A 501 (c)3 non-profit organization whose mission is to support the growth and sustainment of The Volcano School of Arts & Sciences and the communities it serves.

Friends of Volcano School of Arts & Sciences (FVSAS)

Procurement Policies and Procedures

Revised and Approved 3/4/2021

 

The policy set forth in this document establishes standards and guidelines for procurement of supplies, equipment, construction, and services on behalf of VSAS, to ensure that they are obtained as economically as possible through an open and competitive process, and that contracts are managed with good administrative practices and sound judgment. 

 

Authority

 

FVSAS understands that the policy cited herein applies to purchases made using non-federal funds. As a condition of the receipt of certain federal funds, federal procurement requirements apply. FVSAS will follow accounting policies and procedures that comply with generally accepted accounting principles (GAAP). Any deviation from GAAP must be approved by the FVSAS Board of Directors. This policy is consistent with the goals of Hawaii Revised Statute (HRS) 103D. For procurement, FVSAS will follow Uniform Guidance (2 CFR Section 200.318) if utilizing Federal funds. 

 

Any procurement of goods and services shall be made by the FVSAS Board of Directors and shall be in the best interest of FVSAS, in consultation with the Education Director of VSAS. The FVSAS Chair or the Vice-Chair, as alternate, after ensuring funding availability and proper review of procurement actions, shall sign the resulting award documents. The FVSAS Chair, at its discretion, will delegate written authority to directors, members, or volunteers to purchase items under $500. If the authorized purchaser pays for this item using personal funds, they shall request reimbursement using a Request for Reimbursement Form.

 

Code of Conduct

 

A Code of Conduct shall govern the performance, behavior and actions so FVSAS, including Board members, directors, volunteers, or agents who are engaged in any aspect of procurement, including – but not limited to – purchasing goods and services; awarding contracts; or the administration or supervision of contracts.

 

1. No officer, director, volunteer or agent of FVSAS shall participate in the selection, award, or administration of a bid or contract supported by Federal funds if a conflict of interest is real or apparent to a reasonable person.

2. Conflicts of interest may arise when any officer, director, volunteer, or agent of FVSAS has a financial, family or any other beneficial interest in the vendor firm selected or considered for an award.

3. No officer, director, volunteer, or agent of FVSAS shall do business with or award contracts to or show favoritism toward a member of his/her immediate family, spouse’s family or to any company, vendor or concern who either employs or has any relationship to a family member; or award a contract or bid which violates the spirit or intent of Federal, State, and local procurement laws and policies established to maximize free and open competition among qualified vendors.

4. FVSAS officers, directors, volunteers or agents shall neither solicit nor accept gratuities, gifts, consulting fees, trips, favors or anything having a monetary value in excess of twenty dollars ($20.00) from a vendor, potential vendor, or from the family or employees of a vendor, potential vendor or bidder: or from any party to a sub-agreement or ancillary contract.

5. As permitted by law, rule, policy or regulation, FVSAS shall pursue appropriate legal, administrative or disciplinary action against an officer, director, volunteer, vendor or vendor’s agent who is alleged to have committed, has been convicted, disciplined or pled no contest to a procurement violation. Said person shall be removed from any further responsibility or involvement with procurement actions or bids, consistent with State or Federal policy.

 

Solicitation and Competition

 

All procurement transactions will be conducted to provide, to the maximum extent possible, free and open competition among suppliers. FVSAS will begin with an analysis of need for the procurement to avoid purchase of unnecessary items (this may include an examination of lease versus purchase alternatives). The purchaser must then identify and clearly specify standards for the goods or services desired and seek competitive offers where possible to obtain the best possible quality at the best possible price.  Requirements should not be split in order to avoid competition thresholds.

 

• Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. However, the extent of documentation required depends upon the estimated contract value as detailed in the thresholds described below. Price analysis may be accomplished in various ways, including the comparison of price quotations submitted and market prices, together with discounts. 

