Illinois ASBO Fall 2016 UPDATE

PURCHASING / FALL2014 2016 OPERATIONS ISSUE / SUMMER

INDISPENSABLE TOOL for SCHOOL BUSINESS MANAGEMENT

RFP BEST PRACTICES | 14 COMMUNITY TRANSPARENCY | 24 PURCHASING MADE SIMPLE | 40

TECHCON 2016 MEETS

ILLINOIS VISION 20/20

TechCon 2016

TUESDAY, OCTOBER 18 NIU NAPERVILLE CONFERENCE CENTER Explore the four pillars of Vision 20/20 and how they relate to technology in education at TechCon 2016: HIGHLY EFFECTIVE EDUCATORS 21ST CENTURY LEARNING SHARED ACCOUNTABILITY EQUITABLE AND ADEQUATE FUNDING

Experience exciting “TED” talks and in-depth sessions during this jam-packed day of learning and collaboration!

Register today at www.IllinoisTechCon.com 2 |

UPDATE Magazine / Fall 2016

INSIDE

Illinois Association of School Business Officials UPDATE Magazine / Fall 2016 / v.24 / i.01

PURCHASING ISSUE

update

ACCOUNTING ISSUE / WINTER 2016

INDISPENSABLE TOOL for SCHOOL BUSINESS MANAGEMENT

Managing The Details With The Big Picture In Mind

THE NEXT ISSUE: ACCOUNTING Managing the details with the big picture in mind.

All stakeholders should have confidence in the school district’s procurement process.

A transparent process assures the public that funds are expended appropriately — and leads to better management of community resources.

24

Cover Story by Ron Johnson

Let’s Make A Deal

LOOKING FOR PAST ISSUES? Visit ISSUU.com and search for Illinois ASBO.

RFP BEST PRACTICES There is no shortage of opinions as to the aspects of a good Request for Proposal (RFP). The process begins with setting the right goals and leads to achieving your board’s vision of success and achievement.

By Terry Fielden

14

www.iasbo.org

| 3

The

W W H W H E H

PERSPECTIVE

and

FROM-THE-PODIUM Responsible Purchasing: A Key to Public Trust. 07

FROM-THE-OFFICE The Power of Association Collaboration. 09

FROM-THE-FIELD Protect Your District With Long-Range Planning. 11

Although Illinois school purchasing departments vary greatly in size and scope, any district can ask these key questions to help identify the true role of purchasing within the district.

20

By Ryan J. Berry and Jeff E. Feyerer

THE

GOOD BAD UGLY

Take an inside look at the laws that form the School Code’s bidding requirements and applicable exemptions to help you navigate the bidding process.

AND THE

By Kenneth M. Florey and Matthew J. Gardner

OF SCHOOL BIDDING REQUIREMENTS SCHOOL BUSINESS 101 District Cell Phones: E-Rate Changes, Board Policies and More… 19

O T E W

of School District Purchasing

THE

BUSINESS PARTNERS A Solid Procurement Partnership with U.S. Communities. 18

H A R O

30

Look Before You Leap

Before deciding to participate in a purchasing cooperative, learn how to do your due diligence in ensuring the transparency and legality of your participation.

By Amy K. McPartlin, CSBO and Howard Metz

34

RESOURCES Learn how to use a multi-year bid calendar tool to create greater confidence in a process that is thorough, complete and compliant with all requirements.

38

By Mary Werling, SFO

PURCHASING MADE SIMPLE The rise of new purchasing technologies has transformed a once cumbersome process into a streamlined operation. Gain practical tips on how to evaluate and implement these changes in your district.

By Tim J. Keeley and Cheryl Wadsworth

40

ON MY LIST Overcoming the Fear of “Never Enough.”

43

The Final Word Tim J. Keeley

Dir./Support Services Indian Prairie SD 204 Tim believes that remaining vigilant in the procurement process is the key to identifying efficiencies that put more dollars in the classroom — where they can have the greatest impact on student success.

46

TRUST WITH PUBLIC FUNDS: Resources to help shape your district’s purchasing practices.

44 www.iasbo.org

| 5

THE

MAGA ZINE Illinois Association of School Business Officials

CALENDAR OF

Northern Illinois University, IA-103 108 Carroll Avenue DeKalb, IL 60115-2829 P: (815) 753-1276 / F: (815) 516-0184 / www.iasbo.org

EVENTS

UPDATE Editorial Advisory Board

Check out www.iasbo.org or the latest Calendar of Events included in the UPDATE mailing for full seminar listings including location and PDC sponsorship and register for professional development today.

October 2016

September June 2014 2016

S 28 4 11 18 25 2

M 29 5 12 19 26 3

T 30 6 13 20 27 4

W T F S 31 1 2 3 7 8 9 10 14 15 16 17 21 22 23 24 28 29 30 1 5 6 7 8

Date

S 25 2 9 16 23 30

M 26 3 10 17 24 31

T 27 4 11 18 25 1

W 28 5 12 19 26 2

T 29 6 13 20 27 3

F S 30 1 7 8 14 15 21 22 28 29 4 5

Time

November 2016

December 2016

S 30 6 13 20 27 4

S 27 4 11 18 25 1

M T W T F S 31 1 2 3 4 5 7 8 9 10 11 12 14 15 16 17 18 19 21 22 23 24 25 26 28 29 30 1 2 3 5 6 7 8 9 10

Event

M 28 5 12 19 26 2

T 29 6 13 20 27 3

W T F S 30 1 2 3 7 8 9 10 14 15 16 17 21 22 23 24 28 29 30 31 4 5 6 7

PDC MEMBERS Patrick S. Browne Sustainability Catherine H. Chang Food Service Seth Chapman Budgeting & Financial Planning Yasmine Dada Principles of School Finance Kevin L. Dale Technology Eric DePorter Human Resource Management Jeff E. Feyerer Leadership Development Kenneth M. Florey Purchasing John A. Gibson Technology Anton Inglese Technology Ron Johnson Purchasing Eric M. Miller Budgeting & Financial Planning Kristopher P. Monn Legal Issues Mary Werling Purchasing

Location

BOARD & EXTERNAL RELATIONS MEMBERS Jennifer J. Hermes, SFO President Stephen Chassee SAAC Chair

Online

AT-LARGE MEMBERS Theresa Gegen Illinois Association of School Boards

9/14/16

Lunch & Learn Webinar: 12:00pm Two Perspectives on Tax Levy

9/15/16 9/16/16

8:30am

Robbins-Schwartz Purchasing and Construction Conference

9/23-26/16

8:00am

ASBO International Annual Meeting & Expo

10/4/16 10/12/16

8:30am

ISDLAF+ School Finance Seminar

Naperville Rock Falls

10/6/16

8:30am

Robbins-Schwartz School Administrator's Conference

Oak Brook

10/12/16

12:00pm Lunch & Learn Webinar: Grant Reporting

10/14/16

8:30am

Robbins-Schwartz School Administrator's Conference

Collinsville

10/18/16

7:30am

TechCon

Naperville

10/18/16 10/19/16 10/20/16

8:30am

ISDLAF+ School Finance Seminar

East Peoria O'Fallon Effingham

10/26/16

8:30am

Regional Conference - Decatur

10/27/16

8:30am

Regional Conference - Mt. Vernon

Mt. Vernon

10/28/16

1:00pm

PDC Networking Meeting

Oak Brook

10/28/16

3:00pm

New Connections Happy Hour

Oak Brook

11/2/16

12:00pm

Lunch & Learn Webinar: End of Year Calendar & Activities

11/7-8/16

8:00am

2016 Midwest Facility Masters Conference

11/18/16

7:30am

Learning From Lincoln: Leadership Practices for School Success - AAC #1098

Chicago

11/18/16

7:30am

Seminar on School Finance AAC #1062

Chicago

11/18/16

7:30am

The Administrator's Role in Collective Bargaining AAC #809

Chicago

11/18/16

8:00am

IASB/IASA/IASBO 84th Joint Annual Conference

Chicago

12/2/16

7:30am

2016 SupportCon

Lisle Springfield Phoenix, AZ

Online

Decatur

Online Wisconsin Dells, WI

Naperville

STAFF MEMBERS Michael Jacoby Executive Director / CEO (815) 753-9366, mjacoby@iasbo.org Susan P. Bertrand Deputy Executive Director / COO (815) 753-9368, sbertrand@iasbo.org Rebekah L. Weidner Senior Copywriter (815) 753-9270, rweidner@iasbo.org Tammy Curry Senior Graphic Designer (815) 753-9393, tcurry@iasbo.org John Curry Graphic Designer (815) 753-7654, jcurry@iasbo.org Zack Hildebrand Membership & Marketing Coordinator (815) 753-9371, zhildebrand@iasbo.org

Illinois ASBO Board of Directors

Jennifer J. Hermes, SFO President David H. Hill President-Elect Cathy L. Johnson Treasurer Susan L. Harkin Immediate Past President 2014–17 Board of Directors Barry Bolek, Dean T. Romano, Paul Starck-King 2015–18 Board of Directors Mark W. Altmayer, Julie-Ann C. Fuchs, Eric M. Miller 2016–19 Board of Directors Jan J. Bush, Julie A. Jilek, Bradley L. Shortridge

Illinois ASBO Board Liaisons

Stephen Chassee Service Associate Advisory Committee Chair Anne E. Noble Service Associate Advisory Committee Vice Chair Terrie S. Simmons ASBO International Liaison Deborah I. Vespa ISBE Board Liaison Perry Hill IASB Board Liaison Paul McMahon Regional Superintendent Liaison Calvin C. Jackson Legislative Liaison

Privacy Policy

All materials contained within this publication are protected by United States copyright law and may not be reproduced, distributed, displayed or published without the prior written permission of the Illinois Association of School Business Officials.

You may not alter or remove any trademark, copyright or other notice from copies of the content.

References, authorship or information provided by parties other than that which is owned by the Illinois Association of School Business Officials are offered as a service to readers. The editorial staff of the Illinois Association of School Business Officials was not involved in their production and is not responsible for their content.

PERSPECTIVE / Board President

FROM–THE–PODIUM Responsible Purchasing: A Key to Public Trust Our communities trust us with their most precious asset — their children. They are counting on us to provide outstanding personnel and related resources to ensure the highest quality of education possible to maximize growth in their child’s learning. Community members, even those without children in our schools, expect us to utilize public dollars effectively, efficiently and wisely. In this issue of the UPDATE, our colleagues provide valuable information to sharpen our skills (as well as learn new ones) related to purchasing. This includes everything from establishing an annual bid calendar to keeping up with the latest legal information.

Jennifer J. Hermes, SFO ASST. SUPT./BUSINESS SERVICES, CSBO LAKE FOREST SD 67 AND CHSD 115

SIMPLY SAYING

While the acquisition of goods and services has changed dramatically over the years, the underlying best practices related to internal controls and transparency have not.

