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HCPSS / POLICIES

Policy 4050 – Procurement of Goods and/or Services

The purpose of this policy is to establish standard practices and procedures to create an efficient and effective purchasing program for the HCPSS and to establish a centralized purchasing function with vested authority to purchase goods and/or services necessary for the efficient operation of HCPSS.

Policy Document

I. Policy Value Statement

The Board of Education of Howard County (Board) expects that all funds provided to the Board for use by the Howard County Public School System (HCPSS) for all goods and/or services will be expended and managed in the most ethical, effective, and efficient manner possible and that procurement activities will be carried out in compliance with applicable laws including, the Annotated Code of Maryland, Educational Article, §5-112.

Procurement serves the educational program by providing necessary supplies, equipment and related services with student welfare as the foremost consideration. HCPSS must procure goods and services competitively without prejudice or favoritism and seek the maximum educational value for every dollar expended.

The Board is committed to promoting equality of economic opportunity for small, local, women’s business enterprises, and minority businesses.

The Board acknowledges the necessity to pursue best practices, both tactically as well as strategically and embraces the values and guiding principles of procurement, which include accountability, ethics, impartiality, professionalism, services, and transparency.

II. Purpose

The purpose of this policy is to establish standard practices and procedures to create an efficient and effective purchasing program for the HCPSS and to establish a centralized purchasing function with vested authority to purchase goods and/or services necessary for the efficient operation of HCPSS.

III. Standards

  1. Provisions of this policy will apply to all HCPSS funds, including but not limited to, school activity funds, grants, and monetary donations except as explicitly exempted in the policy.

  2. Procurement of goods and/or services will:

    1. Fall within the framework of budgetary limitations.

    2. Be consistent with the educational goals and programs of the HCPSS.

    3. Be made only after the Board has budgeted funds available.

  3. General Procurement

    1. The Board requires competitive procurements for all goods and/or services except when the goods and/or services are sole source, single source, emergency procurements, or otherwise allowed by law and HCPSS policy. General procurements, sole source, single source, and emergency procurements will be reviewed by the Board’s Audit Committee, as determined by the committee.

    2. The Office of Purchasing will administer all procurement activities in accordance with State law, the Board’s ethics code, and HCPSS policies, and Policy 4050 Implementation Procedures and will be developed based on Board policy.

    3. Procurement Procedure Methods:

      1. Procurement of goods and/or services costing less than $10,000 in aggregate value per fiscal year will only be considered after receipt of at least one written quotation by the Office of Purchasing and may reflect the lowest price available given the situation.

      2. Procurement of goods and/or services costing $10,000 and above, but less than the solicitation threshold of $50,000 in aggregate value per fiscal year will only be considered after the receipt of three written quotations by the Office of Purchasing. This contract will be formulated by the use of an approved HCPSS purchase order or other acceptable contract form approved by the Office of Purchasing. Documentation of written quotations must be attached to the request.

      3. A formal solicitation is required for procurement of goods and/or services for amounts equal to or greater than the solicitation threshold of $50,000 and requires approval from the Board.

      4. For contracts and procurements below $50,000 the Superintendent/designee will establish procurement procedures for approval.

      5. The formal solicitation threshold for transportation-related contracts will be $50,000 and will be presented to the Board for review and approval.

      6. All sole source contracts require Board review and approval.

      7. A quarterly report of contracts between $25,000 and $50,000, including the item/service contracted, amount, and the organization awarded the contract will be provided to the Board.

    4. The Board directs the Superintendent/designee to establish procedures for the procurement of student transportation services in accordance with all applicable laws, regulations, and HCPSS policy.

    5. Contracts approved by the Board will be tracked in the Contract Management System. Board approved contract related spending will be tracked and monitored in the Enterprise Resource Planning System. The Office of Purchasing will work with the Offices of Budget and Finance to develop a method of monitoring purchases that fall below the formal solicitation thresholds. This information will be discussed with the Audit Committee during its scheduled meetings.

  4. Other regulatory considerations for procurement and contracts:

    1. Goods and commonalities acquired through a purchasing cooperative will follow public bidding procedures described in Annotated Code of Maryland, State Finance and Procurement Articles §11-203, §14-301 and §13-109.

    2. Architectural and construction management services selection are addressed in Policy 6030 Procurement of Architectural and Construction Management Services.

    3. Competitive procurement is not required when the procurement is made through contracts formally solicited and obtained through intergovernmental purchases.

    4. Procurements related to legal services are exempt from this policy.

    5. Contracts with software providers, online services, and mobile applications will comply with federal, state, and local student data privacy protections, including those provisions identified in the Annotated Code of Maryland, Education Article, §4-131 and HCPSS policies.

    6. For all purchase contracts involving the expenditure of federal funds, federal grants and/or federal awards, the HCPSS will comply with the Uniform Guidance procurement rules issued by the United States Office of Management and Budget.

    7. Exceptions to competitive bidding requirements under the Annotated Code of Maryland, Education Article, §5-112 are exempt from this policy.

