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Prohibitions of Cost-Plus-a-Percentage-of-Cost Contracts?
CONTINUED FROM PAGE 37
allow us to execute Construction Manager at Risk list mark-ups. So, feel free to exercise these
(CM@Risk) contracts for percentages over the types of contracts if you agree and it proves to be
actual cost of construction for overhead and profit. advantageous to your district.
That pricing is based on the Guaranteed Maximum
Price (GMP) at the time of contract award. We want Gary Barkman is a Procurement Specialist Supervisor
to make sure you understand this type of contract with Mesa Public Schools and can be reached at:
gabarkman@mpsaz.org
is allowed by our rules.
Bill Munch is the Procurement Compliance and Training
It our sincere hope that this article will dispel the Officer for Valley Schools Management Group and can be
myth that the School District Procurement Rules reached by email at: bmunch@vsit.org
prohibit us from allowing a vendor to submit a
Both authors are Certified Professional Public Buyers
manufacturer’s price list with a mark-up. We have
(CPPB) as recognized by the National Institute of
shown throughout this article that the prohibition Governmental Purchasing.
clearly has nothing to do with manufacturer price
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38 THE EDGE WINTER 2022-2023