While the acquisition of goods and services has changed dramatically over the years with the explosion of internet purchases and the successful expansion of the p-Card program, the underlying fundamental best practices related to internal controls and transparency have not. With the ongoing heightened scrutiny of public schools, it is critical that our systems of checks and balances are in place and working to maximize resources while reflecting appropriate purchasing protocols. Solid school business offices do this very well.

However, in my experience, where districts tend to falter is when communicating those best practices falls by the wayside. The perception by some is that if they are not aware that you are doing something, they assume you are

doing nothing at all. It is important to occasionally take the opportunity to highlight some of your purchasing protocols, perhaps at a finance or board meeting. Communicating this topic provides reassurance to community and board members that their public dollars are handled with the utmost consideration and that purchases are made mindfully and deliberately.

As this is my first article as president of Illinois ASBO, I wanted to take a moment to express my excitement for the upcoming year. Certainly, the presidents that have gone before me were spectacular — leaving some very big shoes to fill. I thank them and the entire Illinois ASBO Board and staff for their support and mentorship as I continue on my presidential journey.

www.iasbo.org

| 7

S OFFICIA ES L N

INOIS ILL A

IATION OC of SS

S

OL BU HO SI SC

Your Leadership

TRAINING GROUND Returns in 2017!

Being a school business leader takes much more than financial savvy — Build on your communication and leadership practices as part of the 2017 LEADERSHIP INSTITUTE COHORT!

“

My master’s coursework had laid the foundation of the basic skills needed to be a school business official, but the Leadership Institute taught me management and effective communication with others.

Beth A. Reich

”

Business Manager Grant CHSD 124

Prepare now to take part next spring: www.iasbo.tools/leadershipinstitute

PERSPECTIVE / Executive Director

FROM–THE–OFFICE The Power of Association Collaboration School district purchasing is as much an art as it is a science. Yes, there are legal requirements that often make it seem like just a routine function. However, a wise and seasoned SBO knows that applying “art” to purchasing can truly save money and guarantee the highest quality of goods and services. When that is demonstrated to a school board and community, taxpayers can be assured that every penny of support is producing a measurable return on investment.

Illinois ASBO is in the business of providing purchasing opportunities that districts can trust.

These opportunities are of the highest quality, set forth best practices and apply the power of association collaboration and cooperation. If you have not investigated the following, your district may not be getting everything it can from each dollar. Take a moment to examine and consider participating in any or all of the following.

Michael A. Jacoby, Ed.D, CAE, SFO EXECUTIVE DIRECTOR/CEO ILLINOIS ASBO

SIMPLY SAYING

Illinois ASBO is in the business of providing purchasing opportunities that districts can trust.

Illinois School District Liquid Asset Fund Plus (ISDLAF+) The premier investment program for Illinois schools proving liquidity, fixed rate, short and long-term options.

Illinois Energy Consortium (IEC) Provides natural gas and electricity to schools with many programs from fully managed to market floating – each designed to meet district needs.

Illinois ASBO p-Card A state of the art method for purchasing that has now spread to 16 other ASBO affiliates and produces a substantial rebate based on purchasing volume.

Forecast5 An analytics platform that is continually expanding with input and collaboration from Illinois ASBO members. This is the future of school business management.

Call One The power of aggregation comes to telecommunication services.

Illinois School Employee Benefit Consortium & Metropolitan School Employee Benefit Program (ISEBC & MSEBP) Health insurance programs that give districts new options for savings. The ISEBC is for downstate and the MSEBP is for Cook and Collar Counties.

US Communities A purchasing option that satisfies the Illinois bidding law through national contracts.

Illinois ASBO In-District Services Professional development services designed for all district administrators and business office personnel.

Nearly all of these are partnered programs with other associations. IASA, IASB and IPA are primary partners and, in the case of the p-Card program — other state ASBO affiliates help the program be one of the largest in the U.S.!

For more information, please contact Holly Wallace, our Sponsored Program Coordinator. If you desire to discuss an opportunity after a regional meeting, seek out one of our field service representatives. Contact information for each rep is listed on our website at: www.iasbo.tools/iasbostaff.

www.iasbo.org

| 9

with Illinois ASBO

S OFFICIA ES L N

INOIS ILL A

IATION OC of SS

S

OL BU HO SI SC

10 |

Learn about available leadership opportunities at: www.iasbo.tools/becomeleader

UPDATE Magazine / Fall 2016

PERSPECTIVE / SAAC Chair

FROM–THE–FIELD Protect Your District with Long-Range Facilities Planning Every district in Illinois has been receiving prorated funding for the past six years. The district is asked to do more, with less. So how do you stretch the almighty dollar? How do you continue to maintain your facilities year after year as costs continue to rise and your available funding declines?

Long-range planning can help. Knowing exactly where your dollars will need to be spent on an annual basis is an important part of facility management and budgeting. Eliminating as many unforeseen costs as possible through prudent planning can save you real money and help assure that your facilities remain functional and habitable, supporting your educational delivery in a positive manner.

Stephen Chassee ASSOCIATE PRINCIPAL​ GREENASSOCIATES, INC.

SIMPLY SAYING

Having a long-range facilities plan will support your educational mission and the needs of the district.

There are a number of ways to go about the process, but working with your architect, construction manager and other suppliers to project your costs 5 - 20 years out will help you gauge the amount of money you will need to run your district from a facilities standpoint. The process typically starts with a thorough evaluation of your facilities and should be conducted by architects and engineers familiar with how your buildings function and need to perform. School buildings typically endure long hours of operation as well as routinely supporting community functions. Looking at the systems, building envelope, security and site improvements is all part of the discovery process. From there, you will look at the vision for the district facilities and how they meet the programming needs of the students. Identify deficiencies, any unique needs your district may have and compare your facilities to national standards for education. Once you have your baseline you can anticipate the changes and direction of your district and begin the planning process.

Proper planning can help prevent unforeseen circumstances that leave you with emergency repairs and equipment replacement. When there is an emergency, you can count on the cost being significantly higher than

the cost of a planned repair or replacement. Look to your long-range plan to help you determine replacement cycles for all of your equipment, roofs, flooring and the facility itself. The vast majority of public school maintenance and repair/replacement work typically occurs during the summer months when school is not in session. Having a plan in place that allows you to budget for and schedule any necessary work in a timely manner can help assure an adequate pool of contractors. When selecting new products, you need to consider life cycle cost analysis and maintenance programs to get the most out of the products and equipment you already have.

Having a long-range facilities plan will support your educational mission and the needs of the district. It helps you engage the stakeholders in the community and helps them better understand the district’s needs. You will make informed decisions instead of having to make reactionary decisions when something goes wrong. It gives you the option to plan, budget and prepare yourself for what lies ahead and save money through proper planning. Your long-range master plan should be a fluid document that is used by both the facility department, as well as the business office to keep the district focused.

www.iasbo.org

| 11

CONTRIBUTORS

Ryan J. Berry

Jeff E. Feyerer

Terence M. Fielden

Chief School Business Official Skokie SD 68

Business Manager Fairview South SD 72

Dir./K-12 Education International Contractors, Inc.

Has over eight years school business experience and has spent the last seven years in Niles Township. Ryan graduated from NIU with a master's degree/CSBO in 2012 and is a member of the Legal Issues PDC.

Is in his sixth year as CSBO at Fairview School District 72. Jeff is a graduate of the 2013 Illinois ASBO Leadership Cohort, serves on the Illinois ASBO Editorial Advisory Board and as Vice Chair of the Budgeting and Financial Planning PDC.

With over 25 years of K-12 school construction experience, Terry has managed/supervised over $800 million in total construction volume. He also serves on the SAAC and as the school board president in Naperville CUSD 203.

rberry@skokie68.org

jfeyerer@fairview.k12.il.us

tfielden@iciinc.com

Kenneth M. Florey

Matthew J. Gardner

Ron Johnson

Partner Robbins, Schwartz, Nicholas, Lifton & Taylor, Ltd.

Associate Robbins, Schwartz, Nicholas, Lifton & Taylor, Ltd.

Dir./Purchasing & Transportation Oak Park & River Forest SD 200

Represents clients over the course of construction projects, from contract negotiation and bidding, to protecting his client’s interests in litigation arising from any defaults, delays or other construction defects.

Is the current Chair for the Illinois ASBO Purchasing PDC. Ron has a strong financial background with a Bachelor’s of Science in Accounting, a Masters of Business Administration and a Masters Degree of Secondary Education.

kflorey@robbins-schwartz.com

mgardner@robbins-schwartz.com

rjohnson@oprfhs.org

Concentrates his practice representing public and private clients, including municipalities, school districts, community colleges, private owners, contractors and design professionals regarding land use, municipal law, construction, tax, finance and litigation.

Tim J. Keeley

Amy K. McPartlin, CSBO

Howard A. Metz

Dir./Support Services Indian Prairie SD 204

District Purchasing Supervisor Twp. High Sch. Dist. 214

Has ten years of school business experience, six of which were primarily in a procurement role. Tim is a former Chair and Vice Chair of the Purchasing PDC. He has been a presenter, panel member and moderator at the Illinois ASBO Annual Conference.

An active member and Co-Chair on the Purchasing PDC, Amy exhibits leadership in the field of school district procurement. Amy was a key contributor in the update of the Illinois ASBO Purchasing Manual.

Partner Robbins, Schwartz, Nicholas, Lifton & Taylor, Ltd.

Counsels and represents school districts, community colleges, park districts and municipalities with respect to real estate, commercial transactions, construction law and land use and zoning matters.

tim_keeley@ipsd.org

amy.mcpartlin@d214.org

hmetz@robbins-schwartz.com

Cheryl E. Wadsworth

Mary Werling, SFO

Chief Financial Officer Antioch CCSD 34

Asst. Supt./Finance, CSBO Wheeling CCSD 21

With 18 years of school business experience, Cheryl has worked in small and medium elementary and large unit school districts. Currently, she serves on the Purchasing PDC.

Holds a bachelor degree in Finance from Northern Illinois University and an MBA from DePaul University. Mary is a member of Purchasing PDC and is a Certified Administrator of School Finance and Operations (SFO).

cwadsworth@antioch34.com

mary.werling@ccsd21.org www.iasbo.org

| 13

Let's Make A Deal RFP BEST PRACTICES

14 |

UPDATE Magazine / Fall 2016

ARTICLE

There is no shortage of opinions as to the aspects of a good Request for Proposal (RFP). The real challenge is devoting the time necessary to develop the RFP with enough detail to yield the desired result. Sufficient planning and forethought are always valued by administration and help to achieve the board’s vision of success and achievement.

The Planning and Construction Professional Development Committee (PDC) presented the final draft of a construction management RFP at the 2016 Illinois ASBO Annual Conference. Three construction management firms participated in the presentation revealing three distinct mindsets on the best solution. The biggest debate that took place was over the format of categorization: either an RFP or an RFQ. The primary difference between the two formats is the presentation of fees for the service. An RFP specifies that a fee must be submitted; an RFQ is strictly qualifications-based and no fees are included.

Develop an Effective RFP Developing an RFP takes time and plenty of preparation. There are several aspects that need to be considered to ensure the highest probability for success. These aspects will apply to any service that can be purchased in a competitive market and include: developing selection criteria, clear communication, defining district needs, developing a timeline and acquiring product and service knowledge.

