August 3, 2017
Procurement means the process of obtaining goods and/or services in accordance with applicable rules and regulations.
Free and Open Competition Fairness and Integrity Responsive and Responsible 3
2 CFR Part 200 o UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS 7 CFR Part 210 o NATIONAL SCHOOL LUNCH PROGRAM 4
Why are they important? Required by regulations Helps to determine procurement methods to be used Identifies parties that will address issues raised Includes a written code of standards of conduct to prohibit conflicts of interest 5
o The school district must have its own documented procurement procedures that conform to all federal, state and local laws. o The school district must have oversight procedures and documentation. o The school district must have written standards of conduct covering conflicts of interest that prohibit officers, employees and agents from soliciting or accepting gratuities, favors or anything of monetary value from contractors or parties of subcontracts. (See Code of Conduct) 6
If there is a parent, affiliate, or subsidiary organization, all must have written standards covering organizational conflicts of interest. The procedures must avoid acquisition of unnecessary or duplicate items. To foster greater economy and efficiency should enter into agreements for common or shared good and services. 7
The district is encouraged to use Federal excess and surplus property. The school district must award contracts only to responsible contractors. The school district must maintain records sufficient to detail the history of procurement. 8
All procurement transactions must be conducted in a manner that provides maximum open and free competition. Procurement procedures must ensure they do not foster noncompetitive practices between firms, do not create organizational conflicts of interest, and do not restrict or eliminate competition. Procurement must not place unreasonable requirements on firms, require unnecessary experience, or establish unrealistic bonding requirements. Cost plus a percentage of purchase is not an allowable system. 9
All procurement procedures must be specific to the district and outline detailed internal controls. Procurement procedures must outline details on how all procurements are handled. Procedures must outline the individual positions are involved and all approval levels. Procedures must detail all solicitation types. Procedures should be approved by the School Board. Procedures must cite specific policies, procedures, regulations, or standards as being in compliance with these requirements and have its system available for review 10
The school district must have written standards of conduct covering conflicts of interest that prohibit officers, employees and agents from soliciting or accepting gratuities, favors or anything of monetary value from contractors or parties of subcontracts. Board Member Employee Ethics 11
The standards of conduct must provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of the non-federal entity. 12
In March, the Illinois Association of School Boards, published examples of these policies in the PRESS Issue 94 Update Memo. For procurement procedures, see the new Board policy 4:60-AP4. For the Code of Conduct recommended changes see the revised 2:100 and 5:120. This is a paid subscription for public school districts from the Illinois Association of School Boards. 13
A copy of your Code of Conduct and your detailed Procurement Procedures must be provided with the Procurement Review documents. Email to nutritionprocurement@isbe.net 14
Call anytime for assistance (800) 545-7892