How to do Business with School Districts

Presented by

Nidia Contreras

Rosa Saenz

January 31, 2012

How to do Business with School Districts

1. Accessing the Proper Purchasing Staff

2. Requirements to Do Business with School Districts

3. Legal Aspects of Public Procurement

4. Recap of Do’s and Don’ts

Accessing the Proper Purchasing Staff

Whom to Access - OR – Learn About the Organization

School districts with:• Enrollment of less than 200, usually either or

both the head teacher/governing board clerk• Enrollment over 200 – principal• Enrollment between 500-1000 – superintendent• Enrollment over 1,500 – business manager

Titles of Contacts for the Purchasing Department May Include:

BuyerPurchaserMaterial ServicesMaterials ClerkContract Management SpecialistProperty SpecialistsSupply SpecialistsInventory SpecialistsDivision ManagerDirector of PurchasingPurchasing AgentAdministrator of Purchasing

Over 3,000 Students ---

How to Access

Acquaint yourself with the district by:1. Access an organization chart/public relations packet

2. Write a letter requesting inclusion on the bidder’s list

3. Determine the person in charge of purchasing, make an appointment to introduce yourself and your company

4. Spend no more than 15 minutes on your introduction appointment

5. Make sure you leave a business card and request a business card(s) from the purchasing staff

6. Visit the District’s websites where you want to do business

How and Who Not to Access:

• If the district has a purchasing staff, do not go to those above the purchasing department even if you know them personally

• Do not name-drop at the initial meeting with the purchasing person – wait until later to discuss that

• Don’t wait to introduce yourself through a bid/RFP protest

• Do not attend board meetings without giving the purchasing department the courtesy of knowing before hand

• Do not write introduction letters to board members unless you have already gone through the proper procedures of registering with the district and have approval from the Administration first.

Ongoing Purchasing Relationships

All districts ---• Make sure you call or make an appointment and do it

often – let them know you are available to provide assistance

• Follow through on promises• Do NOT promise delivery if there is any doubt of

timing• Offer to attend board meetings, if staff requires and/or

desires you to do so• If you must file a protest, do it in a timely and

professional manner

Ongoing Purchasing Relationships

Larger districts ---• Do Not discuss payment problems with

Purchasing Staff – Contact the Accounts Payable Staff

• Do Not make contact directly with schools without permission

• Deliver your product to the site indicated on the purchase order – don’t make changes without approval of the Purchasing Department

Requirements to Do Business With School Districts

Register –• You must be registered with a school district before you

can do business with it• You must register with every school district individually!

There are more than 200 school districts in Arizona. First decide where you want to do business and then register with those districts within that area – then expand to the others

Requirements to Do Business With School Districts, Cont.

• Become familiar with sites that can you can register such as AZPurchasing, ProcureAZ

• More and more schools districts are putting their registration form on their website and you can download it from there

• Once you are registered with a school district, you will receive bid invitations on all commodities or services for which you are registered

Requirements to Do Business With School Districts, Cont.

License• In order to do business with a school district

in Arizona, you must have the proper license for the service you wish to perform, or the commodity you wish to sell to the district.

• This is particularly important in construction contracts – you must have the proper license from the Arizona Registrar of Contractors

Requirements to Do Business With School District, Cont.

Proof of Insurance• Before you can deal with a school district in Arizona, you will

need insurance – usually a minimum of $1,000,000.00, sometimes more

• Many school districts in Arizona require you to include a Certificate of Insurance with your bid or RFP response

• The District must be listed as an additional insured party on your certificate

• Without this Certificate of Insurance, you, your employees, and especially your vehicles will not be allowed on school district property

• Become familiar with fingerprinting, background checks requirements

Legal Aspects of Public Procurement

Rules of the Road

“Rules of the Road”

• A.R.S. 15-213A & 41-2616– Other subsections also apply

• School District Procurement Rules– A.R.S. 15-213 Authorizes Department of Education

(DOE)– Rules to be consistent with State Rules– Applies to all formal procurements– Includes protest and claim procedures– Applies to disposition of assets

“Rules of the Road” (Con’t)

• Uniform System of Financial Records (USFR)– Issued by Auditor General– Applies to Informal Purchases– Applies to Inventory Management– Applies to Fixed Asset Management– Section III (Accounting) is the applicable

section

USFR Competitive Requirements

• Purchases up to $4,999.99– Quotations are not required– Should seek competition

