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and complexity of due diligence required the form of a written determination and
for each procuring entity with which they justify the selection based upon the quotes
participate. For audit purposes, districts obtained. This strategy certainly complies
should retain documentation of the due with the requirement. However, there is no
diligence performed and its results.” It is the specific requirement to obtain quotes from
vendor’s responsibility to be cognizant and cooperatives and is simply a best practice a
respectful of due diligence requirements the district could employ. The most important
district must follow. thing is a district is required to provide a
written justification on how the district chose
Once the school district has completed the particular cooperative vendor contract.
due diligence to ensure the procurement is There is no requirement for school districts
compliant, the second step is that districts are to accomplish this documentation the same
required to provide a rationale/justification way for every purchase.
when selecting a vendor on a cooperative
contract. This can also be considered an Cooperative purchases that exceed the
additional step in the due diligence process. administrative authority must have
The rationale must be in writing by the governing board approval. For most Arizona
school district. Basically, it is the district’s school districts, the administrative authority
documentation for the thought process for threshold in $100,000. That means all
selection of the vendor. The district has purchases over $100,000 would need to
the discretion in how to comply with this have board approval including cooperative
requirement and may utilize a single format purchases. A check of a district’s governing
or multiple formats depending on the nature board policy would confirm the amount of
of the purchase. administrative authority.

“The most important thing is a It is my sincere hope that this extremely brief
glimpse into cooperative purchasing helps
district is required to provide to answer more questions than it created.

a written justification on how Please email me if you have any questions
or need further clarifications.
the district chose the particular

cooperative vendor contract.”

This documentation could consist of two Bill Munch, CPPO, CPPB is the Procurement Compliance
or three sentences at a bare minimum. and Training Officer for Valley Schools Management Group,
Many districts are utilizing a checklist of recipient of the 2018 AASBO Bill Lovett Award and the
possible items to consider and have found 2016 NIGP National Purchasing Manager of the Year. He
this to be helpful in documenting the provides consultation on public procurement matters for
rationale. Some districts may, in certain school districts and vendors across the state of Arizona and
circumstances, document three quotes from across the country. He may be reached at: bmunch@vsit.org.
a cooperative or multiple cooperatives in

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