This resolution sets forth the guidelines  to meet the requirements  of General  Municipal Law, Section 104-b.

Purpose

Goods  and  services  which  are  not  required  by  law  to  be  procured  pursuant  to  competitive bidding  must  be procured in a manner  so as to  assure the  prudent  and economical  use of public monies,  in the best interest  of the taxpayers  to facilitate  the  acquisition  of goods  and services  of maximum quality at the lowest possible cost under the circumstances, and to guard against favoritism, improvidence, extravagance, fraud and corruption. To further these objectives, the governing Board has adopted internal policies and procedures governing all procurements of goods and services which are not required to be made pursuant to the competitive  bidding requirements of General Municipal Law, Section 103 or any other general, special or local law.

Procedures for Determining Whether Procurements are Subject to Bidding

The procedures for determining whether a procurement of goods and services is subject to competitive bidding and determining that competitive bidding is not required by law is as follows:

1)     The Board is required by law to award all purchase contracts for supplies, materials and equipment involving expenditures in excess of twenty thousand dollars ($20,000) and all contracts for public works in excess of thirty-five thousand dollars ($35,000) to the lowest responsible bidder after advertising for public sealed bids.

2)      When a contract involves acquisition of both goods and services, a judgment must be made as  to  the  primary  purpose  of  the  contract.  If  the  services  are  minor,  incidental  or customarily provided by the vendor in connection with the goods purchased, the contract should  be  viewed  as  a  purchase  contract.  If  the  service  component  is  extensive  or predominant  or involves  special  skills, the contract  should  be treated  as one for  public works.

3)     In determining the necessity for competitive bidding, the aggregate amount to be expended during the fiscal year on an item or those of a similar nature (a "reasonable commodity grouping")  must  be  considered.  For  example,  office  supplies  or  art  materials  would constitute an appropriate grouping for bidding purposes.

Additionally,   in   determining   whether   the   dollar   requirements   have   been   reached, allowances for any trade-in related to the purchase must be treated as an expenditure; the estimated gross cost of the item is controlling. Net cost is relevant only to the determination of the low bid.

Guidelines for Purchasing Supplies and Equipment when Competitive Bidding is Not Required by Law

Estimated

Amount of Purchase            Procedure/Requirements

Less than $1,000                  At least two (2) catalog or price sheet comparisons.

$1,000-$5,000                   Two (2) verbal quotations, name of vendor and date of quote.

$5,001 - $10,000                  Three (3) verbal or written quotations, name of vendor and date of quote.

Responsibility

Obtained by  the  originator.  The originator shall indicate on the purchase  requisition  form the basis  for  the  determination  that the suggested vendor be used.

Obtained by  the  originator.  The originator shall indicate on the purchase  requisition  form the basis  for  the  determination  that the suggested vendor be used.

$10,001-$19,999

In excess of $20,000

Three (3) formal written quotations.

Public advertised bids in accordance with General Municipal Law.

Obtained by the School Business

Official/or assigned designee.

Obtained by the School Business

Official/or assigned designee.

NOTE:

1)     For products available under State contract, which are below the State contract price, no further  quotes  are required  provided  the product  is the  same  brand and model number and below the $20,000 bid threshold.

2)      When procurement can be accomplished  through the following sources,competitive bidding or procedure requirements listed above are not required.

a.       Under State Contract;

b.       Under a County contract;

c.       From State Correctional Institutions (Corrections Law Sections 184 and 186);

d.       From State agencies for the blind and severely disabled (State Finance Law, Section 162);

e.      Emergencies (General Municipal Law, Section 103[4]);

f.        Sole source, professional services, true leases and insurance;

g.      Second-hand equipment from another government agency.

Guidelines for Public Works Projects when Competitive Bidding is Not Required by Law

Estimated

Annual Review

The Board/Audit Committee shall annually review these policies and procedures. The School Business Official shall be responsible for conducting an annual review of the procurement policy and for an evaluation of the internal control structure established to ensure compliance with the procurement policy.

Unintentional Failure to Comply

The unintentional failure to fully comply with the provisions of General Municipal Law, Section

104-b, shall not be grounds to void action taken or give rise to a cause of action against the Marcus

Whitman Central School District or any officer or employee thereof.