The lowest bid on paper... is not always the low bid long-term, nor is it necessarily the best for the district. Cost over time and work quality must be taken into account when reviewing and vetting out the numbers.

By Terry Fielden

DIR./K-12 EDUCATION INTERNATIONAL CONTRACTORS, INC.

Formulate Selection Criteria Decide on an overall selection criteria process when developing the RFP for issuance. There are many considerations that need to be made when developing your RFP: • Will you want to select solely on the submitted qualifications?

• Will you want to set up an interview process?

• What will the interview process entail?

• Does the board need to be involved or informed?

• How do you define the meaning of lowest and responsible respondent for this service?

• Who will be the point of contact within the district to address questions and receive information?

Many districts will look at the bottom line and let the cost be the final factor in selection. Yet, when making purchasing decisions in our personal lives, we will apply a value to long-term quality regardless of cost. Once you have decided on the process, consider a few critical elements in the development and issuance of any RFP. Have Clear Communication with Vendors Provide the vendor with enough background information on the district so that they can decide if their services will be a good fit. Explain why you are seeking the service in addition to the need that you hope to fulfill. Provide information that will give enough knowledge on long-term educational goals, future flexibility in education spaces and the board’s vision in order to allow the vendor to focus on their strengths in services. The detail will also help a vendor decide whether or not they will fit into the culture of the district.

Just as districts evaluate and interview potential service providers, vendors interview their potential clients. Neither side wants a bad fit that leads to a failed relationship.

Address District Needs Needs can be overstated or not understood by the requester. Goals for the service must be set in order to achieve a desired outcome. Service goals should be broadly based and flexible in nature to allow room for the vendor to make suggestions. Educators and school boards

www.iasbo.org

| 15

A district clearly wants the most qualified and friendly vendor... but making the response time too tight could exclude the best vendor from being able to formulate a response.

will generally define these needs without being asked through conversations or requests. The business manager must set service goals that can meet the district’s needs.

There should be internal challenges to the stated need.

Create a Flexible Timeline A district clearly wants the most qualified and friendly vendor that is available, but making the response time too tight could exclude the best vendor from being able to formulate a response. A sufficient time frame prevents concerns from the board over the speed and planning afforded by administration for a service. For example, if you want a service to be implemented in the fall semester then plan to award at least six to eight months in advance.

Prepare a full and detailed time frame and vet it internally and be sure to build in some flex time for the process to be adjusted based on the discovery of new information.

Vendors are always highly concerned with shortened or rapid time frames contained in an RFP. Gather Information on Services and Products The best place to start is to ask your peers and find out what they have learned or would do differently. Do not just seek out positive experiences and outcomes because even the negative experiences of others can pave the way for future success. Most vendors will be willing to pass on industry knowledge and assistance, so there is benefit in reaching out to a vendor and asking for a non-sales focused presentation on a service. This may reveal a different path for you to achieve your goal.

These are a few high-level type aspects that must be fully vetted by the district during development and prior to issuance of the RFP. These aspects help vendors formulate internal service questions and determine if their services will benefit the district. The response to an RFP costs a vendor time and money. A vendor should politely turn down a descriptive RFP that will not be a good fit for their business. Districts are best able to select the correct vendor when sufficient time is devoted to development of the RFP.

16 |

UPDATE Magazine / Fall 2016

Make the Best Decision for Your District After creating your RFP and interviewing vendors, it is time to evaluate the firms that have bid to work on your project. There are several important issues that need to be vetted: making correct assessments of all interviewed firms, sticking to your intended timeline and making the best decision with the available data.

Make an Accurate Evaluation A district should to be clear on the criteria to weed out firms that do not fit while allowing room for flexibility in the final selection. The key qualifications of the vendor need to be spelled out in a clear format.

Qualifications to consider include: • Years of experience • Familiarity with a key process • Development of district-wide program • Securing of financial grants • Working in an active school building • Ability to communicate with school boards A firm that needs to report directly to the school board must understand and be able to navigate that relationship.

The district should establish an internal team to set the criteria for selection and service. Pick the top five or six elements and include them in the RFP. You can always solicit more information from vendors if you go through an interview process. In the interview, ask questions that allow the vendor to demonstrate their thought process, how they respond to different opinions and their communication skills. You will want to find out if their methods fit your culture and what they think makes them the most qualified.

Ask your attorney to review the criteria for obvious loopholes or tripping points. Your attorney should also be able to advise on language to include that will allow flexibility in evaluation. Implementation or application of the selection criteria is the area most subject to legal challenge. Take your time and carefully choose your criteria.

Eyebrow!

ARTICLE / RFP Best Practices

Review and Stick to the Timeline Decide which board meeting date the RFP needs to be approved by and work backwards from that timeframe to develop the RFP schedule. A good idea is to select a board meeting and have one in mind as a backup in case of delay. Include time to issue addendums or clarifications to the RFP and set a date for a pre-proposal meeting. The merits of making the pre-proposal meeting “mandatory” or “non-mandatory” should be weighed with your attorney.

Keep in mind that voluntary attendance is also a key indicator of a commitment to serve.

Describe the process that you will follow and include time frames for a review of the responses, development of a short-list for interviews and projected interview dates. A vendor may have critical staff that are unavailable and need to decline on a response. Discuss the district team making the evaluation: review team size, team member roles within the district, who has a vote in the interview selection and any board participation. Include flexibility in defining the time frames. Do not lock down the dates as an absolute.

Consult with your attorney on flexible language to allow adjustments to the time frame. School districts are dynamic entities and may experience a crisis during the RFP time period so be sure to give yourself some breathing room.

It may be desirable to allow the process to end approximately 15 days prior to the board award. This will allow the board time to ask questions and also allow administration time to make the correct decision.

Know Who Will Do the Work A district wants the best available staff that can deliver success to the overall process. The vendor committed to the project must display solid leadership, but equally important is the staff that will actually do the work. Ask detailed questions on the qualifications of the staff and request descriptive backgrounds with personal references.

Focus on the person versus the overall success or failure of a project. Success and failure are subjective terms that must be balanced within the context and circumstances.

Pay special attention to the role of the staff in the interview versus the response in the RFP. Leaders are not going to do all of the work. Are they leading the presentation while allowing the staff to display their talents? Are the people doing the work in the forefront and active? It is vital to understand the skills and abilities of those who will actually be completing the project.

Understand the Numbers The most challenging part of any RFP response is determining who has the most inclusive number on the table. Unfortunately, boards tend to focus solely on the bottom line and the administration recommendation. But the lowest bid on paper is not always the low bid long-term, nor is it necessarily the best for the district. Cost over time and work quality must be taken into account when reviewing and vetting out the numbers.

During the earlier-mentioned phase of research on understanding the service provided, the district should make time to develop a fee submission form that allows for a comprehensive understanding of the fees. A sample Construction Management RFP is available on the Illinois ASBO website. The form should be detailed enough to understand how the money is allocated to the required service. Still, the submissions may require more clarification and breakdown. Allowing sufficient time is critical for the complete overall review.

Acquiring Success and Achievement RFPs can be a very daunting endeavor for anyone to tackle.

The process is most effective when approached with internal collaboration and aided by setting the right goals. By developing a flexible structure and promoting clear communication with all parties involved, your experience with developing and following through with an RFP will be a rewarding one. Define your needs, set an expectation of service, put forward a plan for execution and do not be afraid to adjust as you move forward.

BUSINESS PARTNERS / U.S. Communities

A SOLID PROCUREMENT PARTNERSHIP U.S. Communities, an Illinois ASBO sponsored program and the leading national government purchasing cooperative, benefits schools by delivering cost savings for products and services while reducing the administrative costs associated with competitive bids.

ENSURING A VETTED PROCESS As school districts are held accountable by taxpayers for stewarding funds efficiently and honorably, the assurance lent by Illinois ASBO to the integrity of the U.S. Communities program is a crucial member benefit.

“Illinois has very strict procurement laws and districts can rest assured that U.S. Communities helps keep them complaint while they save both time and money,” said Jennifer Sulentic, U.S. Communities Program Manager for Illinois. “The partnership between Illinois ASBO and U.S. Communities is vital in the State of Illinois to ensure schools that the association has vetted the process by which all program contracts are procured.”

Aggregating the purchasing power of public agencies since 1996, U.S. Communities has delivered significant solutions and savings nationwide. As school districts are consistently challenged to do more with less, this cooperative purchasing program provides a direct opportunity for schools and other public agencies to buy goods and services at reduced costs. Users have access

to a wide variety of competitively solicited contracts with national suppliers that have committed to providing their lowest overall public agency pricing for items such as education furniture, facilities solutions, food services, athletic equipment, science and lab supplies and technology products and services.

ADVANCING COOPERATIVE PURCHASING Illinois ASBO endorses the program, along with 90 other state-level organizations and four national sponsors: the Association of School Business Officials International, the National Association of Counties, the National League of Cities and the U.S. Conference of Mayors. U.S. Communities is grateful for Illinois ASBO’s sponsorship over the years and values its considerable support for advancing cooperative purchasing as a best practice for school purchasing solutions. Through their support, Illinois ASBO has contributed directly to the expansion and growth of the program by educating schools on the advantages of this fantastic opportunity to save time and money.

TO LEARN MORE ABOUT U.S. COMMUNITIES, PLEASE VISIT WWW.USCOMMUNITIES.ORG. 18 |

UPDATE Magazine / Fall 2016

PERSPECTIVE / On the Profession

SCHOOL BUSINESS 101 How do you handle cell phones for staff in your district? of the upcoming E-Rate changes, we’re actually transitioning how we handle our cell “ Because phones. Currently, for our custodial and maintenance departments, we provide basic phones under a district plan. For our central office administrators we provide a mix of basic phones and smart phones. We pay the cost of those phones, repairs, upgrades and 100% of the use.

We are transitioning to allow personal phones to be used for our administrators. We will use Google Voice to add a second voice line onto our existing personal phones and issue stipends to offset the cost of staff using their own equipment. This way, we’re not paying for equipment, upgrades or repairs. Administrators will be responsible for their personal phones, using Google Voice for business at no additional cost.”

TERRI BRESNAHAN Superintendent, Berkeley SD 87 part of our administrator contracts, we are required to have our own cell phone in place. “ As We buy the phone, as well as pay for its monthly services. We all sign an agreement when we come into the district that we’ll handle technology appropriately, but nothing specifically is included in terms of the actual use of your device, more like what is and is not appropriate.”

BOB CISERELLA Business Manager, CSBO, Lincolnwood SD 74 too small of a school district. We don’t have any cell phones that are used for the “ We’re superintendent or for any of the staff. The school district has all the resources that they need,

but it won’t happen [getting cell phones], because the school district is very small. Last year, we had ninety-two students, K-8. We have a superintendent, a part-time principal/business manager and eight other teachers.”

