As trustee of funds allocated for use in public education pre-kindergarten ‑ 12, the Board has the responsibility to protect the funds and use them wisely. The Board:

A. Encourages advance planning and utilizes the budget process as an essential element of program and financial planning and identifying school system needs and priorities;

B. Explores all practical and legal sources of income;

C. Utilizes funds in a manner designed to achieve the greatest educational returns;

D. Requires efficient and effective financial accounting and reporting procedures that assist the Board and Administration in fulfilling the duty to be accountable for public funds;

E. Requires continuous efforts to be cost efficient and utilize resources in the most effective manner and directs the Superintendent to develop and enforce regulations and guidelines to enhance these efforts.

Legal Reference: G.S. 115C‑47

Adopted: June 5, 2000

2010 SCHOOL FINANCE OFFICER 2010

There shall be a school Finance Officer appointed or designated by the Superintendent and approved by the Board, in accordance with the provisions of state law. The school Finance Officer shall serve at the pleasure of the Superintendent. The duties of the Finance Officer shall be as prescribed by law and assigned by the Board or Superintendent.

Legal Reference: G.S. 115C‑435, ‑ 436

Adopted: June 5, 2000

2100 ANNUAL BUDGET 2100

The Superintendent shall submit a calendar outlining the annual budget development process by December 31. The Superintendent shall prepare an annual budget and submit it with his budget message to the Board not later than May 1.

Legal Reference: G.S. 115C‑427, ‑ 428

Adopted: June 5, 2000

2200 FINANCIAL REPORTS AND STATEMENTS 2200

The Board shall receive quarterly financial statements showing the financial condition of the school system. Such statements shall reflect obligations incurred as well as those already paid. Such other financial records as may be determined necessary by the Board or the administration shall be presented periodically.

Legal Reference: G.S. 115C‑47, ‑440, ‑ 441

Adopted: June 5, 2000

2210 INDIVIDUAL SCHOOL ACCOUNTS 2210

The Board authorizes the maintenance of appropriate individual school accounts.

2210.1 The Board shall appoint a treasurer for each school upon the recommendation of the Superintendent.

2210.2 The principal shall be responsible for proper administration of financial activities of the school in accordance with provisions of law and appropriate accounting practices and procedures.

2210.3 Each payment made at the individual school level shall be made on a check signed by both the principal and school treasurer.

2210.4 Monies raised by student organizations shall be expended for the benefit of students or service projects approved by the principal.

2210.5 All funds collected by a school shall be deposited in an individual school account, properly carried through regular bookkeeping channels, and disbursed as required by law.

Legal Reference: G.S. 115C‑47, ‑288, ‑440, ‑441, ‑442, ‑444, ‑445, ‑448

Adopted: June 5, 2000

2300 PURCHASING 2300

The Superintendent is authorized to approve purchases which are within the adopted budget resolution. The Superintendent shall charge the Finance Officer to cause a system of purchasing to be in effect which insures that approval for the authorization of purchases and the payments for goods, along with a record of transactions, are on file. All purchasing disbursements shall be made by check.

2300.1 Purchases shall be made through available state contracts whenever feasible, except as provided in Section 2300.2 below. Purchases of supplies, materials, or equipment in excess of $10,000 shall in all cases be made in accordance with contracts made by or with the approval of the Department of Administration.

2300.2 Purchases of supplies, materials, or equipment not in excess of $10,000 may be made from non-certified sources under the following conditions;

A. The purchase price, including the cost of delivery, is less than the cost under the State term contract;

B. The items are the same or substantially similar in quality, service, and performance as items available under State term contracts;

C. Written documentation is maintained of the cost savings; and,

D. The Department of Administration is notified of any purchases of items that are substantially equivalent to and not the same as items under State term contracts.

2300.3 Insofar as possible, purchases shall be made under conditions which foster competition among potential vendors.

2300.4 When competitive bidding is not required or feasible, purchases made in the open market shall be consummated after careful pricing.

2300.5 Pursuant to Board policy 7050, it shall not be mandatory that the provisions of G.S. § 115C-522(a) and § 143-129 be complied with in the purchase of supplies and food for the child nutrition services program.

Legal Reference: G.S. 115C-522, -522.1; 143‑53, ‑128 to ‑135

Adopted: June 5, 2000

2310 PURCHASE ORDERS AND CONTRACTS 2310

All purchases of goods, services, and equipment for which the school system will be responsible for payment, except purchases made under approved petty cash funds, shall be made on official purchase orders, properly approved and executed.

