Page Updated 3/24/08 |
The Member Handbook is a guide to help Mohave members procure quality goods and services through Mohave contracts. CONTENTS
QUESTIONS
ABOUT THE MEMBER HANDBOOK? |
Welcome to Mohave! For nearly 40 years, Mohave Educational Services Cooperative has been growing and changing to meet the needs of you our members. Among the many accomplishments, we are most proud of the quality of our contracts, the value they offer, and the service we have provided in managing and administering these contracts over the years. We realize that you have choices in today’s competitive procurement environment. We will continue to earn your trust and business by changing as necessary to continue providing you great value and great service. An example of our commitment is the process change we implemented for member orders. We made the change at the request of our members and vendors. Members and vendors helped us develop the new process. We are confident that our members and vendors will help us make the new process successful. For new members, please take the time to review this handbook and share it with your staff. Please know that our staff is available to provide training at your site or at our offices on any or all of this handbook. For existing members, the major changes to this handbook address the member order process change. We encourage you to take a few minutes to review this handbook and share it with your staff in order for us all to be on the same page. We also extend our staff training services to you and your organization if you need them. Again, we want to thank you for making us a partner of choice now and in the future. We realize that we will only be successful if we continue to meet your needs and exceed your expectations. We are committed to doing that on a daily basis. Thank you for your trust, and thank you for being members of the Mohave Educational Services Cooperative, Inc. Sincerely,
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Now That I'm a Member, How Do I Start Using Mohave Contracts?
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Once we’ve approved your Cooperative Purchasing Agreement (CPA) you’re ready to use Mohave contracts. The Product/Vendor Finder page enables you to search for products, services, equipment, and construction items by commodity or service type, or by vendor name. The website also contains a Contract Summary that can be downloaded to your computer from the Purchasing Services page. The Product/Vendor Finder and Contract Summary provide basic contract and vendor contact information. Mohave is a nonprofit corporation providing public procurement contracts for use by Arizona schools, government and nonprofit organizations. As a public procurement unit, administrative fees paid by users fund Mohave. No direct tax dollars come to us. Mohave’s administrative fee is one percent (1%) of the purchase price of ordered materials or services. The administrative fee is not paid on the value of shipping charges, taxes, bonds, permits, etc. The administrative fee is our primary means for supporting Mohave’s operations. The funds generated by that fee must be sufficient to pay for all salaries, facilities, vehicles, utilities, insurance, supplies, maintenance and repair, etc. Our history has demonstrated that 1% is the appropriate amount to meet this requirement and is lower than or equal to the fees charged by similar cooperatives around the nation. Often times, other purchasing cooperatives refer to the fact that they do not charge a fee for use of their contract. Typically, what is actually occurring in these instances is the awarded vendor is paying that fee which is often more than 1 %. The old saying of “there is no such thing as a free lunch” is applicable to cooperative purchasing. |
What if My Organization Needs an Item That Isn't Under Contract? |
Let us know. Mohave catalogs requests from members for new products and services on an on-going basis. Three or four times a year the requests are tallied, examined, and discussed. The process is described further below. |
Through various conferences, professional groups, polls, and direct contact, members make known the goods or services they would like to procure through cooperative purchasing. These requests become possible categories for future Mohave solicitations. Those categories that seem like good candidates for contracts are placed on a list for future solicitations. As time and resources allow, an Invitation for Bid or Request for Proposal is developed. The requirements are researched and reviewed by Mohave and member personnel. The Invitation for Bid or Request for Proposal is ultimately drafted by Mohave’s contract team. Mohave IFBs and RFPs may consist of multiple, unrelated categories, to take advantage of shared standard terms and conditions, and to reduce production costs. Notices describing the solicitation are emailed to vendors registered in Mohave’s potential bidders database for the goods or services listed in the solicitation. (Vendors can register as potential bidders on our website— there is no charge to be listed.) Solicitations are posted for download on our website’s Procurement Solicitations page. All bids and proposals are date and time stamped and initialed by Mohave personnel upon receipt. Bids and proposals are opened and announced publicly at the time and place noted. After the public opening, bids or proposals are evaluated by Mohave