RICHARD DOMBROWSKI Interim Business Manager, Union SD 81

district provides cell phones for central office administrators and department heads according “ The to assigned roles and responsibilities. This includes the superintendent, assistant superintendents, CSBO, director of technology, building and grounds supervisors and head of security.

Employees are required to review and sign the board policy governing the use of district technology, outlining administrative procedures, acceptable uses, a privacy statement, security measures, proper email communication and technology protection measures. Billing statements are reviewed and approved on a monthly basis by the director of technology and the business manager.”

LARETTA L. PEREZ Business Manager, CSBO, Chicago Heights School District 170 www.iasbo.org

| 19

The

W W H W H E H and

H A R O of School District Purchasing

20 |

UPDATE Magazine / Fall 2016

O T E W

By Jeff E. Feyerer

ARTICLE

BUSINESS MANAGER FAIRVIEW SOUTH SD 72

Ryan J. Berry

CHIEF SCHOOL BUSINESS OFFICIAL SKOKIE SD 68

Purchasing for school district employees, outside of the business office, is just a peripheral function of their main position.

Teachers educate students to the best of their ability, custodial staff concentrate on facility maintenance and principals are there to ensure a district’s mission is being carried out on a daily basis. While purchasing is an ancillary part of their roles, it is vital nonetheless. The presence of strong purchasing processes allows district employees to carry out the task with little worry and ensures the district remains fiscally responsible with taxpayer money.

When Skokie School District 68 and Fairview School District 72 transitioned to new business office software in 2011, it was a prime opportunity to re-evaluate how purchasing was done within our respective districts and how we could pinpoint areas for improvement. We knew integrating technology into the purchasing process would ultimately increase accuracy and efficiency, but establishing the policies and procedures that would allow that to happen while securing buy-in from district-wide staff is easier said than done.

While each district is different, whether it is enrollment, size of staff, number of buildings or available financial resources, there are some general tips that can be utilized if you ask the WHO, WHAT, WHERE and HOW of school district purchasing to identify its true role.

The first step to outlining a district’s purchasing process is to decide who is going to be doing the is Involved ordering. If you are part of a big in the enough district that can manage Process a purchasing department, you and What can skip this step. However, since are their a majority of districts in Illinois Roles? are not big enough to sustain a purchasing department of their own, many districts may require teachers, department chairs, secretaries, custodians and other staff members to research and enter their own purchase requisitions.

Before updating our financial system, everything was done on paper. Requisitions were created and passed along through intra-office mail until it landed on the district receptionist’s desk whose responsibility it was to mail it out.

This process made it hard to track orders and even harder to stay within budget limits.

While redesigning our purchasing process, we made the decision to allow each faculty member access to our purchasing software. The decision was made because we thought the end user should have the responsibility to enter their own requisition and it would give them a larger stake in the process.

However, part of the purchasing process also includes the approval protocol. With a new software system, we were able to set up an automated workflow that sends requisitions to approvers in a specific order based on the account number. Each faculty member was kept abreast of their budget limit and where they stood. It allowed department chairs an opportunity to see every order that was placed by other teachers. It meant that principals could easily check budget limits before sending approved requisitions over to the business office. Lastly, it meant a streamlined process for the business office to approve and issue orders.

W

hile it is good for districts to be loyal to those companies that have provided superior services, the business office should always be on the hunt for new vendors that can provide the same quality at a lower price. It is, after all, the business office’s job to be smart and responsible with district dollars.

www.iasbo.org

| 21

is Ordered and What Budget or Plan is it Coming From?

After a district decides who should be part of the purchasing process, they need to decide what type of order each participant will be responsible for. School districts purchase a wide variety of goods and services. Within our two districts, we classify purchases into three main categories: classroom, school and district-wide.

Classroom purchases are made or requested at the teacher’s discretion. Budgets can be set-up to allow teachers to purchase any non-curriculum classroom materials and school supplies for their students. Teachers can use the funds to purchase posters, markers or any other materials they might desire for classroom projects.

Typically these purchases and budgets are smaller than the other two categories. This ensures each faculty member’s buy-in to the district’s fiscal philosophy and responsibilities.

School-wide purchases are usually the responsibility of the school secretary. They are done with the principal’s oversight and consist of maintaining building supplies and entering any furniture or equipment ordering. Other types of ordering that are done at the school may include paper purchases, building technology supplies and after school activity supplies.

The largest and most costly type of purchasing is districtwide. District-wide purchasing can include anything from curriculum to food service and also includes vendor contracts that cover the entire district. In many districts, different departments are responsible for ordering their own goods and services. The transportation department is responsible for bidding their own busses and the curriculum department is responsible for purchasing their own textbooks.

The role of the business manager does not always require that you know exactly what every department is purchasing, but it does require oversight of the dollar amounts spent on purchasing. The knowledge of these figures assists 22 |

UPDATE Magazine / Fall 2016

in short-term budgeting and long-term financial planning due to the size and scope of these purchases. Board policy dictates that the adoption of the annual budget authorizes the superintendent or designee to purchase budgeted supplies, equipment and services, but most job descriptions dictate the responsibility of maintaining the annual budget to the CSBO. After an item is selected for purchase, the next step is to find the appropriate vendor. The ability Should of staff to easily access hundreds of We Go vendors online and the expansion to of online procurement is great Make for obtaining information, but not Purchases? all vendors are created equal. To assist in pointing staff in the right direction, the business office should assist in the process by narrowing the immense list of vendors for employees.

There are a number of ways to do this.

Begin by leaning on those vendors that are a known commodity to the district. Every district has vendors they have an established relationship with, contractual or otherwise, which have shown the ability in the past to provide goods and services of a superior quality.

Companies like these may reward loyalty by providing discounts or preferred pricing for school districts that consistently provide business. Sometimes these companies may even be local organizations that have a good sense of the school community. Providing a list of preferred vendors to employees would give them some direction and narrow the scope of their search.

While it is good for districts to be loyal to those companies that have been provided superior services, the business office should always be on the hunt for new vendors that can provide the same quality at a lower price. It is, after all, the business office’s job to be smart and responsible with district dollars. Being diligent in researching new potential vendors and casting a wide net for these companies should always be in the forefront of the business office’s mind.

Eyebrow!

ARTICLE / School District Purchasing

Doing research on companies and, more importantly, asking other districts for recommendations can broaden the pool of vendors while not expanding the process exponentially by including every available vendor.

After settling who is involved in the process, what is needed and where the item can be obtained from, the is the process of completing an order can Purchasing begin. Our processes may not be Process commonplace because we are a Carried smaller district, but we believe we Out? have some policies and protections in place that can be tailored to any school district. How a purchase is carried out really depends on the size and scope of the order. We divide our purchases into standard (purchase orders, procurement cards) and multi-layer (bidding, RFP, quotes) categories.

Purchase orders from staff need to go through our online web portal where each employee has access to only their account, as assigned by the business office. Our system has been totally paperless for four years. During that time, we have noticed improvement in the areas of budget compliance and order speed.

■■ Budget controls in the system prevent staff from exceeding their budget limit with their orders.

■■ Once an order is submitted, it goes through approval channels including their immediate supervisor and the district office thus creating additional layers of control.

■■ Once approved, the business office completes the order and communicates with the vendor to ensure proper delivery and payment.

For expedited purchases, procurement cards can be advantageous, but their use should be based on district policy and dollar limits should be imposed to ensure appropriate use and protection of school district funds.

There are always security concerns when ceding control of the process and giving an employee immediate purchasing power through the use of a p-card, but there are programs that can give monetary benefits to school districts through program utilization.

For bidding, where there are legal requirements in place and a Request for Proposal or the solicitation of quotes, the process is not as simple as plugging the information into the computer. Discussions should take place between administration, the board of education and others involved in the process (i.e. operations, architects, etc.) to identify what exactly needs to be purchased with firm guidelines and deadlines for potential vendors. Legal counsel should be consulted as necessary to ensure compliance with rules and regulations.

Clear purchasing direction for staff is necessary.

Knowledgeable people in the purchasing department it are a must. Solid purchasing all structure and processes are matters important. But it is bringing all three areas together that is most vital to a successful purchasing program in your district. The role of purchasing within the school district is ancillary, but a foundational component of ensuring teachers and staff have the resources necessary to create the perfect environment for our students to learn.

REFERENCES: Fairview School District 72 – Board Policy Manual 4:10 (Fiscal and Business Management), 4:50 (Payment Procedures), 4:55 (Use of Credit and Procurement Cards), 4:60 (Purchases and Contracts) Skokie School District 68 – Board Policy Manual 4:10 (Fiscal and Business Management), 4:50 (Payment Procedures), 4:55 (Use of Credit and Procurement Cards), 4:60 (Purchases and Contracts) Infinite Visions – Purchasing and Payables Training Guide, Tyler Technologies, October 2013

www.iasbo.org

| 23

MONOPOLYÂŽ, the distinctive design of the gameboard, the four corner squares, the Mr. Monopoly name and character and each of the distinctive elements of the board, are trademarks of Hasbro, Inc., All Rights Reserved.

ARTICLE

By Ron Johnson

DIR./PURCHASING & TRANSPORTATION OAK PARK & RIVER FOREST SD 200

EACH YEAR, SCHOOL DISTRICTS SPEND TAXPAYERS’ MONEY ON GOODS AND SERVICES IN ORDER TO PROVIDE INSTRUCTION TO THE STUDENTS. FROM PURCHASING PENCILS TO BUILDING NEW BUILDINGS, THESE PROJECTS ARE HIGH VALUE, MULTIFACETED AND CRITICAL.

www.iasbo.org

| 25

BALANCED BUDGET ONLINE TEXTBOOKS

COLLECT PAT ON BACK

ELEC COMP

JOIN A CO-OP

PRICE $320

1:1 TECHNOLOGY

SAVE $75

PRICE $330

Transparency is the quality that makes something obvious or easy to understand. In public procurement, this means providing accurate information to key stakeholders. Everyone interested should be able to monitor the procurement process to ensure funds are being expended legally and for the right reasons.

A HIGH STANDARD AND MUCH AT STAKE School districts that commit to the public procurement processes are obligated to adhere to high legal and ethical standards. With many financial interests at stake, a great deal of transactions and tremendous interface between the public and private business sectors, there is much opportunity for private gain at the expense of taxpayers.

Effective monitoring prevents corruption and ensures that corrupt behavior is exposed and properly remedied. Integrity by bidders and the school district levels the playing field for all involved, providing the public body the best good or service at the best price.

Providing transparency throughout the procurement process is also crucial in reducing the risk of fraud and the mismanagement of public funds. Business officials must ensure: • Ease of access to information • Key stakeholder involvement in every stage of the procurement cycle • The availability of review Internal controls and annual auditing and testing of those controls will help your district to identify, adopt and adhere to minimum standards of transparency, integrity and accountability.

LEGAL ADHERENCE TO POLICIES, PROCEDURES AND PRACTICES USED WHEN EXPENDING PUBLIC FUNDS IS KEY TO COMMUNITY TRANSPARENCY. A LEGAL RESPONSIBILITY TO SHARE Legal adherence to policies, procedures and practices used when expending public funds is key to community transparency. Federal, state, local and board polices, administrative procedures and industry best practices require the public procurement official to operate openly and honestly, giving stakeholders the ability to easily see the procurement process.

