705.1R1 SUSPENSION AND DEBARMENT OF VENDORS AND CONTRACTORS PROCEDURES

In connection with transactions subject to federal suspension and debarment requirements, the district is prohibited from entering into transactions with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities.

When soliciting bids or otherwise preparing to enter into such a transaction, the superintendent or designee shall will use at least one of the following verification methods to ensure that any parties to the transaction are not suspended or debarred prior to committing to any sub-award, purchase, or contract:

1. Obtaining a certification of a party’s compliance with the federal suspension and debarment requirements in connection with any application, bid, or proposal;

2. Requiring compliance with the federal suspension and debarment requirements as an express condition of any sub-award, purchase, or contract in question; or

3. Prior to committing to any sub-award, purchase, or contract, check the online Federal System for Award Management at https://sam.gov/portal/SAM/##11 to determine whether the relevant party is subject to any suspension or debarment restrictions.

2 CFR Part 200 Subpart B—General Provisions

200.113 Mandatory Disclosures

A non-Federal entity or applicant for a Federal award must disclose, in a timely manner, in writing to the Federal awarding agency or pass-through entity all violations of Federal criminal law involving fraud, bribery, or gratuity violations potentially affecting the Federal award.  Non-Federal entities that have received a Federal award  including the term an dconsition outlined in Appendix XII—Award, Term, and Condition for Recipient Integrity and Performance Matters are required to report certain civil, criminal, or administrative proceedings to SAK.  Failure to make required disclosures can result in any of the remedies described in 200.338.  Remedies for noncompliance, including suspension or debarment.  (See also 2 CFR part 180, 31 U.S.C. 3321, and 41 U.S.C. 2313.)  It is the responsibility of the Superintendent to timely report to the relevant federal or pass through agency any violations of federal criminal law involving fraud, bribery, or gratuity potentially impacting a federal grant.

In addition to the District’s standard procurement and purchasing procedures, the following procedures for vendors/contractors paid with federal funds are required.  When federal, state, and local requirements conflict, the most stringent requirement will be followed.

2 CFR Part 200, Subpart D Subsection §200.318 (c)(1)

No District employee, officer, or agent may participate in the selection, award, and administration of contracts supported by a Federal award if he or she has a real or apparent conflict of interest.  Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract.  District officers, employees, and agents may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. However, for situations where the financial interest is not substantial or the gift is an unsolicited item of nominal value, district employees must abide by all relevant board policies.  Violation of this requirement may result in disciplinary action for the District employee, officer, or agent.

2 CFR Part 200, Subpart D Subsection §200.320 (e)(1-4)

Procurement for contracts paid with federal funds may be conducted by noncompetitive (single source) proposals when one or more of the following circumstances apply:  (1) the item is only available from a single source; (2) public exigency or emergency will not permit the delay resulting from competitive bids; (3) the Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-Federal entity; or (4) after solicitation of a number of sources, competition is inadequate.

2 CFR Part 200, Subpart D Subsection §200.321

The District will take all necessary affirmative steps to assure that minority businesses, women’s business enterprises, and labor surplus area firms are used when possible.  Affirmative steps must include:  (1) placing such businesses on solicitation lists; (2) soliciting such businesses whenever they are potential sources; (3) when economically feasible, dividing contracts into smaller tasks or quantities to allow participation from such businesses; (4) establishing delivery schedules that encourage participation by such businesses; (5) when appropriate, utilizing the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and (6) requiring the primary contractor to follow steps (1) through (5) when subcontractors are used.

The district will conclude the following provisions in all procurement contracts or purchase orders include the following provisions when applicable:

2 CFR Part 200 Appendix II

(A) Contracts for more than the simplified acquisition threshold currently set at $150,000, which is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate.

(B) All contracts in excess of $10,000 must address termination for cause and for convenience by the non-Federal entity including the manner by which it will be effected and the basis for settlement.

(C) Equal Employment Opportunity.  Except as otherwise provided under 41 CFR Part 60, all contracts that meet the definition of “federally assisted construction contract” in 41 CFR Part 60-1.3 must include the equal opportunity clause provided under 41 CFR 60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 CFR Part, 196401965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 CFR part 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.”