  5. The Office of Purchasing will:

    1. Review all contracts prior to approval by the Office of General Counsel.

    2. Implement and maintain an effective contract management system.

    3. Develop a formal training program for all HCPSS employees who procure goods and services.

    4. Establish small, local, minority and women owned business participation goals, to be determined by the Office of Purchasing, relative to the availability and past utilization of these groups in contracting and purchasing and develop appropriate measures to remediate ongoing market discrimination against these groups that has impacted their ability to participate in contracts.

    5. Develop appropriate Key Performance Indicators (KPI’s) to provide key data insights to enable effective evaluation of the performance and efficiency of the procurement function.

    6. Maintain an open and public procurement contracting process except during a procurement process where an award has not been made.

  6. School-sponsored events as determined by the Office of Purchasing may be exempt from this policy.

  7. All HCPSS employees engaged in procurement activities for HCPSS programs and/or activities are responsible for understanding the provisions of this policy and implementation procedures, and the Procurement Manual.

  8. The Board authorizes the use of purchasing cards consistent with the purposes and responsibilities in the Procurement Manual to expedite small dollar purchases for materials, supplies, and other items needed for daily operations or for authorized travel.

  9. The process to review HCPSS contracts will be presented and discussed with the Board’s Audit Committee.

  10. Project managers are HCPSS employee representatives who are responsible for the day-to-day monitoring of contract-related requirements after the contract has been awarded. The project manager is the primary contact for the vendor in relation to the contract. HCPSS divisions will appoint a project manager for all procurements that require a formal solicitation. At a minimum, a project manager is required for all service-related contracts regardless of the value of the contract.

IV. Responsibilities

  1. The Superintendent/designee will establish the acceptable procurement method and process for establishing contracts at the threshold levels set in this policy and implementation procedures.

  2. The Superintendent/designee will establish manuals or other documentation to inform all HCPSS employees and community members of the appropriate expenditure of funds.

  3. All HCPSS employees will follow this policy and implementation procedures and comply with Policy 2070 Ethics and HCPSS Ethics Regulations.

  4. The Budget Office will ensure sufficient funding authority has been appropriated for the procurement of goods and/or services.

  5. Responsibility for the performance of the contract will reside with the program manager in the office that requested the solicitation. The program manager will do the following:

    1. Develop performance measures and liquidated damages (if necessary) that ensure the contract meets the needs of the system and aligns with the strategic call to action and are SMART goals.

    2. Monitor contractor performance, including deliverables, milestones, and compliance with contractual requirements.

    3. Complete a Contractor Performance/Evaluation Scorecard prior to any option renewals being issued by the Office of Purchasing. This requirement should at a minimum be done annually and submitted to the Office of Purchasing for recordkeeping.

    4. Maintain accurate and up-to-date contract records, documentation, and correspondence.

    5. Program Managers will act with integrity, impartiality, and transparency in all dealings with suppliers and stakeholders.

    6. The Director of Procurement and Materials Management/designee will act as a liaison with the contracted party in the event that there are performance issues with the contract.

  6. The Director of Procurement and Materials Management/designee will have signature authority to execute contracts under this policy.

  7. The Office of Purchasing annually, will report to the Board a review of the procurement services to include, but not limited to:

    1. Numbers of contracts awarded above and below the threshold for Board Authorization.

    2. Small, local, minority, and woman owned business participation levels.

    3. Numbers of intergovernmental contracts awarded.

    4. Number of contracts awarded through purchasing cooperatives.

    5. Number of sole source contracts awarded.

    6. Numbers of individuals trained on procurement procedures.

    7. Reporting of Key Performance Indicators (KPIs).

V. Delegation of Authority

The Superintendent/designee is authorized to develop appropriate procedures for the implementation of this policy within the limits set forth by this policy.

VI. Definitions

Within the context of this policy, the following definitions apply:

  1. Contract – A legally binding agreement or Memorandum of Understanding, between the Board and a vendor, merchant, consultant, organization, entity, or business, for money or other consideration for the procurement or disposal of goods, services, or construction.

  2. Donations – Equipment, materials, money, or property given to a school or to the school system, without compensation or other consideration, for use in or in conjunction with educational or extracurricular programs or activities with no expectation of return and become the property of the Board.

  3. Emergency Procurement – The awarding of a contract due to a sudden of a serious, urgent, and threatening nature that demands immediate action to avoid termination of essential services or a danger to life, health, safety, or property condition.

  4. Formal Solicitation – A formal invitation to receive quotes, in the form of a request for proposal or an invitation to bid.

  5. Goods – Tangible commodities provided to the Board in exchange for payment.

  6. HCPSS Employee – Any individual who is a permanent or temporary employee of the HCPSS whose compensation is paid in whole or part by the Board, including but not limited to, school-based administrators, teachers, substitute teachers, paraeducators, and other school-based and Central Office support staff.

  7. Intergovernmental Purchase – The acquisition of goods or services from another government agency such as the county, state or other public entities, allowing the school system and other jurisdictions to standardize and share specifications, technical services, and procurement information provided the goods or services meet the desired specifications and prices.

