Code: DJ

Readopted:  6/18/24

Adopted: 6/01/09

Orig. Code(s): DJ

The function of district purchasing is to serve the educational program by providing the necessary goods, services and public improvements.  The board declares its intention to purchase competitively without prejudice and to seek maximum educational value for every dollar expended.  Items commonly used by cost centers will be standardized whenever consistent with the educational goals and in the interest of efficiency or economy.

The position functioning as the chief financial officer is appointed by the superintendent to serve as purchasing agent. Throughout this policy, references to the chief financial officer shall refer to that position or its functional equivalent. This position will be responsible for developing and administering the district’s purchasing program.

No obligation may be incurred by any officer or employee of the district unless that expenditure has been authorized in the budget or by board action and/or board policy.  In all cases calling for the expenditure of district money, except payroll, a requisition and purchase order system must be used.

No purchase, with the exception of construction change directives, petty cash or credit card purchases, will be authorized unless covered by an approved purchase order.  No bills will be approved for payment unless purchases were made on approved orders.

The superintendent or designee is authorized to enter into and approve payment on contracts obligating district funds not to exceed $250,000 for products, materials, supplies, capital outlay and services that are within current budget appropriations.  The superintendent or designee is authorized to obligate district funds without specific board approval when the expenditures are routine and customary, including, but not limited to, state/municipal fees, payroll and utilities.  The board shall approve all contracts that are collective bargaining agreements or service contracts that include the provision of labor performed by district employees, such as custodial, food service and transportation services.

The chief financial officer or designee will review bills due and payable for the purchase of supplies and services to determine if they are within budget amounts.  After appropriate administrative review, the chief financial officer or designee will direct payment of the just claims against the district.  The chief financial officer is responsible for the accuracy of all bills and vouchers.

No board member, officer, employee or agent of this district shall use or attempt to use their official position to obtain financial gain or for avoidance of financial detriment for themselves, a relative or member of household or for any business with which the board member, officer, employee, agent or a relative is associated.

Acceptance of any gratuities, financial or otherwise, from any supplier of materials or services to the district by any board member, officer or employee of the district is prohibited.

The superintendent shall develop administrative regulations necessary to implement this policy.  Additional specific purchasing procedures are delineated in the district’s Purchasing Manual which is updated periodically.

END OF POLICY

                                                                                                                                                                           

Legal Reference(s):

ORS 244.040
ORS Chapters 279, 279A, 279B, 279C
ORS 294.311
ORS 328.441 to -328.470
ORS 332.075

OAR 125-055-0040

Cross Reference(s):

BBA - Board Powers and Duties
BBFA - Board Member Ethics and Conflicts of Interest
DJC - Bidding Requirements
DJFA - Procurement Cards
EH - Electronic Data Management

Code: DJ-AR

Adopted: 7/29/09

Readopted: 10/15/24

1. Business Services is responsible for directing all purchasing functions of the district. This includes, but is not limited to, providing direction, regulations and instructions to cost center, authorities and other district staff regarding the procedures for procurements, expense, reimbursements, disposal of property, intergovernmental agreements, purchasing card usage, and other transactions involving the payment of district funds for goods and/or services.
    
2. Business services will periodically recommend to the superintendent updates to the district’s purchasing policies and administrative regulations based on its review of changes to applicable rules/laws and to support the continual improvement of the district’s purchasing practices. These periodic updates shall not be less than as needed to comply with ORS 279.065 (6)(b).
    
3. District staff with cost center authority shall use such authority to operate in an efficient and effective manner. Consideration is given to both fiscal responsibility and staff resource needs. In accordance with board policy DJ - District Purchasing, purchasing staff or other district staff may lead projects to standardize commonly used goods and services. In any event, the district’s Purchasing Manager, or equivalent position, may direct cost centers regarding the standardization of goods and services.
    
