Traverse Bay Area Intermediate School District
Bylaws & Policies
 

6320.02 - PURCHASE OF SERVICES IN EXCESS OF $25,000 WITHOUT COMPETITIVE BIDDING

The Board of Education (the "Board") of the Traverse Bay Area Intermediate School District (the "District") hereby establishes this Policy to satisfy its duty to disclose information about contracts for services in excess of $25,000 which are not competitively bid.¹ The Board recognizes that it may contract for services necessary for the administration of the District. ²

The Board shall use its best efforts to procure the lowest-priced and best quality services that serve the interests of the students, employees, and taxpayers of the District. Before entering into a contract for services in excess of $25,000, the Board shall be familiar with, or shall investigate, the quality of the services under consideration. The Board shall retain the authority to approve all contracts for services greater than $25,000 and shall not delegate this authority. Additionally, the Board shall insure that all purchases of services are made in accordance with good business practices, applicable laws and regulations, the district’s conflict of interest policy,³ and this Policy. Before the Board purchases a service under this Policy, it shall verify whether sufficient funds exist in the budget for such purchase, and whether the service might be provided by administrators or employees of the District.

The District shall report on its website all contracts for services in excess of $25,000 that are not competitively bid. The report must be posted not later than December 31st of each year, and shall include all applicable contracts from the immediately preceding fiscal year. The report shall include at least all of the following:

 A.The subject matter and cost of the contract.
 B.Whether the contract was competitively bid or was a single source contract.
 C.The name and position of each individual who signed the contract on behalf of the intermediate school district.

The District is not required to report an employment contract, a contract for fiber optic or cable equipment and operating system software for fiber optic or cable equipment,6 or a contract for utilities. Additionally, the District is not required to report a contract for an annuity or retirement benefit in which all employees are eligible to participate, unless the contract is for payment of a commission to a third-party broker for securing such a contract.

1MCL 380.620 requires and intermediate school district to post a report on its website about contracts that are not competitively bid and are for an amount in excess of $25,000.

2MCL 380.601a(d) grants the District the authority to hire, contract for, schedule, supervise and terminate independent contractors or other to carry out intermediate school district powers. Contracts for services are not subject to the competitive bidding requirements of MCL 380.623a(2), so long as such contracts are not for capital improvement.

3MCL 380.634 requires the Board to adopt a conflict of interest policy designed to avoid conflicts of interest by school officials and employees. The policy shall be adopted and implemented not later than July 1, 2005.

4MCL 380.620(1)©

5Id.

6MCL 380.620(1)(f)

7MCL 380.620(3)

8Id.