Freedom of Information Act Access to procurement information is legally available by the means of the Freedom of Information Act (FOIA). FOIA gives you the right to access information from the federal government. It is often described as the law that keeps citizens in the know about their government.1 FOIA gives the public a right to request access to the records of any federal agency.

26 |

UPDATE Magazine / Fall 2016

Open Meetings Act The Open Meetings Act (OMA) is a state law that requires meetings of public bodies to be open to the public. OMA requires that actions taken by public bodies are conducted in the open and that the public has the opportunity to observe the discussions behind those actions. A key component of OMA is that the public body must give advance notice of the time, place and subject matter of the meetings.2

PAY $

CTRIC PANY

$150

BLEACHER ZONING DRIVER'S ED CLASSES

PRICE $220

PAY $200

CONTRACT NEGOTIATIONS MUSICAL INSTRUMENTS

PRICE $230

ROLL AGAIN

USING TECHNOLOGY FOR TRANSPARENCY A key safeguard against corrupt behavior in the competitive solicitation process is easy access to information.

Stakeholders feel involved when the information they are seeking is readily available. This includes information regarding: • Solicitation opportunities • Selection criteria • Evaluation processes • Rules governing the award All of this information should be clearly communicated to all stakeholders while limiting information to what is legally permissible based on protected information and confidentiality.

With so many stakeholders having access to technology, procurement officials should seek to integrate and utilize technology systems into their practices.

• School districts can utilize their websites to communicate bid opportunities, bid results, current contracts and solicitation schedules.

• The information should be placed somewhere on the website that any reasonable member of the community is able to find.

• The award decision • Terms and conditions of contracts • Administrative roles and responsibilities • Contract administration E-procurement processes can increase transparency.

While many school districts follow the traditional public bid process, there are companies that allow a school district to run a public bid process, through a web-based portal while still meeting the criteria of the law.

E-procurement can help improve market access and promote integrity. The community has immediate access to procurement information and therefore the ability to oversee the process if they wish. Information on buyer, supplier, price and quantities are openly available through a web-based portal that can be attached to a school district's website.

www.iasbo.org

| 27

COMMUNITY TRANSPARENCY

STATE BUDGET PASSED TRANSPORTATION SERVICES

ADVANCE TO GO

PRICE $420

WAT WOR CLASSROOM FURNITURE

COLLECT $10

PRICE $430

A LEVEL PLAYING FIELD FOR VENDORS Procurement should give equal opportunity to all qualified vendors. Vendors should never feel as if there is no competitive solicitation for them to take advantage of. The public procurement official is tasked with maintaining a high standard of ethical practices, with no conflicts of interest. Some best practices to ensure equality for vendors are: • Follow the rule of thumb, “if you have to defend it, don’t do it.”

• Standardize your boilerplate documents for bids, RFPs and RFQs. • Centralize procurement under a procurement official.

This staff member should establish efficient, effective and uniform procurement procedures for the organization.

• Put in place procedures that do not create an environment of “preferred vendor” status. Make sure all vendors receive the same information and communication.

• Make sure that there are no personal interests in procuring goods and/or services.

• Write specifications that are specific enough to allow the organization to procure what is needed. However, do not write specifications, or standards so tight that they limit competition.

• Specifications should be written by the organization.

Do not allow a specific vendor to write specifications for the organization.

• Clearly communicate your solicitations either through the public bid process or on the organization’s website.

• Incorporate procedures that do not allow for a bias towards a specific vendor.

FAVORITISM AND THE LAW

The laws that a school district must operate under scream transparency! From the legal public bid process to the Gift Ban Act, the law ensures that fraud and favoritism are not part of the procurement process.

in stringing, or attempt to string any job order with the unit of local government or school district. A person who violates this section is guilty of a Class 4 felony.”5

The Illinois School Code states that districts must award all contracts for purchase of services, supplies, materials or work in excess of $25,000 or a lower amount as required by board policy to the lowest responsible bidder, considering conformity with specifications, terms of delivery, quality and serviceability and after due advertisement.3

Since governmental bodies have tremendous purchasing power, school districts need to ensure they are complying with existing legislation and regulations that seek to guide transparency for the organization. During the procurement process, any individual that is involved needs to disclose any conflict of interest, including internal staff, external staff and consultants.

Effective January 1, 1999, the Illinois Criminal Code was amended to define “Stringing” and make the act of stringing punishable by law. Stringing means “knowingly structuring a contract to avoid the contract being subject to competitive bidding requirements.”4 “No person for the purpose of evading the bidding requirement of any unit of local government or school district shall knowingly string or assist

Efficient purchasing practices help ensure effective management of public expenditures. In a very broad sense, the laws that keep transparency in public procurement assure that the public body obtains the best value for the funds expended.

28 |

UPDATE Magazine / Fall 2016

PAY $

$150

STATE CLERICAL ERROR

COMPLETED AUDIT

TER RKS INSTALL NEW CO DETECTORS

PRICE $520

LEED CERTIFIED BUILDINGS ADVANCE 3 SPACES

PRICE $530

PAY $200

COMMUNITY TRUST THROUGH ACCOUNTABILITY Ultimately, school officials are accountable to the public.

The way school districts conduct themselves in their financial transactions affect public opinion of the organization.

Accountability needs to be the standard. Procurement officials are accountable for the funds they are expending on goods and services, as their decisions and actions reflect the organization as a whole. They must have high standards of professional conduct while doing business on behalf of the school district. Their professionalism ensures a fair and transparent process and produces efficient expenditure utilization, quality and timely service delivery.

Competitive solicitation and utilizing the school district's purchasing power for goods and services helps you to make the most of your district dollars. Yet, without transparency,

corruption, scandal and the misuse of public resources can ensue. Standardizing the procurement processes and creating simplified ways to make information available that is easy to understand strengthens the community’s trust in the public body.

The media is often seen as the overseer or watchdog of the school district — reporting information on high interest topics related to school operations. They have discovered many procurement scandals, helping districts remain transparent and accountable. Local publications are a common place for citizens to gain information on their community as a whole as well as the governmental bodies. Consider taking advantage of local media to educate the community on your procurement processes, rules, laws and regulations.

IT IS CRITICAL THAT ALL STAKEHOLDERS HAVE CONFIDENCE IN THE SCHOOL DISTRICT’S PROCUREMENT PROCESS. A TRANSPARENT AND INFORMATIVE PROCESS ASSURES THE PUBLIC THAT THEIR FUNDS ARE BEING EXPENDED APPROPRIATELY — AND LEADS TO BETTER MANAGEMENT OF COMMUNITY RESOURCES.

FOOTNOTES: 1. Better Government Association. (2016). BGA. Retrieved from Open Meetings Act (OMA) | Better Government Association: http://www.bettergov.org/open-meetings-act 2. United States Department of Justice. (2016). Freedom of Information Act. Retrieved from FOIA.GOV: https://www.foia.gov 3. Illinois School Code 105 ILCS 5/10-20.21 4. Illinois School Code (720 ILCS 5/33E-2(i-5)) 5. Illinois School Code (720ILCS 5/33E-18) www.iasbo.org

| 29

GOOD BAD UGLY THE

THE

AND THE

OF SCHOOL BIDDING REQUIREMENTS

Illinois public bidding laws are complex and will affect the timeline and costs of school district purchases for materials, supplies, work or services. School districts receive guidance for school business officials and their staff based on Section 1021.21 of the School Code and applicable cases. Take an inside look at how these laws form the School Code’s bidding requirements and applicable exemptions to help you navigate the bidding process.

KNOW WHEN CONTRACTS MUST BE PUBLICLY BID School business officials must first consider whether the contract for purchase of goods or services must be publicly bid.

Under the School Code, all contracts for purchase of supplies, materials or for work exceeding $25,000 (or $50,000 for small construction projects) should be awarded to the “lowest responsible bidder…after due advertisement” unless one of the below exceptions apply. However, be aware that your school district’s bidding policy may still require bidding for contracts under $25,000, particularly if it has not been revised since 2008 when the law changed the bidding threshold from $10,000 to $25,000. Make sure your board bidding policy has been updated.

30 |

UPDATE Magazine / Fall 2016

By Kenneth M. Florey

ARTICLE

PARTNER ROBBINS, SCHWARTZ, NICHOLAS, LIFTON & TAYLOR, LTD.

Matthew J. Gardner

ASSOCIATE ROBBINS, SCHWARTZ, NICHOLAS, LIFTON & TAYLOR, LTD.

EXCEPTIONS TO THE BIDDING REQUIREMENTS The School Code contains sixteen general exceptions to the bidding requirements. The broader and more familiar exceptions include contracts for: 1. Professional services.

2. Purchases of perishable food and beverages.

3. Individual construction change orders, not the fault of the contractor and due to unforeseen revisions, of less than 10% of the most current contract amount.

4. Maintenance or service on equipment by authorized manufacturer companies;.

5. Data processing (computers) or telecommunications equipment, software or services.

6. Copying machines and supplies.

7. Previously owned (used) equipment.

8. Construction, repair or remodeling projects under $50,000 and not involving a change or increase in the size, type or extent of an existing facility.

9. Purchases of goods or services from another governmental entity.

10. Contracts for goods or services that are economically procurable from only one source.

11. Emergency purchases if approved by ¾ (six yes votes) of the school board members.

Please note that student transportation contracts are often confused as falling within a public bidding exception. These contracts for student transportation still must be publicly bid but do not have to be awarded solely to the “lowest, responsive and responsible” bidder if the award is based on the bidder’s ability to provide safe, reliable and quality service.

DEFINING LOWEST, RESPONSIVE AND RESPONSIBLE BIDDER The contract must be awarded to the lowest, responsive and responsible bidder. “Lowest” must address alternates so that the bidding process is fair to all bidders.

“Responsiveness” means strict compliance with the bid documents and instructions. A school district may, but is not required to, waive minor non-economic variances. If the bid has a material economic defect the district must either award the contract to the next lowest, responsive and responsible bidder or reject all bids and re-start the process. A material defect is one that deprives the school

district of assurances that the contract will be performed as required or gives the bidder a competitive advantage over other bidders. “Responsibility” is assessed based upon the bidder’s past negative history with your or other schools’ experience on projects or the bidder’s financial and bonding capacity. This analysis requires review and investigation of the bidder’s bid documents, references and project history. Responsibility is pass/fail. All that is required is that the bidder is deemed “responsible,” not “more responsible” or “very responsible.”

A PRUDENT SCHOOL DISTRICT SHOULD CONSULT WITH ITS ATTORNEY BEFORE ISSUING BIDDING DOCUMENTS TO PUT IN LANGUAGE TO PROTECT THE DISTRICT AND TO MAKE SURE THAT ALL OTHER LEGAL REQUIREMENTS HAVE BEEN MET. www.iasbo.org

| 31

TO TO BID BID OR NOT

To help explain and conquer the complexity of public bidding, see the following examples to determine whether a school district contract must be publicly bid: 1. A revenue generating contract such as vending machines by which the district expects to receive $75,000 each year. Bidding is not required. Because the contract generates revenue without any expenses by the district, this contract does not have to be publicly bid under the Illinois School Code. If expenses are involved, then public bidding may be required.