Legal References: 115C‑47, ‑440, ‑441

Adopted: June 5, 2000

2320 MAINTENANCE OF BIDDERS LIST 2320

The Superintendent shall assure the development and maintenance of lists of potential bidders for the various types of materials, equipment, and supplies used by the school system. Such bidders' lists shall be used in the development of a mailing list for distribution of specifications and invitations to bid. Any supplier may be included in the list upon request, except that no bid will be considered from a supplier who is in arrears to the school system or who is in default, as surety or otherwise, upon any obligation to the school system; nor shall a bid be considered from any supplier or contractor whose performance on any previous contract with the school system has been found to be unsatisfactory by the Board.

Legal Reference: G.S. 115C‑47, ‑436

Adopted: June 5, 2000

2321 VENDOR RELATIONS 2321

In all procurement activities, agents of the Board shall:

A. Consider first the interests of the school system and the improvement of its educational program.

B. Endeavor to obtain the greatest value for every dollar spent.

C. Give all responsible bidders equal consideration and assurance of unbiased judgment in determining whether their products meet specifications and the educational needs of the school system.

D. Discourage the offer of, and decline gifts from vendors or potential vendors.

E. Refrain from soliciting funds or material from vendors, however worthy the purpose.

F. Accord a prompt and courteous reception, insofar as conditions permit, to all who call on the appropriate purchasing office or officer, with written permission of the school principal or Superintendent, on legitimate business interests.

Legal Reference: G.S. 143‑128 through ‑135; 14‑236 to ‑238; 143‑53

Adopted: June 5, 2000

2322 SOLICITATIONS 2322

Salesmen or representatives of commercial firms shall not be permitted to call or visit for solicitation of students, teachers, and other school personnel during school hours without specific written permission from the Superintendent.

2322.1 All persons should be aware that, in addition to violating Board policy, such actions are in violation of state criminal laws and may result in criminal prosecution, punishable by criminal fines and imprisonment.

2322.2 Except for school sponsored activities, no individual or group of individuals shall be permitted to solicit from employees or students during the school day. Under no circumstances shall an employee or a student be required to make a contribution or purchase.

2322.3 Only salesmen of materials or services which would normally be used within the school shall be admitted to the school with permission of the Superintendent and the principal. Under no conditions shall salesmen disturb teachers who are in the classroom.

Legal Reference: G.S. 14‑236; 14-238

Adopted: June 5, 2000

2350 SALES TAX REFUNDS 2350

The Superintendent or his designee shall submit timely requests for refunds of sales and use taxes paid by the Pamlico County Schools on purchases of tangible personal property, to the full extent allowed by law.

Legal Reference: N.C. Gen. Stat. § 105-164.14

Adopted: June 5, 2000

2400 RECEIVING AND INSPECTING 2400

Personnel responsible for receiving items delivered shall inspect them and shall have ready access to specifications. Receiving personnel shall be responsible for determining that items received are in good quality condition and shall be responsible for entering in the receiving document an actual count of quantity delivered.

Legal Reference: G.S. 115C‑47

Adopted: September 7, 1999

2410 MAINTENANCE OF INVENTORY AND FIXED ASSETS 2410

Administrative personnel shall be responsible for taking a physical count of all equipment items and stock supplies at least once each year.

2410.1 This inventory shall be entered on the Fixed Asset Records accounts for appropriate accounting.

2410.2 Items whose purchase/donation price was two thousand dollars ($2,000.00) or more (including shipping, taxes, etc.), when such items have a useful and non-expendable life of one year or more and are not primarily used to repair or maintain other fixed assets, shall be identified as fixed assets and shall be accounted for as required by the State, in accordance with administrative procedures approved by the Superintendent. Items whose purchase/donation price was less than two thousand dollars ($2,000.00) shall be maintained on an inventory list, but do not need to be listed as a fixed asset for capitalization purposes.

Legal Reference: G.S. 115C-36, -47

Adopted: September 7, 1999

Revised: March 4, 2002

2420 SCHOOL PROPERTIES DISPOSAL 2420

Property of the school system may be disposed of upon the approval of the Superintendent or his designee, in accordance with state law, after it has been determined whether the material involved has saleable value, in which case the Superintendent or his designee shall arrange for the sale of the material. In the event that the material does not have saleable value, the Superintendent or his designee shall determine the proper disposal of the material.

2420.1 In all instances, records of disposal shall be maintained.

Legal Reference: G.S. 115C‑518

Adopted: September 7, 1999

2421 DISPOSAL OF PERSONAL PROPERTY 2421

Personal property owned by the Board of Education may be disposed of in accordance with state law following the procedures set forth below.

