Expenditures of public funds are controlled by law to ensure that taxpayers’ interests are safeguarded. Therefore, all purchases made with school funds must be classified on the purchase order as one of the following categories:
Open Market
The purchase of products and services when the aggregate cost during the fiscal year is less than 15% of the bid limit. In the 2017-18 school year, the bid limit is $44,000 and the quote limit is $6,600 for a District with a Qualified Purchasing Agent.
Quotes
Although public advertisement for bids is not required in all cases, quotations must be solicited for major purchases. New Jersey Purchasing laws require a quote for all purchases over $6,600. MHRD policy requires two quotes for purchases in excess of $3,000. Quotations must be in writing.
After two quotations have been solicited, the award of the contract (purchase order) is made on the basis of the lowest responsible quotation received and which quotation is most advantageous to the Board of Education, taking all factors into consideration. If the lowest price quoted is not selected, an explanation of the reason or reasons why the lowest quotation was not awarded is required. The quotations and explanation (if applicable) must be forwarded to the Business Office. Purchases may not intentionally be divided to avoid the requirements.
State Contract
The State Purchase Bureau conducts a competitive bidding process and contracts for the furnishing of certain products and services on behalf of State Agencies and local government entities. Contracted pricing lists are disseminated and available on the state website. The school district may select from the vendors on the State list and determine the best price for the specific products or services needed by the district. Only the items included on the State Contract are exempt from local bidding. A vendor may have a State Contract for some items offered and not for others. The State Contract number must be entered on the purchase order.
Bid and Bid Process
Only the Business Office can conduct a bid. Every contract for the performance of work or the purchase or lease of materials or supplies not exempted by law will be subject to public bidding whenever the aggregate value of such a contract within one fiscal year exceeds the bid threshold established by law. Whenever possible, purchases will be aggregated. The purchase shall be awarded only by resolution of the Board of Education to the lowest responsible bidder after public advertising for bids (N.J.S.A. 18A:18A-3.4).
You cannot circumvent the law by splitting purchases to be under the bid limit. If you find that your purchases may exceed the bid limit, please contact the Business Office at once. The formal bidding process takes about 6-8 weeks to complete. This means that any specific item, class of items, and/or services of a similar nature purchased by the school district totaling more than the bid limit for the entire year must be competitively bid. This restriction is for the entire district and not by location or school.
CO-OP and Consortiums
New Jersey School Districts are permitted to participate in contracts/cooperative purchasing networks. At this time, the law only permits local entities to use either the State of New Jersey cooperative contracts or local New Jersey cooperative systems registered with the Division of Local Government Services.
Statute authorizes two or more boards of education to enter into agreements for the purchase of supplies, materials or work. The Morris Hills Regional District Board of Education is a member of many coops and consortiums. Contact the Business Office for the list.
Competitive Contracting
Certain contracts over the bid limit can be awarded using the competitive contracting process outlined in 18A:18A-4.1. The Board of Education must approve by resolution the use of competitive contracting for a particular good or service. Requests for proposals are advertised and evaluative criteria must be developed. This method is used for proprietary software, professional development services and educational consultant services to name a few.
Extraordinary Unspecifiable Services
This method of procurement is an RFP process that also requires Board approval to use. It is a procurement method that is used for insurance purchases and broker services.
Federal Grant Purchases
Purchases using federal funds are to follow the Public School Contracts of New Jersey AND the Uniform Grant Guidance document. If a conflict exists, the most stringent guidance is to be used.
Professional Services/Professional Consultants
Although Professional Services do not require competitive bids or quotations, it is in the best interest of the Board of Education to obtain proposals for any professional service. All Professional Service contracts must be approved by the Morris Hills Regional District Board of Education at a public meeting.
An appropriate resolution must be written for consideration by the Board at a regular public meeting. Submit a request to have a resolution prepared to the Business Office and enclose a written proposal from the consultant outlining the following:
Name and address of consultant (no P.O. Box numbers)
A description of services to be provided
Starting date of service; ending date of service
Cost of the service; terms of payment
Social Security Number/Employer Identification Number
Chapter 271 Political Contribution Disclosure Form (PCD) – It is the responsibility of the administrator/supervisor recommending the contract to provide the Business Office a copy of the vendor’s Chapter 271 Political Contribution Disclosure Form if one is required.
Contracts awarded for professional services that exceed the bid threshold must be advertised in an official newspaper of the Board of Education.
No service is to be performed without a properly executed contract and purchase order
Emergency Purchase Contracts
An emergency is a situation affecting the health or safety of the occupants of school property that requires the immediate delivery of the goods or performance of a service to alleviate the emergency. An actual emergency must exist. An “emergency” is not to be created as a result of inadequate planning, delay, administrative convenience, or failure to take into account construction season.
The following is the process for declaring an emergency:
Superintendent of Schools is Notified
The Superintendent must be notified by the employee, supervisor or administrator requesting a declaration of emergency.
Business Administrator/Board Secretary
The official in charge of the building facility where the emergency exists must notify the BA/BS of the following:
nature of the emergency
time of the occurrence
need for the performance of a contract
This notice must be submitted in writing to the Business Administrator as soon as practicable.
Contract by Business Administrator is Awarded
When the Business Administrator/Board Secretary is satisfied that a bona fide emergency exists, the BA/BS, by law, is authorized to award the emergency contract.
Contract Filed with State and County
The Business Administrator/Board Secretary must file a copy of the contract or agreement with the Bureau of Facility Planning and the Executive County Superintendent within three (3) days after awarding an emergency contract or agreement.
Contract Approved by Board of Education
The Board of Education must review and approve the emergency purchase at its next public meeting.