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TABLE OF CONTENTS 6000 SERIES – SUPPORT SERVICES 6000 Purchase Contract Administration PURCHASE CONTRACT ADMINISTRATION All purchases of equipment, materials and supplies will be made in accordance with all applicable laws and regulations, including Chapter 143 Article 8 of the North Carolina General Statutes, Board policy and any purchasing regulations and procedures. All employees involved in purchasing are expected to be familiar with these requirements. The superintendent, or designee, will ensure that written specifications for desired products are descriptive, clear and incorporate the quality requirements and service needs of the Board. While there is no minimum number of bids, proposals or quotes required for the purchase of apparatus, goods, supplies and equipment, whether formally or informally bid, the superintendent is encouraged to obtain at least two quotes when feasible. Except as otherwise required by law, the Board delegates to the superintendent the authority to award contracts for the purchase of equipment, material and supplies in an amount up to $ 100,000, as long as the purchase is within the remaining funds in the allocated budget for the current fiscal year. The superintendent may seek Board approval for certain expenditures. The finance officer and any additional staff deemed appropriate by the superintendent will review submissions of bids, proposals or quotes to determine if they are responsive to the district’s specifications, and will make recommendations to the superintendent. The superintendent or designee will award the contract based upon such recommendations or will make a recommendation to the Board for award of the contract by the Board in accordance with this policy. Equipment, materials and supplies must be purchased in accordance with the following requirements. Purchases shall not be divided for the purpose of evading any of the requirements of this policy, state law or any regulations adopted by the superintendent for the implementation of this policy. Formal Bidding The purchase of apparatus, supplies, materials or equipment for expenditures of $90,000 or more must be secured through the competitive bid process governed by G.S. 143-129. The superintendent, in consultation with the finance officer, is authorized by the Board to determine the best method for formally bidding a product or, as appropriate, utilizing one of the exceptions to formal bidding as provided below. The finance officer will oversee the use of any purchasing method and will ensure that all statutory requirements are met, including advertisement, sealed bids, maintaining records and public opening of bids. The finance officer shall have the authority to determine if bid bonds are required. The Board authorizes the use of newspaper advertisement, electronic advertisement or both for formal bids; however, the superintendent has the authority to determine which method will be used for a specific purchase or categories of purchases. Awards will be made to the lowest responsible bidder(s) whose bid/proposal meets the requirements and criteria set forth by the Board, taking into consideration quality, performance and the time specified in the proposal for the performance of the contract. All contracts awarded must be in writing. The Board permits the use of the following processes for contracts that require formal bidding. 1. Competitive Sealed Bids – A competitive sealed bid (or invitation to bid) may be used to request the cost of particular goods by providing detailed specifications in advance. 2. Reverse Auction - Pursuant to G.S. 143-129.9(a)(1), the Board may use reverse auctions as an alternative to sealed bid procedures. For purposes of this policy, reverse auction means a real-time purchasing process in which bidders compete to provide goods at the lowest selling price in an open and interactive environment. The superintendent, in consultation with the finance officer, will determine whether reverse auctions are appropriate for a specific purchase or category of purchases. To conduct a reverse auction, the finance officer may use a third party, may use the state’s electronic procurement system or, if appropriate equipment is available, may conduct the auction via school district equipment. 3. Exceptions to Formal Bids – Any of the processes outlined below can be used in lieu of formal bidding, as long as all requirements of state law are met. Informal Bidding The purchase of apparatus, supplies, materials or equipment for expenditures of $5,000 to $90,000 must be secured through or with the written approval of the finance officer using the informal bidding process governed by G.S. 143-131. The superintendent, in consultation with the finance officer, is authorized by the Board to determine the best method for informally bidding a product. The finance officer will oversee the use of any purchasing method and will ensure that all state requirements are met, including maintaining records of all bids submitted. Awards will be made to the lowest responsible bidder(s) whose bid or proposal meets the requirements and criteria set forth by the school district, taking into consideration quality, performance and the time specified in the proposal for the performance of the contract. In the case of identical low bids among two or more responsive and responsible bidders, the finance officer shall, in his or her discretion, make the award believed to be in the best interest of the school system. 1. Competitive Sealed Bids – Informal bid requirements may be met by the use of sealed bids. The finance officer may determine appropriate methods for soliciting sealed bids. The bid specifications will include the time, date and place for opening bids. No advertisement for bids is necessary (unless the formal bid process is used); however, the finance officer may advertise for bids as he/she deems appropriate. 2. Quotations – Informal bid requirements may by met by the solicitation of quotes from prospective vendors. Quotations may be solicited and submitted via fax, email or telephone. Telephone quotes must be placed in writing before a final contract will be awarded. Written quotations must be on the vendor’s letterhead or an official quotation form, and must include an authorized signature. 3. Reverse Auction – A reverse auction may be used to solicit informal bids, consistent with the process provided in formal bidding section. 