2421.1 Property valued under $500 ‑ The Superintendent or his designee is authorized to dispose of personal property owned by the Board of Education that is valued at less than $500 for any one item or group of similar items, to set the property's fair market value and to convey title to the property for the Board of Education. Prior to disposition, the Superintendent/designee must make a finding that the property is no longer necessary or desirable for school use. The Superintendent/designee shall choose a method of disposal designed to obtain a fair market value for the property in the most efficient and economical manner possible. The disposal of the property may be achieved through public or private exchange or sale. No prior notice of the proposed sale or exchange is required.

On the first work day of February each year the Superintendent/designee shall report to the Board in writing on any property disposed of under this section from July 1 through December 31 of the previous year and shall make another such report on the first work day of August on property disposed of from January 1 through June 30 of that year. The report shall generally describe the property sold or exchanged, to whom it was sold or with whom exchanged, and the amount of money or other consideration received for each sale or exchange.

2421.2 Property valued at less than $5,000 ‑ Personal property valued at less than $5,000 for any one item or group of similar items may be disposed of through private negotiation and sale or by any other method allowed by law. If the private negotiation and sale method of disposal is chosen, the Board of Education must first determine that the property is no longer necessary or desirable for school use. The Board must then at a regular Board meeting adopt a resolution or order authorizing a school official to dispose of the property by private sale at a negotiated price. The resolution or order must identify the property to be sold and may specify a minimum price. Notice of the resolution must be published at least ten days prior to completion of the private sale.

2421.3 Property valued at $5,000 or more ‑ Personal property valued at $5,000 or more for any one item or group of similar items may not be sold by the methods described in Policies 2421.1 and 2421.2. Such property may be disposed of by the Board of Education through advertisement for sealed bids; negotiated offer, advertisement, and upset bids; public auction; or exchanged as outlined in Chapter 160A, Article 12 of the North Carolina General Statutes. These same methods may be used for the disposition of property valued at less than $5,000 in lieu of the methods outlined in Policies 2421.1 and 2421.2.

Legal Reference: G.S. 160A, Art.12

Adopted: September 7, 1999

2425 GIFTS AND BEQUESTS 2425

Any gift or bequest constituting revenues that is accepted by the school system shall be deposited in the appropriate fund.

Legal Reference: G.S. 115C‑426

Adopted: September 7, 1999

2500 CONTRACT ADMINISTRATION 2500

The Board is the sole agency authorized to execute formal contracts between the school system and any firm or person offering to provide materials, equipment, or services to the school system.

2500.1 All system‑level contracts made on behalf of the Board of Education involving expenditures exceeding $20,000 must receive prior approval from the Board. Unless otherwise prohibited by statute or state regulation, the Superintendent or his designee is authorized to enter into contracts or approve change orders for contracts involving amounts up to $20,000. Items in excess of the project budget must be approved by the Board. The Superintendent must report such agreements to the Board at its next regularly scheduled meeting. Where feasible, the Superintendent/ designee shall seek informal bids for such contracts.

2500.2 School principals may enter into contracts for:

a. School pictures;

b. Yearbooks and school newspapers (all other contracts for printing of reports, forms, etc., should be handled through the Finance Officer);

c. Fund‑raising activities undertaken in compliance with Board Policies;

d. Disc jockeys/bands and facilities for dances to be paid for with club or class funds;

e. Athletic officials and other persons working at athletic events to be paid from athletic funds;

f. Class rings;

g. Caps and gowns; and

h. Senior supplies (i.e., invitations, note cards, class keys, etc.).

School principals may enter into other contracts for goods or services in amounts up to $2,000 without prior approval, provided there are sufficient funds in the local school account to cover the contract. Principals immediately shall report to the Finance Officer all school contracts exceeding $2,000 which are authorized by this subsection.

2500.3 All system‑level contracts must be reviewed in advance by the Finance Officer. In addition, all original system‑level contracts or contract forms must be reviewed by the Board attorney. The attorney need not review renewal agreements previously reviewed unless amendments have been added or proposed. The attorney may be consulted to review school‑level contracts where appropriate.

2500.4 This policy shall not apply to items that must be purchased under the requirements of State Purchase and Contract. In addition, all contracts involving construction or repair work or purchase of apparatus, supplies, materials or equipment must be undertaken in compliance with Chapter 143 of the North Carolina General Statutes and Board policies.

Legal Reference: G.S. 115C‑518, ‑522; Ch. 143, Art. 3; 143‑129 through ‑133

Adopted: June 5, 2000

2600 DEPOSITORIES 2600

At least every three years the Board shall solicit bids from, and shall designate as official depositories of the school system one or more banks, savings and loan associations, or trust companies in North Carolina. No money shall be deposited in any place other than an official depository, except as permitted by G.S. 115C‑443(b), which exception relates only to forms of time deposits approved by the Local Government Commission.