4. Procurements will generally consist of goods and services necessary for district operations and programs.
    
5. Procurements are authorized only when the following conditions are met:

a.      The appropriate person with cost center budget authority, or designee, has:

1. Confirmed that adequate budget is available;
2. Complied with all district purchasing policies, processes, laws and regulations;
3. Confirmed the necessary funds have been encumbered (or confirmed funds will be promptly encumbered in the case of p-card purchases); and
4. Ensure the necessary contract has been executed by district staff with appropriate signing and approval authority.

 

6. A check request/ACH/other form of direct payment may be used for payment of: membership dues, subscriptions, registrations, municipal/legal fees, and district charge accounts. At the discretion of Business Services, a check request/direct payment may also be used for emergency purchases, when a vendor does not accept a p-card or purchase order, circumstances when there is a short period of time between the district incurring an obligation and liquidating it, and other circumstances where such practice may be in the district’s best interests.
    
7. Contract Approval:
   
   a.      All procurement contracts that are reasonably estimated to exceed $250,000 (including any with the potential for renewals, amendments or change orders that may cause the total contract value to exceed $250,000) must be presented to the board prior to execution. The district Purchasing Manager, or equivalent position, shall determine which procurement contracts are reasonably estimated to exceed $250,000:

1.     Business Services maintains the public contracts School Board consent agenda. Business Services will issue a monthly communication to all Administrators and/or appropriate cost center authorities seeking information for any contracts to be included on the consent agenda.

2.     Administrators submitting procurement contracts to be presented to the board for approval shall provide a staff report in a format to be determined by Business Services. This staff report must be provided within deadlines stated in the communication referenced in 1, above.

8. Superintendent’s Designated Authority to Obligate the District

a.      The Superintendent hereby designates the Associate Superintendent of Business Services, or functionally similar position, as authorized electronically to approve and/or sign contracts that obligate the district. Subject to all contracts having received School Board approval, if required, the Associate Superintendent of Business Services authorization to obligate the district is unlimited. This authority may be sub-delegated in writing. Any such sub-delegation may be on a limited or unlimited basis; provided however, that no such sub-delegation may exceed any limit placed on a sub-delegator’s own authority. 

b.     Contracts included in the scope of this authorization include, but are not limited to: purchase orders, construction contracts, consultant services contracts, trade services contracts, personal services contracts, ORS 190 agreements, emergency contracts, and other non-employment contracts that obligate the district to expend funds or dedicate resources.

9.  Contract Amendments and Change Orders

1. An amendment or change order is a written agreement changing or extending the terms and/or conditions of an existing contract by introducing, canceling or changing details, changing, decreasing or increasing the work, but maintaining the general scope of work contemplated in the solicitation or other procurement method through which the contract was awarded.
    
2. The District shall report to the superintendent, or designee, when amendments or change orders exceed a cumulative amount of 25% over the original contract price of any contract awarded through a formal procurement (e.g., RFP, ITB).  These reports will be submitted to the superintendent, or designee, after financial close-out of the contract. Early Work and Guaranteed Maximum Price Amendments to CM/GC and/or Design/Build contracts are not subject to the preceding requirement, however, amendments or change orders exceeding 25% of a CM/GC or Design-Build contract’s Guaranteed Maximum Price shall be reported to the superintendent or designee in the above-stated manner.
    
3. A contract that has not received board approval is required to be presented to the board for approval prior to execution of an amendment or change order that will cause the total aggregate contract amount to exceed $250,000.