4. Exceptions to Informal Bids – Any of the processes outlined below as exceptions may be used in lieu of informal bidding, as long as all requirements of state law are met. Purchases below the Informal Bidding Range Purchases for equipment, materials and supplies costing less than $5,000 will be awarded under conditions which foster competition among vendors. Purchase decisions should be made after considering price, quality, suitability for specified need and timeliness of delivery and performance. Two written quotes should be received for each purchase when feasible. Relevant state and school system contracts should be reviewed in assessing whether the Board is receiving the best value. Compliance with this policy shall be documented for purchases between $2,500 and $5,000. The Board reserves the right not to enter into a contract with any supplier or contractor when performance on any previous contract has been found to be unsatisfactory by the superintendent or the Board. Procurement Cards School system procurement cards (charge cards) may be used by designated school officials to purchase equipment, materials and supplies costing less than $5,000. All requirements of state law and Board policy which are applicable to purchases made below the informal bidding range shall be applicable to purchases made with school system procurement cards. Purchases shall not be divided for the purpose of evading any requirements of this policy, state law or any regulations adopted by the superintendent for the use of procurement cards. The superintendent or designee shall designate those department heads and other school officials who will be issued a school system procurement card. Cards shall be used for approved school purposes only. Personal use or unauthorized use of a school system procurement card shall result in revocation of the card and may subject the employee to disciplinary action, legal action, and/or personal liability for purchases made in violation of this policy or any regulations adopted by the superintendent. Electronic Bidding Pursuant to G.S. 143-129.9(a)(2), the school system may receive bids electronically in addition to or instead of paper bids. If electronic bids are used for purchases that must be formally bid, procedures for receipt of electronic bids must be designed to ensure the security, authenticity and confidentiality of the bids to at least the same extent as provided with paper bids. The superintendent, in consultation with the finance officer, will determine whether electronic bidding is appropriate for a specific purchase or category of purchases. Exception to Formal and Informal Bidding Requirements The school system may utilize the following purchasing options instead of pursuing competitive bidding. Formal or informal bidding is not required if any of these processes are used. The finance officer is responsible for gathering information to document the basis for the use of any exceptions to the competitive bidding requirements. The superintendent, in consultation with the finance officer, will determine whether using one of the following exceptions is appropriate for a specific purchase or group of purchases. 1. Purchases from Other Governmental Agencies – Pursuant to G.S. 143-129(e)(3), the school district may contract for the purchase, lease or other acquisition of apparatus, supplies, materials, or equipment from any other federal, state or local governmental agency. 2. Special Emergencies – Pursuant to G.S. 143-129(e)(2), competitive bidding is not required in cases of special emergencies involving the health and safety of people or their property. For an emergency to exist under the statute, the following factors must exist: (1) the emergency must be present, immediate and existing; (2) the harm cannot be averted through temporary measures; and (3) the emergency must not be self-created by the Board. 3. Competitive Group Purchasing – Pursuant to G.S. 143-129(e)(3), the school system may make purchases through a competitive bidding group purchasing program, through which another entity uses a competitive process to establish contracts on behalf of multiple entities at discount prices. 4. State Term Contract – Pursuant to G.S. 143-129(e)(9), the school system may purchase products included in state term contracts with the state vendor for the price stipulated in the state contract, if the vendor is willing to extend the school system the same or more favorable prices, terms and conditions as established in the state contract. 5. Sole Source Items – Pursuant to G.S. 143-129(e)(6), upon approval of the Board, the school system may purchase an item through a single/sole source contract under the following circumstances: (1) when performance or price competition is not available; (2) when a needed product is available from only one source of supply; or (3) when standardization or compatibility is the overriding consideration. When requesting a purchase under the sole source exception, the finance officer will provide the Board with documentation that justifies the use of the exception. 6. “Piggybacking” or Previously Bid Contracts – Pursuant to G.S. 143-129(g), upon approval of the Board, the school system may purchase from any supplier that, within the previous 12 months, has contracted to furnish the needed item to the federal government, to any state government, or to any agency or political subdivision of the federal government or any state government. Before recommending a purchase using the piggybacking exception, the finance officer will ensure that the following requirements are met: (1) the price and other terms and conditions of the contract are at least as favorable as the prior contract; (2) the contract was entered into following a public, formal bid process substantially similar to that required by North Carolina General Statutes; (3) the same vendor is used; and (4) notice of intent to award the contract without bidding is publicly advertised at least 10 days prior to the regularly-scheduled Board meeting at which the contract will be approved. Before approving the contract, the Board must determine that using the contract is in the best interest of the school system. 7. Purchases of Information Technology Goods and Services – Pursuant to G.S. 143-129(e)(7), the school system may purchase or lease information technology through contracts established by the State Office of Information Technology Services. The finance officer will work with the information technology department to ensure that any such purchases meet the needs of the school system. In addition, the school system also may purchase information technology goods and services by using a request for proposal (RFP) pursuant to G.S. 143-129.8, provided that the following requirements are met: (1) notice of the request is provided consistent with the formal bidding notice requirements and (2) contracts are awarded to the person or entity that submits the best overall proposal as determined by the finance officer and superintendent. The RFP should describe the scope of work, general terms and conditions, specifications of the product needed by the school system, and the application process. RFPs will be evaluated using the “best value” method as defined in G.S. 143-135.9(a)(1), so that the school system can select the most appropriate technological solution to meet the Board’s objectives. However, in situations where the finance officer considers the purchase to be highly complex or is unable to clearly determine what the optimal solution for the school system is, the “solution-based solicitation” or “government-vendor partnership” method may be used. The finance officer may negotiate with the proposer to obtain a final contract that meets the best needs of the school system, as long as the alterations based on such negotiations do not deprive proposers or potential proposers of the opportunity to compete for the contract and do not result in the award of the contract to a different person or entity than it would have been if the alterations had been included in the RFP. 8. Gasoline, Fuel and Oil Purchases – Pursuant to G.S. 143-129(e)(5), the school system may purchase gasoline, fuel and oil products without using formal competitive bidding. However, such purchases are subject to the informal bidding requirements provided above. 9. Used Products – Pursuant to G.S. 143-129(e)(10), the school system may purchase previously used apparatus, supplies, materials or equipment without using formal competitive bidding. 10. Instructional Materials – Pursuant to G.S. 115C-522(a), the formal or informal requirement shall not be required for the purchase of published books, manuscripts, maps, pamphlets, and periodicals.
