Purchase and Project Approval Procedural Directive

For purposes of this procedural directive, “district purchases and expenditures” includes, but is not limited to instructional material, construction, property acquisition, technology, services, goods, and contracts. 

Albuquerque Public Schools administration shall obtain approval from the Board of Education for any district purchase or expenditures that equal or exceed two hundred fifty thousand dollars ($250,000) or are projected to equal or exceed two hundred fifty thousand dollars ($250,000) by the end of their completion.

Project Approval

Albuquerque Public Schools may plan and execute major projects that are in the best interest of the district.  These projects will generally exceed the two hundred fifty thousand dollars ($250,000) threshold for Board of Education approval.  These projects include, but are not limited to, construction of buildings, renovation projects, technology infrastructure, technology purchases, textbook adoptions, and standardized testing materials.

If an Albuquerque Public Schools site administrator or control agent identifies a project that will equal or exceed two hundred fifty thousand dollars ($250,000), the administrator, control agent and/or department responsible for the project shall obtain approval of the entirety of the project plan by the superintendent.  The department responsible for the planning and execution of the project shall then obtain approval of the entirety of the project plan by the appropriate Board of Education committee.  The department responsible for the planning and execution of the project shall work with the appropriate committee coordinator to be an agenda item as soon as possible.  Upon approval from the committee, the project may be approved by the Board of Education. 

The project plan shall include an estimate of the total cost of the district purchases and expenditures that are required for completion of the project and a timeline for completion of the project.  All future district purchases and expenditures that are connected to or can be reasonably considered as part of the initial project plan shall be considered approved by the superintendent and Board of Education as part of the project plan and shall not need separate approval from the superintendent and Board of Education.

Purchases and Expenditures Approval

All site administrators, as defined by Lawson, shall be responsible for tracking all purchases and expenditures that equal or exceed two hundred fifty thousand dollars ($250,000).  Upon identification that a purchase or expenditure equals or exceeds two hundred fifty thousand dollars ($250,000), the site administrator shall notify the control agent, as defined by Lawson.  The control agent shall be responsible for notifying the director of procurement of the purchases and expenditures that will equal or exceed two hundred fifty thousand dollars ($250,000).

If an Albuquerque Public Schools site administrator or control agent identifies a purchase or expenditure that will equal or exceed two hundred fifty thousand dollars ($250,000), the administrator, control agent and/or department responsible for the purchase or expenditure shall obtain approval of the entirety of the purchase or expenditure by the superintendent.  The department responsible for the planning and execution of the project shall then obtain approval of the entirety of the purchase or expenditure by the Finance committee or other appropriate Board of Education committee.  The site administrator responsible for the purchase or expenditure shall work with the director of procurement and the appropriate committee coordinator to be an agenda item as soon as possible.  Upon approval from the Finance committee, or other appropriate Board of Education committee, the project may be approved by the Board of Education. 

Exceeding Estimated Costs

If a project exceeds its originally approved estimated cost by two hundred fifty thousand dollars ($250,000) or more, or exceeds costs by ten percent (10%) of the total cost of the project, whichever is less, an adjusted project plan, supported by appropriate documentation, shall be presented to the superintendent for approval.  Upon approval of the adjusted project plan, the department responsible for the project shall obtain approval from the Board of Education for the additional cost. 

If a purchase or expenditure exceeds two hundred fifty thousand dollars ($250,000) at any point during the procurement process, the department responsible for the purchase and/or the director of procurement shall immediately present the purchase or expenditure to the superintendent for approval.  Upon approval by the superintendent, the department responsible for the purchase or expenditure shall present the purchase or expenditure to the Finance Committee for approval or denial as soon as possible.  Upon approval of the Finance committee, the purchase may be approved by the Board of Education.

Bids and/or Contracts

Bids and/or contracts shall be estimated as close as possible to the accurate amount that will be expended by the district.  If the department responsible for a bid and/or contract estimates the bid and/or contract will equal or exceed two hundred fifty thousand dollars ($250,000), the department responsible for the bid and/or the director of procurement shall present the bid to the Board of Education for approval.  If a bid is approved by the Board of Education for a specific amount of money, the district shall attempt to keep expenditures within the limitations of the Board of Education approval.  If expenditures of a bid exceed the originally approved amount by two hundred fifty thousand dollars ($250,000) or more it shall require additional approval from the superintendent, Finance Committee and Board of Education.

Exemptions

District purchases and expenditures in cases of emergencies or that are within the purchasing limits of existing contracts established in accordance with applicable federal and state statute and regulation are excluded from prior approval requirements outlined in this procedural directive.

Emergencies are loosely defined using the procurement code and as approved by the superintendent, or his/her designee, so the expenditure can be made prior to Board of Education approval.  The expenditure shall then be brought back to the Board of Education for approval at the next appropriate Board of Education meeting. 

Other exemptions include:

• Minor capital renewal projects; including, but not limited to:
  • roof replacements;
  • parking lot, pick up and drop off area or bus lane paving;
  • HVAC replacements;
  • portable relocations; and
  • modifications for compliance with the Americans with Disabilities Act.
• Utilities, unless competitively bid.

Director of Procurement

The director of Procurement, and/or his/her designee, shall monitor projects, purchases and expenditures which equal or exceed two hundred fifty thousand dollars ($250,000) and only shall release a purchase order which equals or exceeds two hundred fifty thousand dollars ($250,000) after the Board of Education has granted approval for the project, purchase or expenditure. 

Prior to formal Board of Education approval, the department or site administrator responsible for gaining approval for a project,  purchase or expenditure shall communicate with the Board of Education Services the need for an electronic copy of the final signed action memo reflecting the Board of Education’s approval.  After formal approval by the Board of Education, the Board of Education Services Office specialist shall send an electronic copy of the action memo and any other supporting documentation to the director of procurement, and/or his/her designee.  The director of procurement, and/or his/her designee, shall use this documentation to confirm Board of Education approval for purposes of releasing any purchase order which equals or exceeds two hundred fifty thousand dollars ($250,000).  

Administrative Position:  Chief Financial Officer
Department Director:  Director of Procurement

References:

Legal Cross Reference:                       §13-1-1 et seq NMSA 1978

Board Policy Cross Ref.:  D.07 Purchase and Project Approval

Procedural Directive Cross Ref.:  Purchasing

NSBA/NEPN Classification:    DJB

Introduced: June 11, 2010
Approved: July 23, 2010
Reviewed: September 14, 2016
Revised: September 21, 2016