10.   Contract Amendment and Change Orders for OAR Division 49 (ORS 279C) procurements – public improvements

1. Price increases for public improvement contracts may be increased above the original amount of award by District issuance of a change to the work or amendment, pursuant to OAR 137-049-0910, within the following limitations:
   1.     Up to an aggregate contract price of 50% over the original contract amount when the Purchasing Manager or functionally equivalent position determines the price increase is warranted for additional reasonably related work. The superintendent or designee may waive this limit when doing so is found to be in the District’s best interest. 
   2.     Amendments of intermediate level public improvement contracts that exceed $100,000 are specifically authorized by the Oregon Public Contracting Code, when made in accordance with OAR 137-049-0160. Accordingly, such amendments are not considered new procurements and do not require an exemption from competitive bidding.
2. Contract amendments for Construction Manager/General Contractor contracts:
   1.     Early Work Amendments (EWA) for work prior to the contractual establishment of the Guaranteed Maximum Price (GMP) which cost over $250,000 will be submitted to the board for approval prior to execution. EWAs under $250,000 may be approved by positions designated appropriate authority by or pursuant to these DJ-AR.
   2.     The GMP Amendment may be approved without additional board approval if both of the following conditions have been met:
   1)     The original CM/GC contract has been approved by the board, and
   2)     The GMP amendment does not exceed the estimated construction budget for the project by more than 10%.
   3.     GMP Amendments within the above construction budget limitation and Amendments after establishing the GMP may be approved by positions having been designated appropriate authority by or pursuant to these DJ-AR.
   
   
   
   
   
   11. Emergency Public Contracting
   
   a.      “Emergency” means circumstances that:
   1.     Could not have been reasonably foreseen;
   2.     Create a substantial risk of loss, damage or interruption of services or a substantial threat to property, public health, welfare or safety; and
   3.     Require prompt execution of a contract to remedy the condition.
   b.     Emergency Declaration: The Superintendent’s designee may declare that emergency circumstances exist that require prompt execution of a public contract.
   1.     The declaration shall be made in writing in a memorandum to the Superintendent describing the circumstances in this paragraph 10.a.
   2.     A copy shall be issued to the Purchasing Manager.
   3.     The emergency declaration memorandum, public contract and associated documentation shall be kept on file as a public record.
   4.     Report to Board all emergency contracts that exceed $250,000 at the earliest opportunity.
   c.      Designees authorized to make an emergency declaration:
   1.     Any Executive Administrator or above
   2.     Any Central Office Administrator, or Administrator for Maintenance Services, or the Administrator for Facilities Development
   d.     Contract authority for an emergency declaration:
   1.     Any Executive Administrator or above – No limit
   2.     Purchasing Manager – up to $1,000,000
   3.     Any Central Office Administrator, or the Administrator for Maintenance Services, or the Administrator for Facilities Development - up to $250,000.
   e.      Emergency Procurement: The procurement of goods and services in response to the Emergency Declaration shall be in accordance with ORS 279B.080, the Attorney General’s model rules OAR 137-047-028 and 137-049-0150.
   
   12.   Protest Resolution regarding solicitations.
   a.      Except where specifically required by the Attorney General model rules, the Purchasing Manager shall have the authority to resolve protests submitted by persons for:
   1.     Exemptions and special procurements;
   2.     Solicitation process and documents; or
   3.     Notice of intent to award a contract.
   b.     An adversely affected or aggrieved person must exhaust all avenues of administrative review and relief before seeking judicial review of the District’s protest decision.
   
   13.   District Representative responsibilities as a contract manager. For each public contract, the respective Cost Center Authority shall designate a district representative to serve as the contract manager. The designated contract manager shall have the following responsibilities:
   a.      Ensure all contract communications between the consultant/contractor/vendor and District channel through this person.
   b.     Comply with paragraph 5 of this administrative regulation. (Ensure contract cost is properly encumbered prior to executing contract).
   c.      Review and approve all contract actions (amendments, invoice payments, etc.).
   d.     Monitor the Contractor’s performance of duties under the contract and keep all related documentation in a contract file. Coordinate with Purchasing and/or legal as needed regarding any escalated disputes or other performance issues. 
   
   14.   Additional procedures, including forms, for goods, services and public improvement are delineated in the Purchasing Manual located on the Beaverton School District staff intranet. The Superintendent or designee may update the Purchasing Manual from time-to-time.