BUSINESS
SERVICES
DIVISION CONTRACTS ISSUE DATE
PROCEDURES 10/08
MANUAL
INTRODUCTION
Contracts in the public sector are subject to considerable scrutiny. District contracting procedures
must be performed in accordance with district policy and regulation, as well as state and federal
laws and regulations. Contract actions cannot be carried out successfully without sufficient
planning and preparation by those involved in the procurement process. Advance planning also
provides the means for the District to assure it is in compliance with district policy and
regulations and state and federal laws. The department or program administrator shall be
responsible for initiating, preparing, and monitoring the specifics of the contract as well as the
contracting process (including but not limited to developing bid or request for proposal
documents, evaluating bids or proposals, selecting the contractor, writing the contract, ensuring
that the contractor is licensed to do business (UBI), getting the contract through legal review,
compliance with grant award specifications, writing the board action memorandum when
applicable, initiating a purchase order and authorizing the invoice for payment), administering
the contract after award, and for ensuring that the contract is either extended or re-bid, or
submitted for competitive proposal in a timely manner. The person fulfilling these contract
responsibilities is called the Contract Administrator in this manual. The manual is intended as a
tool to assist Contract Administrators. The District Purchasing Department is also available to
answer questions, provide recommendations, and assist Contract Administrators.
TABLE OF CONTENTS
INTRODUCTION .......................................................................................................................... 1
SECTION I – HOW DO I GET STARTED? ................................................................................. 3
SECTION II – CONTRACT TYPES ............................................................................................. 4
SECTION III – SPECIAL RULES GOVERNING CERTAIN PURCHASES ............................. 8
SECTION IV – COMPETITION ................................................................................................. 10
SECTION V – QUOTES, BIDS AND REQUESTS FOR PROPOSAL ...................................... 11
SECTION VI – DETERMINING EMPLOYEE/INDEPENDENT CONTRACTOR STATUS . 12
SECTION VII – CONTRACT PREPARATION AND REVIEW PROCEDURES .................... 13
SECTION VIII – CONTRACT MANAGEMENT ...................................................................... 15
EXHIBIT A – SAMPLE INVOICE ............................................................................................. 16
EXHIBIT B – DETERMINATION OF EMPLOYEE OR INDEPENDENT CONTRACTOR
STATUS ....................................................................................................................................... 17
EXHIBIT C – DISTRICT CONTRACT TEMPLATE ................................................................ 18
EXHIBIT D – CONTRACT DOCUMENTATION CHECKLIST .............................................. 29
EXHIBIT E – DISTRICT SIGNATURE GUIDELINES ............................................................. 30
SECTION I
HOW DO I GET STARTED?
If you are given the role of Contract Administrator and assigned the task of awarding and
developing a contract, the steps outlined below should help get you started. If you are a first time
Contract Administrator, you may want to contact the Purchasing Department to help guide you
through the process. In addition, you should review District Regulation 1610R, Conflict of
Interest, and avoid possible conflicts between your personal interests and District interests.
1. The first step is to identify the requirement. In other words, what is needed? You should be
able to write a statement that clearly describes what is needed. It is very important that your
contract includes such a statement. This element of a contract is usually called the “scope of
work” or “statement of work”.
2. Based on the identification of the requirement and the contract types found in Section II,
determine what contract type best matches the requirement.
3. The next step is to determine the approximate total cost of your requirement. Sources for
this cost information include vendors, previous contracts, and market research via the
internet. Always ensure that you have funds available or budgeted to cover your
requirement. Competitive bid thresholds and District approval levels are determined by the
value of your requirement. Also keep in mind that the price of an item or service may need
to be adjusted to include operating costs in order to determine the true cost of ownership.
4. Is the requirement new or has it been contracted for previously? A previous contract and/or
bid document may prove useful.
5. Check to see if there is an existing contract for your requirement (state, other school district,
or municipality). If the original bid done by another jurisdiction included “piggybacking”
language, the district may be able to use the contract. Many state contracts allow direct
purchase by the district and may be found on the State Procurement web site:
https://fortress.wa.gov/ga/inet/pca/pcacont.htm . Contact the District Purchasing Department
if you need assistance with using an existing contract.
6. Sourcing. What company or business can fulfill your requirement? Rarely is there only a
single source available. This means you should plan to develop some type of competitive
purchasing document (refer to Sections IV and V).
