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requirements of the state statute. HERE ARE SOME KEY THINGS TO REMEMBER • Th e subsequent purchase
GSA contracts are not a “Get- order issued must identify the
Out-Of-Jail-Free Card” and ABOUT GSA CONTRACTS GSA contract number.
should not be used as such. e • In order to determine that
key to making e ective, e cient • Website: www.gsa.gov. does have to be justified through the purchase is cost-e ective and
and valid GSA purchases is: market research. in the best interest of the school,
documentation, documentation • A cooperative purchase agree- • Schools don’t have to buy from it is necessary to conduct some
ment is NOT required.
and documentation. GSA contracts. type of market research.
• The due diligence required is
dictated by ARS 15-213(J) and • Schools can add their own
WHAT DOES THE STATUTE AND RULE SAY? Arizona School District Procure- terms and conditions to the HOW DOES A DISTRICT DETERMINE IF
The bill amended ARS ment Rule R7-2-1196. purchase, which the GSA vendor THE PURCHASE IS COST-EFFECTIVE?
15-213 by adding Paragraph • GSA only authorizes purchases may reject.
J and on July 1, 2014, the via Schedule 70 and Schedule • If market research analysis The State Procurement
statutory requirements for GSA 84. concludes the GSA contract is Office has operated under a
not advantageous to the school
purchases were incorporated • GSA pricing is generally a ceil- district, the purchase must then similar statute within the State
into the Arizona School District ing price that can be negotiated comply with the state procure- Procurement Code long before
downward.
Procurement Rules as follows: ment rules. school districts and charter
• GSA pricing is not obtained
through a competitive bid sit- • If your purchase is under the schools obtained the authority
R7-2-1196. General Services uation. bid threshold, you may use the to do so. e strategy they use
Administration contracts • Schools do not have to issue GSA price as a quote and the to conduct market research is to
procurement rules relating to
A. The governing board a formal bid, but the purchase GSA purchases need not apply. seek pricing from a minimum of
may authorize purchases under three vendors and verify that the
a current General Services pricing is cost competitive.
Administration contract for materials or services without e pricing can come from any cooperative contract, other GSA
complying with the requirements of Articles 10 and 11 if the contracts or the open market. If during the market research it is
governing board determines in writing before proceeding with a discovered that the GSA pricing is not competitive and the district
General Services Administration contract procurement that all of determines it is not in their best interest to make the purchase from
the following apply: the GSA vendor, then the purchase must be made in accordance
1. e price for materials or services is equal to or less than the with state procurement rules.
contractor’s current federal supply contract price with the General e bottom line is that making a GSA purchase requires the
Services Administration and is fair and reasonable. governing board to make a written determination that the price
2. e contractor has indicated in writing that the contractor is o ered under the GSA contract is cost-e ective and market
willing to extend the current federal supply contract pricing, terms research as described above is the best way to do so.
and conditions to the school district. In order to make GSA purchases efficiently and – most
3. e purchase order adequately identi es the federal supply importantly – legally, a school must determine that the purchase
contract on which the order is based, including the name of the is “cost-e ective” and “in the best interest of the school district…”
contractor, contract number and procurement description. is requirement means seeking competition and making a written
4. e purchase contract is cost e ective based on price, quality determination based upon that market research.
and other relevant factors, and is advantageous to the school It was never the intent of this law that schools could simply
district. purchase from GSA contracts without any due diligence and cost
B. e school district shall only purchase materials or services analysis. e State Procurement O ce always conducts these types
awarded under the applicable General Services Administration of studies before approving any GSA purchases on behalf of the
contract. state agencies.
C. The governing board shall comply with all federal SB 2105 was speci cally written to re ect the state’s requirement
requirements applicable to state and local government use of for GSA purchases. When used appropriately, GSA contracts may
General Services Administration contracts. make certain purchases more e ective and can be bene cial for
school districts on a limited basis for those categories GSA has
WHAT DOES IT ALL MEAN? authorized.
First of all, a district must have approval from the governing
board to make a GSA purchase. A cooperative purchase agreement Bill Munch is the Procurement Compliance and Training Of cer for
is not required. e approval must address the following, which Valley Schools. He may be reached by email at bmunch@vsit.org.
will also be your due-diligence requirements:
• Th e price off ered by the GSA contractor must be less than or
equal to the GSA price.
• Th e school must obtain written verifi cation from the vendor
that pricing will be extended to the school.

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