Page 38 - AASBO EDGE Summer 2023 WEB

Multiterm Contracts – 5 Years and Beyond
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So, when a cooperative contract is written for more than bidding. Actually, this can be verified by reading it in the
five years, how is it viewed? Can it be used? We will leave solicitation. “Have they not completed the same steps as
that to each of you for an individual interpretation with an Arizona school district?” The major difference is the
regard to your own district, pretty much the same way fact that it wasn’t an Arizona lead agency that gained
we handle due diligence, each district to perform their approval, prior to being put on the street so we (Arizona
own due diligence on a cooperative contract. Having districts) would not know this contract exists until it
said this, we interpret this rule as being silent, with reaches the Arizona market. Does that technical piece
regard to cooperative contracts simply because the rule make the contract non-compliant?
is meant for those of us who write contracts for school
districts in the state of Arizona. It does not necessarily There is one other part to the rule that should be
pertain to the cooperatives that do procurement on mentioned here. R7-2-1093(B.) indicates that before
behalf of Arizona school districts. the use of a multiterm contract, it shall be determined
in writing by the Governing Board that: 1. Estimated
We can certainly give two examples to consider, requirements cover the period of the contract and are
though. Suppose a cooperative in Arizona were to write reasonable and continuing. 2. Such a contract will be
a contract for longer than five years. Would that be advantageous to the school district by encouraging
allowable? Again, we cautiously say read the rule. If that effective competition or otherwise promoting economies
cooperative did everything required in R7-2-1093, then in school district procurement.
it stands to reason that the cooperative did everything This is why we indicate that the rule is silent with regard
they could to remain compliant. Whether they used a to cooperative contracts. Our belief is that the contract
lead agency model or not, by seeking the Governing is substantially compliant, and can still be approved by
Board approval prior to putting the solicitation on the the Governing Board, PRIOR to using the contract in
street, they’ve gone through the process necessary to question.
allow longer than five years.
Let’s look at another picture where the cooperative is That is our take. The rest is up to YOU. We hope that
national in nature and uses a lead agency model, just this does shed some light about contract duration with
not residing in Arizona. How might their contracts be regard to multiterm contracts but feel free to contact
viewed? Well, let’s walk this through the same protocol either of us, should you still have questions or concerns.
even though a national cooperative may not know how
our rules read. Does it make their contract less viable?
Your district would have to decide, but let us throw in Gary Barkman, ACBS, NIGP-CPP, CPPB is a
some very critical points that may help you to decide. Procurement Specialist Supervisor with Mesa Public
Schools and also serves as the Director of Purchasing
The national cooperative creates a contract for on the AASBO Board of Directors. He may be reached
commodity, (any number of widgets). They go through at: gabarkman@mpsaz.org. Bill Munch, NIGP-CPP,
the same approval process as what our rules indicate. CPPO, CPPB is the Procurement Compliance and
For example: they do a six- or seven-year contract. The Training Office for VSMG. He may be reached at:
cooperative’s lead agency then seeks approval to do this bmunch@vsit.org
contract, prior to putting the solicitation on the street for

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38 THE EDGE SUMMER 2023