• Goods and services below the micropurchase threshold of $20,000 do not require competitive quotes.

• At least 2 quotes should be sought for goods and services $20,001 to $150,000. This is the Simplified Acquisition Threshold. (Note: when using Federal funds, competitive quotes are required for requirements above $3000 or $2000 if construction, pursuant to the Davis-Bacon Act).

• For procurements that exceed the $150,000 threshold, a formal solicitation process (i.e., Request for Bid or Request for Proposal) will be utilized. Requests for these bids/proposals will be written in a way that does not restrict competition. This includes avoidance of brand name or equal specifications. To the greatest extent practical, FVSAS will obtain at least 3 bids/proposals. Solicitations shall include a clear and accurate description of the technical requirements for the material, product or service to be procured, all requirements which offerors must fulfill, and all other factors to be used in evaluating bids or proposals. Procurement files shall include the following:

--Basis for contractor selection

--Justification for lack of competition when competitive bids or offers were not obtained

--Basis of award, considering cost, price or other factors.

• Sole source requirements. A sole-source procurement may be authorized by the FVSAS when there is only one source available for the goods, services, or construction above $20,000. To justify a sole source purchase, it must be established that: (1) the goods, service or construction has a unique feature, characteristic, or capability; or (2) the unique feature, characteristic, or capability is essential in order for FVSAS to accomplish its work; or (3) the particular goods, service, or construction is/are available from only one source.

• Outsourced procurements. FVSAS may, at its discretion, delegate procurement responsibility to an outside source when special expertise is required, and it is in the interest of FVSAS and VSAS. Acquisition of this service is subject to FVSAS Procurement Policy or as authorized by law. Upon award of the agreement, FVSAS, as a client, will establish goals, and monitor funding. The third-party source shall be responsible for all phases of the procurement from pre-award to contract award and administration. However, the third-party source conducting the procurement shall follow all laws and regulations as required by the funding source.

 

Selection

 

Price should be one of the factors in the evaluation of responses, but FVSAS is not required to take the lowest price of other factors are important to the decision. FVSAS shall appoint a Proposal Evaluation Committee consisting of directors or members when a procurement requires evaluation beyond price factors, and consider the following:

• There should be an objective method for selection, and any factors for evaluation and selection should be listed in the procurement documents.

• Awards shall be made to the bidder or offeror whose bid is responsive to the solicitation and is most advantageous to FVSAS (price, quality and other factors considered).

• A bid may be rejected when it is in the interest of FVSAS to do so.

• Contracts shall be awarded to responsible contractors who possess the ability and financial resources to perform under the contract. Other factors include contractor integrity, compliance with public policy, and past performance. 

 

Documentation

 

At a minimum, procurement records shall clearly show how FVSAS:

• Executed price sampling for small purchases

• Selected the method of procurement and the type of contract to be used

• Determined which bids or proposals to accept and which to reject, and

• Determined the basis for the contract cost or price.

 

Contract Administration

 

FVSAS has an overall system of contract administration to ensure proper oversight and management of procurement actions. FVSAS is responsible for evaluating contractor performance and documenting, as appropriate, whether contractors have met the terms, condition and specification of the contract. This may include progress inspections, interim products, inspection of goods delivered, and other such methods that provide assurance that the goods or services purchased are being delivered with the scope of the contract. The contract administration system shall ensure that:

• The method of procurement is documented, and records maintained for five years after final payment is made

• Contract modifications are within the scope of the contract

• All activities are carried out and costs are incurred in compliance with applicable requirements; and

• Before payment is made, services performed are adequate and consistent with the contract scope of services.

 

 Socioeconomic Goals

 

FVSAS will endeavor to utilize small businesses, minority-owned businesses, and woman-owned businesses whenever possible.  FVSAS will implement this effort by providing information on upcoming procurement opportunities, seeking sources through market research, and when contracting with large businesses, encouraging subcontracts with small firms.