7. If your requirement involves services, you must determine that the entity or person(s)
performing the services is/are acting as an independent contractor. Refer to Section VI for
guidance on making this determination.
8. The Contract Documentation Checklist at Exhibit D is intended to help contract
administrators ensure that contract related actions and documentation are completed as
appropriate for the contract scope of work.
NOTE: The District Purchasing Department is available to answer questions about your
contract requirements and/or the above steps.
SECTION II
CONTRACT TYPES
This section provides brief information about the different types of contracts normally used in
the District. Signature guidelines and Board of Directors approval requirements for these
contract types are in Exhibit E.
Levels of Purchasing Authority. In accordance with District Regulation, 6210R, Purchasing:
Authorizing and Control, the following applies to District purchases of goods:
a. Purchases of goods (other than books) at or above $75,000 are to be bid by the Purchasing
Department in accordance with laws and regulations of the state of Washington.
i. The administrator in charge of purchasing or designee will advertise bids for two
consecutive weeks in a newspaper of local circulation and/or a Web site.
ii. The board of directors will make awards of $200,000 or more.
b. Purchases of goods (other than books) at or above $40,000 but below $75,000 are to be quoted
by the Purchasing Department in accordance with laws and regulations of the state of
Washington.
c. Purchases of goods below $40,000 are to be approved, in advance, by the Purchasing
Department and must be authorized by a purchase order number prior to commitment except as
listed in this regulation.
d. Important note: All purchases of more than $3,000 that involve any Federal funding will
require competition. Contact the Purchasing Department for assistance.
e. Award of contracts for goods will be the responsibility of the administrator in charge of
Purchasing or designee (Exception: Contracts for Architectural and Other Professional
Services awarded in accordance with RCW 39.80).
f. Principals or designees may use imprest accounts for Associated Student body (ASB)
purchases of $75 or less, providing they follow guidelines issued by the Purchasing
Department.
g. Purchases may be made with district procurement cards based on district guidelines.
h. Only confirmed purchase orders issued by the Purchasing Department will be recognized. All
other confirmed requisitions will be returned to the BRC authority and charges may be the
responsibility of the staff person.
i. Purchases less than $300 may be reimbursed by filling out a claim form and submitting to the
Finance Department.
j. Purchases less than $50 may be reimbursed by petty cash.
k. All trade-ins of District property will be approved by the administrator of Purchasing or
designee.
l. Changes to Existing Contracts. In the event a change (or cumulative changes) exceeds
the original contract amount by more than twenty percent, a new solicitation should be
considered. A justification must be written and approval obtained if new competition is
not obtained. In most cases, this will consist of a simple memo justifying why it is
impracticable to obtain competition. Changes shall be approved at the level appropriate
to the particular change (e.g., a $20,000 change to a $150,000 contract requires Cabinet
Level Administrator signature with approval of initiating Administrator’s Supervisor
approval), unless the cumulative total amount causes the contract to move to the next
higher threshold. Formal Board of Directors approval is not required unless the
cumulative additional amount exceeds $200,000. Notwithstanding the preceding
sentences, changes shall not be separated or divided so as to avoid the requirements for
higher management approval.
2. Acquiring Services. In accordance with District Regulation, 6210R, Purchasing:
Authorizing and Control, the following applies to District purchases of services.
a. There are no statutory requirements for obtaining competition when acquiring services,
except as otherwise noted in this regulation. However, the District strongly encourages
the use of competition for services. The use of competition when acquiring services is
at the discretion of the Superintendent or designee. Contact the Purchasing Department
for assistance with the acquisition of services through competition.
b. All bidding and quoting are to be done exclusively by the administrator in charge of
Purchasing or designee.
3. Types of Services. There are primarily two types of services that cover most of the
requirements that will be needed by District personnel - Purchased and Personal Services.
The state Office of Financial Management provides excellent guidance on personal services
contracts on-line at: http://www.ofm.wa.gov/contracts/psc/pscguide/pscguide.asp . The
guide also includes a list of examples of typical personal and purchased services.
a. Purchased Services usually involve services that are routine and/or on-going and are
provided by a vendor to accomplish routine, continuing, and necessary functions. The
term includes, but is not limited to, services acquired for equipment maintenance or
repair, operating a physical plant, security, computer hardware and software
maintenance, data entry, key punch services, computer time sharing, contract
programming and analysis. For purchased service requirements, submit a requisition for
a purchase order using the Lawson RSS module.
b. Personal Services usually involve services that are not routine in nature and in which
specialized knowledge or expertise is required. These services are provided by a
consultant who has the professional or technical expertise required to accomplish a
specific study, project, task, or other work assignment. Once a consultant has been
identified, personal service contracts can be prepared using the District Contract
Template at Exhibit D. Remember to allow time for the District’s internal contract
review process identified in Section VII.
