Pub. 3 2013-2014 Issue 1

18 N o doubt your charter school is a careful steward of taxpayer funds and always gets the best deal on everything it buys. Right? Well now you have an even better “tool” to make sure you are getting the best deal possible. Utah’s new Procurement Code (Utah Code 63G-6a) is designed to help your school become an even better steward of taxpayer funds. After much deliberation, the Utah Legislature just final- ized a substantial overhaul of the Procurement Code, or the laws governing how local governmental entities in Utah (including charter schools) are supposed to procure goods and services. In short, the Procurement Code gives charter schools a road map to prove they got the best deal possible for taxpayer funds on every purchase they make. So, in a nutshell, here is how the Utah Procurement Code applies to charter schools (see Utah Rule R33-3-3) : • Purchases of $1,000 or less: You “may select the best source without seeking competitive quotes.” • Purchases over $1,000 to $5,000: You must “obtain price competition, and purchase from the vendor of- fering the lowest quote.” • Purchases over $5,000 to $50,000: At least two vendors should be asked to give you a price and the award made to the lowest acceptable price. The names of the vendors offering quotations, and the date and amount of each quotation, must be recorded and maintained as a public record. • Over $50,000: As required by law, your charter school must issue a formal Request for Proposals (or RFP). An RFP is basically a statement on what your charter school is looking to purchase that costs over $50,000. Once the RFP is written, it is posted it in a public place (typically BidSync at www.bidsync. com) with the hope that your school will then receive multiple bids that your school can carefully evaluate, and then select the best response. If the Board and Administration at each charter school can just remember and follow the guidance above, you will likely be in compliance with the Procurement Code most of the time. But, as with most things, there are a few important excep- tions. It would be prudent for a school to consult with an attorney on any of the exceptions below or any expenditure over $50,000, to insure compliance with the law. So here is a short summary of the key exceptions: Property Or Real Estate: There is no area of charter school law in Utah where I have seen more incorrect advice given than the rules and regulations governing the leasing, purchase and construction of real estate by charter schools. Utah’s procurement laws do not apply to the leasing or purchasing of property by a charter school. The law has always exempted the leasing or purchasing of property by a charter school from the Utah Procurement Code. This does not mean, however a charter school should throw caution to the wind and sign a lease with anyone they like. It is strongly recommended a charter school talk to multiple parties to decide exactly what they need and then invite several groups to offer bids or propos- als. However, charter school directly purchases or finances a Utah Procurement Code A Road Map For Better Purchasing BY JOEL WRIGHT