2. A contract exceeding $60,000 for: (a) the district’s auditor; (b) a local artist hired to paint a mural in the district cafeteria; or (c) a local painter hired to paint all the district’s lockers. Bidding is not required for (a) and (b) but is required for (c). The contracts with the accountant and artist are professional contracts and exempt from bidding because they involve services with individuals possessing a high degree of professional skill. The contract with the painter to paint the district’s lockers is subject to the bidding requirements. If the contract to paint the lockers was $49,999, the public bidding would not apply because it would be a single construction project under $50,000.

3. Contracts for an architect or construction manager for a school construction project. Bidding is not required as a contract with the school district’s architect or construction manager (CM) are contracts for professional services. However, the school district’s selection of an architect must be consistent with the Local Government Professional Services Selection Act which is a Request for Qualification (RFQ) process.

If the CM’s forces will perform any of the construction work, then the CM would have to participate in the public bid process for that work. If the school district bids out the prime contracts, such as excavating, carpentry, masonry and roofing, for example, then those contracts can be assigned to the construction manager (called a CM At Risk) even though that underlying construction manager contract was not publicly bid.

32 |

UPDATE Magazine / Fall 2016

4. During a large construction project, a change order totaling $75,000. Bidding may be required. The change order bidding requirement is often a missing part of a construction project. Under our example, this change order would have to be bid or could be exempt if it was less than 10% of the total contract price and was for an unseen revision that was not the fault of the contractor. Under some circumstances, the emergency bidding exception, which requires board approval by six members, could apply.

5. A $60,000 annual maintenance contract for the district’s HVAC system. Bidding may not be required.

This contract would be exempt if the contractor is the manufacturer or an authorized service contractor for the manufacturer’s HVAC system.

6. A $55,000 contract for the purchase and installation of computerized white boards in all district classrooms. Bidding is not required. This contract, which is essentially a contract for tablet computers for the walls, would be exempt as it is a purchase and installation of “data processing equipment” or the computers/technology exception under the School Code.

7. A $40,000 contract for the purchase of cellular telephones and applicable service plans. Bidding is not required as this contract is exempt as a purchase of telecommunications equipment and services.

8. A $51,000 contract for the installation of a digital computer controlled and operated security system. Bidding is not required as this contract is exempt as a purchase for data processing equipment.

ARTICLE / Bidding Requirements

9. A $60,000 contract for a guaranteed energy savings performance contract. Bidding is not required. Although not listed as an exemption, the School Code requires schools to engage in a separate request for proposal (RFP) procedure for a guaranteed energy savings contract by which the school district selects a qualified provider that best meets the district’s needs provided the amount of the energy savings contract is less than the guaranteed savings over twenty years.

10. A $70,000 contract for school buses. Bidding is required unless the school buses are used buses.

Contracts for student transportation must be publicly bid, but the selection is not based solely on the low bid.

Instead, the school district may consider the bidder’s ability to provide safe, reliable and quality service.

11. A three-year contract for the annual purchase of electricity totaling over $65,000. Bidding is not required as these contracts are economically procurable only from a utility company.

12. A contract for $52,000 to purchase a used mobile classroom. Bidding is not required as the contract involves purchasing used goods.

13. A $48,000 contract for the renovation of the stage in the district auditorium. Bidding is not required as the contract is for renovation of a single project costing $50,000 or less.

14. A $75,000 contract to repair a roof severely damaged during a recent storm. This contract could be exempt if ¾ of the board of education approve the contract as an emergency expenditure and bidding could not take place in time.

15. A $60,000 contract for the installation of: (a) a campus-wide wireless network system involving a public work project even if the work is subject to the Prevailing Wage Act and (b) a campus-wide sprinkler system even if the work is subject to the Prevailing Wage Act. Public bidding exceptions and the Prevailing Wage Act are often confused but are not connected. The contract for the installation of the wireless network is exempt because it is the installation of data processing interconnected equipment. The contract for the installation of the sprinkler system would be subject to the bidding requirements. Both contracts and all contracts for a public work project are subject to the Prevailing Wage Act.

SEEKING CONSULTATION The above examples demonstrate how to determine if your contract for goods or services falls within one of the School Code’s bidding exemptions. If the bidding process is required, there are a number of other steps and considerations that a school district must make. Depending on the size and scope of the contract, a prudent school district should consult with its attorney before issuing bidding documents to put in language to protect the district and to make sure that all other legal requirements have been met.

ESTABLISHING A STRONG FOUNDATION The School Code’s bidding requirements put additional responsibilities on school business officials and staff and require careful analysis and preparation when purchasing goods and services. The practical information and examples provided will help you establish a strong foundation in understanding bidding requirements, but please consult with your attorneys and purchasing and construction professionals when engaging in the public bidding process.

www.iasbo.org

| 33

Look Before You Leap:

Evaluating Your Joint Purchasing Options

34 |

UPDATE Magazine / Fall 2016

ARTICLE

By Marisa Amy K.Burkhart McPartlin, CSBO By

DISTRICT PURCHASING SUPERVISORTECHNOLOGY DIR./CURRICULUM FOR EDUCATION TWP. HIGHCSD SCH. DIST. 214 HUNTLEY 158

Howard Metz Erika Schlichter

PARTNER CHIEF ACADEMIC OFFICER ROBBINS,CSD SCHWARTZ, NICHOLAS, LIFTON & TAYLOR, LTD. HUNTLEY 158

As purchasing officials, we are often faced with the question of determining what is in the best interest of the district when it comes to responsibly sourcing and purchasing goods and services for the districts we serve.

Funds have become increasingly limited, services and supplies are becoming more expensive and the temptation to avoid the bid process altogether and instead opt for a purchasing co-op is strong. Before we decide to participate in a purchasing cooperative, we must do our due diligence in ensuring the transparency and legality of our participation. There are several questions we need to ask ourselves as we look at ways of being more resourceful and working to maximize each dollar spent: • Do these “co-ops” comply with Illinois School Code?

• Do they meet the requirements of my board?

• Do they allow for fair competition among vendors?

• Can I get more advantageous pricing than I would in a bid situation?

• Can I partner with other districts to obtain better “volume pricing?”

As all school business officials know, the Illinois School Code requires that contracts for the purchase of supplies and materials involving an expenditure in excess of $25,000 (or such lower amount as established by board policy) must be awarded to the lowest, responsive, responsible bidder pursuant to a public bid process.1 This requirement contains several important exceptions, however. Two such exceptions allow school districts to make purchases either through an approved purchasing cooperative or establish their own cooperative through the Joint Purchasing Act. Article 28A of the School Code, The State Education Purchasing Program, allows school districts to make purchases through either a state master contract or another purchasing cooperative authorized by the Illinois State Board of Education (ISBE), as an alternative to the traditional public bid process.2 In addition, the Illinois Governmental Joint Purchasing Act presents another option for school business officials in expediting the purchasing process.3 This Act allows school districts to form their own

purchasing cooperatives with other local governmental entities or even other school districts. Both the State Education Purchasing Program and the Joint Purchasing Act have unique requirements and procedures you should be aware of.

Section 10-20.21 of Illinois School Code specifically allows purchases to be made without bidding through state master contracts authorized under Article 28A.4 Article 28A authorizes the State Board to create an education purchasing program to form and designate statewide education master contracts. The state education purchasing entity then provides master contracts and education purchasing information and pricing to school districts.

The state education purchasing entity has the power to: • Select vendors and form contracts.

• Designate a contract as a statewide education master contract.

• Certify an education purchasing contract.

• Facilitate the inter-district sale or transfer of excess inventory or equipment.

• Select and subsidize e-procurement tools to be implemented within school districts.

Article 28A further authorizes ISBE to establish administrative rules for the creation and operation of state master contracts.5 The relevant procedures are as follows: The State Superintendent of Education reviews each potential education purchasing contract for the purpose of determining that the contract was awarded by the contract entity: • To the lowest responsible bidder.

• Considering conformity with specifications, terms of delivery, quality and serviceability.

• After due advertisement. www.iasbo.org

| 35

www.iasbo.org

| 35

An education purchasing contract for services may be also be certified if the State Superintendent determines that the contract was awarded by the contracting entity through a process consisting of all the following elements: • Solicitation of proposals through a request for proposals setting forth evaluation factors and stating the relative importance of price and other evaluation factors.

• Due advertisement of the solicitation.

• Separate evaluation and ranking of the price and non-price items of the proposals.

• Award to the responsible offer or whose proposal is determined to be most advantageous to the contracting entity, taking into consideration price and the other evaluation factors set forth in the request for proposals.

No contract shall be certified as an education purchasing contract or a statewide education master contract unless: • The scope of the contract permits participation by governmental entities (including educational entities) beyond the original contracting entity.

• The vendor consents.

• The terms of the contract can be extended to other governmental entities without substantially modifying the range of supplies or services offered through the contract.

School districts may then elect to participate in one or more contracts. They are required to register with ISBE and agree to abide by all the terms of any contract joined.

The ISBE rules also allow for the certification of other governmental entities’ cooperative purchasing programs, even if such programs are out of state. The only criteria for such certification is that the out of state programs must meet the same criteria for certification set forth in the ISBE rules and procedures.

36 |

UPDATE Magazine / Fall 2016

The Governmental Joint Purchasing Act provides school districts with the authority to purchase personal property, supplies and services jointly with one or more other governmental units. When exercising this joint authority, the Act’s provisions supersede any requirements under the School Code or other statutory provisions. Some opportunities for joint purchasing among school districts may include: • Transportation • Food Services • Technology Services • Employee Services The Act was amended in August 2012, and it now allows all joint purchases to be conducted by competitive solicitation, rather than the traditional low bid standard. Section 3 of the Act governs the competitive selection process as follows: • When two or more governmental units exercise their joint purchasing authority, one of the governmental units must conduct the competitive selection process.

• The expenses associated with the competitive selection process may be shared by the participating governmental units in proportion to the amount of personal property, supplies or services each unit purchases.

• The acceptance of responses to the competitive selection process shall be governed by the agreement between the governmental units.

• The personal property, supplies or services involved shall be distributed or rendered directly to each governmental unit taking part in the purchase.

• The person selling the personal property, supplies or services may bill each governmental unit separately for its proportionate share of the cost of the personal property, supplies or services purchased.

• The credit or liability of each governmental unit shall remain separate and distinct. Disputes between bidders and governmental units shall be resolved between the immediate parties.

ARTICLE ARTICLE // Joint Eyebrow!