and member staff. Responses are checked to determine if they accept the general terms and conditions, include all required information, comply with the scope of work, and have acceptable references. Those that do not are rejected. The remaining responses are evaluated in accordance with the criteria listed in the solicitation. Bids are awarded to the lowest responsible and responsive bidder or bidders. Proposals are awarded to the vendor or vendors whose proposals are determined to be most advantageous to Mohave and its members. With proposals, best and final offers may be required before contracts are awarded. Single awards may not be advantageous to Mohave’s members for some commodities, services, equipment, or construction. In those instances, multiple awards are available. Awards are documented in writing. Bids and proposals become contracts after final approval and signature by Mohave’s Executive Director. All vendors receive notification of the final determinations for their bids or proposals. Awards are posted on the Contract Updates page. They are also listed in website’s Product/Vendor Finder and Contract Summary. Most contracts run for one year and allow up to four one-year renewals. The Contract Documentation page on our website, contains downloadable folders for Mohave contracts. These folders contain information to assist members in reviewing the contracts for compliance with competitive procurement requirements. They also contain other useful contract information. An independent auditor verifies our procurement process each year as part of our financial audit. This audit examines Mohave’s procedures and compares them with the Arizona Procurement Code and the Arizona State Board of Education School District Procurement Rules. |
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Mohave has procurement specialists that review your vendor purchase orders. You can find the name of the procurement specialist assigned to a particular contract by visiting the Product/Vendor Finder. You may also call us at (800) 742-2437 for the information. The ordering cycle is as follows:
Mohave assists members with purchase verification. However, it is the member’s responsibility to independently verify that quotations and purchase orders comply with the terms of the award of a contract or procurement. This responsibility is set by rule and statute, and cannot be changed by Mohave. Contract documentation files are available on our website to assist members in meeting this due diligence responsibility. Our procurement specialists are committed to quick turnaround of your order. This means that if we receive an order before noon, the vendor’s should receive your “MESC Reviewed” purchase order within 2-3 business days. Problems with a purchase order (such as incorrect prices, including products or services that are not under contract, failing to attach a quotation, etc.) will delay processing. Peak ordering periods, such as the beginning and end of a fiscal year, may have longer order turn around time. Even during peak periods, the procurement specialists make every effort to process all orders as quickly as possible. |
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Some orders, such as leases and maintenance agreements, etc., require special order processing. Instructions for processing such orders are included in the Exhibits at the end of this handbook. |
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In general, vendors will invoice at the time products are shipped, services are performed or construction is complete. Leases, E-rate, and Maintenance billing are exceptions (see exhibits). Each contracted vendor has slightly different invoicing procedures; however, for the most part, they are very similar. Your membership agreement requires you to pay within 30 calendar days of receipt of vendor’s invoice. Please work very closely with the contracted vendor to ensure payment is made in a timely manner. If you and the vendor are unable to agree upon matters relating to the invoice and/or general billing, please contact your procurement specialist for assistance. Mohave procurement solicitations include provisions for vendors to offer payment discounts. You are the sole determinant as to whether these discounts are cost effective to your entity; however, these discounts must be part of the approved contract. If they are not, the vendor must request they be added to the contract terms prior to offering them to you. |
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Mohave contracts are public documents. In accordance with Arizona law, they are available for inspection by interested parties. Persons inspecting Mohave contract documents may also obtain copies of some or all pages, upon request. Contact Mohave’s Director of Contracting Programs for details on inspection of contract documents. |
