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					     Mohave 101 for
       Vendors
   Mohave Educational Services Cooperative, Inc.
(928) 753-6945 Kingman | (602) 277-4290 Phoenix
          (520) 888-9664 Tucson (ASPIN)
       Standard Orders – Rev 7/27/11 CAM
                  www.mesc.org
           Welcome
Thank you for attending!

This presentation is designed to help
you understand Arizona procurement
rules and how to be successful with
your Mohave contract.

This an interactive seminar, feel free to
ask questions.
 Purchasing can be characterized as a puzzle
requiring that we provide goods and services...
              How Do You Fit In?

• All Mohave contracts are based upon sealed
  competitive Invitations for Bid or Requests for
  Proposals, which are based upon laws and rules

• Your company has responded to a solicitation, and
  has been awarded a contract which meets members’
  requirements

• The contract is an agreement to provide Mohave
  members with goods and services at agreed upon
  terms and prices

• Members can’t perform their functions without
  dedicated professionals like you!
                                Common Terms
Bid Threshold – (Bid Limit) the amount of money a member is allowed to spend
with a vendor in year before they need to use a sealed competitive solicitation.

Bid – Following a formal process, bids are solicited via an Invitation for Bid (IFB).
The IFB contains certain requirements & permissions that form the basis of a
procurement contract. Award is to the lowest responsible & responsive bidder.

Proposal – Following a formal process, proposals are solicited via a Request for
Proposals (RFP). The RFP contains certain requirements & permissions that form the
basis of a procurement contract. Allows for best & final offers. Awarded to the vendor
whose proposal is determined to be most advantageous to the buyer based on criteria.

Quote – a process where members request and review pricing from multiple vendors
as required for purchases under the bid threshold, or a price quote based on an existing
contract.

Quote Threshold – the amount of money a member is allowed to spend with a
vendor in year before they need to use quotes.
                       Common Terms Continued
Member– Entity with signed Mohave Cooperative Purchasing Agreement.

Contract Vendor– Vendor with awarded Mohave cooperative purchasing contract.

Reconciliation Report – Monthly report due to Mohave to pay administration fee
for payments for items sold under contract

Open Order Report – Monthly report sent by Mohave to vendors to obtain status on
outstanding orders

Product/Vendor Finder– Online database of Mohave contracts, with descriptions.

Due Diligence – It is the process members use to confirm a cooperative contract
complies with applicable rules, regulations and statutes, and that any purchase complies
with the contract.

Emergency Purchase/Sole Source Purchase – Not used by Mohave.
A purchase to resolve an emergency condition or one where the entity determines that
there is only one source for the required material, service or construction item.
       Key Things You Should Know About The
          Rules And Member Procurements

• The rules are not optional
• The rules apply to everyone
• Although the rules are specific, they do not provide clear
  answers for all questions
• Certain personnel are charged with enforcing the rules
• When enforcing the rules, those individuals are doing their jobs,
  not throwing up roadblocks to prevent you from doing yours
• If we all follow the contract we can follow the rules
   and get the job done
         Mohave Procurement Is Governed By

Arizona Revised Statutes
Title 41, Chapter 23 (Arizona State Procurement Code) and A.R.S.
§ 15-213-A (School Procurement) are the primary subsections
Defines the requirements members must follow for procurement
Sets restrictions and prohibitions
Other subsections apply
 Title 34 (Public Buildings)
 A.R.S. § 38-305 (Conflict of Interest)
    Mohave Procurement Is Governed By

Arizona State Board of Education School District
Procurement Rules
Often called the “school procurement rules,” “school
procurement code” or “procurement rules”
Apply to all school procurement with values over the bid
threshold (currently $50,000)
Specify competitive sealed bidding as the method of
procurement, but authorizes other procurement
methodologies
Contains specific requirements for each procurement
methodology
Applies to resolution of procurement protests and
contract claims
          Members Must Also Follow

Local Ordinances
Laws adopted by local government such as cities,
counties and towns
Apply solely to the local entity



Governing Body Policy
The “local” rules for procurement
Sets local requirements for a member entity
Generally defines who has procurement authority
and the rules and regulations to be followed
       K-12 Members Must Also Follow