  8. Key Performance Indicator (KPI) – A critical (key) indicator of progress toward an intended result that provides a focus for strategic and operational improvement, creates an analytical basis for decision making, and helps focus on attention on what matters most.

  9. Local Business – A Howard County business with (a) a substantial presence in the County’s geographical boundaries; (b) fully operational for twelve consecutive months and; (c) has a valid business tax certificate.

  10. Memorandum of Understanding (MOU) – For the purposes of this policy this is an agreement between parties often used to clarify terms and may be used as a basis of a future formal contract or deed.

  11. Minority Business – A business that is at least fifty-one percent (51%) owned, operated, and controlled by minority group members, who are citizens of the United States. Controlled means that the minority owner(s) must exercise actual day-to-day management of the business. Minority groups covered by this procedure include African-Americans, Hispanic-Americans, Asian-Americans, and Native American Indians.

  12. Procurement – The process of obtaining goods and/or services.

  13. Procurement Methods – Method by which goods, services, or materials may be acquired, and which are determined by HCPSS Board policy threshold levels.

  14. Purchasing Card – A type of credit/commercial card issued to an individual HCPSS employee, department, or school for making authorized purchases within certain limits.

  15. Purchasing Cooperative – Participation in or use of a contract for goods and/or services that are awarded by other public agencies or by intergovernmental purchasing organizations.

  16. Quotation – A written offer by a supplier that includes the supplier’s name, contact information, brief description of work, associated price and date for delivery or completion of work.

  17. Response – A written or verbal quote, bid, proposal, or offer.

  18. School Activity Funds – All cash funds held in the name of a school including fundraising proceeds, cash donations, funds transferred from the Board, and funds provided to a school not allocated through the Board budget.

  19. Services – The rendering of time, effort, or work rather than the furnishing of a specific physical product. Includes, but is not limited to, the professional, personal, and/or contractual services provided by architects, engineers, attorneys, accountants, physicians, consultants, appraisers, land surveys, and where services are associated with the provision of expertise or labor, or both.

  20. Single Source – A contract for the procurement of goods and/or services entered in which two or more vendors can supply the commodity, technology and/or perform the services required by an agency, but one vendor is chosen over the others because of past and demonstrated experience and/or uniqueness of the service or goods provided. Single source contracts are limited to a 12-month term.

  21. Small, Local, Minority, and Women Owned Business Participation – The inclusion of these business enterprises as either prime or subcontractors in Board contracts.

  22. Small Business – A business that (a) meets the size standard set by the Howard County for small businesses; (b) is an independent business headquartered in Howard County; (c) has a substantial presence within Howard County’s geographic boundaries; (d) is a full operation conducting business for at least 12 consecutive months, and; (e) holds a valid business tax certificate.

  23. SMART Goals – Goals that are specific, measurable, achievable, relevant and time-bound.

  24. Sole Source – A contract for the procurement of goods and/or services entered in which only one supplier can provide the commodity, technology and/or perform the services or provide the goods required. Sole source contracts are limited to a 12-month term.

  25. Solicitation – A requirements document that outlines the procurement process and selection criteria to obtain goods and/or services to be delivered or completed that is formally advertised to the general public.

  26. Solicitation Threshold – The dollar amount if equaled or exceeded, requires a formal solicitation.

  27. Specifications – A clear, complete, and accurate description of the goods and/or services required in a procurement activity.

  28. Supplier – A person or entity providing goods and/or services.

  29. Women Business – A business that is a least fifty-one percent (51%) owned, operated, and controlled by a woman or women, who are citizens of the United States. Controlled means that the woman owner(s) must exercise actual day-to-day management of the business.

VII. References

  • Md. Ann. Code, Education Article, §4-131

  • Md. Ann. Code, Education Article, §5-112

  • Md. Ann. Code, Finance and Procurement Article, §11-203

  • Md. Ann. Code, Finance and Procurement Article, §14-301

  • Md. Ann. Code, State Finance and Procurement, §13-109

C. Relevant Data Sources

D. Other

  • HCPSS Ethics Regulations

  • Procurement Manual

VIII. History

ADOPTED: December 3, 1968

REVIEWED: December 21, 2015

MODIFIED: July 11, 2024

REVISED:

  • June 28, 1990

  • December 13, 2001

  • February 27, 2003

  • December 14, 2006

  • January 13, 2011

  • June 7, 2018

  • June 9, 2022

    EFFECTIVE: July 11, 2024

Policy History Key

  • Adopted-Original date the Board took action to approve a policy
  • Reviewed-The date the status of a policy was assessed by the Superintendent’s Standing Policy Group
  • Modified-The date the Board took action to alter a policy that based on the recommendation of the Superintendent/designee did not require a comprehensive examination
  • Revised-The date the Board took action on a that policy based on the recommendation of the Superintendent/designee needed a comprehensive examination
  • Effective-The date a policy is implemented throughout the HCPSS, typically July 1 following Board action.