E-procurement Requirements As required by law, the Board will use the North Carolina Electronic Procurement (“e-procurement”) system to facilitate the electronic purchase of goods and services. School system personnel will comply with standards established by the State Board of Education so that the school system can become e-procurement compliant. As of July 1, 2004, the finance officer shall ensure that the school system expends at least 30 percent of its remaining unencumbered funds for that fiscal year to purchase supplies, equipment, materials, computer software and other tangible personal property through the state’s e-procurement system. For the following two fiscal years, the school system must utilize 35 percent of funds in the first year and 40 percent of funds in the second year to purchase through the e-procurement system. Lease Purchase Contracts and Other Contracts Financed over Time Lease purchase contracts, contracts that include options to purchase, and leases for the life of equipment all must be bid consistent with the requirements of G.S. 143-129 and 143-131. The finance officer will ensure that such contracts meet the legal requirements of G.S. 115C-528 and the provisions of Board policy. Use of School System Term Contracts The school system may create and use term contracts for items that are routinely purchased by the school system. If the estimated expenditure for a routine item under the term contract exceeds $90,000, the contract must be formally bid. If the estimated expenditure is between $5,000 and $90,000, the contract must be informally bid. The finance officer may incorporate the use of a term contract in the bidding specifications. If term contracts are used, the contracts will be created and/or reviewed by the Board attorney, in consultation with the finance officer. Historically Underutilized Businesses The Board affirms the state’s commitment to encourage the participation of historically underutilized businesses in purchasing functions. The Board will comply with all legal requirements and policy standards. Reporting The superintendent or designee shall provide to the Board a quarterly information report of purchases in excess of one hundred thousand dollars ($100,000). Regulations and Procedures The superintendent shall develop regulations and procedures for the implementation of this policy. LEGAL REF: G.S. 115C-522; ch.143, article 8; 143-129, -129.9, -131, -133, -135.9 PURCHASE CONTRACT ADMINISTRATION – REGULATIONS Procedure for all Purchase Contracts: 1. Purchase contracts, as used herein, shall include purchase orders and contracts used to obtain supplies, materials, and equipment. 2. All requirements of Board policy 6000 shall be followed. Purchase contracts shall not be divided for the purpose of evading any of the requirements of the policy, these regulations, or state law. 3. All purchase contracts shall receive pre-audit certification from the finance officer in accordance with the School Budget and Fiscal Control Act. 4. Purchasing Authority. Purchase order requisitions and contracts, excluding lease-purchase and installment purchase contracts, shall be executed in accordance with the following: A. Purchase contracts for purchases in an amount less than ten thousand dollars ($10,000.00) may be approved and executed by principals and directors when the purchase amount is within the remaining funds in the allocated budget for the fiscal year. B. Purchase contracts for purchases in an amount less than ninety thousand dollars ($90,000) may be approved and executed by the superintendent or designee when the purchase amount is within the remaining funds in the allocated budget for the fiscal year. To the extent permitted by law, all aspects of the purchasing process shall be open and available for public scrutiny. 5. Reporting. Each individual authorized to approve and execute purchase contracts shall provide a list of all purchases in excess of ten thousand dollars ($10,000) to the finance officer at the beginning of each month. LEGAL REF: G.S. 115C-522; ch. 143, article 8; 143-129, -129.9, -131, -133, -135.9
PURCHASE ORDERS AND CONTRACTS All purchases of goods, services, and equipment costing more than $500.00 for which the school system will be responsible for payment shall be made on official purchase orders, properly approved and executed. Unauthorized purchase contracts are illegal and may be the personal responsibility of the individual(s) establishing the contract. Creditors shall be on notice that purchase contracts made without proper authorization by designated school system officials shall not be honored. LEGAL REF: G.S. 115C-47, -440, -441 ADOPTED: February 12, 2007 VENDOR RELATIONS In all procurement activities, employees and agents of the Board shall: A. Consider first the interests of the school system and the improvement of its educational program; B. Endeavor to obtain the greatest value for every dollar spent; C. Give all responsible bidders equal consideration and assurance of unbiased judgment in determining whether their products meet specifications and the educational needs of the school system; D. Discourage the offer of and decline personal gifts of more than nominal value from vendors or potential vendors; E. Refrain from soliciting funds or material from vendors for personal purposes, however worthy the purpose; and No employee of the Board shall have any pecuniary interest, either directly or indirectly, proximately or remotely in supplying any goods, wares or merchandise of any nature or kind whatsoever for any school, or act as an agent for any manufacturer, merchant, dealer, publisher or author for any article of merchandise to be used by any school as required by state statute. ADOPTED: February 12, 2007
SPECIFICATIONS The superintendent or designee shall have the authority to review, modify, and approve bid specifications. To provide a common basis for bidding, specifications should designate the essential characteristics of the items or services being purchased. The quality standards for goods and services shall be established by the superintendent or designee based on input from teachers, principals, and administrators of the respective areas. The basic criteria in determining quality shall be the intended purpose for the material or equipment, the results to be obtained, and the required characteristics. Additional factors are availability, standardization of product, manufacturer practices, and standardization of packaging for the desired material. Specifications shall not be prepared in such a manner as to eliminate competitive bidding. All architects, engineers, designers, or draftsmen, when directly or indirectly providing design services or writing specifications for school system projects, shall strictly adhere to the requirements of G.S. 133-3. LEGAL REF: G.S. 115C-521, -522, -524; 133-3; 143-48 to 63.1, -129, -131 ADOPTED: February 12, 2007 BIDDING FOR CONSTRUCTION OR REPAIR WORK Informal Informal bids shall be obtained for construction and repair contracts between $5,000 and $300,000. Quotations from contractors may be solicited by telephone or written quotes. Informal bids are recommended, but not required, for construction and repair work costing less than $5,000. Contracts involving expenditures exceeding $100,000 must receive prior approval from the Board. See Board Policy 6000, Purchase Contract Administration, for procedures governing expenditures less than $100,000. All contracts for construction or repair work costing less than $300,000 shall comply with the requirements of state law. Dividing contracts to evade the informal bidding requirements is prohibited. The standards for awarding informal contracts are the same as those standards for formal ones. Such contracts shall be awarded to the lowest responsible bidder, considering quality and the time specified in the bids for performance on the contract. Records of all informal bids shall be kept by the initiator of the purchase requisition for the time required by statute or regulation and shall be available to public inspection. Such records should include the date the bid is received, from whom it is received, and for what project. If an award is made to other than the low bidder, the reasons for such an award should be thoroughly documented. Formal Construction and repair work requiring the estimated expenditure in excess of $300,000 shall be bid using formal bidding procedures in accordance with state law. Dividing contracts to evade these requirements is prohibited. All construction or repair contracts which require public advertising and competitive bidding shall be awarded by action of the Board upon the recommendation of the superintendent or designee. Regulations The superintendent shall develop regulations and procedures for the implementation of this policy. LEGAL REF: G.S. 115C-521, -524; 143-128 to -135 ADOPTED: February 12, 2007