4. Interlocal Agreements are entered into by two or more public agencies for joint or
cooperative action pursuant to the provisions of RCW 39.34.020. “Public agency” is defined
as any local government, political subdivision, Municipal Corporation, special purpose or
local service district, any agency of the state government, any agency of the United States,
any Indian tribe recognized by the federal government and any political subdivision of
another state. NOTE: Not all agreements between public agencies have to be Interlocal
Agreements.
a. These types of contracts do not have to be competitively bid or quoted but do require
Board approval regardless of the amount.
b. All Interlocal Agreements must be prepared with one-inch (1”) margins on all
pages. (No marks, notes, or lines of any type may appear within the one inch.)
c. Interlocal Agreements must be listed by subject on the District’s web site.
d. Formats for interlocal agreements will vary, but should include most of the
elements present in the District Contract Template (Exhibit C) as well as selected
terms and conditions from the General Terms and Conditions in Attachment A
(Exhibit C).
e. The Purchasing Department, in coordination with the Chief Financial Officer’s
office, will review all interlocal agreements submitted for Board approval to
ensure compliance with the above.
5. Public Works contracts include all work, construction, alteration, repair or improvement
other than ordinary maintenance, executed at the cost of the state or any municipality, such
as the school district, or which is by law a lien or charge on any property therein. All public
works, including maintenance when performed by contract, shall comply with the provisions
of RCW 39.12.020. Public works contracts are primarily administered by the Executive
Director of General Support Services.
a. These types of contracts must be competitively bid or quoted unless using a small works
roster:
i. Amounts greater than $40,000 must be on a competitive basis such as a quote from
the Purchasing Department.
ii. Amounts equal to or greater than $200,000 must be competitively bid.
b. These types of contracts do no not include architecture and engineering services which
are considered personal services.
6. Small Works contracts (part of public works) may be used for public work projects costing
$200,000 or less using a limited public works process for construction, building, renovation,
remodeling, alteration, repair, or improvement of real property. RCW 39.04.155 defines all
of the requirements for utilizing a small works roster and process (refer to guidelines listed
under Public Works). Small works contracts are also primarily handled by the Executive
Director of General Support Services. The Purchasing Department administers the small
works roster.
7. Architectural and Other Professional Services. RCW 39.80 requires that architectural,
landscaping and engineering services be contracted according to certain procedures which
required the selection of the “best qualified” firm before price is considered. Procurement of
such services is handled by the Department of Planning and Construction and such contracts
shall be executed by the Executive Director of General Support Services.
8. Purchased Goods consists of all other items except public works, books, personal services,
purchased services, and client services (RCW 28A.335.190). Always contact the District
Purchasing Department for help acquiring purchased goods. These types of contracts must
be competitively bid or quoted:
a. Amounts greater than $40,000 and up to $75,000 must be on a competitive basis (3 or
more quotes). Assistance on obtaining quotes is available from the Purchasing
Department.
b. Amounts equal to or greater than $75,000 must be competitively bid. Bidding is
conducted by the Purchasing Department.
c. Amounts less than $40,000 must have prior approval by the Purchasing Department.
SECTION III
SPECIAL RULES GOVERNING CERTAIN PURCHASES
Each of the following special circumstances involve special procurement rules and require
consultation with the Purchasing Department before use.
