I.Procurement and Public Works Using State Funds

A.   Goods using State Funds

Furniture, Supplies or Equipment Whenever the estimated cost of furniture, supplies or equipment (except books) will cost:

• Less than $40,000, no competitive bidding process is required to make the purchase;
• Between $40,000 and $75,000, the Board will follow the informal competitive bidding process by requiring quotes from at least three different sources to be obtained in writing or by telephone and recorded for the public to review; 
• Over $75,000, the Board will follow the formal competitive bidding process as specified under RCW 28A.335.190 by following the state formal competitive bid Process

Formal Competitive Bidding Process

• preparing clear and definite plans and specifications for such work or purchases;
• providing notice of the call for formal bids by publication in at least one newspaper of general circulation in the district at least once each week for two consecutive weeks;
• providing the clear and definite plans and specifications to vendors interested in submitting a bid;
• require that bids be in writing;
• open and read bids in public on the date and in the place named in the notice; and
• file all bids for public inspection after opening.

B.   Services Using State Funds 

Personal Services

"Personal service" means professional or technical expertise provided by a consultant to accomplish a specific study, project, task, or other work statement. The District is not required to competitively procure personal services.

Purchased Services
"Purchased services" means services provided by a vendor to accomplish routine, continuing and necessary functions. This term includes, but is not limited to, services for equipment maintenance and repair; operation of a physical plant; security; computer hardware and software maintenance; data entry; key punch services; and computer time-sharing, contract programming, and analysis. The District is not required to competitively procure purchased services.

Professional Services (Architecture and Engineering)
Competitive negotiation requirements of Chapter 39.80 RCW apply to all local governments when contracting for professional services defined by Chapter 18.08 RCW (Architects), Chapter 18.43 RCW (Engineers and Land Surveyors), or Chapter 18.96 RCW (Landscape Architects). RCW 39.80.030-050 outlines the requirements for procuring such architectural and engineering (A&E) services. These requirements do not have a specified dollar threshold. This means all architecture and engineering contracts regardless of the amount must follow these requirements.

C.   Exemptions:

The Board may waive bid requirements when awarding contract for public works and contracts for purchases as specified under RCW 39.04.280

• clearly and legitimately limited to a single source of supply;
• involving special facilities or market conditions;
• purchases in the event of an emergency;
• purchases of insurance or bonds; and
• involving public works in the event of an emergency

“Emergency” means unforeseen circumstances beyond the district’s control that present either: (A) Present a real, immediate threat to the proper performance of essential functions; or (B) will likely result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken.

Whenever bid requirements are waived, a document explaining the factual basis for the exception and the contract will be recorded and open for public inspection.

D.   Rejection of Bids:

The Board may by resolution reject any and all bids and make further calls for bids in the same manner as the original call.

E.   Interlocal Cooperation Act:

The Board reserves the right to enter into inter-local cooperative agreements for purchases and public works with other governmental agencies pursuant to the Interlocal Cooperation Act. Chapter 39.34 RCW.

• Purchases can be made from state contracts or from other approved sources such as KCDA instead of going out to bid.

F.    Crimes Against Children:

The Board will include in each contract a proviso requiring the contractor to prohibit any of its employees who has ever been convicted of or pled guilty to any child related felonies from working where they would have contact with public school students as Specified under RCW 28A.400.322.The contract will also provide that failure to comply with this requirement is grounds for immediate termination of the contract.

G.   Use of State Funds for Improvements or Repairs

The Board may make improvements or repairs to district property through a district department without following the competitive bidding process if the total cost of improvements or repairs does not exceed $75,000, or when using a contractor to perform the work, if the total cost of improvements or repairs does not exceed $100,000.  If the Board estimates that the total cost is $100,000 or more, the Board will follow the formal competitive bidding process outlined above unless the contract is let using the small works roster process authorized by RCW 39.04.155 or under any other procedure authorized for school districts. There are no statutory bidding requirements for public works projects improvements or repairs that are within the $75,000 to $100,000 range. For projects in this range, the district may consider: using its small works roster process, under RCW 39.04.155; using an inter-local agreement or contract with a vendor of the district’s choice, without any competitive process, under RCW 28A.335.190; or choosing to require quotes for the work to make the process more competitive.

