Lee's Summit R-VII
School District
retained and the selection process for professional services was not always
adequate.
The district did not competitively bid several purchases in accordance with
district administrative procedure and state law.
District administrative procedure DJC-AP1 requires competitive, advertised,
sealed bids for construction of facilities costing $15,000 and above (based
on Section 177.086, RSMo). The administrative procedure also requires
bids for individual non-construction purchases that are projected to cost
$5,000 or more and quotes are required for non-construction purchases
under $5,000. The administrative procedure requires district staff to
compare and document prices from at least two vendors or service
providers, but allows for single feasible source purchases when it is
documented in writing. Examples of purchases not bid or for which quotes
were not requested in accordance with district administrative procedures
during the year ended June 30, 2013, include:
Item Cost
Travel services $ 29,172
Installation of technology equipment 21,866
Printing 20,357
Student lockers 17,104
Aquatic Center flooring 9,735
Picnic tables and trash cans 9,301
Rough-in and installation of two sinks 5,750
Design, production, and mailing of post cards 2,932
For the student lockers purchase, bids were obtained but the purchase was
not advertised in accordance with the district administrative procedure. The
district identified the technology installation purchase as a single feasible
source procurement because the vendor was the preferred vendor of the
technology manufacturer. This justification was not documented in writing
as required by the administrative procedure.
Competitive bidding helps ensure the school district receives fair value by
contracting with the lowest and best bidders. In addition, bidding helps
ensure all parties are given an equal opportunity to participate in the
district's business. Written documentation of bids also provides evidence the
district complied with its administrative procedure.
The district does not always document the evaluation and selection of
architectural/construction management services for non-bond issue projects
as required by board policy and state law.
Per a district official, the district formally evaluates firms upon the issuance
of each new district bond issue for construction, the last of which was in
2010. Since then, the district has worked extensively with four firms for
services generally including design, preparation of construction documents,
bidding and negotiating contracts with subcontractors, and construction
administration. The district does not always document the selection process
when choosing these contracted services for non-bond issue projects and
cannot demonstrate compliance with board policy and state law. Payments
for these services totaled approximately $247,800 during the year ended
June 30, 2013, for projects including the Lee's Summit High School serving
line, Meadow Lane Elementary classroom remodeling, and roofing projects
at Trail Ridge Elementary and Summit Lakes Middle School.
Board Policy FEB states that when considering the need for architectural
services, interested firms may be requested to submit statements of their
qualifications, performance data and also a fee schedule. The policy also
states one of the top three qualified firms is to be hired based on
demonstrated competence and qualifications for the services specified at a
fair and reasonable price. Board Policy FEC states construction
management service proposals should be solicited by advertisement and
evaluated based on established criteria. In addition, Sections 8.285 to 8.291,
RSMo, provide requirements for the selection of architectural services.
The district has not periodically solicited proposals for some professional
services, and the district has used the same vendors for several years.
Examples of professional services selected without a competitive process
during the year ended June 30, 2013, include:
Item Cost
Disabled student transportation $ 211,072
Additional student transportation 179,209
Behavioral support and consulting 149,679
Primary legal counsel 114,005
Audit 27,999
Diversity initiative 12,000
The district has used the same auditor for 15 years, diversity initiative
provider for 6 years, and primary legal counsel for 4 years without
periodically soliciting proposals. For other examples noted above, the
district identified the purchase as a single feasible source procurement, but
did not document this information in writing in accordance with district
administrative procedure DJF-AP1. A district official also acknowledged
the behavioral support provider was the only provider at the time the district
originally procured the services, but the behavioral support and consulting
field has expanded.
Periodically soliciting proposals for professional services is a good business
practice, helps provide a range of possible choices, and allows the district to
make better-informed decisions to ensure necessary services are obtained
from the best qualified provider, taking expertise, experience, and/or cost
into consideration. Documentation of sole source procurements is necessary
to ensure the validity and propriety of such procurements, and demonstrate
compliance with district administrative procedures.
The School Board:
1.1 Competitively bid for purchases in accordance with district
administrative procedure and state law.
1.2 Ensure the district complies with board policies and state law when
evaluating and selecting architectural/construction management
services and document the evaluation and selection process.
1.3 Periodically solicit proposals for professional services in accordance
with district administrative procedures.
The School Board provided the following written responses:
1.1 The District agrees, in accordance with District administrative
procedures and state law, documentation, identified selection
process, competitive bidding, and single feasible source purchase
accompanied by written documentation ensures the District will
receive fair value and lowest best bid considerations.
The District will utilize the Director of Purchasing and Distribution
Services to review the items as presented to determine the
circumstances that suggest discrepancies in the bidding practices,
unit price extension, contract amendments, contingencies and/or
expanded scope projects that may be exceptions to routine bid and
documentation activities. This position will facilitate a
Superintendent chartered process action team to align, in the
Spring of 2014, various bidding and change order policies,
practices, and procedures. The various Budget Managers will be
responsible to follow these District policies, practices, and
procedures, document the same, and clearly identify areas where
single source purchase may be deemed necessary. Budget
Managers will attend annual training sessions hosted by
Purchasing and Distribution Services and Business Services and
will be responsible for compliance with all applicable policies and
state law. Enhancements to the purchasing website are scheduled
and will provide more interactive FAQ's. Site leadership will also
have increased access to the Site Purchasing Specialist for larger
scale procurement items.
Travel Services: The payment was for travel services provided to
the District for the student trip to China. This vendor has provided
similar services to the District since the inception of the China
program. The itinerary for the student-based trip is complex in
terms of coordination of activities in the multiple cities visited
during the trip. This agency has provided excellent services to the
District resulting in the on-going use of this agency for these
specific travel services. The District agrees adequate bidding and
documentation is not available. Budget Managers and other staff
with procurement responsibilities and authorization will be made
aware of the requirement to solicit and document bids.
Installation of Technology Equipment: The District has used
services and purchased materials, supplies and equipment from
Kansas City Audio Visual (KCAV) since 2011. Technology staff did
check pricing and installation methods of various companies
available to perform services and furnish the technology
supplies/equipment needed. Each company’s pricing was
comparable. The District selected Kansas City Audio Visual
because they partner with Smart Technologies (impacting pricing
and service ability) and they are a member of the State of Kansas
Purchasing Contract #36416, which the District was able to
leverage per state statute. The Kansas Purchasing Contract
includes hardware, labor and installation. In addition, KCAV has
provided pricing below the rates stated in the Kansas Purchasing
Contract resulting in lower rates for the purchase of Smart Boards
and more efficient logistical equipment installation. The District
agrees adequate documentation is not available. Budget Managers
and others with procurement authorization will be made aware of
the requirement to document bids.
Printing: This item noted in the report represented the payment of
five invoices from two high schools for school year start-up
supplies, including student planners. School staff indicated the
vendor was selected several years ago following the solicitation of
telephone, on-line, and catalog pricing. The District agrees
adequate documentation is not available. Budget Managers and
others with procurement authorization will be made aware of the
requirement to document bids.
Student lockers: Academic and athletic student lockers were
installed at Summit Lakes Middle School to accommodate increased
attendance. Debourgh lockers were specified as "sole source" to
match existing athletic lockers already installed at SLMS. Bids,
Comments