MINORITY BUSINESS ENTERPRISE PARTICIPATION IN CONSTRUCTION AND PURCHASE CONTRACTS POLICY It is the policy of the Cleveland County Board of Education to provide minorities equal opportunity to participate in all aspects of the school system’s contracting and purchasing programs, including but not limited to participation in procurement contracts for materials, supplies and equipment, and contracts for the construction, renovation or repair of school facilities and equipment. It is further the policy of the Board to prohibit discrimination against any person or business enterprise on the basis of race, color, ethnic origin, sex, handicapping condition, or religion and to conduct its contracting and purchasing programs so as to prevent such discrimination. It is the policy of the Board in concert with other local, state and federal agencies and with the assistance of minority groups and agencies, actively to seek and identify qualified minority business enterprises (MBEs) and to offer them the opportunity to participate, and to encourage them to participate, in the school system’s contracting and purchasing programs. Under this policy, the Board adopts the definition of MBEs contained in G.S. 143-128.2. It is not the policy of this Board to provide information or other opportunities to minority business enterprises that will not be available to all other business enterprises. It is the intent of this policy to establish procedures designed to assure MBEs access to information and opportunities available to other business enterprises. It is not the intent of this policy to establish procedures that will increase the cost of the school system’s construction and purchasing programs. It is the intent of this policy to widen opportunities for participation, to increase competition, and to reduce costs. The Board will award public building contracts without regard to race, religion, color, creed, national origin, sex, age, or handicapping condition, as defined in G.S. 168A-3. The Board will award contracts to the lowest responsible, responsive bid. A. Construction or Repair Projects Where the Project Cost is Equal to or in Excess of Three Hundred Thousand Dollars ($300,000). The Board shall have a verifiable goal of ten percent (10%) for participation by minority businesses in building construction and repair projects covered by this section. These projects shall be bid strictly in accordance with G.S. 143-128 and -129. The school system shall require bidders on school construction and renovation projects to provide documentation demonstrating that they have met the verifiable goal for participation by minority business or that they have made good faith efforts to do so as specified in the accompanying regulations and in G.S. 143-128.2. Data generated pursuant to this section shall be reported to the Department of Administration, Office of Historically Underutilized Business, as required by G.S. 143-128.3(a). Construction or Repair Projects Using State Appropriations or Other State Grant Funds Where the Project Cost is Equal to or Greater than One Hundred Thousand Dollars ($100,000). The Board shall use the State’s verifiable goal of ten percent (10%) for participation by minority business in building construction and repair projects covered by this section. C. Purchase of Equipment and Materials Through State Purchase and Contract. The school system shall continue to follow State Division of Purchase and Contract’s guidelines for MBE participation and reporting procedures. D. When The Board May Let Contracts On Informal Bids Greater Than $5,000 But Less Than Three Hundred Thousand Dollars ($300,000). The school system shall solicit minority participation in the contracts for the erection, construction, alteration or repair of any building covered by this section. The school system shall maintain a record of contractors solicited and shall document efforts to recruit minority business participation in those contracts. Nothing in this section shall be construed to require formal advertisement of bids. The data generated pursuant to this section shall be reported to the Department of Administration, Office for Historically Underutilized Business, as required by G.S. 143-131(b). E. Regulations and Procedures. The superintendent shall develop regulations and procedures for implementation of this policy. LEGAL REF: G.S. 115C-522; 143-48 to -63.1, -128, -128.2, -129 ADOPTED: February 12, 2007
REGULATIONS AND PROCEDURES FOR IMPLEMENTING MINORITY BUSINESS ENTERPRISE PARTICIPATION POLICY - REGULATIONS I. Definitions. A. Minority Business (MBE) - A business: 1. In which at least fifty-one percent (51%) is owned by one or more minority persons or socially and economically disadvantaged individuals, or in the case of a corporation, in which at least fifty-one percent (51%) of the stock is owned by one or more minority persons or socially and economically disadvantaged individuals, and 2. Of which the management and daily business operations are controlled by one or more of the minority persons or socially and economically disadvantaged individuals who own it. B. Minority Person - A person who is a citizen or lawful permanent resident of the United States, and who is: 1. Black, that is, a person having origins in any of the black racial groups in Africa; 2. Hispanic, that is, a person of Spanish or Portuguese culture with origins in Mexico, South or Central America, or the Caribbean Islands, regardless of race; 3. Asian American, that is, a person having origins in any of the original peoples of the Far East, Southeast Asia , Asia, the Indian subcontinent, or the Pacific Islands; 4. American Indian or Alaskan Native, that is, a person having origins in any of the original peoples of North America; or 5. Female. C. Socially and Economically Disadvantaged Individual - A person as defined in 15 U.S.C. § 637. II. Owner Responsibilities for Construction and Repair Projects Equal to or Greater Than Three Hundred Thousand Dollars ($300,000). The school system, when soliciting bids under the provisions of G.S. 143-128, shall perform the following acts: A. The school system shall designate a contact person who shall compile a list of minority businesses within the bidding area, using information obtained from the Office of Historically Underutilized Businesses, or from other institutions or agencies providing such information. This list shall be updated on a quarterly basis and shall be open for inspection and shall be available so that minority businesses will have the opportunity to add their names to the list. B. During the design stage, each project shall be reviewed to determine if it would be practical, feasible and legal to divide the project into separate contracts that might increase the opportunity for MBE bidders. C. At least ten days prior to the scheduled day of bid opening, notice of each project and invitations to bid shall be sent to MBEs that have requested notices from the school system for public construction or repair work, and to MBEs that otherwise indicated to the Office of Historically Underutilized Businesses an interest in the type of work being bid or the potential contracting opportunities listed in the proposal. Each notice shall include the following: (a) a description of the work for which the bid is being solicited; (b) the date, time, and location where bids are to be submitted; (c) the name of the individual within the public entity who will be available to answer questions about the project; (d) where bid documents may be reviewed; (e) any special requirements that may exist; and (f) notice of the date, time, and location of the prebid conference. D. A prebid conference shall be held for each project. A school system representative shall attend the scheduled prebid conference. E. During the advertising period of a project, the contact person shall be responsible for answering project-related questions MBEs might have. F. For each project, documents related to the contract shall be available for inspection at a convenient and accessible location. MBEs shall receive notice of the location of the documents as part of the invitation to bid specified in paragraph C above. G. All prime and subcontractors shall be allowed to obtain a copy of a complete set of Drawings and Specifications by providing a refundable deposit to the school system. Deposits will be refunded in accordance with school system procedures. H. For each building contract put out for bids under G.S. 143-128, published notice of the contract shall include a statement that all contractors submitting bids will be required to provide either (1) an affidavit that includes a description of the portion of work to be executed by minority businesses, expressed as a percentage of the total contract price, which is equal to or more than the applicable goal or (2) documentation of its good faith effort to meet this goal that was identified in the bid, including any advertisements, solicitations, and evidence of other specific actions demonstrating recruitment and selection of minority business for participation in the contract. Failure to file the required affidavit or documentation that demonstrates that the contractor made the required good faith effort is grounds for rejection of the bid. I. For each building contract put out for