1. Electronic Data Processing and Telecommunications Systems. RCW 39.04.270
a. The legislature finds that the unique aspects of electronic data processing and
telecommunications systems and the importance of these systems for effective
administration warrant separate acquisition authority for electronic data processing and
telecommunication systems. It is the intent of the legislature that municipalities utilize
an acquisition method for electronic data processing and telecommunication systems
that is both competitive and compatible with the needs of the municipalities.
b. A municipality may acquire electronic data processing or telecommunication
equipment, software, or services through competitive negotiation rather than through
competitive bidding.
c. "Competitive negotiation," for the purposes of this section, shall include, as a minimum,
the following requirements:
i. A request for proposal shall be prepared and submitted to an adequate number of
qualified sources, as determined by the municipality in its discretion, to permit
reasonable competition consistent with the requirements of the procurement. Notice
of the request for the proposal must be published in a newspaper of general
circulation in the municipality at least thirteen days before the last date upon which
proposals will be received and/or district website (the Tacoma School District
notices are posted on the Purchasing Department pages of the District website). The
request for proposal shall identify significant evaluation factors, including price,
and their relative importance.
ii. The municipality shall provide reasonable procedures for technical evaluation of
the proposals received, identification of qualified sources, and selection for
awarding the contract.
iii. The award shall be made to the qualified proposer whose proposal is most
advantageous to the municipality with price and other factors considered. The
municipality may reject any and all proposals for good cause and request new
proposals.
2. Contracts to lease building space and portable buildings, rent or have maintained
security systems, computers, and other equipment, and provide pupil transportation
services - RCW 28A.335.170 - The board of directors of any school district may enter into
contracts for their respective districts with public and private persons, organizations, and
entities for the following purposes:
a. To rent or lease building space and portable buildings for periods not exceeding ten
years in duration;
b. To rent security systems, computers, and other equipment or to have maintained and
repaired security systems, computers, and other equipment for periods not exceeding
five years in duration; and
c. To provide pupil transportation services for periods not exceeding five years in
duration.
Note: No school district may enter into a contract for pupil transportation unless it has
notified the Office of Superintendent of Public Instruction that, in the best judgment of
the district, the cost of contracting will not exceed the projected cost of operating its
own pupil transportation.
3. Agreements with other governmental entities for transportation of public or other non-
common school purposes - RCW 28A.160.120 -Any school district board of directors or
any intermediate school district board may enter into agreements pursuant to chapter 39.34
RCW or chapter 35.58 RCW, as now or hereafter amended, with any city, town, county,
metropolitan municipal corporation, and any federal or other state governmental entity, or
any combination of the foregoing, for the purpose of providing for the transportation of
students and/or members of the public through the use, in whole or part, of the school
district's buses, transportation equipment and facilities, and employees: PROVIDED, That
any agreement entered into for purposes of transportation pursuant to this section shall
conform with the provisions of RCW 35.58.250 where applicable and shall provide for the
reimbursement and payment to the school district of not less than the district's actual costs
and the reasonable value of the use of the district's buses, and transportation equipment and
supplies which are incurred and otherwise provided in connection with the transportation of
members of the public or other non-common school purposes: PROVIDED FURTHER,
That wherever public transportation, or private transportation certified or licensed by the
Washington utilities and transportation commission is not reasonably available, the school
district or intermediate school district may transport members of the public so long as they
are reimbursed for the cost of such transportation, and such transportation has been
approved by any metropolitan municipal corporation performing public transportation
pursuant to chapter 35.58 RCW in the area to be served by the district.
4. Procurement of architectural and engineering services. Contract negotiations –
RCW 39.80.050 -
a. The agency shall negotiate a contract with the most qualified firm for architectural and
engineering services at a price which the agency determines are fair and reasonable to
the agency. In making its determination, the agency shall take into account the
estimated value of the services to be rendered as well as the scope, complexity, and
professional nature thereof.
b. If the agency is unable to negotiate a satisfactory contract with the firm selected at a
price the agency determines to be fair and reasonable, negotiations with that firm shall
be formally terminated and the agency shall select other firms in accordance with RCW
39.80.040 and continue in accordance with this section until an agreement is reached or
the process is terminated.
5. ASB Fundraisers. Policy/Regulation 3510 outlines the structure and financial operations
for Associated Student Bodies. Policy/Regulation 3530 outlines the guidelines for student
fundraising activities. Refer to ASB Manual for purchasing bid procedures and
requirements. Contracts for ASB Fundraisers are to be filed and maintained in the school’s
ASB Advisor’s office.
SECTION IV
COMPETITION
1. It is always advisable to use a competitive procurement process for goods and services.
Competitive bidding is a powerful tool for getting the highest quality goods or services
(including professional, technical, or even routine services) at the most reasonable price.
Competition is required for the acquisition of goods when the value of the purchase will
exceed $40,000. Competition for the acquisition of services is strongly encouraged for
District. In keeping with the state’s public policy favoring competition, the use of
competition is recommended for contracts when feasible.
