Purchasing and Bidding

Effective January 1, 2024

The Uniform Guidance (UG) updates from the Federal Office of Management and Budget increased the Micro-purchase procurement method from $3,500 to $10,000 and increased the Small Purchase Procedures threshold from $150,000 to $250,000, effective June 20, 2018. Under UG, non-Federal entities must comply with the more restrictive of Federal, state, and entity-level requirements. The following table outlines the procurement methods to be used for the acquisition of goods and services when using Federal funds.

2024 Bid/Quote Thresholds:

• Bids: $23,200
• Quotes: $12,600

Goods

• Less than $10,000: (Federal) = No Additional Steps Required
• $0 - $12,599: (Local or State) = No Additional Steps Required
• $11,500 - $23,199: (Federal) = 3 Verbal/Written Quotes
• $12,600 - $23,199: (Local or State) = 3 Verbal/Written Quotes
• $23,200 or more: (All)  = Sealed Bid/Competitive Proposal Required

Services (Federal Only)

• Less than $10,000 = No Additional Steps Required
• $10,000 - $250,000 = 3 Verbal/Written Quotes
• Over $250,000  = Competitive Proposal (RFP) Required

Non-Competitive Proposals (Sole Source)

Reason/Documentation to validate non-competitive proposal is required. Must meet one of the following: 

1. Available from only a single source;
2. Public emergency;
3. Expressly authorized pass-through; or
4. Competition is deemed inadequate after solicitation from a number of sources

MUST obtain a statement/letter from the vendor specifying the sole source and complete the district's Sole Source Justification Form. 

Sole Source Justification Form

Administrative Regulation 626 linked below sets forth the procedures and internal controls adopted by Spring Grove Area School District to comply with the requirements of the Office of Management and Budget’s Uniform Grant Guidance (UGG) and the related guidance of the PDE Division of Federal Programs.

AR-626_Administering Federal Funds

The district has received a list of qualified small, minority businesses and women's businesses. When going through the procurement process, CASD staff must take all necessary affirmative steps to assure that minority businesses, women's business enterprises, and labor surplus area firms are used when possible. 

Affirmative steps must include:

1. Placing qualified small and minority businesses and women's business enterprises on solicitation lists;
   
   Small Diverse Business Verification
    
2. Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources;
    
3. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises;
    
4. Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises;
    
5. Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and
    
6. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (b)(1) through (5) of this section.

Following School Board Policy # 611, when funds are available, all purchases contemplated within the current budget and not subject to bid be made in a manner that ensures the best interests of the district.   

• An electronic purchase order system (CSIU), which automatically numbers and controls purchase orders and administrative approval levels shall be utilized.
   
• Every purchase of a product or service made on behalf of the district shall be made by entering a requisition, issued by authority of the appropriate District staff member through CSIU, and approved by the Director of Business Operations.
     
• All requisitions shall include clearly described instructions, descriptions, units, costs, vendor, etc. Items must be coded to the correct general ledger account number. 
   
• The Accounting Services Manager and the Director of Business Operations will check whether the proposed purchase is subject to bid, the accounting is correct, and sufficient funds exist in the budget.
     
• Once approved and converted to a purchase order, three copies of the purchase order are printed: a vendor copy, which is mailed/emailed to the vendor, and partial and full receiving copies, which are held by the initiator of the purchase until the product/service and invoice(s) are received. 
   
• When the order is shipped, the originator of the PO receives the items and confirms items received against the issued PO marking items as received and attaches the packing slip to the back of the PO, and marks the receiving PO as either partial, or Complete.
    
• Copies of partially fulfilled POs are copied, dated, and marked “partial” and sent to the A/P Specialist for payment processing on received items. 
   
• Completed POs are marked as “Complete”, dated, and sent to A/P with packing slips attached. 
   
• The Business Office may refuse to pay for any item that has not been approved in advance of purchase and has not been ordered through the proper purchase order system.
    
• Reimbursement for purchases will not be allowed under any circumstances unless previously approved by the Business Office. If reimbursement is approved, original itemized receipts will be required. If the sales tax is paid by the requestor, it will not be reimbursed.
   
• Gift cards should never be purchased using district funds.
   

Flow chart illustrating the purchase cycle for supplies

The district credit card and procurement cards must be used in accordance with the district procurement procedures. The cards are not to be used to circumvent the standard purchase order process. Before receiving a card, the Director of Business Operations or Accounting Services Manager much approve the employee’s request. The employee will receive training and procedures before receiving their P-Card and it may be revoked for misuse at any time.   

• Enter a requisition into CSIU and select PNC PCard as the vendor. 
   
• If there will be sales tax on the purchase, contact the Accounts Payable Specialist to request a Sales Tax-Exempt Certificate. This must be submitted to the vendor before completing the transaction. 
   
• Upon approval of the purchase, contact the Accounts Payable Specialist to sign out the district credit card or procurement card from the Business Office.
   
• Upon completion of the transaction, return the card, and upload the itemized to the appropriate Teams folder under the Procurement Card folder. 
   
• Log your transaction on the Procurement Card spreadsheet. All sections must be completed.