bids pursuant to G.S. 143-128, a copy of the Board’s MBE policy will be included in the materials provided to all contractors. J. For each building contract put out for bids, the Board or the Board’s designee shall utilize other media, as appropriate, likely to inform potential MBEs of the bid being sought. III. Contractor Responsibilities for Construction and Repair Projects Equal to or Greater Than Three Hundred Thousand Dollars ($300,000). A. Each bidder, including first-tier subcontractors for construction manager at risk projects, shall identify on its bid the minority businesses that it will use on the project and an affidavit listing the good faith efforts it has made pursuant to G.S. 143-128.2(f) and the total dollar value of the bid that will be performed by the minority businesses. A contractor, including a first-tier subcontractor on a construction manager at risk project that performs all of the work under a contract with its own workforce, may submit an affidavit to that effect in lieu of the affidavit otherwise required under this subsection. The apparent lowest responsible, responsive bidder, within 3 business days of the bid opening, shall also provide either (1) an affidavit that includes a description of the portion of work to be executed by minority businesses, expressed as a percentage of the total contract price, which is equal to or more than the applicable goal or (2) documentation of its good faith effort to meet the goal that was identified in the bid, including any advertisements, solicitations, and evidence of other specific actions demonstrating recruitment and selection of minority businesses for participation in the contract. Failure to file the required affidavit or documentation that demonstrates that the contractor made the required good faith effort is grounds for rejection of the bid. B. Bidder(s) on the Board’s building projects shall undertake the following good faith efforts to recruit minority businesses to the extent required by G.S. 143-128.2 and shall provide documentation to the Board that they have performed these efforts achieving at least 50 points: 1. (10 points) Contacting minority businesses that reasonably could have been expected to submit a quote and that were known to the contractor or available on State or local government maintained lists at least ten days before the bid or proposal date and notifying them of the nature and scope of the work to be performed. 2. (10 points) Making the construction plans, specifications and requirements available for review by prospective minority businesses, or providing these documents to them at least ten days before the bid or proposals are due. 3. (15 points) Breaking down or combining elements of work into economically feasible units to facilitate minority participation. 4. (10 points) Working with minority trade, community, or contractor organizations identified by the Office of Historically Underutilized Businesses and included in the bid documents that provide assistance in recruitment of minority businesses. 5. (10 points) Attending any prebid meetings scheduled by the Board. 6. (20 points) Providing assistance in getting required bonding or insurance or providing alternatives to bonding or insurance for subcontractors. 7. (15 points) Negotiating in good faith with interested minority businesses and not rejecting them as unqualified without sound reasons based on their capabilities. Any rejection of a minority business based on lack of qualification should have the reasons documented in writing. 8. (25 points) Providing assistance to an otherwise qualified minority business in need of equipment, loan capital, lines of credit, or joint pay agreements to secure loans, supplies, or letters of credit, including waiving credit that is ordinarily required. Assisting minority businesses in obtaining the same unit pricing with the bidder’s suppliers in order to help minority businesses in establishing credit. 9. (20 points) Negotiating joint venture and partnership arrangements with minority businesses in order to increase opportunities for minority business participation on a public construction or repair project when possible. 10. (20 points) Providing quick pay agreements and policies to enable minority contractors and suppliers to meet cash-flow demands. . Within 30 days after the award of the contract, the contractor shall provide to the school system’s designated representative a list of all identified MBE subcontractors that the contractor will use on the project. D. Failure to comply with procedural requirements as defined in the contract documents may render the bid as nonresponsive and may result in rejection of the bid and award to the next lowest responsible and responsive bidder. E. During the construction of a project, if it becomes necessary to replace an MBE subcontractor, the prime contractor shall advise the owner. No MBE subcontractor may be replaced with a different subcontractor except (1) if the subcontractor’s bid is later determined by the contractor or construction manager at risk to be nonresponsible or nonresponsive, or the listed subcontractor refuses to enter into a contract for the complete performance of the bid work or (2) with the approval of the Board for good cause. Good faith efforts as set forth in G.S. 143-131(b) shall apply to the selection of a substitute subcontractor. Prior to substituting a subcontractor, the contractor shall identify the substitute subcontractor and inform the Board or its designee of its good faith efforts pursuant to G.S. 143-131(b). F. If during the construction of a project additional subcontracting opportunities become available, the prime contractor shall make a good faith effort to solicit sub-bids from MBEs. IV. Procedures for Monitoring Contractor Compliance. For any building contract put out for bids pursuant to G.S. 143-128, the contact person shall maintain records with respect to: A. Those contractors notified of the project and the number that are minority businesses; B. Those contractors that bid or otherwise respond to notice of the project and the number that are minority businesses; C. The prime contractors awarded contracts for the project and the number and identity of those that are minority businesses; D. The subcontractors awarded contracts for the project and the number and identity of those that are minority businesses; and E. The percentage of work on the project that was performed by minority businesses as reported by the prime contractor(s) awarded the bid. V. Complaint Procedures. A. Any alleged violations of the provisions of this MBE plan by any party should be reported in writing to the superintendent or designee. B. The superintendent or designee shall review all facts available and respond in writing. Unresolved complaints shall be presented to the Board. The decision rendered by the Board will be final. VI. Record Keeping. The superintendent or designee shall keep all public records created pursuant to these regulations and the Minority Business Enterprise Participation in Construction and Purchase Contracts Policy for a period of not less than three years from the date of the completion of the building project. State of North Carolina AFFIDAVIT A County of _________________ Listing of the Good Faith Effort The below-signed company has made a good faith effort to recruit minority businesses in accordance with G.S. 143-128.2 and represents that it has performed the following efforts (check all that apply - a minimum of 50 points must be achieved to meet statutory good faith efforts): ____ Contacted minority businesses that reasonably could have been expected to submit a quote and that were known to the contractor, or available on State or local government maintained lists, at least 10 days before the bid or proposal date and notified them of the nature and scope of the work to be performed. (10 points) ____ Made the construction plans, specifications and requirements available for review by prospective minority businesses, or provided these documents to them at least 10 days before the bids or proposals are due. (10 points) ____ Broke down or combined elements of work into economically feasible units to facilitate minority participation. (15 points) ____ Worked with minority trade, community, or contractor organizations identified by the Office of Historically Underutilized Businesses and included in the bid documents that provide assistance in recruitment of minority businesses. (10 points) ____ Attended prebid meetings scheduled by the public owner. (10 points) ____ Provided assistance in getting required bonding or insurance or provided alternatives to bonding or insurance for subcontractors. (20 points) ____ Negotiated in good faith with interested minority businesses and did not reject them as unqualified without sound reasons based on their capabilities. Any rejection of a minority business based on lack of qualification should have the reasons documented in writing. (15 points) ____ Provided assistance to an otherwise qualified minority business in need of equipment, loan capital, lines of credit, or joint pay agreements to secure loans, supplies, or letters of credit, including waiving credit that is ordinarily required. Assisted minority businesses in obtaining the same unit pricing with the bidder’s suppliers in order to help minority businesses in establishing credit. (25 points) ____ Negotiated joint venture and partnership arrangements with minority businesses in order to increase opportunities for minority business participation on a public construction or repair project when possible. (20 points) ____ Provided quick pay agreements and policies to enable minority contractors and suppliers to meet cash flow demands. (20 points) IDENTIFICATION OF MINORITY BUSINESS PARTICIPATION SCHEDULE
