. A perpetual inventory system provides a continuous report of the quantity and description of the items on hand at any given time.

	A.	The inventory of capital assets must be maintained on the West Virginia Education Information System, as specified in the procedures manual issued by the Office of School Finance entitled Fixed Asset Inventory System for the County Boards in the State of West Virginia.
	B.	Inventory of Supplies and Other Expendable Property
		A perpetual inventory system is to be maintained of all supply items that have a material dollar value, such as the supply inventory in a central warehouse or the vehicle replacement parts at the maintenance garage. The supply inventory should include for each item or group of items the following information: name of item, quantity purchased, date of purchase, cost, reorder point, amount dispensed, and date dispensed.

WV Code 11-8-26, 18-9B-10, 5-22-1 et seq., 21-5A-1 et seq., 18-2A-1 et seq.
State Board Policy 8200, 1224.1