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PROCUREMENT BOND REQUIREMENTS is rule does not apply to procurements under $100,000, so it is
within our discretion to bond material and service contracts below
CONTINUED FROM PAGE 34 this amount without a formal board approval. We recommend that
So the next logical questions is: “Can we bond below $100,000 you put an informal written determination in your quote le, but we
on construction projects?” Of course we can, but then it is acknowledge there is no speci c requirement to do so. It just feels right.
discretionary. You don’t have to! Use your best judgment and best So there you have it! You MUST bond for construction projects of
practices savvy. $100,000 or more. You must have your Governing Board do a written
But wait, hold the phone. What about procurements for materials determination (or delegate the authority) to bond material and service
and services? Can we bond for non-construction projects or other contracts of $100,000 or more. You MAY bond for construction projects,
services? Again, the answer is yes. Refer to rule R7-2-1078 below for material and service contracts under that amount without Board action.
that answer. We hope this simpli es bonding requirements for you and makes
R7-2-1078. Bid and Contract Security your procurement life a little easier. Feel free to contact us with any
questions.
A. Bid and performance bonds or other security may be required Remember, this article should in no way be construed as legal advice,
for material or service contracts to guarantee faithful bid and contract but merely best practice expertise given our combined 50-plus years of
performance if the Governing Board determines that such requirement public procurement experience in Arizona and our certi cations as
is advantageous to the school district. In determining the amount public procurement professionals.
and type of security required for each contract, the Governing Board
shall consider the nature of the performance and the need for future Laura Szymanoski, CPPB, is the Purchasing Administrator for the
protection to the school district. e requirement for bonds or other Dysart Uni ed School District and the 2017 Professional Purchasing
security shall be included in the solicitation. Manager of the Year for the NIGP Capitol Chapter of Arizona. She
B. Bid or performance bonds shall not be used as a substitute for a may be reached by email at laura.szymanoski@dysart.org.
determination of bidder or o eror responsibility.
So we can bond material and service contracts provided the Bill Munch, CPPO, CPPB, is the Procurement Compliance and
Governing Board makes a written determination that it is advantageous Training Of cer for Valley Schools Management Group and the 2016
to the school district to do so. is Governing Board determination, like National NIGP Professional Purchasing Manager of the Year. He may
any other board determination, can be delegated to the administration. be reached by email at bmunch@vsit.org.
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