In accordance with G.S. 143-128.2, the undersigned will enter into a formal agreement with the firms listed in the above Identification of Minority Business Participation Schedule conditioned upon execution of a contract with the Owner. The failure to abide by this statutory provision shall constitute a breach of the construction contract. The undersigned hereby certifies that he or she has read this affidavit and the information contained herein is true and accurate. The undersigned further certifies that he or she is authorized to bind the bidder to the commitment herein set forth. Date:__________ Name of Company: ___________________________________________ Name/Title Authorized Officer:__________________________________
Signature:___________________________________________________
SEAL State of North Carolina, County of _______________________________ Subscribed and sworn to before me this _____ day of _____, __________. Notary Public________________________________________________ My commission expires: ____________________________________
DISPUTE RESOLUTION POLICY FOR CONSTRUCTION AND REPAIR CONTRACTS The Cleveland County Board of Education establishes this dispute resolution system to facilitate the prompt and fair resolution of disputes with amounts in controversy in excess of $15,000 arising between or among any parties involved in the school system’s construction and repair projects (including the school system, the architect, the construction manager, the contractors, and the first-tier and lower-tier subcontractors) on claims arising out of the contract or construction process in accordance with G.S. 143-128(f1). The Board strives to resolve disputes without animosity between or among parties. To this end, the architect’s review followed by mediation as necessary or desired shall be preconditions to litigation of any dispute covered by this policy. In no event shall the Board be subject to arbitration proceedings pursuant to this policy. The superintendent or designee shall adopt regulations to implement this policy. LEGAL REF: G.S. 143-128(f1) ADOPTED: February 12, 2007
REGULATIONS IMPLEMENTING THE DISPUTE RESOLUTION POLICY FOR CONSTRUCTION AND REPAIR CONTRACTS The following regulations are applicable to the resolution of disputes with amounts in controversy in excess of $15,000 arising between or among any parties involved in the school system’s construction and repair projects (including the school system, the architect, the construction manager, the contractors, and the first-tier and lower-tier subcontractors) on claims arising out of the contract or construction process. In no event shall the Owner be subject to arbitration proceedings pursuant to the Dispute Resolution Policy or these regulations. Unless otherwise specified, if there is any conflict between the Policy or these Regulations and the Contract Documents, the terms of the Policy and these Regulations control. A. Definition. A Claim is a demand or assertion by one of the parties seeking, as a matter of right, adjustment or interpretation of Contract terms, payment of money, extension of time or other relief with respect to the terms of the Contract. The term “Claim” also includes other disputes and matters in question between the parties to a Contract involved in the school system’s construction and repair projects arising out of or relating to the Contract or the construction process. Claims must be initiated by written notice. The responsibility to substantiate Claims shall rest with the party making the Claim. B. Resolution of Claims and Disputes. 1. Claims, including those alleging an error or omission by the Architect, shall be referred initially to the Architect for decision. A final decision by the Architect shall be required as a condition precedent to mediation or litigation of all Claims by a contractor arising prior to the date final payment is due. The Architect will initially decide disputes between any or all parties involved in the school system’s construction projects. 2. The Architect will review Claims and within twenty days of the receipt of the Claim take one or more of the following actions: (1) request additional supporting data from the claimant or a response with supporting data from the other party, (2) reject the Claim in whole or in part, (3) approve the Claim, (4) suggest a compromise, or (5) advise the parties that the Architect is unable to resolve the Claim if the Architect lacks sufficient information to evaluate the merits of the Claim or if the Architect concludes that it would be inappropriate for the Architect to resolve the Claim. 3. In evaluating Claims, the Architect may, but shall not be obligated to, consult with or seek information from either party or from persons with special knowledge or expertise who may assist the Architect in rendering a decision. 4. If the Architect requests a party to provide a response to a Claim or to furnish additional supporting data, such party shall respond, within ten days after receipt of such request, and shall either provide a response on the requested supporting data, advise the Architect when The response or supporting data will be furnished or advise the Architect that no supporting data will be furnished. Upon receipt of the response or supporting data, if any, the Architect will either reject or approve the Claim in whole or in part. 5. The Architect will approve or reject Claims by written decision, which shall state the reasons therefor and which shall notify the parties of any change in the Contract Sum or Contract Time or both. The approval or rejection of a Claim by the Architect shall be final and binding on the parties but subject to mediation. 6. When a written decision of the Architect states that the decision is final but subject to mediation, then a demand for mediation of a Claim covered by such decision must be made within 30 days after the date on which the party making the demand receives the final written decision. Any failure to demand mediation within said 30 days’ period shall result in the Architect’s decision becoming final and binding upon the parties. 7. Upon receipt of a Claim against the Contractor or at any time thereafter, the Architect or the Owner may, but is not obligated to, notify the surety, if any, of the nature and amount of the Claim. If the Claim relates to a possibility of a Contractor’s default, the Architect or the Owner may, but is not obligated to, notify the surety and request the surety’s assistance in resolving the controversy. 8. If a Claim relates to or is the subject of a mechanic’s lien, the party asserting such Claim may proceed in accordance with applicable law to comply with the lien notice or filing deadlines prior to resolution of the Claim by the Architect, by mediation or by arbitration. 9. If the Architect deems that a Claim is valid, the Architect shall require all parties to the dispute to share the cost of the Architect’s review equitably. If the Architect deems that a Claim is invalid, the Architect shall require the complaining party to bear the cost of the Architect’s review. In any event, the Architect may require the complaining party to submit a deposit equivalent to the Architect’s hourly rate multiplied by the amount of time the Architect estimates, in the Architect’s sole discretion, that will be necessary to review the Claim. The Architect shall return any unused portion of this initial deposit to the complaining party following the Architect’s completion of the Architect’s review of the Claim. Nothing in these regulations shall entitle the Architect to compensation for additional services from the Owner that is not authorized pursuant to the terms of the Owner-Architect Agreement. C. Time Limits on Claims. Claims not involving the Owner or Architect must be initiated within 30 days after occurrence of the event giving rise to such Claim or within 30 days after the claimant first recognizes the condition giving rise to the Claim, whichever is later. Claims involving the Owner or Architect shall be filed in strict conformance with the Contract documents. Nothing in the policy or these regulations and procedures shall extend the period within or the manner in which claims against the Owner or Architect must be submitted. Claims must be initiated by written notice to the Architect and the other party. Any Claim that is not initiated within the applicable time period is waived.