(D) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148).  When required by Federal program legislation, all prime construction contracts in excel of $2000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (U.S.C. 31413144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”).  In accordance with the statue, contractors must be required to pay wage to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor.  In addition, contractors must be required to pay wages not less than once a week.  The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation.  The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination.  The non-

Federal entity must report all suspected or reported violations to the Federal awarding agency.  The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. 3145), as supplemented by Department of Labor regulations (29 CFR Part 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”).  The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled.  The non-Federal entity must report all suspected or reported violations to the Federal awarding agency.

(E) Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-37008). Where applicable, all contracts awarded by the non-Federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. 3702 and 3704 as supplemented by Department of Labor regulations (29 CFT Part 5.) Under 40 U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours.  Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week.  The requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous.  These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence.

(F)  Rights to Inventions Made Under a Contract or Agreement.  If the Federal award meets the definition of “funding agreement” under 37 CFR §401.2 (a) and the recipient or subrecipient wishes to enter into a contract with a small  business firm or nonprofit organization regarding the substitution of parties, assignment, or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 CFR Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts, and Cooperative Agreements,” and any implementing regulations issued by the awarding agency.

(G)  Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251-1387), as amended—Contracts and subgrants of amounts in excess of $150,000 must contain a provision that requires the non-Federal award to agree to comply with all applicable standards, orders, or regulations issues pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251-1387).  Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).

(H)  Debarment and Suspension (Executive Orders 12549 and 12689)—A contract award (see CFR 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR part 1989 Comp., p. 235), “Debarment and Suspension.”  SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549.

(I)  Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)—Contractors that apply or big for an award exceeding $100,000 must file the required certification.  Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant, or any other award covered by 31 U.S.C. 1352.  Each tier must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the non-Federal award.

(J)  See §200.322 Procurement of recovered materials.

§200.216 Prohibition on certain telecommunications and video surveillance services or equipment

1. The district is prohibited from obligating or expanding load or grant funds to:
   
   1. Procure or obtain;
   2. Extend or renew a contract to procure or obtain; or
   3. Enter into a contract (or extend or renew a contract) to procure or obtain equipment, services, or systems that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system.  As described in Public Law 115-232, section 889, covered telecommunications equipment is telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such tentities).
      
      1. For purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunication equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities).
      2. Telecommunications or video surveillance services provided by such entities or using such equipment.
      3. Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consulation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned by or controlled by, or otherwise connected to, the government of a foreign country.
2. In implementing the prohibition under Public Law 115-232 section 889, subsection (f), paragraph (l), heads of executive agencies administering loan, grant, or subsidy programs shall prioritize available funding and technical support to assist affected businesses, institutions and organizations and is reasonably necessary for those affected entities to transition from covered communications equipment and services, to procure replacement equipment and services, and to ensure that communications service to suers and customers is sustained.
3. See Public Law 115-232, section 889 for additional information.
4. See also §200.471

Regulation 705.4R1 USE OF PUBLIC FUNDS REGULATION

The following is a list of examples organized by activity for what is allowable, or not allowable as a purchase/reimbursement using public funds.  This regulation is intended as guidance and there may be situations that are not listed here.  Any questions regarding the appropriateness of an expenditure should be submitted to administration prior to expending funds. 