2. There are a number of reasons for using competition:
a. Increased Participation – A competitive process provides a greater number of firms an
opportunity to submit proposals/offers to the District and encourages qualified firms to
participate.
b. Lower Prices – Full and open competition reduces costs since prospective contractors
submit their best offers to obtain contracts with the District.
c. Higher Quality – Companies who prepare responses to competitive bids usually pull
together the strong management and technical teams.
d. Innovation – Issuing solicitations to a number of companies provides the opportunity to
select from the most qualified and skilled talent available in the marketplace. The
District may find a company’s alternative approach to solving a problem more effective
than that initially envisioned.
e. Avoid Favoritism – Unfounded or not, accusations of favoritism can hurt the District
and mar its reputation. Conducting a fair and open competitive process will help avoid
any such claims.
f. Avoid Bad Publicity – Failure to conduct a fair and open competition for District
requirements will not be seen favorably by the public.
3. Contact the Purchasing Department regarding the use of competition for meeting your
requirements. The Purchasing Department will conduct both formal and informal
competitive actions, as appropriate, on behalf of District organizations.
SECTION V
QUOTES, BIDS AND REQUESTS FOR PROPOSAL
1. Quotes may be used when a formal bid is not required. This is an informal way of obtaining
pricing information. Quotes may be obtained via phone, fax, or email. Record in writing
the quotes received as a record of competition (see example Quote Sheet at the end of this
section).
2. Bids are normally used when a formal bid is required and price and delivery are the primary
evaluation factors.
3. Requests for Proposal (RFPs) are normally used when a formal bid is required and other
factors than just price and delivery are evaluation factors.
4. It is advisable to include in an RFP document any general or special contract terms and
conditions that will be part of a resulting contract. If vendors have issues with any of these
terms or conditions, it is preferable to identify and resolve these prior to contract award.
5. Contact the District Purchasing Department for assistance with quotes, bids, and RFPs.
They will complete the required actions and the notification of potential vendors. If the
evaluation includes non-cost factors, the requesting department should be prepared to
provide evaluators for scoring these elements.
SECTION VI
DETERMINING EMPLOYEE OR INDEPENDENT CONTRACTOR STATUS
When hiring individuals to perform work or services, a determination must be made that the
contractor is a person or firm, not an employee of the Tacoma School District.
1. First, complete the “Determination of Employee or Independent Contractor Status” checklist
shown in Exhibit B. In order to avoid IRS prosecution and penalties, an accurate
determination musts be made. An electronic example of the checklist is also available at
P:\Permanent_Keep\Forms\Finance Forms\DETERMINATION of EMPLOYEE or.doc.
2. If after reviewing the checklist and in the Contract Administrator’s opinion the person/firm
is clearly an employee, contact Human Resources to determine the process for hiring new
staff.
3. If after reviewing the checklist and in the Contract Administrator’s opinion the person/firm
is clearly an independent contractor, determine the contract type using SECTION II, then
proceed to SECTION VII for preparation instructions.
4. If after reviewing the checklist and the Contract Administrator cannot determine the status
of the person/firm, the form, background information, and checklist should be sent to the
Human Resources Department for determination of the person’s/firm’s status and return the
checklist to the initiator within seven (7) days. After receiving the determination from
Human Resources that the work will be performed by an independent contractor, the
Contract Administrator determines the type of contract using SECTION II and proceeds to
SECTION VII for instructions on how to prepare the contract.
5. When completing a requisition for services, you must include the following statement in the
requisition comments section (Comments to Print on Headers of Internal Documents): “A
Determination of Employee or Independent Contractor Status form has been completed for
these services and is on file in the orignator’s office.”Failure to include this statement in the
comments will result in the requisition being unreleased back to the originator. In the future
the filed forms are subject to audit by internal or external audit authorities.
NOTE: Washington State Unified Business Indentifier (UBI) number
A business license (UBI) is required if 1 or more of the following criteria are true:
The business grosses $12,000 or more per year.
The individual doing business using a name other than their full legal name.
The individual plans to hire employees within the next 90 days.
The individual sells a product or provides a service that is taxable.
SECTION VII
CONTRACT PREPARATION AND REVIEW PROCEDURES
1. Complete the District Template (See EXHIBIT C - Contract Template). An electronic
example of the Contract Template is also provided on the District web site on the Purchasing
Page: http://www.tacoma.k12.wa.us/information/departments/purchasing/Pages/default.aspx
Most Personal Service contracts should be developed using the District template.