II.Procurement Using Federal Funds

In compliance with the Uniform Guidance 2 CFR 200.

A.   Goods

When federal funds are used for procurement of goods (furniture, supplies, equipment, and textbooks) the following steps will be followed:

• Purchases of $10,000 or less do not require quotes.  However, the price must be considered reasonable, and to the extent possible, purchases should be distributed equitably among suppliers;
• Purchases between $10,000 and $75,000 (must use more restrictive state threshold) must be procured using price or rate quotations from three or more qualified sources; Purchases of $75,000 or more must follow the formal competitive bidding process as outlined above under state.

B.   Services

• Purchases of $10,000 or less do not require quotes.  However, the price must be considered reasonable, and to the extent possible, purchases should be distributed equitably among suppliers;
• Purchases of between $10,000 and $250,000 may be procured using price or rate quotations from three or more qualified sources;
• Purchases of $250,000 or more must follow the formal competitive bidding process.

C.   Noncompetitive Procurement            

Procurement without competition may only be used when one of the following circumstances applies. The district must maintain documentation supporting the applicable circumstances for noncompetitive proposals.

• The item is only available from a single source;
• The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation;
• The awarding agency (e.g. OSPI) authorizes noncompetitive proposals in response to a written request from the district; or
• After solicitation of a number of sources, competition is determined inadequate

D.   Cost Analysis using Federal Funds

A cost analysis must be completed for every procurement over $250,000 using federal funds. The method and degree of analysis is dependent on the facts surrounding the particular procurement, but there must be an independent estimate before receiving any bids or proposals.

E.   Suspension and Debarment 

Before entering into federally funded vendor contracts for goods and services that equal or exceed $25,000.00, and any subcontract award, the district will ensure the vendor is not suspended or debarred from participating in federal assistance programs.

F.    Conflict of Interest

No employee, officer, or agent of the district may participate in the selection, award, or administration of a contract supported by federal funds if he or she has a real or apparent conflict of interest.  Such a conflict would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization that employs or is about to employ any of the parties indicated herein has a financial or other interest in or a tangible personal benefit from a firm considered for a contract.

No employee, officer, or agent of the district may solicit or accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts.  Violation of these standards may result in disciplinary action including, but not limited to, suspension, dismissal or removal.

G.  Interlocal Cooperation Act:

The Board reserves the right to enter into inter-local cooperative agreements for purchases and public works with other governmental agencies pursuant to the Interlocal Cooperation Act. Chapter 39.34 RCW.

• Purchases can be made from state contracts or from other approved sources such as KCDA instead of going out to bid.

Legal References:
Advertising for bids -Competitive bid procedures- Purchases from inmate work programs- Telephone or written quotation solicitation, limitations- Emergencies - RCW 28A.335.190
Crimes Against Children-Contractor Employees-Termination of Contract -  RCW 28A.400.330
Small works roster contract procedures-Limited public works process Definition - RCW 39.04.155
Competitive Bidding Requirements- Exemptions - RCW 39.04.280
Bids on public works- Identification, substitution of contractors - RCW 39.30.060
Competitive Bids-Notice of Modification or Cancellation-Cancellation Requirements-General Procurement Standards - 2 CFR 200.318
Procurement - 34 CFR § 80.36
Debarment and Suspension - 34 CFR § 85

Management Resources:
Policy and Legal News June 2015
Policy and Legal News, June 2013 
Policy News, April 2012     
Policy News, February 2011 
Policy News, October 2005  
Policy News, June 2001    

Highline School District 401
Adopted by the Board: 07.13
Revised by the Board: 10.15, 10.18, 02.20, 3.23
Classification: Essential