Legal Reference: 115C‑443, ‑444

Adopted: June 5, 2000

2610 DAILY DEPOSITS 2610

Except as otherwise provided by law, all monies collected or received by an officer, employee, or agent of the school system or an individual school shall be deposited in accordance with this policy. Each officer, employee, and agent of the school system or individual school whose duty it is to collect or receive any taxes or other monies shall deposit his collections and receipts daily. Regardless of the amount on hand, all funds shall be deposited at the end of each school week and on the last business day of each month. All deposits shall be made with the Finance Officer or in an official depository. No monies may be deposited into any account which has not been opened or maintained with the approval of the Finance Officer. Deposits in an official depository shall be reported immediately to the Finance Officer or individual school treasurer by means of a duplicate deposit ticket. The Finance Officer may at any time audit the accounts of any officer, employee, or agent collecting or receiving any taxes or other monies, and may prescribe the form and detail of these accounts. The accounts of such an officer, employee, or agent shall be audited at least annually.

Legal Reference: G.S. 115C‑445

Adopted: June 5, 2000

2620 SALARY DEDUCTIONS 2620

The school Finance Officer shall make only those salary deductions authorized by the Board and/or required by federal and state law. The Board authorizes the following salary deductions:

a) Federal income taxes

b) State income taxes

c) Federal social security taxes

d) N.C. State Retirement contributions

e) Health insurance premiums authorized by N.C. Gen. Assembly

f) Tax sheltered (deferred) annuities, 403(b)

g) Supplemental Retirement Income Plan of N.C., 401(k)

h) Court-ordered child support payments

i) Federal, state, and local government garnishments

j) N.C. State Employees Credit Union deductions

k) United Way contributions

l) Flexible benefits plan deductions, Section 125

m) Group life insurance premiums

n) Group dental insurance premiums

o) U.S. Savings Bonds

p) Dues for employees' associations that are domiciled in North Carolina and have at least 2,000 members, the majority of whom are employees of the State or public school employees. Such deductions shall become void if the employees' association engages in collective bargaining with the State, any political subdivision of the State, or any local school administrative unit.

q) Other deductions as may be approved by the Board

All new applications, cancellations, or allowable changes in deduction amounts must be filed with the Finance Officer no later than the fifteenth (15th) day in the calendar month prior to the month in which the change is to become effective. Cancellations of policies will be accepted anytime.

Salary deductions for tax-sheltered annuities will be allowed only for annuities offered by companies that serve five (5) or more Board employees with such annuities. Employees served before the effective date of this policy by a company that has enrolled fewer than five (5) employees will nonetheless continue to have such salary deductions.

The Board of Education prohibits solicitation of contracts on school property except at the end of the employee's work day, on a strictly voluntary basis, with the prior permission of the Superintendent and school principal. The Board of Education will not endorse any company.

Legal Reference: G.S. 14-238; 115C-339 through ‑343.

Adopted: June 5, 2000 Back to Top

2630 FIDELITY BONDS 2630

The Finance Officer shall give a true accounting and faithful performance bond with sufficient sureties in an amount to be fixed by the Board, not less than ten thousand dollars nor more than two hundred fifty thousand dollars. The treasurer of each individual school and all other officers, employees, and agents of the school system who have custody of public school money in the normal course of their employment or agency shall give a true accounting bond with sufficient sureties in an amount to be fixed by the Board.

Legal Reference: G.S. 115C‑442

Adopted: June 5, 2000

2640 AUTHORIZED SIGNATURES 2640

When a change occurs in the person or persons holding the position(s) of officer of the Board, Superintendent, school Finance Officer, or other officer connected with financial transactions in the name of the school system or of an individual school, the Board shall name the authorized replacement person(s) and provide for the necessary bonding, subject to a criminal records background check.

Legal Reference: G.S. 115C‑47, ‑439, ‑442

Adopted: June 5, 2000

2641 FACSIMILE SIGNATURES 2641

The Board may provide by appropriate resolution for the use of facsimile signature machines, signature stamps, or similar devices in signing checks and drafts and in signing the preaudit certificate on contracts or purchase orders. The Board shall charge the Finance Officer or some other bonded officer or employee with the custody of the necessary machines, stamps, plates, or other devices, and that person and the sureties on his official bond are liable for any illegal, improper, or unauthorized use of them.

Legal Reference: G.S. 115C‑439

Adopted: June 5, 2000

2700 INSURANCE 2700

Custody of insurance policies and insurance programs and services shall be vested in the Finance Officer.

Legal Reference: G.S. 115C‑36, ‑47, ‑278

Adopted: June 5, 2000

2710 GENERAL LIABILITY 2710

The Board shall provide general liability insurance coverage for the Board and its members, collectively and individually, and may provide such coverage for school system employees.