D. Continuing Contract Performance. Pending final resolution of a Claim, the Contractor shall proceed diligently with performance of the Contract, unless instructed otherwise in writing by the Owner. E. Mediation. 1. Any Claim arising out of or related to a contract or the construction process on the school system’s construction or repair projects, except those waived Claims shall, after a final decision by the Architect, be subject to mediation as a condition precedent to the institution of legal proceedings by any contractor. 2. The parties shall endeavor to resolve their Claims by mediation which, unless the parties mutually agree otherwise, shall be in accordance with rules established by the Owner. 3. The parties shall share the mediator’s fee and any filing fees equally. The mediation shall be held in the place where the Project is located, unless another location is mutually agreed upon. Agreements reached in mediation shall be enforceable as settlement agreements in any court having jurisdiction thereof. ANNOUNCEMENTS FOR CERTAIN SERVICES The Cleveland County Board of Education shall announce requirements for service contracts when required by state law or when it is in the best interest of the school system to do so. Announcements shall be publicized to provide an equal opportunity for all businesses. Services which must be announced include architectural, engineering, surveying and construction management at risk services. LEGAL REF: G.S. 143-64.31 ADOPTED: February 12, 2007 FACILITY EXPANSION PLANNING AND LONG-RANGE NEEDS The Cleveland County Board of Education recognizes the significance of providing school facilities that enhance the district’s educational program. To assure a comprehensive approach to projecting and planning needs, the Board and the superintendent shall draw collaboratively upon a wide range of resources which may include the area utility, commercial, industrial and governmental entities, as well as the district staff, educational consultants and citizens of the community in various phases of the planning process. LEGAL REF: G.S. 115C-521 ADOPTED: February 12, 2007 FACILITY DESIGN The Cleveland County Board of Education is committed to the design of new and renovated facilities in a manner that maximizes the use of space, conserves environmental resources, and produces structurally sound and safe buildings. All school buildings should be designed to create safe, orderly and inviting learning environments where students can succeed. 1. The superintendent or designee may employ the services of outside professionals, including architects and other consultants, for the design and construction of new buildings or renovations to existing buildings for projects approved by the Board. The design of all new buildings shall comply with all state and local laws, rules and regulations and the guidelines issued by the State Board of Education. The superintendent or designee shall submit the required cost and feasibility information and the plans and specifications for the construction of new buildings to the State Board for its review and comments in accordance with G.S. 115C-521(c). The superintendent or designee, in consultation with an architect or other design professional, shall review the plans based upon a consideration of the State Board’s comments. The superintendent or designee shall consider the State Board’s review of facility plans conducted pursuant to G.S. 115C-521(c) and will specifically address any concerns noted by the State Board before the Board invests any money in the construction of any new building. 2. All contracts for design and construction will be reviewed by the Board’s attorney before consideration by the Board. 3. The Board shall approve all designs for new facilities and major renovations. LEGAL REF: G.S. 115C-521 ADOPTED: February 12, 2007
DISPOSITION OF SCHOOL PROPERTY Real Property When the Board finds that any building site or other real property owned or held by the Board is no longer suitable or necessary for public school purposes, the superintendent or designee shall determine the fair market value of the property, which may include soliciting offers to purchase the property. After the Board has determined the value of the property, the Board will offer the Board of County Commissioners the first opportunity to obtain the property at a fair market price or price negotiated between the two Boards. If the Board of County Commissioners does not choose to obtain the property, the Board may dispose of the property as provided by law. The Board shall comply with all statutory requirements governing the disposal of property, including resolution and notice requirements. Personal Property Personal property, including products generated by vocational education, may be disposed of by the school system in accordance with state law and regulation or through the facilities of the North Carolina Department of Administration. A. Property valued under five thousand dollars ($5,000): The superintendent or designee is authorized to declare as surplus personal property owned by the Board that is valued at less than five thousand dollars ($5,000) for any one item or group of similar items, to set the property’s fair market value, and to convey title to the property for the Board. The superintendent or designee shall choose a method of disposal designed to obtain a fair market value for the property in the most efficient and economical manner possible. The disposal of the property may be achieved through public or private exchange or sale or by any other method allowed by law. The superintendent or designee shall keep a written record of such sales generally describing the property sold or exchanged, to whom it was sold or with whom it was exchanged, and the amount of money or other consideration received for each sale or exchange B. Property valued at less than thirty thousand ($30,000): Personal property valued at less than thirty thousand dollars ($30,000) for any one item or group of similar items may be disposed of through private negotiation and sale or by any other method allowed by law, including advertisement for sealed bids; negotiated offer, advertisement, and upset bids; public auction; or exchange as outlined in Chapter 160A, Article 12 of the North Carolina General Statutes. Except as authorized in section A above, regardless of the method of sale, the Board must first determine that the property is no longer necessary or desirable for school use. The Board shall comply with all statutory requirements governing the disposal of property, including resolution and notice requirements. C. Personal property valued at thirty thousand dollars ($30,000) or more: Personal property valued at thirty thousand dollars ($30,000) or more for any one item or group of similar items may not be sold by private negotiation and sale. Such property may be disposed of by the Board through advertisement for sealed bids; negotiated offer, advertisement, and upset