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Mohave contract pricing can be found the Contract Pricing page. For members to view this pricing, you must contact the reference listed in the website for a user ID and password. Only one user ID will be issued to each member. It is important that this information not be shared outside of your organization, this pricing is being affored to you as a member of the Mohave Educational Services Cooperative. Mohave contract pricing can be fixed price, percentage off a specified pricelist, or a combination of both. For contracts that use a discount off a pricelist, new pricelists become part of the contract upon Mohave’s approval. Fixed price contracts are updated with a complete price update on the anniversary date of the contract. Generally, that is the only time fixed price contracts can be adjusted. However, in instances when a legitimate, demonstrable cost increase clearly affects the vendor’s ability to sell at the current price, Mohave may consider fixed price increases at times other than the contract anniversary. Fixed prices can be lowered at any time. All price changes are subject to Mohave’s approval. Special offers, quantity discounts, etc., must be received and approved by Mohave before they are offered to you. All price reductions must be made available to all members and generally must be available for 30 days or more. Beginning July 1, 2004, most Mohave contract prices include the 1% administrative fee that funds our operation. Effective January 1, 2008, this fee has been included in the vendor’s pricing. Including the administrative fee in contract pricing took effect with all contracts awarded after January 1, 2004. For contracts awarded prior to January 1, 2004, vendors were provided with the option to amend their contracts to include the administrative fee in contract prices or to continue pricing with the fee as an additional charge. Most vendors amended their contracts. |
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Mohave has many contracts, each with a unique policy regarding returns. Regardless of a particular policy, returns on products purchased under Mohave contract should be arranged directly with the contracted vendor. Contact the vendor as quickly as possible to request a return. After you have met the requirement of the return policy and accepted the obligation to pay any restock fees, the vendor will arrange for return of the product. Products must be returned as directed by the contracted vendor. They are not routed through Mohave. Mohave does no accept responsibility for items returned to our office in error. |
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Mohave is an active member of the Association of School Business Officials International (ASBO), Arizona Association of School Business Officials (AASBO), Arizona School Boards Association (ASBA), National Institute of Governmental Purchasing (NIGP), Arizona School Administrators (ASA), and other regional and national professional associations. |
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In 1971, the school districts in Mohave County established a career education program. Called the Mohave County Career Education Project, the program provided local schools with career days, field trips to work sites, career fairs, and media related to the world of work. In 1980, the state changed career education from discretionary grants to formula funding through the regular school budget. Only a handful of career education projects survived that funding change. Because Mohave County Career Education had diversified into other programs, the schools in the county decided to keep the project alive. The name was changed to Mohave Educational Services Cooperative (Mohave, for short). Mohave operated through the Mohave County School Superintendent’s office. In 1981-82, Mohave introduced local schools to educational software through the Minnesota Educational Computer Consortium (MECC). Mohave County districts were saving money on this software through the cooperative. When schools outside Mohave County inquired if they could be provided the same services, the Mohave County Attorney approved participation by other school districts, as long as they paid an administration fee that covered all our costs for providing them with services. Over the years, Mohave has expanded its contracting into other products and services for schools and non-school agencies throughout Arizona. To
fill the statewide need for equipment and services, Mohave has
competitively solicited and awarded cooperative procurement
contracts.
Mohave follows the same rules and procedures our members must
use to award procurement contracts. All members can order through
Mohave
using those contracts. This procedure, cooperative purchasing,
saves members time and money. Since Mohave seeks prices for
the entire
state, vendors offer lower prices than they would on a single
member’s
contract. In May 2004, legislation (HB 2181) was passed to allow agencies such as Mohave to provide public procurement services as state nonprofit corporations. In January 2005, Mohave’s articles of incorporation pursuant to A.R.S. § 11-952 and A.R.S. § 41-2632 become effective. Mohave Educational Services Cooperative, Inc., is governed under Title 10 of the Arizona Revised Statutes. As a public procurement unit, members can use Mohave contracts to procure products and services just as they did before the incorporation. Effective January 1, 2008 Mohave Educational implemented a new process change that allowed for Purchase Orders to be made out directly to the vendors. This had been requested for many years and the timing and situation became right to accomplish this change. After a year of training to vendors and members, Mohave began this process change. Among the major changes to this are the new invoicing and payment procedures as outlined in this revised handbook. Vendors are now invoicing members directly and members are now paying the vendors directly. Mohave’s staff