Paragraphs in this template may be appropriate for insertion into interlocal agreements (see
Section II, paragraph 4). A contract must be executed before any work may begin. A
CONTRACT CANNOT BE EXECUTED IF FUNDS ARE NOT AVAILABLE. Note:
Interlocal Agreements must have a one-inch (1”) margin on all pages.
2. Print and incorporate the district’s General Terms and Conditions and mark as Attachment
A to the contract. (Attachment A is included with the District contract template in Exhibit C
for General Terms and Conditions). An electronic example of the General Terms and
Condition Template is also provided with the Contract Template on the District web site/
Purchasing page. All contracts must be executed using this template. (If a vendor objects to
any of the District’s terms and conditions, contact the Purchasing Department for
assistance.)
3. Insert the Contract Scope into the contract as shown, or add it as an Attachment B to the
contract. An electronic example is also provided at P:\Permanent_Keep\Forms\Finance
Forms\CONTRACT SCOPE.doc).
4. If applicable, prepare specific terms and conditions (those conditions which may be unique
to the good(s) or service(s) being contracted for) and mark as Attachment C.
5. Contract reviews are required for all District contracts and interlocal agreements. In
addition, all interlocal agreements as well as contracts over the prescribed value, must be
routed for approval by the Board of Directors. Contract Administrators should allow a
minimum of four weeks for completion of the following steps:
a. Contact the Chief Financial Officer’s office for a contract number. Use this number to
identify the contract.
b. Submit the completed contract and supporting documentation (bid, bid response,
statement of work, proposal, etc.) as electronic email attachments to the Purchasing
Department for review.
c. Purchasing will provide comments via email if re-work is needed. Upon completion of
its review, Purchasing will forward the contract and supporting documentation to
District Legal Services for review.
d. Legal Services will provide comments (if any) via email to the Contract Administrator
and copy the Purchasing Department. The contract will not be forwarded for signatures
until the Legal Services review is complete.
e. Once the Purchasing and Legal Services reviews are completed, send the final contract
to the Chief Financial Officer’s office for signatures and filing.
f. The Chief Financial Officer’s office will maintain a log and file of District contracts.
g. The Chief Financial Officer’s office will notify the Contract Administrator 150 days
prior to the expiration date of the contract.
h. Timely execution of replacement contracts or timely renewal of extensions of existing
contracts is the responsibility of the Contract Administrator. Failure to extend the term
of a multi-year contract prior to the expiration of the contract may result in the loss of
the ability to extend the contract.
i. The Chief Financial Officer’s office will provide District offices with a listing of all
active contracts and Contract Administrators by June 1st of each year. District offices
with active contracts should update the list and return it to Chief Financial Officer’s
office by August 1st of each year.
6. Once the contract has been signed a requisition to issue purchase order may be prepared.
7. The final step is to review, approve, and forward invoice(s) pertaining to the contract(s) to
the Finance Department. An invoice shall accompany all payments for all contracts and
must contain at a minimum, the information shown in Exhibit A.
NOTE: Contracts provided by vendors, but where the district is the payer, must follow
steps B - G above. In addition, since the vendor contract may have its own terms and
conditions, the contract must be reviewed for conflict with the district’s General Terms and
Conditions.
SECTION VIII
CONTRACT ADMINISTRATION
1. Contract Performance. The program or department responsible for the contract must
monitor the contractor to ensure that performance is in accordance with the contract. If
problems are encountered with the contractor that cannot be easily resolved by the Contract
Administrator, contact the District Purchasing Department as soon as possible for assistance.
Contractor performance problems need to be handled promptly and documented in writing.
2. Contract Extension. The program or department responsible for the contract must take
timely action on contract extensions. If the contract authorizes additional periods of
performance (e.g., “this contract is for one year with an additional three one year
extensions”), then the contracts program administrator will send a reminder to the
designated contract administrator 90 days prior to contract expiration. Execute an addendum
to the contract and follow steps E - G in section VII above.
3. Contract Renewal. Assuming the services being contracted for are still required, an
expiring contract that cannot be extended must be renewed. Unless the contractor is the sole
source available, the requirement may need to be re-bid. If this is the case, the program or
department responsible for the contract will need to allow sufficient time to conduct a
competitive procurement. The Chief Financial Officer’s office will send a reminder to the
designated contract administrator 150 days prior to contract expiration.