Purchasing

Section 4 of the Act provides additional parameters regarding the bids and proposals: • Bids and proposals shall be solicited by public notice inserted at least once in a newspaper of general circulation in one of the counties where the materials are to be used and at least five calendar days before the final date of submitting bids or proposals. Such notice shall include a general description of the personal property, supplies or services to be purchased and shall state where all blanks and specifications may be obtained and the time and place for the opening of bids and proposals.

• The governmental unit conducting the competitive selection process may also solicit sealed bids or proposals by sending requests by mail to prospective suppliers and by posting notices on a public bulletin board in its office.

• All purchases, orders or contracts shall be awarded to the lowest responsible bidder or highest-ranked proposer, taking into consideration: ○○ The qualities of the articles or services supplied. ○○ Their conformity with the specifications. ○○ Their suitability to the requirements of the participating governmental units. ○○ The delivery terms.

Oftentimes, participation in a purchasing cooperative may best suit the needs of your district. Always request a copy of the fully executed, underlying solicitation and agreement and ask yourself the following questions: • Has the board passed a resolution allowing for district participation in purchasing cooperatives? Does the agreement comply with my board policy?

• Is the lead agency’s procurement code equal to or better than my board policy?

• Have current district vendors been allowed the opportunity to compete for these contracts?

• Does the cooperative contract meet the exact needs of the district and provide the most advantageous solution?

Participation in the public bid process may in fact be the best option should any of the above answers be no. In that case, give yourself plenty of time to determine your specifications and execute the bid process. By doing so, you can be assured that you have met the requirements of your board of education while maintaining a sense of fiscal transparency for your district stakeholders.

• Where the State of Illinois is not a party, all bids or proposals may be rejected and new bids or proposals solicited if one or more of the participating governmental units believes the public interest may be served thereby.

• Each bid or proposal (with the name of the bidder or proposer) shall be entered on a record while the record with the successful bid or proposal indicated thereon shall (after the award of the purchase or order or contract) be open to public inspection.

• A copy of all contracts shall be filed with the purchasing office or clerk or secretary of each participating governmental unit.

FOOTNOTES: 1. 105 ILCS 5/10-20.21 2. 105 ILCS 5/28A-5 et. seq.

3. 30 ILCS 525/1 et. seq.

4. 105 ILCS 5/10-20.21(a)(xv) 5. 44 Ill. Admin. Code 1110, Section 1110.10 et.seq.

www.iasbo.org

| 37

The legal process to procure goods and services for school districts is specified in the Illinois compiled statutes (105 ILCS 5/10-20.21) and local school board policy (4:60 Purchases and Contracts). It is the role of the business office and purchasing department to establish practical systems that provide efficient acquisition of supplies, equipment and services for instructional and operational services.

Vital Procurement Calendar Components To ensure quality organization, that all steps of the bidding process are completed and that board and statute policy are followed, it is important to know what should be a part of your bid calendar. Here are the essential components of a procurement calendar:

The procurement process is repetitive and it is critical that all required steps specified in board policy and statutes be followed. In addition to the use of a single-year bid calendar for process management, it is best practice to use a multi-year bid calendar that is future focused in order to ensure that all steps are completed within the designated timeline in an organized fashion. Use of a multi-year bid calendar tool will create greater confidence in a process that is thorough, complete and compliant with all requirements.

• A document number for record keeping • Description of goods or services to be procured • Process to be used, i.e. quote, bid or RFP • Key contact to inform bid specifications • The date bid specifications are finalized • Date the notice of publication is given to local newspaper • Bid issue date • Pre-bid meeting date • Date of bid opening • Date bid analysis, reference checks and recommendation documents are complete for board meeting documents • Date of board approval and contract award • Contract term or cycle • Month when goods or services are needed

2017-18 Purchasing Calendar*

*This is a sample bid calendar

Document Number

Description

Procurement Process (Quotes/ Bid/RFP)

Key Contact

Confirm Specifications of Items to be Bid

Notice to Newspaper

1802

Fire Alarm Test & Inspection

RFP

Director of Operations

10/3/17

10/9/17

1804

Custodial Supplies

Bid

Custodial Manager

3/6/18

3/12/18

Bid

Asst. Supt. for Curriculum

3/21/18

3/28/18

Bid

Director of Transportation

3/5/18

3/12/18

1806

1808

General School Supplies Regular Transportation Services

1809

Musical Instruments

Bid

Coordinator Instrumental Music

5/7/18

5/14/18

1810

Classroom Furniture

Bid

Director of Operations

5/7/18

5/14/18

38 |

UPDATE Magazine / Fall 2016

Mary Werling, SFO

By Marcus LaPointe

ARTICLE

ASST. SUPT./FINANCE, CSBO COOR./CUSTODIAL SERVICES WHEELING CCSD 21 ELGIN SD U-46

Goals of the Procurement Process

Standardize Your Purchasing Practices

The purpose of procurement planning is to clarify what is needed, when it is needed and to identify the steps that need to take place in order to complete the process.

The overall goal is to provide efficient procurement services that support the activities of the school district.

Solid procurement planning is essential to support the instructional and operational goals of the district. A welldesigned procurement function will achieve the objectives of:

In order to meet the needs of the organization and provide the greatest value, the business manager or purchasing coordinator should standardize purchasing practices. Procurement of goods should be done according to a procurement plan that ensures the goods or services are delivered and available when needed.

Early and accurate planning is essential to avoid last minute, emergency or ill-planned procurement. Potential savings in the procurement process can be achieved in the planning stages.

• District transparency • Identification of what is needed and by when • Ensuring all goods and services are of appropriate quality and value • Timely delivery of goods and services • Identification of the right suppliers • A process that fosters fair and open competition • Sufficient time to explore all options • Development of long-term agreements

The role of the business office and purchasing department is to establish practical systems that provide efficient acquisition of supplies, equipment and services for instructional and operational services.

Bid Issued

Pre-Bid Meeting

Bid Opening

Analysis & Documents Ready for Board Docs

BOE Approval/ Contract Award

Term

Delivery

10/12/17

n/a

10/30/17

11/6/17

11/16/17

3 year

January

3/15/18

n/a

4/3/18

4/9/18

4/19/18

Annual

June

4/4/18

n/a

4/24/18

5/7/18

5/17/18

Annual

July

3/15/18

3/19/18

4/16/18

5/7/18

5/17/18

3 year

July

5/16/18

n/a

6/5/18

6/11/18

6/21/18

Annual

August

5/17/18

n/a

6/4/18

6/11/18

6/21/18

Annual

August

www.iasbo.org

| 39

PURCHASING MADE SIMPLE The rise of new purchasing technologies has transformed a once cumbersome process into a streamlined operation.

As recently as the 1970s, purchasing was a completely manual operation. From catalogs to requisition sheets, purchase orders, invoices, billing and payment — every step of the process required one or many people with different responsibilities. This often meant handling the same document multiple times until the final approval, receipt and payment were filed away for future reference.

If anyone needed information, they would have to contact business office staff, who would in turn wade through mountains of paper to locate the precise document needed.

40 |

UPDATE Magazine / Fall 2016

If a piece of paper was lost, an order filled incorrectly or a bill not paid, it consumed hours of time to rectify the situation — if it was ever done.

With computerized record-keeping the process was minimized. However, there were still piles of paperwork and spreadsheets to keep in order. The more recent introduction of purchasing automation software has changed the face of school district purchasing, simplifying the entire process and saving valuable staff time.

ARTICLE

By Cheryl E. Wadsworth CHIEF FINANCIAL OFFICER ANTIOCH CCSD 34

Tim J. Keeley

DIR./SUPPORT SERVICES INDIAN PRAIRIE SD 204

ELECTRONIC PROCUREMENT: Covering all the Bases Electronic procurement is a process that covers all the steps from entering and approving requisitions, identifying vendors and or suppliers to the actual purchase of the product.

Approval levels are easily managed and maintained through an electronic purchasing system. All related documents such as quotes, purchase orders and receipts are attached to the system and are transparent, trackable and quickly accessed.

The change from paper to electronic processing of procurement had some resistance in changing from the “old ways” that were more completely understood as opposed to an electronic system that often seemed like magic. However, with training, familiarity and using and understanding the electronic process, users have found that the new way is still a far better process to procure needed items.

PROCUREMENT CARDS: Simplifying the Process Procurement cards have increased the ease of purchasing by partially eliminating the requisition/purchase order piece of the process. A procurement card is simply a charge card, much like a consumer credit card, which may be used for many different types of business expenses. To ensure that proper procedures are followed, the school board recommends policies for limits on purchasing using a procurement card.

Using a procurement card is convenient for both the vendor and the purchaser: • The vendor can receive payment in less than 30 days and maybe in as early as 48 to 72 hours instead of waiting for the purchasing, shipping, billing and the payment approval process (which can take up to 45 days).

• This quick payment turnaround allows purchasers to gain leverage with vendors for greater discounts because they can ensure quick payment instead of the typical net plus 30.

Approval levels are easily managed and maintained through an electronic purchasing system. All related documents such as quotes, purchase orders and receipts are attached to the system and are transparent, trackable and quickly accessed.

Today, with cloud backups, purchasing through Amazon accounts and procurement cards, the process has changed dramatically. Instead of relying upon reputation and proximity, technology allows for the consumer to research companies and products at any time and from any place.

Formerly, the procedure of browsing through a catalogue then going through the process of obtaining approval for the purchase, creating the purchase documents and then placing the order, the entire process is quickly completed on any device connected to the web. This process offers efficiencies in both time and cost.

ELECTRONIC BOARD PACKETS: Streamlining Approval Making board of education and committee meeting packets available for review used to mean posting agendas, printing, collating, binding, packaging and delivering large amounts of cumbersome paper documents. Minutes had to be typed, filed and kept for years in binders. Now, agendas and attachments are uploaded and are easily made available to board members, administration and stakeholders. Complying with the Open Meetings Act for posting of the approved minutes is quick and easy.

OPERATIONS AND MAINTENANCE: Seamless Purchasing Operations and Maintenance departments have also benefitted from technology integration in regards to purchasing. Computerized Maintenance Management Systems (CMMS) can link with vendors that supply products online for facility repair and maintenance and are able to interconnect with purchase orders and work order systems.

This allows for seamless purchasing procedures and proper inventory management.

Technology has given consumers an instant and an easy venue to solicit and share customer service and/ or product reviews for virtually any service, product or business.

www.iasbo.org

| 41

ARTICLE / Electronic Purchasing

ELECTRONIC PURCHASING BY THE NUMBERS 1

5

40%

Months

AVERAGE REDUCTION IN PROCUREMENT CYCLE LENGTH WITH THE USE OF TECHNOLOGY.

à

3

Months

PROCUREMENT CYCLE DECREASE OVER THE PAST TEN YEARS DUE TO THE INFLUX OF TECHNOLOGY.

Five Keys to Implementing Change While these technological advancements have proven effective in many environments, they are not always “one size fits all.”

Take these five practical considerations into account when considering a process change: 1. What process are you evaluating?

You must fully understand the process to appreciate the potential impact that it may have on your organization.

2. Why are you looking to change?

In some cases, you do not have a choice. For instance, changing financial regulations, software obsolescence or staffing changes are all factors that may make the change mandatory. Certain organizations reach a “pain point” and can no longer operate effectively without changing the system.

