Page 12 - The Edge - BTS 2019

‘LIKE-ITEMS’ AND ‘NON-LIKE ITEMS’ items”. What should the District do? At this point, Districts should
CONTINUED FROM PAGE 11 make the attempt to get three quotes, if they even think this purchase
will take them over the $10,000.00 threshold because that’s what’s
needed at the point of exceeding the threshold”, says Barkman.
“Analyzing Cumulative Purchases According to Munch, “It is critical that your end users
When determining the level of competitive purchasing be advised that there may be times when it is necessary to
required (i.e., written quotes, or sealed bids or proposals), get quotes for an amount less than $10,000.00 when their
districts should consider not only the dollar amount of the requested purchase amount causes the quote threshold to
current purchase but the total dollar amount of all like- be exceeded. It is highly recommended that you provide this
item purchases that might occur during the scal year. If the cautionary advisory as a general caveat to your end users prior
amount of the good or service that will be needed during to the situations occurring. is will help your end users gain
the year is uncertain, districts should analyze cumulative a better understanding of how quotes could be required even
purchases of like items for the for purchasing less than $10,000.00
previous scal year and adjust It could be a low dollar requisition
the estimate for any changes but if you exceed the threshold and
(e.g., increased enrollment, you didn’t get quotes from the start
new school) that might affect then you need to get quotes at the
the amount of the good or point you exceed the threshold.
service needed. An analysis of A general understanding of this
cumulative purchases should concept by your end users should
be based on like items rather help to garner more acceptance of
than vendors. Specifically, if this procedural requirement.”
the district purchased like items Lastly, Barkman indicates the
from multiple vendors, the total following, “Districts should consider
of all like-item purchases from that when using purchase orders for
all vendors should be considered. “like-items” and “nonlike-items”
Also, if the district made nonlike- there may be cases where you exceed
item purchases from a vendor $10,000.00 but the purchases should
that provides multiple types be considered “nonlike-items.”
of goods or services, nonlike- “Example; Let’s say the District
item purchases from the vendor makes purchases for supply items,
should be considered separately. (6611) and creates a blanket PO at
Competitive purchasing $8,000.00.”
requirements must be followed “The same District may also
regardless of the purchasing have purchases for repairs, (6430)
method (purchase order, credit and creates a blanket to the same
card, or purchasing card) used. supplier/vendor for $8,000.00
Total like-item purchases from because the supplier/vendor does
all purchasing methods should repairs, as well as sell commodity
be considered in determining the items. Now the District is at
appropriate level of competitive $16,000.00 but for “nonlike items”,
purchasing required.” as these should not be considered
“like-items” due to the fact you may
According to Munch, “As a not purchase supplies from a repair
result of the rule above, we must make judgment calls on purchase order and vice versa, you may not purchase repairs
every purchase as to whether or not an item or service is from a supplies purchase order.”
LIKE. erefore, each purchase will need to be analyzed and ese are just a few areas that Districts may want to consider
more important than your nal determination is that you fully when determining “like-items” and “non-like items” but
document that nal determination for whether or not a given remember, document, document, document. We hope you
purchase is a like purchase as opposed to a separate purchase nd this information helpful and contact us, should you have
of miscellaneous items or services.” questions.
“Another issue that comes up from time to time is the fact that
Districts may not have history on a commodity or service, so they Gary Barkman, CPPB @ gabarkman@mpsaz.org
make a blanket for $9,000.00 for the current scal year, thinking that Bill Munch, CPPO, CPPB @ bmunch@vsit.org.
they won’t exceed the threshold. At some point during the year they’re References: https://www.azauditor.gov/sites/d efault/ les/
faced with making additional purchases that may be considered “like- USFR8119.pdf

12 THE EDGE | BACK TO SCHOOL 2019