Page 12 - The Edge - Winter 2017

BY BILL MUNCH, CPPB

What Kind of Governing Board Approval Is

Necessary for Cooperative Purchases?

As I travel around this great state of ours, I continue to get questions (USFR), the procurement rules, and local district policy. erefore, every
regarding whether or not cooperative purchases need Governing Board purchase from a cooperative contract that exceeds district administration
approval. authority must have speci c Governing Board authorization. Budget
Many school business purchasing professionals have embraced approval alone does not satisfy this requirement.
cooperative purchasing as a means to help make e ective, e cient and Obtaining proper Governing Board authorization for individual
economical purchases. Arizona school districts have several cooperative cooperative purchases need not be a barrier to the bene ts of such
purchasing options available to them including: contracts. e authorization required may come in many di erent forms.
• State Procurement O ce Contract (AzSPO) including ValuePoint Some of the most e ective and common ways to obtain approval are as
Contracts follows:
• Mohave Educational Services Cooperative (MESC) • Placing individual cooperative purchases on Governing Board
• 1 Government Procurement Alliance (1GPA) meeting agendas as they occur.
• e Cooperative Purchasing Network (TPCN) • Obtaining authorization from the Governing Board to make speci c
• NationalIPA (NIPA) purchases from speci ed cooperative contracts.
• U.S. Communities Government Purchasing Alliance (U.S. • Obtaining authorization from the Governing Board to make speci c
Communities) purchases using contracts from a list of approved cooperative contracts,
• Strategic Alliance for Volume Expenditures (SAVE) with a designated district o cial authorized to determine the most
• Greater Phoenix Purchasing Consortium of Schools (GPPCS) appropriate contracts.
• Yuma Educational Purchasing Association (YEPA) • Approving speci c cooperative contracts to purchase speci ed
It is true that cooperative purchasing is clearly authorized as an option commodity and service items in an annual board approval.
for school district procurement. ere is a less de nitive answer for the • Delegating the decision-making authority for use of cooperative
o en asked question of whether the Governing Board of a school district is contracts to a designated school district o cial (Note that such delegation
required to approve such purchases. e straightforward answer is “YES” must be speci c as to authorizations and limitations and may only be
for any purchase that exceeds the authority of district administration. done through formal Governing Board policy).
While the state’s bidding threshold sets the formal requirement, some Determining the appropriate manner to obtain Governing Board
Governing Boards have set a lower bidding threshold and/or delegated approval for cooperative purchases is a district speci c decision. School
additional authority to their administrations. erefore, a practical rule districts must carefully weigh many factors including the politics, risks
of thumb is to use the dollar amount that requires you to take a bid or and liabilities associated with each option and then choose the best course
proposal contract award to your Governing Board as the same amount of action. Once the option is chosen, district personnel must carefully
for Governing Board approval of a purchase from a cooperative contract. research and comply with the requirements for implementation of the
Reviewing your Board policy is critical to answering the question for your district’s chosen course of action.
cooperative procurements. Cooperative purchasing provides buying power and an opportunity
Governing Boards authorize the use of cooperative contracts by to take advantage of the increased economies of scale, e ciency and
executing a Cooperative Purchase Agreement (CPA), which is a form of e ectiveness. However, these purchases should not be made solely
Intergovermental Agreement (IGA) that district legal counsel normally for convenience. Because cooperative purchases do not relieve the
reviews. e procedures are outlined in the Arizona State Board of school districts from the due diligence responsibilities that go along
Education School District Procurement Rules (A.A.C. R7-2-1191 through with it, informed decisions must be made. at due diligence should
R7-2-1195). Once the CPA has been executed, school districts may use include determining if Governing Board approval for purchases over
cooperative contracts as if those contracts were their own, provided the competitive bid threshold is required through your Board policy.
proper “due diligence” has been performed. School districts choose this With careful consideration, planning and appropriate action, obtaining
option for many reasons including greater economies of scale, increase Governing Board approval for cooperative purchases that exceed delegated
buying power, time savings and advantageous contract terms, etc. authority should not outweigh the bene ts of cooperative purchasing.
Approval of a speci c CPA provides the school district with the ability
to use that cooperative’s contracts to satisfy the competitive bidding Bill Munch, CPPB, is the Procurement Compliance and Training
requirements. However, the CPA does not authorize individual purchases. Of cer for Valley Schools Management Group and winner of the
Even when using cooperative contracts, individual purchases must still be 2016 NIGP National Professional Manager of the Year. He may be
authorized in accordance with the Uniform System of Financial Records reached by email at bmunch@vsit.org.

12 THE EDGE WINTER 2017
THE EDGE |