Legal Issues: Competitive Bidding — Recommendations for Practice

6. Ensure that policies: 

• Detail how requisitions and purchase orders document precisely what is being bought and at what price.  

• Outline how to establish relationships with vendors, because this can often save time and money, especially for lower dollar value purchases.  

• Set dollar thresholds by requiring multiple vendor quotations, thus promoting accountability and competition. 

• Address whether to partner with purchasing cooperatives, discussed below, that can prove to be efficient and cost-effective.  

7. Designate limits when bidding for large dollar-value purchases at the federal or state levels because these may vary significantly.  

8. Consider cooperative purchasing opportunities. Membership in such organizations can help save money in that power comes from being part of larger enterprises that pool resources.  

9. Be careful in identifying the best price when reviewing bids because the lowest cost is not always the best price. Accordingly, SBOs should ask vendors:  

• The precise delivery timeframe(s) for the goods or the completion dates for the services.  

• Whether the items being purchased need complex assembly or technical installation, and, if so, whether such assistance is included in quoted prices. 

• The warranty terms and costs for on-site services or shipping non-conforming or defective items back to vendors.  

• Whether the proposed timelines when dealing with services such as construction are disruptive to boards’ instructional and other programs.  

10. When dealing with bids, be:  

• Practical in setting contract terms based on individual school communities' needs, expectations, and preferences. In other words, well-written contracts carefully and precisely state the established agreements regarding such items as dates for the delivery of goods and/or services to be provided as well as costs. 

• Realistic because creating unrealistic delivery or completion timelines frustrates all parties; thus, it is important to establish the method and location of delivery of items. 

• Firm by adhering to the agreed-upon terms and, if appropriate, amend the contract to ensure that goods and services are provided as noted in the operative purchase agreements. 

• Protected by ensuring against unforeseen risks. For example, it is essential to have builders’ risk insurance policies in place for major construction contracts. 

• Forthright such that if vendors cannot or will not perform in a timely manner, let vendors know up front that the contract will be terminated and the district will find products and services elsewhere. 

11. Evaluate bids in a timely manner. Of course, the dates by which bids are due and when responses will be provided should be included in bid notices. 

12. Work closely with attorneys to ensure compliance with applicable state and/or federal laws when preparing bid notices, reviewing bids, and drawing up contracts for successful bidders. While working closely with lawyers cannot guarantee that all litigation can be avoided, doing so can reduce the threat of being sued and should help to ensure success if disappointed bidders or taxpayers file suit.  

13. Retain appropriate documentation such as communications between the parties for audit purposes and in preparation for the possibility of litigation. 

14. Provide ongoing professional development for members of the business and procurement office to keep them up to date on the status of state and federal statutes, regulations, and case law on the bidding-procurement process. 

15. Review their policies at least annually to ensure that they comply with any changes in state and/or federal law as well as applicable regulations and case law.