Uniform System of Financial Records (USFR)
Developed and updated by the Arizona Auditor General.
Sets competitive quotation requirements for purchases
with values under the bid threshold.
Specifies that purchase orders should be prepared for all
district expenditures except for exempted items.
Specifies that a school district with liabilities payable as
of June 30 must prepare an Advice of Encumbrance.
This allows the district to pay invoices with the
encumbered funds for a period of 60 days after the close
of the fiscal year.
After the 60-day encumbrance period no further
payments may be made from the prior year.
                   Sample Penalties
A person who contracts for or purchases any material, services
or construction in a manner contrary to the requirements of this
chapter, the rules adopted pursuant to this chapter, the rules
adopted by the state board of education pursuant to section 15-
213 or rules adopted by the Arizona board of regents, the
Arizona lottery commission or the judicial branch pursuant to
section 41-2501 is personally liable for the recovery of all
public monies paid plus twenty per cent of such amount and
legal interest from the date of payment and all costs and
damages arising out of the violation. (A.R.S. § 41-2616(A))

A person who intentionally or knowingly contracts for or
purchases any material, services or construction pursuant to a
scheme or artifice to avoid the requirements of this chapter,
rules adopted pursuant to this chapter, rules adopted by the
state board of education pursuant to section 15-213 or rules
adopted by the state board of regents, the state lottery
commission or the judicial branch pursuant to section 41-2501
is guilty of a class 4 felony. (A.R.S. § 41-2616(B))
               Cooperative Purchasing

Cooperative purchasing contracts like this one are another
option for satisfying competitive procurement requirements.
Multiple public procurement units can share contracts, when
the contracts meet the requirements of the applicable rules.
The administering agency may be authorized to collect a fee
to cover the costs of administering the cooperative
purchasing contract.
The buying agency remains responsible for compliance with
all competitive procurement requirements.
If the administering agency meets the competitive
procurement requirements, then the using agency is
considered to have met the requirements, just as if it had
gone to bid itself.
             Influences On Purchasers


                                   Governing
                                   Body
              Others



                                                  Administration




Media
                         Purchaser
                                                               Users




 Community


                                               Suppliers


                       Taxpayers
           Large Dollar Purchase Cycle
Need is recognized            This process generally takes 6 to 8
Quotes obtained               weeks for members to get to the
Requisition prepared          order phase!
Account code & funds review
                              Your Mohave contract shortens the
Purchasing review
                              cycle substantially, because we have
Purchasing prepares IFB/RFP   already done the following:
Purchasing issues IFB/RFP
                              •Prepared IFB/RFP
Bids/proposals received
                              •Issued IFB/RFP
Bids/proposals opened         •Received bids/proposals
Bids/proposals evaluated      •Opened bids/proposals
Contract awarded              •Evaluated bids/proposals
Purchase order prepared &     •Awarded contract
issued
Vendor receives PO            Mohave contracts also work well
Vendor delivers               for small dollar purchases
Buyer receives & verifies
A/P verifies & pays
Goods are used
                     Purchase Orders

Generally must be issued before materials, services or
construction items are ordered or received
Create procurement contracts between the buyer & vendor
Place certain obligations on the buyer & vendor
Possess certain permissions & restrictions
Authorize the purchase & performance only in accordance with
the purchase order
Should not be revised or exceeded without approval from the
member’s purchasing department and Mohave
Acting before a purchase order is issued or amended may create
an after the fact purchase
Generally, public entities cannot be held responsible for after
the fact purchases
Note: Do not begin any work under contract until you receive an
MESC reviewed stamped PO.
                     Mohave’s Order Cycle