Identify the problems that the process change may solve. You may be surprised by the impact that the change will have once you fully explore the reasons for the change with your team.

3. Who will be impacted by the change?

Change is difficult even for the most easy-going people in an organization. It is important to identify all stakeholders that may be impacted either directly or indirectly by the change. If you happen upon a person that is especially resistant to the change, it may be beneficial to find out what their concerns are. Perhaps there are considerations that you have not accounted for.

If practical, it is helpful if all are included in the decision making process. Do yourself a favor and engage the stakeholders that are involved in the process on a daily basis. If you are looking at new food service software, be sure to speak to the cashiers in the lunchroom.

4. How will you implement the change?

It is time to think about how you can move your organization from the current process to the new and hopefully improved process. As a school business official, one of your greatest tools is your network. Reach out to your colleagues to gain insight into how others have approached this process. Learn from their mistakes and understand the reasons for their successes.

5. When do we want the process to be fully functional?

As with any major project, you should begin by establishing a date by which the new process should be fully functional. Be aware of your surroundings and plan for a time where the changeover will have a limited impact. In other words, do not plan to implement the change in the middle of the annual audit or other major business office undertaking. Incorporate the tasks discovered in your “how” process accordingly. Be sure to leave time for unforeseen issues.

FOOTNOTE: 1. Trend Report: Trends in Procurement Technology: Missing piece in end-to-end procurement. www.gep.com/knowledge-bank.

42 |

UPDATE Magazine / Fall 2016

RESOURCES Overcoming the Fear of “Never Enough” On My List Daring Greatly: How the Courage to Be Vulnerable Transforms the Way We Live, Love, Parent, and Lead

By Brené Brown Overview: Vulnerability is usually viewed as a characteristic of a weak or overly personal leader.

It is an undesirable trait that holds someone back or distracts them from their main objectives.

In her book, Daring Greatly, Brené Brown debunks the myths surrounding vulnerability.

She shows that vulnerability is neither good nor bad, but that rejection of being vulnerable has negative repercussions on our ability to lead.

The “Never Enough” Problem Our society is motivated by fear. We are afraid of what others really think about us, we worry about not being good enough or that we will not have enough. This fear of “never enough” causes us to compare our lives, our families and our leadership abilities to “unattainable, media-driven visions of perfection” that we could never reach.

To protect ourselves from risk and failure we put on a mask in an effort to only show people what we want them to see. However this is at the expense of great opportunities that we will never realize because of our unwillingness to be vulnerable.

Vulnerability is the Key Vulnerability is not weakness and the uncertainty we face every day is not optional. Brown’s decade of research on vulnerability has led her to the conclusion that “vulnerability is not knowing victory or defeat, it’s understanding the necessity of both.”

Our willingness to face the challenges that we are presented with every day and give our best effort, instead of shrinking or holding back out of fear of not being good enough, is true vulnerability. Vulnerability is the ability to engage and be all in. This is the true measure of a successful leader.

Courageous Leadership Being a leader who is “perfect” or “bulletproof” is an appealing idea, but that simply does not exist in the human condition. Brown asserts that “the level to which we protect ourselves from being vulnerable is a measure of our fear and disconnection.” As leaders, we cannot hide from the risks and challenges that we face every day.

Brené shares that “our willingness to own and engage with our vulnerability determines the depth of our courage and the clarity of our purpose.” Leaders must be willing to walk into the arena and face the probability of failure. If not, we risk losing irrecoverable relationships and opportunities.

The perception that vulnerability is weakness is the most widely accepted myth about vulnerability — and the most dangerous. www.iasbo.org

| 43

Trust with Public Funds

Resources to shape your purchasing practices Develop Your RFP Best Practices pg. 14-18 A Guide to Writing a Request for Proposal Learn how to let providers propose creative, relevant and cost-effective solutions by focusing on the end, not the means.

www.iasbo.tools/rfpguidelines

How to Write a Request for Proposals for Best Results Writing an RFP can be a challenge if you have never experienced the process before. Acquire the basics needed to create your own RFP and run an RFP process with limited frustration.

www.iasbo.tools/bestrfp www.iasbo.tools/bestrfp

How to to Write Write and an R.F.P. How RFP An effective RFP could mean the difference between a successful and a failed project. Discover the essentials of creating a successful RFP.

www.iasbo.tools/rfphowto www.iasbo.tools/bestrfp

Effective R.F.P. RFP How to Create an Effective A well-written RFP will clarify your objectives and the scope of the services you are seeking. It will also provide a structured format in which the vendor should present its capabilities, costs and expectations.

www.iasbo.tools/createrfp

Standardize Your Purchasing Practices pg. 38-39

Sample Multi-Year Bid Calendar Learn how to develop a long-term purchasing plan that will satisfy the needs of your district and deliver that greatest value. The purpose of procurement planning is to clarify what is needed, when it is needed and to identify the steps that need to take place in order to complete the process.

Available on peer2peer at www.iasbo.tools/bid_calendar

44 |

UPDATE Magazine / Fall 2016

RESOURCES

TECH

Illinois ASBO Purchasing Resources peer2peer Resources Resources peer2peer Gain insight insight into into RFPs RFPs and and purchasing purchasingfrom fromyour yourcolleagues. colleagues.Search Searchfor forRFP RFP Gain and bid bid specs specs within within the the peer2peer peer2peernetwork networkresources resource library and library to to learn learn from from the experiences of other SBOs. the experiences of other SBOs.

Log in in to to peer2peer peer2peer at at www.iasbo.memberfuse.com www.iasbo.mymemberfuse.com Log

Illinois ASBO Purchasing Manual Created by the Illinois ASBO Purchasing PDC, this manual is intended to serve as a guide to the broader background of the overall purchasing process as well as, its specific and various components. This is a member only benefit.

PURC

Illinois ASBO p-Card Logo and Logo Branding www.iasbo.tools/purchasingmanual INOIS ILL

A

IATION OC of SS

S OFFICIA ES L N

S

The Illinois ASBO p-Card (Payment Card) is a well established brand that is immediately recognizable by its name and colors. Because the brand is so well established we thought it unnecessary to redevlop the identity from scratch but, ra refresh the logo and and brand colors by tweaking a few of the existing elements. The previous logo contained a grahic element of a lock which was removed. In addition, the typeface used in the p-Card name has been refined; a new typef was chosen (Roboto - Black Italic), the stroke has been removed and the overall look of the name is cleaner.

L HOO BUS I SC

Illinois ASBO Sponsored Programs

Previously, the p-Card branding included the typeface GeoSlab 703. This is being dropped in favor of the Illinois parent brand typeface, Helvetica. Future brochures, ads and other marketing materials will make use of Helvetica.

U.S. Communities The p-Card brand colors have also been modified slightly, the primary hues will remain green and grey with slight varia The new logotype will be a gradient of two cooperative shades of green, except where a one-color logo is necessary or when the pU.S. Communities is the leading national government purchasing logo isand grayscale. that reduces the cost of goods services by aggregating the purchasing power of public agencies nationwide.

www.uscommunities.org

Old Logo and logotype

Updated logotype

p-Card Program Partner with Illinois ASBO, Harris Bank/Mastercard, and other districts throughout the state utilizing this procurement card (p-Card) program to streamline your purchasing process.

Payment Card

www.illinois-pcard.com

Logo Gradient

Location: 65

C:50 M:0 Y:100 K:0

www.iasbo.org

C:0 M:5 Y:95 K:0

C:25 M:0 Y:100 K:0

C:50 M:0 Y:100 K:0

C:50 M:0 Y:100 K:25

C:85 M:25 Y:100 K:10

C:0 M:0 Y:0 K:70

| 45

C:0 M:0 Y:0 K:85

C:85 M:25 Y

C Y

THE FINAL WORD SPEAKING OUT ABOUT SCHOOL PURCHASING TIM J. KEELEY Dir./Support Services Indian Prairie SD 204

Our goal is to support the learning experience.

The support services department manages the district’s food and transportation operations. Even though our team is not directly tied to the curriculum, they have interactions with students every day. Our goal is to make these interactions as positive as possible in order to best support the overall learning experience for our students.

We must remain vigilant in the purchasing process.

In an era of uncertain state funding, school districts are constantly challenged to find ways to enhance student achievement with diminishing resources. By remaining vigilant in the procurement process, our business office can identify efficiencies that will best allow for adequate instructional dollars where they can have the greatest impact on student success.

State funding is constantly in jeopardy.

Therefore, it is critical that the business office is not only efficient, but also adaptable to changing levels of funding. Like our staff, our contracts should be flexible. Where possible, we include adequate safeguards to ensure that the contract scope may be adjusted to reflect changes in the level or timing of the district’s state funding.

Collaboration is key.

School districts often have unique needs in the area of procurement.

However, we often face similar challenges. Through collaboration, Illinois ASBO members may pool their knowledge to ensure successful outcomes.

46 |

UPDATE Magazine / Fall 2016

AConsistent New Standard for Illinois School Facilities

Professionals

S OFFICIA ES L N

INOIS ILL A

OL BU HO SI SC

Facilities Operations

OL BU HO SI SC

Custodial

OL BU SI HO N SC

GRounds

S

INOIS ILL A

IATION OC of SS

FFICIA SO L ES

INOIS ILL A

IATION OC of SS

S

The NEW Illinois ASBO Facilities Operations Program lays the groundwork of what facilities professionals need to know to succeed in their districts.

Participants can study custodial, maintenance or grounds — or attend all Custodial Operations Maintenance four courses to complete the Facilities Operations Program!Operations

Maintenance

FFICIA SO L ES

S OFFICIA L ES N

Facilities Operations

OL BU SI HO N SC

INOIS ILL A IATION OC of SS

S

IATION OC of SS

S

Facilities

New and seasoned professionals can start their training this October with the core curriculum course on facilities management!

FFICIA SO L ES

FFICIA SO L ES

INOIS ILL A

IATION OC of SS

S

OL BU SI HO N SC

INOIS ILL A

IATION OC of SS

OL BU SI HO N SC

www.iasbo.tools/facilities_operations

S

www.iasbo.org

| 47

A DAY OF EMPOWERMENT for Educational Support Staff

Logo Name Alignment

The SupportCon name can be moved to accommodate different de Below are the allowed name placement designs. The lower right a and center alignment of the name is preferred.

ntered

The typefaces and fonts used in the SupportC are PT Serif - Bold (”Support”) and Avenir Ne (”Con”). SupportCon should be one word and with both a capital “S” and a capital “C” whe name of the conference is used in marketing

Resource-full!

How Claiming Your Value Can Maximize Your Impact

You want to make a difference. But if your value comes from others, you may end up feeling short-changed.

Explore an approach to value that taps into your unique gifts and energizes your career.

Save the Date for SupportCon!

48 | UPDATE Magazine / Fall 2016 December 2, 2016 | NIU Naperville

Conference Center

Featuring

Robin Weidner

Acclaimed Author and Speaker