Legal Reference: G.S. 115C‑42

Adopted: June 5, 2000

2800 AUDITS 2800

The school system shall have its accounts and the accounts of individual schools audited as soon as possible after the close of each fiscal year by a certified public accountant or by an accountant certified by the Local Government Commission as qualified to audit local government accounts. The auditor who audits the accounts of the school system shall also audit the accounts of its individual schools. The auditor shall be selected by and shall report directly to the Board. The audit contract may be for up to a three‑year term, in writing, shall include all its terms and conditions, and shall be submitted to the Secretary of the Local Government Commission for his approval as to form, terms, and conditions. The terms and conditions of the audit contract shall include the scope of the audit, and the requirement that upon completion of the examination the auditor shall prepare a typewritten or printed report embodying financial statements and his opinion and comments relating thereto. The financial statements accompanying the auditor's report shall be prepared in conformity with generally accepted accounting principles. The auditor shall file a copy of the audit report with the Secretary of the Local Government Commission, the Controller of the State Board of Education, the Board, and the Board of County Commissioners, and shall submit all bills or claims for audit fees and costs to the Secretary of the Local Government Commission for his approval. It is unlawful for the school system to pay or permit the payment of such bills or claims without this approval. Each officer, employee, and agent of the school system having custody of public money or responsibility for keeping records of public financial or fiscal affairs shall produce all books and records requested by the auditor and shall divulge such information relating to fiscal affairs as he may request. If any member of the Board or any other public officer, employee, or agent shall conceal, falsify, or refuse to deliver or divulge any books, records, or information, with an intent thereby to mislead the auditor or impede or interfere with the audit, he is guilty of a misdemeanor.

Legal Reference: G.S. 115C‑447

Adopted: June 5, 2000

2900 COMPETITIVE BIDDING 2900

A. Formal Bidding

1. In General. Formal bids shall be sought as provided in this section whenever the Board of Education seeks to undertake any construction or repair work requiring the estimated expenditure of $150,000.00 or more, or to purchase any apparatus, supplies, materials or equipment requiring the estimated expenditure of $75,000.00 or more. The requirements of this section do not apply: 1) to contracts for services; 2) to contracts for the purchase of gasoline, diesel fuel, alcohol fuel, motor oil or fuel oil; 3) to construction or repair work undertaken during the progress of a project initially bid under these provisions; or 4) in cases of emergency involving the health and safety of people or property. In the discretion of the Superintendent, the requirements of this section may not apply to the purchase of supplies and food for school food services.

(a) Preparation of specifications shall be in accordance with G.S. 143-128(a).

(b) Construction methods. The Board of Education shall award contracts for the erection, construction, alteration, or repair of buildings pursuant to any of the following methods:

(1) Separate-prime bidding;

(2) Single-prime bidding;

(3) Dual bidding pursuant to subsection (d1) of G.S. 143-128;

(4) Construction management at risk service contracts pursuant to G.S. 143-128.1; and

(5) Alternative contracting methods authorized pursuant to G.S. 143-135.26(9).

2. Bids

(a) Separate-Prime Contract System. When the Board of Education uses the separate-prime contract system, it shall accept bids for each subdivision or branch of work for which specifications are required to be prepared under subsection (a) of G.S. 143-128, and shall award the respective work specified separately to responsible and reliable persons, firms or corporations regularly engaged in their respective lines of work. Bids may also be accepted from and awards made to separate contractors for other categories of work.

Each separate contractor shall be directly liable to the Board of Education and to the other separate contractors for the full performance of all duties and obligations due respectively under the terms of the separate contracts and in accordance with the plans and specifications, which shall specifically set forth the duties and obligations of each separate contractor.

For the purpose of this section, “separate contractor” means any person, firm or corporation who shall enter into a contract with the Board of Education, for the erection, construction, alteration or repair of any building or buildings, or parts thereof.

When the estimated cost of the work to be performed in any single area is less than Fifteen Thousand and no/100 Dollars ($15,000.00), a separate bid for this work is not required. This work may be bid along with one of the other categories of work.

(b) Single-Prime Contract. When bids are accepted under the single-prime contract system all bidders must identify on their bid the contractors they have selected for the subdivisions or branches of work for:

(1) Heating, ventilating, and air conditioning;

(2) Plumbing;

(3) Electrical; and

(4) General.

No contractor whose bid is accepted shall substitute any person as subcontractor listed in the original bid, except (i) if the listed subcontractor’s bid is later determined by the contractor to be nonresponsive or the listed subcontractor refuses to enter into a contract for the complete performance of the bid work, or (ii) with the approval of the awarding authority for good cause shown by the contractor. The terms, conditions, and requirements of each contract between the contractor and a subcontractor performing work under a subdivision or branch of work listed in this subsection shall incorporate by reference the terms, conditions, and requirements of the contract between the contractor and the Board of Education.