is still reviewing Purchase Orders and conducting audits of orders; however, the vendors and members now have far greater roles in the process of using Mohave contracts. Mohave is still an intergral part of contract administration and management as well as being available for any dispute resolution. For nearly 40 years, Mohave’s staff has been dedicated to providing the finest service possible to our members. Our staff is qualified, trained and experienced. Several have achieved professional certification in their areas of expertise. The Annual Achievement of Excellence in Procurement Award® from the National Purchasing Institute (NPI) was received by Mohave in 2006 and 2007. Mohave has been successful in receiving this prestigious award each time it has submitted an application. Mohave is also accredited by the National Institute of Governmental Purchasing (NIGP). Mohave has also received the NIGP Outstanding Agency Accreditation Achievement Award® which is effective until September 2010. Mohave has held this certification since September 2001. These awards were given in recognition of Mohave’s professional purchasing program. |
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Do:
Do Not:
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Send
approved purchase orders and backup
documentation Mohave
Educational Services Cooperative, Inc. |
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Contract
Questions Purchase
Order and Invoice Follow-up and/or Revisions Accounting Operations/General
Questions We trust this handbook will help you be a successful Mohave member. Please contact us any time we can be of assistance. Complete contact information is available on the Contact Us page and other valuable information about Mohave is available on our website. |
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| Exhibit Menu | Exhibit 1 Using Mohave Contracts Under E-Rate Exhibit
2 Lease Processing Instructions Exhibit
3 Lease Processing Instructions Exhibit
4 Lease Processing Instructions Exhibit
5 Maintenance Service Contracts |
| Exhibit 1 | USING MOHAVE CONTRACTS UNDER E-RATE • Member
will issue a purchase order to Mohave indicating the order is
for an Erate purchase and listing the vendor’s contract
number. • Mohave will issue a purchase order to the vendor that states “E-rate Purchase” in the top right corner. Vendors should only start work on Erate projects under Mohave contract after receipt of Mohave’s Erate purchase order. • Vendor will perform the work in accordance with the contract and the purchase order. • Vendor will invoice the Universal Service Fund (using vendor’s SPIN number) for the eligible percentage of the project noted in the SLD award document. • Vendor will invoice the member directly for the balance of the project. • Mohave will invoice the member for Mohave’s one-percent (1%) administration fee. Mohave will not invoice for the goods and services for the project. • Some members accounting systems may require them to issue a separate internal purchase order to the vendor to enable them to pay the vendor direct for member’s percentage of the project. This money will not pass through Mohave. The only money Mohave will receive for the Erate project is Mohave’s one-percent (1%) administration fee. • Mohave holds the contract and does not have a SPIN number. Therefore, we cannot invoice the Universal Service Fund. • Servers are awarded under a computer contractor’s SPIN number. • We recommend checking with the SLD or Arizona Department of Education for additional information on Erate purchases. Also, please feel free to contact us for further information. NOTE: Mohave assists members with purchase verification. However, it is the member’s responsibility to independently verify that quotations and purchase orders comply with the terms of the award of a contract or procurement. This responsibility is set by rule and statute, and cannot be changed by Mohave. Contract documentation files are available on our website to assist members in meeting this due diligence responsibility. Rev. 10/3/06, JTP |
| Exhibit 2 | LEASE
PROCESSING INSTRUCTIONS A member is financing the purchase of equipment. Both the equipment purchase and financing are through Mohave contracts. The member is financing the entire purchase, minus the admin fee. The processing instructions are as follows: 1. The member issues a PO to Mohave for the equipment purchase. 2. The body of the member's PO contains the complete purchase description (items purchased, unit price, extended cost, total cost, tax, freight, etc.), a notation that the purchase is being financed, and the names and contract numbers for the equipment and financing contractors. 3. The member should enclose a copy of a financing proposal from the financing contractor. The general details of the lease (principal amount, interest rate, payment amount, number of payments, etc.) should be included in the proposal. 4. The member’s PO amount is equal to Mohave’s 1% admin fee for the purchased equipment and the transaction fee for the lease (The transaction fee is 1% of the total interest to be paid on the lease). Most Mohave contract prices now include the 1% administration fee. If the contract price for the purchased equipment includes Mohave’s administration fee, the member can determine the amount of the fee by dividing the contract price by 1.01 (contract price/1.01). 5. Mohave issues a PO to the equipment contractor. 6. Mohave’s equipment PO amount is equal to the cost to purchase the equipment (cost of equipment, freight, etc.) 7. Mohave issues a PO to the financing contractor. 8. Mohave’s financing PO amount is equal to the transaction fee (1% of the total interest to be paid under the lease). 9. Mohave invoices the member for the 1% admin fee. 10. Mohave invoices the financing contractor for the transaction fee. 11. The member sends Mohave a copy of the lease documents. Notes: The financing contractor pays the equipment contractor in full upon receipt of the acceptance certificate from the member. The
