Procedure: 6221P
Administration
Contracts and Agreements
This procedure outlines the approval process for a contract, agreement, memorandum of understanding (MOU), or any other agreement between the Sumner-Bonney Lake School District (SBLSD) and an outside organization. Every contract, agreement, MOU or any other agreement should be aligned with the district’s strategic plan and should further the district’s goals.
A contract may require additional forms and documentation, such as a Services Selection form, Federal Sole Source form, background checks or proof of insurance.
The Risk Manager will review any contract or agreement with high risk activities, such as temporary inflatable structures and buildings of similar items (e.g. wrecking ball), and others as deemed appropriate.
Approval of a Non-Construction Contract
This section applies to any non-construction contract, agreement or MOU between Sumner-Bonney Lake School District and another organization.
Every contract, agreement and MOU must be sent to Business Services for review and feedback prior to any signatures or the event taking place.
Construction and Small Works contracts are managed through Capital Projects/Maintenance & Operations Department as described below.
Contract Types
1. The SBLSD contract template has pre-approved contract language and is a fillable form. The SBLSD contract may be found on the Business Services dashboard or in the Business Services Manual.
2. A vendor generated contract.
3. An interlocal contract or agreement with a local government agency such as another school district, Pierce County or Puget Sound Education Service District (PSESD).
Approval Process by Contract Type
The contract approval process is dependent on the contract type and/or the contract amount.
I. A SBLSD contract less than $75,000:
a. Enter a purchasing requisition and email the completed forms and unsigned contract draft to Business Services for initial review of the newly entered contract language.
b. Business Services will send an email regarding edits and a final contract upon approval.
c. Print two copies of the final contract and send the unsigned original copies to the vendor for signature.
d. Upon return from the vendor, obtain the appropriate signature as defined in the Signature Authorization section of this procedure.
e. Attach any necessary documents and send them to Business Services.
f. Upon receipt of the fully executable contract the purchase order will be released to the vendor, Accounts Payable, and originator.
II. A SBLSD contract for $75,000 or more:
This contract type requires Sumner-Bonney Lake School District Board (the Board) approval and, due to scheduled Board meetings, may take up to four weeks to complete the process. Please plan your submission accordingly.
a. The contract packet includes:
i. A completed Contract Approval Request form located on the Business Services dashboard.
ii. Two copies of the contract/agreement (unsigned).
iii. A Services Selection form, if applicable.
iv. A Federal Sole Source form, if applicable.
b. Send the completed contract packet to Business Services. Business Services will review and submit the contract for School Board approval.
c. Upon Board approval, the contract will be routed through the appropriate signature path.
d. Once signed, the originator will receive an email notification. A copy of the fully executable agreement will be sent to the originator and Business Services.
III. Vendor or Interlocal contract of any amount:
Every interlocal or vendor contract over $75,000 requires Board approval and, due to scheduled Board meetings, may take up to four weeks to complete the process. Please plan your submission accordingly.
a. The contract packet includes:
i. A Completed contract approval request form located on the Business Services dashboard.
ii. Two copies of the contract/agreement (unsigned).
iii. A Services Selection form, if applicable.
iv. A Federal Sole Source form, if applicable.
b. Send the completed contract packet to Business Services. Business Services will review and submit the contract for Board approval.
c. Upon Board approval, the contract will be routed through the appropriate signature path.
d. Once signed, the originator will receive an email notification. A copy of the fully executable agreement will be sent to the originator and Business Services.
If the original contract is sent to the originator, please forward it to Business Services. All original contracts are centrally located in the Business Services Department.
Signature Authorization
Only those authorized in this policy, as described in this section, may sign a contract and/or agreement. The contracts may not extend beyond the current fiscal year without express written authorization from the Superintendent or Chief Financial Officer.
At the School Level:
The school Principal is authorized to sign a Sumner-Bonney Lake School District (SBLSD), vendor or interlocal contract or agreement up to $15,000 for his/her assigned school.
At the Department Level:
Only the Director level or higher is authorized to sign a contract and/or agreement for his/her department of responsibility.
At the Districtwide Level:
Only the Superintendent or Chief Finance Officer is authorized to sign a contract and/or agreement.
One Million Dollars or More:
Two signatures, the Superintendent and CFO, are required to authorize to sign a contract and/or agreement. The Superintendent or CFO may NOT assign a designee.
No work may begin under any contract or agreement prior to completing the approval process as outlined above.
Construction Contract/Agreement
A construction contract and/or agreement is managed through Capital Projects/Maintenance & Operations Department in conjunction with legal counsel and Board Policy 6957 and Procedure 6957PR. Legal Counsel provides three standardized contracts that are customized for each District project: Short Contract Agreement, AIA Document A107, and AIA Document A201.
Signature authorization for capital construction contracts are signed by the Superintendent.
Emergency Contracts
An emergency is an unforeseen circumstance beyond the district’s control that either: Revised: 3/2019 (a) presents a real, immediate threat to the proper performance of essential functions; or (b) may reasonably be expected to result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken.
Critical Repairs
Critical repairs include but are not limited to fuel station; building security access; septic, heating & cooling systems; water services; fire alarm; and elevator repairs.
Any emergency or critical repair is paid with a purchase order and will require a statement documenting the situation, estimated cost and reason for the classification within four business days of the incident.
The Superintendent has authority for any critical contract over $100,000 (provided the Board shall be notified in writing promptly after execution of such a contract and ratification shall be requested at the next regular school board meeting).
Cross Reference:
6220 – Bid or Request for Proposal requirements
Legal References:
RCW 28A.335.190 Advertising for bids—Competitive bid procedures
RCW 39.04.280 Competitive bidding requirements— Exemptions
Revised 3/2019