The requirements of this subsection (b) governing the identification of bidders, substitution of contractors, and the terms and conditions of subcontractors’ contracts apply to all single-prime bidding and single-prime contracts, including those bids in the alternative pursuant to subsection (d1) of G.S. 143-128. When contracts are awarded pursuant to this section, the Board of Education shall make available to subcontractors the dispute resolution process adopted by the State Building Commission pursuant to G.S. 143-135.26(12) or another dispute resolution process adopted by the Board of Education, including mediation, to resolve project disputes.

3. Advertisement. An advertisement inviting proposals shall be placed in a newspaper of general circulation in the county, or shall be circulated by electronic means, or both, at least one week before the time for opening bids. If the advertisement is circulated solely by electronic means, approval must be given by the Board at a regular scheduled meeting. The advertisement shall state the time and place where the specifications or descriptions relating to the bid may be obtained and the time and place for the opening of bids. The advertisement shall also state that the Board of Education reserves the right to reject any and all proposals.

4. Bid Deposit. All bids submitted must be accompanied by a bid deposit or bid bond of at least five percent (5%) of the bid amount. The deposit may take the form of: 1) cash, 2) cashier's check, 3) a certified check from an FDIC insured bank or trust company, or 4) a bid bond executed by a corporate surety licensed to execute such bonds under North Carolina law. No bid for construction or repair work for $300,000 or more or for the purchase of any apparatus, supplies, materials or equipment for $90,000 or more, will be accepted without a bid deposit or bond.

Bid bonds shall be returned to bidders after the contract is awarded. However, the successful bidder's bid deposit shall be retained if the bidder fails to execute the contract within ten (10) days after the award or fails to obtain the necessary performance and payment bonds.

5. Opening and Awarding Bids. All bids shall be opened in public and recorded in the Board Minutes. The Board shall award the contract to the lowest responsible bidder or bidders, taking into consideration quality, performance and the time specified in the proposals for the performance of the contract. Action by the Board to award contracts or reject bid proposals shall be recorded in the Board Minutes.

If all of the bids received exceed the funds available for the contract, the Board may negotiate with the lowest responsible bidder and make reasonable changes in the plans and specifications to bring the contract price within budget. If the negotiation fails, the Board may readvertise the contract with revised specifications.

The Board may not award a contract if fewer than three competitive bids are received from reputable and qualified contractors in the initial solicitation. Under these circumstances, the Board shall readvertise the contract. If, after a second advertisement, three competitive bids still are not received, the Board may award the contract to the lowest responsible bidder submitting a bid even if only one bid is received.

6. Performance and Payment Bonds. With any contract for construction or repair for more than $25,000.00 in a project costing over $150,000.00, the contractor must provide the Board with performance and payment bonds from a surety company legally authorized to do business in North Carolina or a bond substitute (cash, certified check, or government securities) for 100 percent of the contract amount. The Board may, in its discretion, require a performance and/or a payment bond for any construction or repair contract.

7. Withdrawal of Bids in Case of Bid Error. A bid may be withdrawn without forfeiture of the bid bond if all of the following conditions are met:

(a) the bid was submitted in good faith;

(b) the bid price was based upon a mistake which constitutes a substantial error;

(c) there is credible evidence that the error was clerical, not an error in judgment, and that it was due to an unintentional and substantial arithmetic error or an unintentional omission of a substantial quantity of work, labor, material or services made in compiling the bid;

(d) the error can be clearly shown by objective evidence appearing in the original work papers, documents or materials used in preparing the bid; and

(e) the request to withdraw is made in writing to the Board prior to the award of the contract but not later than 72 hours after the opening of bids.

If the Board receives a bid‑withdrawal request it shall hold a prompt hearing on the matter, giving the bidder notice of the time and place of the hearing. The bidder shall be given an opportunity to appear and present testimony and evidence in support of his request. The Board shall render its decision on the request in writing within five days after the hearing.

8. Alternative Bidding Methods for Purchase of Apparatus, Supplies, Materials, or Equipment. The Board may use the following methods to obtain competitive bids:

(a) Reverse Auction. A “reverse auction” is a real-time purchasing process wherein bidders compete to provide goods at the lowest price in an open and interactive environment. During a reverse auction, the bidders’ prices may be revealed. Either the Board or a third party may conduct the reverse auction, which may also be conducted through the State electronic procurement system. Reverse auctions shall not be used for the procurement of construction aggregates such as gravel, crushed stone, or sod.

(b) Electronic Bidding. Bids may be received electronically in addition to or instead of paper bids. Procedures shall be designed to ensure security, authenticity, and confidentiality of electronic bids to at least the same extent provided for sealed paper bids.

