The Local Government Fiscal Control Act is the guiding rule for procurement in public schools. This act defines the fiscal controls that ensure that money is allocated and spent appropriately. Specifically, it states that only the local Board of Education has the authority to agree to purchase or enter into a contract. Additionally, all purchases must be preaudited by a finance officer to ensure that the expenditure is legal and proper, and that the funds exist to cover the fiscal obligation. Local boards will typically, in their policy, delegate purchasing authority for all purchases below a certain amount (in many districts, $5,000) to the Superintendent. who may in turn delegate that within the organization. As a CTO, you’ll create a purchase order which will be approved by the Superintendent or designee and then preaudited to the finance officer before being sent to the vendor. The vendor will process the purchase order and send the product along with an invoice for payment to be remitted within 30 days. Once you, as the CTO, sign-off on receipt of the purchase, the finance officer will process the invoice and remit payment to the vendor. Most organizations, beyond schools, will follow a very similar procedure to this.

Formal Bid Processes

Above $5,000, many organizations and schools will require a formal bid process (though in some organizations, this threshold is much higher, up to $1 million based on the size of the organization). The formal bid process may have up to three phases: Request for Information (RFI), Request for Quote (RFQ), and an Request for Proposal (RFP). An RFQ or an RFP is usually the final phase in the process, whereas an RFI is helpful in the information-gathering stage. An RFI asks vendors to supply information about what products they offer, how they work, and how a school can use them. An RFQ asks a vendor to submit a price and service quote for a specific product or service. An RFP asks a vendor to propose both the products and services they will provide, along with the costs of providing them.

In an RFP, you should be as detailed as possible, and should issue a document (specifications document) indicating district requirements for the purchased, and the information needed from each vendor. An RFP should include both the product requested, and the terms and conditions (i.e. if you order a computer, you can include in the RFP that you want them to be laser etched with a district logo). While a vendor may not be able to deliver 100%, ask for everything you want and review the proposals to determine the extent to which each submitted product meets your needs. You should include as much information as possible in your specifications document to help the vendors propose the best solutions for your district. A few recommended items to include:

• School/district size, location, demographics, student performance
• What you’re looking to purchase
• Who is going to be using the product
• Instructional focus (the vision for teaching and learning)
• Technical environment (devices, LMS, WiFi coverage, bandwidth)
• Preferences on licensing models, managed services, or professional learning programs
• Any contract terms that vendors will need to abide by
• Implementation timeline
• Information about other district initiatives that may intersect with the use of this content
• Requirements to inter-operate with other systems, such as a Student Information System.

Providing the vendor with as much information as possible helps them provide you with the best solution. Vendors will review your needs and prepare a response. In your response, you should ask for the following to be included:

• Protocols and timeline for implementation
• If the RFP is for a digital content package, you should ask for:
  • The research base that proves the content is effective, the process they
  • The process fo aligning to standards
  • Process for complying with accessibility laws
  • Student data privacy
  • Alignment with UDL
  • Process of vetting, including, and notifying customers of changes in content material
• Uptime statistics for cloud-based products and incident response procedures
• Any required integrations, and the process they use for these integrations

RFIs and RFQs are typically very informal processes, which may just be an email to vendors. Sometimes, an organization may issue a formal RFI if they want to set up a more formal information gathering process. This may require you, as the CTO, to sign a non-disclosure agreement (NDA) as vendors may share trade secrets that cannot be disclosed to other parties.

RFPs, on the other hand, are very formal process. There is very specific language that must be used, and it’s typically reviewed by a lawyer before being released. RFPs are typically posted on a website for 30 days and bids are submitted. Bids are reviewed in either a 1-step or 2-step process. In a 1-step process, price is considered when selecting the best product. In a 2-step process, the best product is picked and then prices are negotiated. Once the winner of an RFP is determined (usually based on a scoring rubric), the process of contracting and refining pricing begins. This BAFO (best and final offer) process is the step of converting from an RFP to a contract.

In the process of reviewing an RFP, it’s possible to ask vendors to provide a demo, provide hardware samples, or provide trial subscriptions in order to help you make a decision. This requirement would typically be in the RFP document when it’s released. While much more formal than what a school district would typically use, the NC Department of Information Technology has RFI and RFP templates on their website.

Sole-Sourcing

Apple, for example, will not respond to RFPs. Their educational partner agreements are set up such that if you want to purchase Apple products, you must purchase them directly from Apple. Therefore, there’s no point in issuing an RFP for iPads. In that case, you would do a sole-source justification. A sole-source justification is a document that indicates why there is only one vendor that can provide the service you need, typically with a statement from the vendor and a market scan indicating that there are no similar products that provide the same or similar functionality. The Board can use the sole-source justification to award a contract in lieu of an RFP.

Convenience Contracts

Convenience contracts exist to allow a district to bypass an RFP process by having existing contracts in place, with pricing, terms, and conditions already negotiated, such that if a district finds them favorable, they can purchase using a contract already in place instead of going to RFP or sole-source. For example, NC General Statute 143-129(g)(3) states:

Waiver of Bidding for Previously Bid Contracts. - When the governing board of any political subdivision of the State, or the person to whom authority has been delegated under subsection (a) of this section, determines that it is in the best interest of the unit, the requirements of this section may be waived for the purchase of apparatus, supplies, materials, or equipment from any person or entity that has, within the previous 12 months, after having completed a public, formal bid process substantially similar to that required by this Article, contracted to furnish the apparatus, supplies, materials, or equipment to:..Any other state or any agency or political subdivision of that state, if the person or entity is willing to furnish the items at the same or more favorable prices, terms, and conditions as those provided under the contract with the other unit or agency…

This means that if District A has purchased a product, District B can buy off of the same contract using the same pricing and terms and conditions as District A, as long as the vendor allows it and District A has completed a bid process (or sole source) in the past year. This has advantages for smaller districts, as they’re often able to get the pricing that is typically reserved for large districts.

Additionally, North Carolina General Statute 143-129(e)(3) states:

Purchases made through a competitive bidding group purchasing program, which is a formally organized program that offers competitively obtained purchasing services at discount prices to two or more public agencies.

Therefore, a professional organization or other cooperative can negotiate a single contract that any organization can purchase off of it. The NC Local Government Information Systems Association, for example, has negotiated contracts with Cisco for networking equipment, hosted by the City of Jacksonville.

The State Department of Information Technology maintains a bunch of state contracts that can be used as well. DPI also has a few contracts, such as Canvas contract that allows Canvas to be purchased at $3.74/ADM.