Reimbursements to an Individual

• Use of Credit/Procurement Card:  All purchases through a district-owned credit or procurement card shall be pre-approved and comply with the district’s policy 401.10 – Credit and Procurement Cards.
• Mileage:  Individuals who are required to travel (other than to and from work) as part of fulfilling their job duties to the district shall be reimbursed for mileage costs in accordance with the requirements stated in the district’s Employee Travel Compensation policy.
• Travel accommodations:  Employees who are required to travel and stay overnight as part of fulfilling their job duties to the district shall be reimbursed for costs in accordance with the requirements stated in the district’s Employee Travel Compensation policy.
• Alcohol:  Alcohol is a personal expense and is never allowable for purchase or reimbursement using public funds.
• Food/Refreshments:  Food and refreshments are typically a personal expense.  Meetings spanning meal times should be avoided when possible.  When a district meeting is required to take place spanning a customary meal time, the superintendent or designee shall determine whether food and/or refreshment will be provided to employees whose presence is required during the meeting.  The cost of food and refreshment for employees shall be reasonable, and when possible, a separate itemized receipt for each employee is required.  If an itemized receipt is not available, approval is required by the school business official prior to reimbursement.  In all cases, the names and number of employees shall be noted on the receipt. 
• Apparel/Personal Items:  Apparel and personal items including, but not limited to items such as t-shirts, hats, mugs, etc. provide personal benefit to individuals and are a personal expense.  These items shall not be purchased or reimbursed with public funds. 
• Gifts:  Gift cards or gifts given to individuals are personal expenses and public funds should not be used (except for recognition/staff retirement, listed below) for these purposes.  Voluntary collections from staff would be an acceptable way of purchasing gifts.
• Retirement and Recognition Gifts:  Recognizing an employee or volunteer’s years of dedication to educating the community and commitment to the district serves a public purpose by honoring individuals with a token gift, or honorarium, in recognition of their service.  The same is true for individual awards, mementos, or items purchased in recognition of employee service to the district.  These purchases may use public funds, provided the expenditures are modest and approved by the superintendent. 
• Honoraria:  District employees may at times receive an honorarium from an outside source as compensation for the employee’s time devoted to preparing and delivering a presentation within the scope of their professional field.  Honorariums may only be accepted by employees when the employee has used their personal time outside of their work for the district to prepare and deliver the presentation.  If the employee uses district time or resources to prepare or deliver a presentation, any honorarium shall be given to the district. 
• Break Room Supplies:  The purchase of perishable or disposable supplies for employee break rooms is primarily designed for individual consumption and is a personal expense.  This includes items such as coffee, coffee filters, plates, cups, spoons, napkins, etc. 

Supplies for Public Areas

• Limited refreshments such as water and coffee may be available in public reception areas of the district including, but not limited to the central office, the building administrator’s office, etc.  These refreshments may be purchased with the use of public funds, as they provide light refreshment to members of the community.

Staff Parties/Receptions

• Parties and receptions to benefit individual staff members are considered a personal expense and should not be purchased or reimbursed with public funds.  This includes but is not limited to holiday parties.
• Hosting a group reception to honor all employees retiring from the district in a given school year is allowable as a public expense. Hosting a retirement reception provides a direct benefit to the community as an opportunity for the community to attend and honor the retiring employees’ years of dedication and service to the district.

School/ Student Activity Banquets

• School/student activity banquets are typically a personal expense and will not be purchased or reimbursed with public funds unless the public purpose is submitted for review and pre-approved by the superintendent.

Memorial Gifts

• Memorial flowers to convey sympathy or congratulations are allowable as a public expense if they have been approved by the superintendent.  Memorial cards are always appropriate.
• Memorial gifts of any sort other than flowers and a card are a personal expense.

Student Incentives

• It is within the discretion of the building principal to authorize the purchase of awards holding a nominal value to commemorate the achievements of a student or group of students.  These awards should be designed to reward behavior and values that exemplify the educational and community mission of the district.  Awards should not be gift cards or other monetary awards.
• Flowers and decorations for school dances held as part of the district’s student activity program are an allowable expense paid out of the student activity fund, provided the purchases are approved by the building principal. 

Meetings

• To the extent possible, meetings which span normal meal times should be avoided. 
• Meetings of the district’s board of directors and board committees are made up of individuals who volunteer a large amount of their personal time to serve the needs of the school community.  These meetings are also scheduled at time most convenient for the public, and often span normal meal hours.  Food and refreshment purchased for board members is an acceptable use of public funds.  The service of these unpaid volunteers directly benefits the entire school community.  The superintendent has discretion to purchase/reimburse reasonable expenses for providing food and refreshment to these unpaid volunteers during these meetings. 

Some expenditures will be considered personal expenses regardless of the context.  These include purchase or reimbursement of alcohol, and personal items not included as retirement or memorial gifts listed above.