B. Informal Bids

Informal bids shall be sought for construction or repair work, or for the purchase of apparatus, supplies, materials or equipment if the estimated contract amount is greater than Thirty Thousand and no/100 Dollars ($30,000.00) but less than the amounts requiring formal bids listed in Section A.1. above. Such contracts shall be awarded to the lowest responsible bidder, taking into consideration quality, performance and the time specified in the bids for performance of the contract. No minimum number of bids is required before awarding a contract resulting from informal bids. A record of all bids submitted shall be maintained and shall be subject to public inspection.

Informal bids may be sought for contracts for less than the amounts cited above in the Superintendent's discretion.

C. Other Requirements

1. Use of School Employees. Nothing herein shall be construed to prevent the use of school system employees to work on any project when the total cost of the project, including direct and indirect costs of labor, services, material, supplies and equipment is Seventy‑Five Thousand and no/100 Dollars ($75,000.00) or less. No bidding requirements shall apply to such work.

2. Unemployment Relief Labor. These bidding requirements may not apply to construction repair work using unemployment relief labor paid for in whole or in part by funds furnished by the state or federal government.

3. Registered Architect or Engineer. A registered architect or engineer shall be retained or employed to prepare plans and specifications for contracts involving the expenditure of public funds in excess of:

(a) Three Hundred Thousand Dollars ($300,000.00) for the repair of public buildings where such repair does not include major structural change in framing or foundation support systems,

(b) One Hundred Thirty-Five Thousand Dollars ($135,000.00) for the repair of public buildings where such repair includes major structural change in framing or foundation support systems,

(c) One Hundred Thirty-Five Thousand Dollars ($135,000.00) for the construction of, or additions to, public buildings or State-owned and operated utilities, or

(d) One Hundred Thousand Dollars ($100,000.00) for a project affecting a life safety system.

Projects involving an estimated professional fee of less than Thirty Thousand Dollars ($30,000) for architectural, engineering and surveying services shall be exempt from the procurement procedures as set out in G.S. 143-64.32.

For all projects where an estimated professional fee will be $30,000.00 or more, the Board of Education shall announce all requirements for architectural and engineering services and select a firm qualified to provide such services on the basis of demonstrated competence and qualification for the type of professional services required. The Board shall negotiate a contract for architectural or engineering services at a fair and reasonable fee with the best qualified firm. If a contract cannot be negotiated with the best qualified firm, the Board shall initiate negotiations with the next best qualified firm. The Board may vote to exempt itself from the provisions of this paragraph for particular projects. The motion shall state the reasons for the exception and the circumstances attendant thereto.

Legal Reference: G.S. Chapter 143, Art. 8; 133‑1.1; 44A‑26; 115C‑521, ‑522, ‑264; Chapter 1108, 1988 Session Laws; Chapter 480, 1989 Session Laws

Adopted: June 5, 2000

Revised: February 5, 2007

2901 MINORITY BUSINESS ENTERPRISE 2901

PARTICIPATION IN CONSTRUCTION PROJECTS

A. Statement on Non-Discrimination

It is the policy of the Pamlico County Board of Education to provide minorities equal opportunity to participate in all aspects of school system contracting and purchasing programs, including but not limited to the following: participation in procurement contracts for materials, supplies, and equipment; contracts for professional, support and other services; and contracts for the construction, renovation or repair of school facilities and equipment.

It is further the policy of the Pamlico County Board of Education to prohibit discrimination against any person or business enterprise on the basis of race, color, ethnic origin, sex or religion and to conduct its contracting and purchasing programs so as to prevent such discrimination.

It is the policy of the Board of Education in concert with other local, state and federal agencies and with the assistance of minority groups and agencies, to actively seek and identify qualified minority business enterprises (MBEs) and to offer them the opportunity to participate, and to encourage them to participate, in the school system's contracting and purchasing programs.

It is not the policy of this Board to provide information or other opportunities to minority business enterprises that will not be available to all business enterprises. It is the intent of this policy to establish procedures designed to assure minority business enterprises access to information and opportunities available to other business enterprises. This policy applies to all construction projects, the cost of which exceeds One Hundred Thousand Dollars and no/100 ($100,000.00), which are governed by N.C. Gen. Stat. 143-128.

It is not the intent of this policy to establish procedures that will increase the cost of the school system's construction and purchasing programs. It is the intent of this policy to widen opportunities for participation, to increase competition, and to reduce costs.

B. Definitions

1. Minority Business (MBE) - A business:

(a) In which at least fifty-one percent (51%) is owned by one or more minority persons, or in the case of a corporation, in which at least fifty-one percent (51%) of the stock is owned by one or more minority persons, and,

(b) Of which the management and daily business operations are controlled by one or more of the minority persons who own it.