bids; public auction; or exchange as outlined in Chapter 160A, Article 12 of the North Carolina General Statutes after a determination by the Board that the property is no longer necessary or desirable for school use. The Board shall comply with all statutory requirements governing the disposal of property, including resolution and notice requirements. D. Property that may be discarded: The Board may discard any personal property that is determined to have no value, remains unsold or unclaimed after the Board has exhausted efforts to sell the property using the procedures as provided by state law, or that poses a potential threat to public health or safety. Textbooks Textbooks which have been replaced by newer textbook adoption may be disposed of by sale, gift, or exchange. Disposal of textbooks by sale or exchange shall be conducted as for disposal of personal property, in accordance with this policy. Textbooks disposed of by gift may be given as follows: a. Sets of textbooks may be placed in classrooms for use as supplementary or reference texts. b. Textbooks may be taken apart by teachers or school-related organizations to create instructional materials for individual student or class use. c. Textbooks may be given in small quantities to individual students to use as resource materials. d. Textbooks may be given to community or civic groups who do or will offer tutorial services. e. Textbooks may be given to hospitals, rest homes, etc. for adult libraries or adult education. f. Textbooks may not be given to an individual, group, or corporation when so doing would result in the resale or placement of those books in a private school instructional program. Textbooks must be retained intact by the school for thirty days after the books’ adoption has expired.
Granting Easements In addition to the above, the Board is authorized and empowered by law, in its sound discretion, to grant easements to any public utility, municipality or quasi-municipal corporations to furnish utility services, with or without compensation except the benefits accruing by virtue of the location of said public utility, and to dedicate portions of any lands owned by the Board as rights-of-way for public streets, roads, or sidewalks, with or without compensation except the benefits accruing by virtue of the location or improvement of such public streets, roads or sidewalks. LEGAL REF: G.S. 115C-518, -102; ch. 160A, art. 12; 16 N.C.A.C. 6D .0210 ADOPTED: February 12, 2007
DUTIES OF PRINCIPALS, TEACHERS AND CUSTODIANS IN FACILITIES SERVICES AND OPERATIONS PROGRAMS It shall be the duty of every principal in charge of a school building and every teacher to instruct students in the proper care of public property. It shall also be the duty of every teacher and principal to exercise due care in the protection of school property against damage, either by defacement of 1. It shall be the duty of all principals or designee to report immediately to the facilities services department any unsanitary condition, damage to school property or needed repair. It shall also be the duty of all teachers and custodians to report to the school principal immediately any unsanitary condition, damage to school property, or needed repair. It shall be the duty of school system maintenance personnel to remedy such conditions in a timely manner. All principals, teachers, custodians, and maintenance personnel shall be held responsible for the safekeeping of the buildings during the school session. 2. Any contractor providing facilities services and its employees shall report to the school principal immediately any unsanitary condition, damage to the school property, or needed repair. 3. School officials are to report in writing to the superintendent or designee any theft and/or damage to any school property. LEGAL REF: G.S. 1-538.1; 115C-47, -100, -276(c), -288(f), -307(h), -398, -399, -523, -524 ADOPTED: February 12, 2007
ALTERATIONS OF FACILITIES OR EQUIPMENT Alterations of facilities, grounds, or equipment of the school system, including installation of personal equipment requiring wiring, carpentry, plumbing, or other changes, shall be allowed only upon the prior approval of the superintendent or designee. LEGAL REF: G.S. 115C-40, -47, -276 ADOPTED: February 12, 2007
FACILITY CONSTRUCTION AND REPAIR – AMERICANS WITH DISABILITIES ACT COMPLIANCE All new school system construction shall be designed and constructed such that it is readily accessible to and usable by disabled individuals in compliance with the Americans with Disabilities Act. The superintendent or designee shall review as often as practicable each of the school system’s services, programs and activities to ensure that, when each program is viewed in its entirety, it is accessible to disabled persons. If a service, program, or activity is not accessible, the superintendent, subject to approval by the Board, shall take steps to make the service, program or activity accessible. This may include alteration of a building, service, program or activity, unless doing so would result in a fundamental change in the nature of the service, program or activity, or pose an undue financial burden on the Board. LEGAL REF: 42 U.S.C. § 12101 et seq.; 29 U.S.C. § 794 et seq. ADOPTED: February 12, 2007 BUILDINGS AND GROUNDS SAFETY AND SECURITY The school system shall provide safe surroundings and equipment. Safety equipment will be furnished by the school system as required by law. The Board encourages close cooperation with local police, fire, and sheriff’s departments and with insurance company inspectors. Safety is every employee’s responsibility. Employees shall comply with all school system health and safety policies, regulations and procedures, and all applicable federal and state safety and health laws, regulations, and agency orders. Failure to comply with health and safety provisions may be cause for disciplinary action, up to and including dismissal. Where any unsafe condition is discovered, the condition should be brought to the attention of the immediate supervisor without delay. It shall be the duty of school system maintenance personnel to remedy such condition in a timely manner. In the event of an accident, the principal shall ensure that all appropriate forms and documentation are completed. Access to school buildings and grounds outside of regular school hours shall be limited to authorized personnel. An adequate key control system shall be established which will limit access to buildings to authorized personnel and will safeguard against the entrance to the buildings by unauthorized persons. Keys to Board of Education buildings may not be duplicated nor assigned to non-school personnel without the written permission of the superintendent or designee. Protective devices designed to be used as safeguards against illegal entry and vandalism shall be installed when appropriate. LEGAL REF: G.S. 115C-166 to -169; 29 U.S.C. § 651 et seq.; 29 C.F.R. Part 1975 ADOPTED: February 12, 2007 &n |