•   Member contacts Vendor for quote
•   Member issues PO in Vendor’s name
•   Member forwards PO to Mohave for review
•   Mohave reviews order, applies “MESC Reviewed” stamp
•   Mohave emails stamped Member PO to Member and Vendor
•   Vendor receives stamped PO, provides product/services
•   Vendor invoices Member (member pays in 30 days or less)
•   Member pays Vendor
•   Vendor sends admin fee reconciliation report to Mohave on required due
    date (varies by contract and/or vendor)
•   Vendor remits admin fee monthly, based on invoices paid
•   Mohave audits selected purchases
Note: To ensure success, include your Mohave contract
      number on quotes and invoices. Be sure to remind members
      to list your Mohave contract number on their POs.
 Purchase Order Issued Then “MESC Reviewed”

   Member                                Vendor
   (Issues PO from Quote)                (Quote from Contract)


         Procurement        MESC
         Specialist         Reviewed PO        Mohave
                                               Processing
                                               (Each contract
         Contract       P, T &                 has unique assigned
         Specialist     C                      Mohave staff)

         Accounting      Audit
         Specialist



P, T & C =            E-Mailed w/stamp      E-Mailed w/stamp PO
Price, Terms &
Conditions
                      PO to Member          to Vendor
“MESC Reviewed”
    Stamp
                                   Quotes

•   Make sure the product or service is included in the contract before quoting
•   Quote the exact product or service, as it will be provided
•   Quote the current contract price
•   Include all pertinent product information (brand, model, size, finish, etc.)
•   Include any conditions or expectations associated with the quote

Remember
Mohave must approve any price/product changes before they are quoted to
  members, including:
• Product or service additions
• Any price changes (increases, decreases, volume discounts, promotions,
  closeouts, etc.) before they are offered to members
Sample Quote
            Mohave Contract Advantages

Vendors receive:
•   Contracts that comply with the procurement law
•   Access to hundreds of agencies throughout the state
•   Ability to respond to one solicitation rather than dozens
•   Assistance with payment/performance controversies
•   Opportunity to offer volume pricing as of a result of the
    needs of Mohave’s large membership

Members receive:
• Quality contracts that comply with procurement law
• Immediate access to volume pricing
• Immediate access to contracts for a variety of quality goods,
  services and construction
• Immediate access to contract documents (including pricing)
  and due diligence materials
• Assistance with payment/performance controversies
• Excellent value from effectiveness, efficiency and economy
        Mohave Contract Restrictions

• The contract is not an unlimited opportunity to
  sell anything to anyone.

• All discussions, promises, quotes, etc., must be in
  exact accordance with the contract, as written.

• If it is not in the written contract, it is not part of
  the contract.

• When in doubt, ask your contract specialist.
              Marketing Your Contract

• Mohave attends trade shows, member meetings and other
  events to help make members aware of the contracts we
  have available.
• Review your record on the Product/Vendor Finder -
  forward changes to your contract specialist.
• Vendors need to market their contract to be successful.
• A list of Mohave members is available on our website.
• Include your Mohave contract number on business cards,
  advertising, promotional materials.
• Mohave will allow use of it’s logo for marketing efforts;
  request approval from your contract specialist.
                   Key Resources Available

The following resources are available:

• Copy of contract - www.mesc.org/contract_documentation.html
• Vendor handbook – www.mesc.org/vendor_handbook.html
• Reconciliation tutorial – www.mesc.org/training_corner.html
• Product/Vendor Finder – fm.mesc.org/pvf_home.php
         o   Includes new user guide feature

Additional guidance is issued in:

• eNewsletter – Mohave’s bimonthly email newsletter
• eNewsflash – Periodic emails with important updates
          Frequently Asked Questions

Who will we be working with at Mohave?
Contract Specialist: This is the first person to contact
for assistance with contract questions. As the contract
administrator, responsibilities include pricing update
reviews and approvals, contract interpretation,
answering contract questions and assistance with
contract controversies.

Procurement Specialist: This is the person to contact
with purchase order questions. The specialist reviews,
logs and forwards orders and requests information from
members and vendors to clarify issues with orders and
quotes.
           Frequently Asked Questions

Who will we be working with at Mohave? (Cont’d)

Accounting Specialist: This is the person responsible for
tracking and processing reconciliation reports and
payments, as well as auditing selected purchases.

To find your assigned contract, procurement and
accounting specialists, go to your contract record on our
Product/Vendor Finder.