2. Minority Person - A person who is a citizen or lawful permanent resident of the United States and who is:

(a) Black, that is, a person having origins in any of the black racial groups in Africa;

(b) Hispanic, that is, a person of Spanish or Portuguese culture with origins in Mexico, South or Central America, or the Caribbean Islands, regardless of race;

(c) Asian American, that is, a person having origins in any of the original peoples of the Far East, Southeast Asia and Asia, the Indian subcontinent, the Pacific Islands;

(d) American Indian or Alaskan Native, that is, a person having origins in any of the original peoples of North America; or

(e) Female.

C. Goal Setting Pursuant to N.C. Gen. Stat. 143-128

The Pamlico County Board of Education shall have a verifiable goal of ten percent (10%) for participation by minority businesses in building construction contracts awarded pursuant to N.C. Gen. Stat. 143-128.

D. Owner Responsibilities

1. The Pamlico County Schools shall have a contact person responsible for advertising contracts awarded pursuant to N.C. Gen. Stat. 143-128.

(a) The contact person shall compile a list of minority businesses within the bidding area, using information obtained from the North Carolina Department of Economic and Community Development, Minority Business Development Agency, or from other institutions or agencies providing such information.

(b) This list shall be updated on an annual basis and shall be open for inspection and shall be available so that minority businesses will have the opportunity to add their names to the list.

(c) Copies of this policy shall be transmitted to the businesses on the list as soon as practicable along with the name of the Pamlico County Public School System's contact person. The School System's contact person shall serve as the liaison for minority businesses for project-related questions.

2. For each such building contract put out for bids under the separate specification or single-prime contract systems, or both, notice of the contract shall be transmitted to minority businesses on the above list.

3. For each such building contract put out for bids under the separate specification or single-prime contract systems, or both, documents related to the contract shall be available for inspection at a convenient and accessible location of which minority businesses on the MBE list, kept pursuant to paragraph 1 of Section D, herein, shall receive notice.

4. For each such building contract put out for bids under the separate specification or single-prime contract systems, or both, the Pamlico County Schools shall hold a pre-bid conference to orient contractors and subcontractors to the policy expressed in this resolution as well as bid procedures and regulations. Minority businesses on the list obtained and maintained as provided herein shall be notified of and invited to these pre-bid conferences.

5. For each such building contract put out for bids under the separate specification or single-prime contract systems, or both, published notice of the contract shall include a statement that all contractors submitting bids will be required to provide an affidavit that they made a good faith effort to comply with the provisions of this policy.

6. For any such building contract put out for bids under the separate specification contract system, the contact person designated herein shall maintain records with respect to:

(a) those contractors notified of the project and the number of these contractors that are minority businesses as defined in N.C. Gen. Stat. 143-128 and

(b) appearing on the list of minority businesses maintained pursuant to paragraph 1 of Section D, herein;

(b) those contractors that bid or otherwise respond to notice of the project and the number of these that are on the maintained list of minority businesses;

(c) those contractors awarded contracts as part of the project and the number and identity of those that are on the list of minority businesses; and

(d) the percentage of work on the project that is to be performed by minority businesses as reported (pursuant to Section E of this policy) by the contractor awarded the bid.

E. Contractor Responsibilities

The school system shall require bidders on school construction and renovation projects covered by N.C. Gen. Stat. 143-128 to provide an affidavit verifying that they have made a good faith effort to solicit MBEs as subcontractors. For any building contract put out for bids pursuant to N.C. Gen. Stat. 143-128, the apparent low bidder under each contract system shall submit, within seventy-two (72) hours of bid opening, records with respect to:

1. those subcontractors, notified of the project, that are minority businesses as defined in N.C. Gen. Stat. 143-128 and appearing on the list of minority businesses maintained pursuant to paragraph 1 of Section D, herein;

2. those elements of the project for which subcontracts will be let;

3. the number of subcontractors that are minority businesses as defined in N.C. Gen. Stat. 143-128 appearing on the list of minority businesses maintained pursuant to paragraph 1 of Section D, herein;

4. those subcontractors that bid or otherwise respond to notice of the project and the number of these that are on the maintained list of minority businesses;

5. those subcontractors selected for participation in the project and the number and identity of those that are on the list of minority businesses; and

6. the percentage of work on the project that is anticipated to be performed by minority businesses appearing on the list maintained pursuant to this policy.

Failure to provide the affidavit or the above-described records shall be grounds for rejection of the bid.

F. Regulations and Procedures

The Superintendent of the Pamlico County Schools shall develop Regulations and Procedures for implementation of this policy.

Legal Reference: G.S. 143-128; 115C-47, -276

Adopted: June 5, 2000