EXHIBIT A
INVOICE
(Name of Company) Contract No. _____________
(Address)
(City, State, Zip Code)
(Phone Number)
Invoice Date:
Purchase Order Number:
Amount Due: $ Date Due:
Description of Goods or Services Provided:
If applicable, date(s) of services (i.e., training sessions)
From: To:
EXHIBIT B
DETERMINATION of EMPLOYEE or
INDEPENDENT CONTRACTOR STATUS
Full Name of Worker Task Description
The following questions are to be used to help determine whether an individual is an employee or an independent
contractor. The responses to the following questions must be weighed and evaluated to determine the proper
classification. An E indicates that the individual is more likely an employee; a C indicates the person is more likely
a contractor. If you have questions about the checklist, please call the Director, Human Resources.
QUESTION: YES NO
1. Does the District determine where, when and how the work is to be done? E C
2. Does the District provide training to the worker? E C
3. Are the worker’s services an integral part of the District’s operations (not incidental)? E C
4. Is the worker required to perform the services personally (cannot delegate)? E C
5. Does the worker hire, supervise, and pay assistants? C E
6. Is the work relationship continuous or indefinite (not a specified time period)? E C
7. Does the District set the hours of work? E C
8. Does the worker work exclusively for the District during this job? E C
9. Must the work be performed on our premises? E C
10. Does the District require the worker to perform services in a certain sequence? E C
11. Does the District require the worker to provide regular oral or written reports? E C
12. Is the worker compensated based on time worked (not based on completion of job)? E C
13. Is the worker reimbursed for travel or other expenses? E C
14. Does the District provide tools, supplies and other materials? E C
15. Does the worker have a significant investment in facilities (such as an office)? C E
16. Can the worker realize a profit or suffer a loss relative to the services provided? C E
17. Does the worker work for more than one person or firm at a time? C E
18. Are the worker’s services available to the general public? C E
19. Can the District discharge the worker even if the terms of the contract are being met? E C
20. Can the worker quit before the specific job is completed without legal recourse? E C
NOTE: The person preparing the contract must attach to this document a complete list of SERVICES/
DELIVERABLES to be provided by the proposed contractor.
The worker and the related work tasks have been reviewed. I have determined the above criteria indicates the
worker is: Employee Independent Contractor Not sure, request HR review
Signature of Initiator Date
Signature or Review Supervisor Date
If you determine that the individual is an independent contractor, complete the contract documentation
(Contract Template, General Terms and Conditions and Contract Scope), attach this checklist, and route the
documentation as outlined in Section VII of the District Contracts Procedures Manual.
If you determine that the individual is an independent business grossing more than $12,000 per year, or is doing
business in a name other than their full legal name, or plans to hire employees within the next 90 days, then the
contractor must obtain a UBI Number assigned by the State in order to initiate a contract.
If you determine that the individual is an employee, follow the Human Resources process for a new hire.
If you are unable to make a determination, send this form to Human Resources and request a review.
For Human Resources Review:
DETERMINATION: Employee Contractor
Signature Date
EXHIBIT E DISTRICT SIGNATURE GUIDELINES
Type of Contract Dollar Amount Board Authorizing Signature
Approval
Interlocal Agreement Any $ amount Required Superintendent
Services and Purchased Goods $300 - $15,000 Not BRC Authority/Program Manager and initiating
Required Administrator’s signature
Services and Purchased Goods $15,001 – $100,000 Not Cabinet Level Administrator with approval of
Required initiating Administrator’s Supervisor
Services and Purchased Goods $100,001 – $200,000 Not Chief Financial Officer and Cabinet Level with
Required approval of initiating Administrator’s
Supervisor
Services and Purchased Goods $200,000 or greater Required Superintendent and Cabinet Level with approval
of initiating Administrator’s Supervisor
Public Works $0 - $200,000 Not Cabinet Level Administrator with approval of
Required initiating Administrator’s Supervisor
Public Works $200,000 or greater Required Superintendent and Cabinet Level with approval
of initiating Administrator’s Supervisor
Small Works $0 - $200,000 Not Cabinet Level Administrator with approval of
Required initiating Administrator’s Supervisor
Change Orders Up to 10% or Not Superintendent
$200,000 (whichever Required
is greater)
Change Orders Greater than 10% Required Superintendent