Contact information for all Mohave staff , is available on
the contacts page on our website.
          Frequently Asked Questions


Who are the members?
Public school districts, government entities that are
political subdivisions, and § 115 qualified nonprofit
educational or healthcare institutions

How do I find out if ___________ is a member?
A list is available on our website


How do new members join?
Eligible entities may download and complete our
Cooperative Purchasing Agreement (CPA). There is no
cost to join. Members pay as they go.
               Frequently Asked Questions
How long does it take to get a purchase order?
There are a number of factors that contribute to purchase order
turn-around time, including:
The signature trail        Incorrect account codes
Lack of funds              Non-compliance with the rules
Incomplete requisition     Poorly prepared requisition
Missing signatures         Unplanned requirements
Workload

For Mohave purchases, factors include:
Missing contract number    After the fact purchase
Slow response to request   Incomplete purchase description
for information            (brand, color, model, etc.)

                 Average processing time for a
             Mohave PO in 2010 was less than 1 day!
           Frequently Asked Questions

How do we update pricing or offer promotions?

•Mohave contracts allow for pricing changes, including
the addition of promotional pricing

•Contracts may be fixed, percentage off retail or a
combination of both

•Guidelines for pricing additions are located in the
contract’s terms

•Generally, promos and pricing updates are processed
within five days

•Requests for pricing updates should be emailed to your
contract specialist
          Common Member Mistakes

• Not allowing enough time for the process

• Not asking questions “up front”

• Incomplete documentation

• Ordering & receiving materials or services without a
  purchase order

• Failing to inspect & confirm an order upon receipt

• Failing to send receiving documents to Accounts
  Payable

• Signing contractual documents without authority

• Requesting products and services not on contract

• Requesting special pricing
          Common Vendor Mistakes


• Quoting outdated pricing
• Quoting lower than contract pricing
• Performing services or providing goods based on end
  user direction/requests
• Acting before receipt of member PO
• Exceeding Blanket PO Amount
• Quoting items not covered under the contract
Vendor Reconciliation Reports
                     Reconciliation Reports
                      And Initial Reviews
•   As many new awardees are not familiar with our reconciliation process, we
    want to be proactive and provide guidance early if needed.
•   After the first purchase order on a contract is logged into Mohave's system, it
    triggers our initial review process.
•   As part of that process, your assigned Accounting Specialist will email your
    Reconciliation Contact the following:
     •   A sample recon report
     •   Guidelines for what is and is not “adminfeeable”
     •   Our Reconciliation Report Tutorial
•   After that email is sent, the Accounting Specialist will call the Recon Contact
    to introduce themselves, offer answers to questions about the process and will
    offer to help create the first recon report.
•   As a reminder, reconciliation reports are emailed to adminreport@mesc.org.
    Checks for admin fee payments should be mailed to Mohave’s main office:
     •   625 E Beale St, Kingman, AZ 86401.
               Problem Resolution

Multiple sides to every story…

Mohave will act as an intermediary, when requested

Mohave will seek a contractually sound, fair and
reasonable resolution

Vendor contract violations may result in a notice of
concern

Member contract violations may result in rejection of
that member’s purchase orders

         We can’t help unless we are contacted
                   Keys To Success

•   Read, understand and follow your contract
•   Keep pricing complete and up-to-date
•   Quote only current contract pricing
•   Provide accurate quotes, timelines and essential
    information
•   Provide goods and services only upon receipt of a MESC
    reviewed PO
•   Provide goods and services only as specified in the PO,
    unless you receive a Mohave approved change order
•   Do not exceed the value of a blanket PO
•   Provide timely updates as required
•   Invoice in accordance with the contract and the PO
•   List your Mohave contract number on all quotes and
    invoices
•   Use our resources (website, Expo, newsletter, etc.)
• When in doubt ask!
          Mohave’s Mission


Our mission is to save members time and
money by providing cooperative contracts
  and procurement support for quality
         products and services.


We can only accomplish our mission with
       quality contract vendors.
        Thank you!

   Any other questions/feedback?
       outreach@mesc.org

For complete contact information go to
   www.mesc.org/contact_us

				
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