• Purchases from $5,000.00 up to $24,999.99– Must seek verbal quotes from 3 or more vendors– Written quotes are acceptable

• Purchases from $25,000.00 up to $50,000.00– Must seek written quotes from 3 or more vendors– Quotes must be on vendors’ or districts’ document

Formal Procurements

• Purchases over $50,000.00

Require formal competitive sealed solicitations Not covered by the USFR

• D.O.E. School District Procurement Rules

Arizona Administrative Code (A.A.C.), Title 7, Chapter 2 (Articles 10 & 11)

Specifies contract requirements Provides process from protest/claims Authorizes Governing Board to delegate authority

Specifications

• Proprietary Specifications Shall Not be Used Per A.A.C. R7-2-1009

• Types of Specifications A.A.C. R7-2-1102– Common or general– Brand Name or equal– Brand Name Specification (Careful!)– Qualified Product List

Vendors

• Vendors must keep their information current with each District, ProCureAz, and AZPurchasing

• Vendors must be notified of any formal bid or proposal that is in their area

• If the district has 4 or less, notice must be published in the “Official Newspaper” of the county as defined in ARS 11-255

SPECIAL PROCUREMENTS

SOLE SOURCE PROCUREMENTS

R7-2-1053

EMERGENCY PURCHASES

R7-2-1056

AFTER THE FACT PURCHASES

Sole Source Procurements

• Used when only one source is available to supply good or service

• Sole Source procurement must be avoided unless:– no reasonable alternative exists based upon functional,

operational or programmatic requirement– need for sole source is fully documented– regardless of dollar amount, and– Governing Board approved

Emergency Purchases R7-2-1056

• The “functioning of the school district, the preservation or protection of property or the public health, welfare or safety.”

• “Examples of emergency conditions are floods, epidemics, or other natural disasters, riots, fire or equipment failures.”

Emergency Purchases R7-2-1056 (Con’t)

• Limited to the materials, services, or construction necessary to satisfy the emergency need!

• Simple Lack of planning does not constitute an emergency

“After the Fact” Purchases

• Material or Services received before a purchase order is issued

• Illegal- No authority• Not enforceable procurement obligations

of the District• Employee responsible for the debt and

possible criminal conviction• Strongly discouraged by Purchasing

Dept.• Purchase order only binding contract• Payment can be held or not paid at all

A.R.S. 41-2616 Violations

• Personal Liabilities• Class 4 Felony

Remember:

Follow these Rules of the Road andYour organization and the school

district will have a successful, long term business partnership!

Recap of Do’s and Don’ts

• DO be honest – Be truthful and provide complete information about the products/services being offered. Don’t misrepresent their capabilities

• DO give realistic delivery dates and make every effort to find out what they really are

• DO know your customer and the use of the products offered. Don’t assume customers always know.

• DO know your product(s) well, what they do, what they can’t do, and how long they should last in the school environment

Recap of DO’s and DON’Ts

• DO understand State Educational Purchasing Policies• DO have a good working relationship with the

manufacturer you represent.• DO know your competitors’ products – be able to

compare products knowledgeably• DO call on the customer on a regular basis• DO return calls in a reasonable amount of time – be

available when needed

Recap of DO’s and DON’Ts

• DO develop long-term business relationships• DO understand public versus private systems• DO FAMILIARIZE YOURSELF WITH THE WHO, WHAT, WHERE,

HOW, and WHEN RULES OF DOING BUSINESS WITH SCHOOL DISTRICTS.

• DO become involve with school district professional organizations such as AASBO – It is the best way to contact Arizona School Districts. The AASBO directory contains a wealth of information about the school districts in Arizona

•

Recap of DO’s and DON’Ts

• DON’T assume that school districts can pay for items delivered after June 30th

• DON’T expect to be paid for late bills

• DON’T criticize competitor’s products – Differences can be discussed professionally

• DON’T try to buy the customer with special favors or gifts – IT’S AGAINST THE LAW

• DON’T call Governing Board members/Superintendent unless you have gone through the organization hierarchy.

• DON’T try to buy the customer with special favors or gifts – IT’S AGAINST THE LAW

• DON’T call Governing Board members/Superintendent unless you have gone through the organization hierarchy.

• Any questions that you may have, please contact me at :

Nogales Unified School District• Phone - 520-397-7933• Fax - 520-287-6618• E-Mail - ncontre@nusd.k12.az.us

Thank you and WISHING YOU GREAT success in DOING business WITH SCHOOL DISTRICTS!

QUESTIONS ?????