Model Procurement - Jefferson County Public Schools

Procurement Regulations
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3.25 Cost Reimbursement Contracts
3.25.1 Use
Procurement may be made by use of a cost reimbursement
contract only if the Director of Purchasing makes a determination
and findings that such contract is likely to be less
costly to the Board than any other type of contract, or that
it is impracticable to obtain supplies or services of the kind
or quality required except under such a contract.
3.25.2 Requirements
In addition to all other requirements of these regulations
applicable to the type of procurement by which a cost reimbursement
contract is entered into, the following requirements
shall apply to any such contract: (a) each contractor
under a cost reimbursement type contract shall give notice
to the Director of Purchasing, as provided in the contract,
before entering into either a cost reimbursement type subcontract
or any type of subcontract which involves more
than $10,000 or more than ten percent (10%) of the estimated
cost of the contractorʼs contract with the Board, and (b)
the Director of Purchasing shall make a determination and
finding before making the contract award that the proposed
contractorʼs accounting system will permit timely development
of all necessary cost data in the form required by
the contract and that the contractorʼs accounting system is
adequate to allocate costs in accordance with the requirements
of the contract and these regulations.
3.25.3 Right to Audit
The Board shall have the right to audit the books and records
of a contractor or any subcontractor under any cost
reimbursement contract or subcontract. The contractor or
subcontractor shall maintain all books and records reasonably
connected with cost or pricing data for a period of five
years from the date of final payment under the contract or
subcontract.
3.26 Multiyear Contracts
3.26.1 Use
Unless otherwise provided in the Board resolution approving
the expenditure, multiyear contracts for supplies and
services may be entered into for periods extending beyond
the end of the fiscal year in which the contract was made,
if funds for the first fiscal year of the contract are available
at the time of contracting. Payment and performance obligations
for succeeding fiscal years shall be subject to the
availability of funds.
3.26.2 Requirements
Before the Board may enter into a multiyear contract, the
Director of Purchasing shall make a determination and
findings that (a) the Boardʼs estimated requirements cover
the period of the contract and are reasonably firm and continuing,
and (b) the contract will serve the best interests of
the Board by encouraging effective competition or otherwise
promoting economies in the Boardʼs operations.
3.26.3 Availability of Funds
When funds are not included in the Boardʼs budget or otherwise
made available to support continuation of performance
of a multiyear contract in any subsequent fiscal year,
the contract for that subsequent fiscal year may be cancelled
and the contractor shall be reimbursed for the reasonable
value of any nonrecurring costs incurred but not amortized
in the price of the supplies or services delivered under the
contract. The cost of cancellation may be paid from (a) any
funds currently available for performance of the contract,
(b) any funds currently available for procurement of similar
supplies or services and not otherwise obligated, or (c)
funds specifically approved by the Board for the payment
of such cancellation costs.
3.27 Small Purchase Procedures
3.27.1 Policy of Small Purchases
(a) Small purchase procedures may be used for the award
of any contract or purchase for which a determination is
made that the aggregate amount of the contract or purchase
does not exceed $20,000.00.
(b) Supplies, services or construction normally supplied
as a unit cannot be artificially divided for the sole purpose
of using small purchase procedures. Supplies, services
or construction to be supplied over a period of time at
the same unit price shall be considered a single purchase
contract. A contract made under small purchase procedures
may be for any period of time that will provide the
most beneficial market price to the Board, provided no
contract time period shall be fixed for a period of time
exceeding two years nor shall any period be fixed for the
sole purpose of avoiding the requirements of competitive
sealed bidding or any negotiation procedures as set forth
in this Article.
3.27.2 Procedures
(a) For all purchases which exceed $10,000 in value but
which do not exceed $20,000.00 in value, the following
procedure shall be followed by the authorized contracting
officer;
(i) The contracting officer shall solicit a minimum of
three potential bidders or suppliers and request written
quotations for the supplies, services or construction
which are to be procured. The requirement of written
quotations may be dispensed with if the contracting
officer makes a written determination that time does
not permit the submission of written quotations, provided
that any bids received in such manner shall be
subsequently verified in writing by the bidder.
(ii) The solicitation by the contracting officer shall
state the salient, desired criteria of the supplies, services
or construction to be procured, and shall inform
the potential bidders or suppliers that the contract will
be awarded on the basis of the lowest bid.