Page 8 - The Edge - Back to School 2018

PRE SUMMER CONFERENCE

BY DON HARRIS

Here’s How to Avoid Legal Problems;

Making a Case for Vendor Debarment
Calderon Clark

Ways to avoid legal pitfalls
were spelled out for AASBO
members, particularly those
involved in procurement, at a
Pre-Conference session July 18
prior to the Annual Summer
Conference and Expo.
Attorneys Ernest Calderon
and Charity Clark talked about
boilerplate language – basically
what counts and what doesn’t. It’s a
standard form contract, sometimes
called a take-it-or-leave-it
contract, Calderon said. Clark
recommended doing your due
diligence and knowing what you
signed. Even mundane language
can be signi cant.
Calderon and Clark cautioned
about a number of contract-
language issues to beware of. As
part of their presentation, they
focused on the prospect of debarment, under which a vendor is • Conviction of any person or any subsidiary or a liate of any
excluded from doing business with a school district. person under any statute of the federal government, this state or
“For example,” Calderon said, “companies can be debarred any other state for embezzlement, the , fraudulent schemes and
from contracts due to allegations of fraud, mismanagement, and arti ces, fraudulent schemes and practices, bid rigging, perjury,
similar improprieties. You’re telling a company that this is going forgery, bribery, falsi cation or destruction of records, receiving
on your permanent record. And every time you bid on something stolen property or any other o ense indicating a lack of business
the question will be asked: Have you ever been debarred? When integrity or business honesty which a ects responsibility as a school
you see that somebody has been debarred, red ags go up. Does district contractor.
that mean you shouldn’t do business with them? Probably. If you’ve • Conviction or civil judgment nding a violation by any person
been debarred, that’s trouble.” or any subsidiary or a liate of any person under state or federal
Clark noted that Arizona has very broad statutes and that it is antitrust statutes.
easy to be convicted of a crime. Regarding a conviction for fraud, Upon receiving information regarding a possible cause for
she said that doesn’t mean that’s someone you cannot work with. debarment, the school district should investigate the possible
“Inquire about it – get the details,” she said. cause, and if the district has a reasonable basis to believe that a
Except as provided in A.R.S. § 41-1279.21(B), the Governing cause for debarment exists, it may propose debarment under R7-
Board has the sole authority to debar or suspend a person from 2-1164, according to Calderon. Debarment shall not exceed three
participating in school district procurements. years.
Causes for debarment or suspension include: e process for debarment involves a notice to the vendor and
• Conviction of any person or any subsidiary or a liate of a hearing to give the vendor an opportunity to respond. Calerdon
any person for commission of a criminal o ense arising out of said debarments are rare. An AASBO attendee, Michelle Hamilton
obtaining or attempting to obtain a public or private contract of Mesa Public Schools, suggested that rather than going through
or subcontract, or in the performance of such contract or
subcontract. CONTINUED ON PAGE 9

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