financing contractor invoices the member direct for all lease
payments. IMPORTANT
INFORMATION Mohave must have a copy of the lease documents for its files, particularly the signature pages and amortization schedule. NOTE: Mohave assists members with purchase verification. However, it is the member’s responsibility to independently verify that quotations and purchase orders comply with the terms of the award of a contract or procurement. This responsibility is set by rule and statute, and cannot be changed by Mohave. Contract documentation files are available on our website to assist members in meeting this due diligence responsibility. Rev. 9/12/05, JTP |
| Exhibit 3 | LEASE
PROCESSING INSTRUCTIONS A member is financing the purchase of equipment. Both the equipment purchase and financing are through Mohave contracts. They are financing the entire purchase, including the admin fee. The processing instructions are as follows: 1. The member issues a PO to Mohave for the equipment purchase. 2. The body of the PO contains the complete purchase description (items purchased, unit price, extended cost, total cost, tax, freight, etc.), a notation that the purchase is being financed, and the names and contract numbers for the equipment and financing contractors. 3. The member should enclose a copy of a financing proposal from the financing contractor. The general details of the lease (principal amount, interest rate, payment amount, number of payments, etc.) should be included in the proposal. 4. The PO amount is $0.00. 5. Mohave issues a PO to the equipment contractor. 6. Mohave’s equipment PO amount is equal to the cost to purchase the equipment (cost of equipment, freight, etc.) 7. Mohave issues a PO to the financing contractor. 8. Mohave’s financing PO amount is equal to the 1% admin fee and the transaction fee (1% of the total interest to be paid under the lease). 9. Mohave invoices the financing contractor for the admin fee and the transaction fee. 10. The member sends Mohave a copy of the lease documents. Notes: The financing contractor pays the equipment contractor in full upon receipt of the acceptance certificate from the member. The financing contractor invoices the member direct for all lease payments. The member makes lease payments directly to the financing contractor. IMPORTANT
INFORMATION Mohave must have a copy of the lease documents for its files, particularly the signature pages and amortization schedule. NOTE: Mohave assists members with purchase verification. However, it is the member’s responsibility to independently verify that quotations and purchase orders comply with the terms of the award of a contract or procurement. This responsibility is set by rule and statute, and cannot be changed by Mohave. Contract documentation files are available on our website to assist members in meeting this due diligence responsibility. Rev. 9/12/05, JTP |
| Exhibit 4 | LEASE PROCESSING
INSTRUCTIONS A member is financing the purchase of equipment. The equipment purchase is through a Mohave contract. Financing is through a non-Mohave third party leasing company. The processing instructions are as follows: 1. The member issues a PO to Mohave for the equipment purchase. 2. The body of the member’s PO contains the complete purchase description (items purchased, unit price, extended cost, total cost, tax, freight, Mohave’s admin fee, etc.) and Mohave’s contract number. 3. The body of the member’s PO must note that the purchase is being financed by a third party contractor and provide the name of the financing contractor. 4. The member’s PO must indicate whether Mohave’s admin fee is or is not included in the financed amount. 5. The member’s PO amount is equal to the amount of Mohave’s 1% admin fee. Most Mohave contract prices now include the 1% administration fee. If the contract price for the purchased equipment includes Mohave’s administration fee, the member can determine the amount of the fee by dividing the contract price by 1.01 (contract price/1.01). 6. Mohave issues a PO to the equipment contractor. 7. Mohave’s equipment PO amount is equal to the cost to purchase the equipment (cost of equipment, freight, etc.) 8. Mohave invoices the member for the admin fee. 9. If Mohave’s admin fee is not included in the financed amount, the member remits payment to Mohave. 10. If Mohave’s admin fee is included in the financed amount, the member forwards the invoice to the financing contractor and authorizes payment to Mohave. 11. A copy of Mohave’s PO and a note of explanation are sent to the financing company. Notes: The financing contractor pays the equipment contractor in full upon receipt of the invoices and acceptance certificate from the member. The financing contractor invoices the member direct for all lease payments. The member makes lease payments directly to the financing contractor. IMPORTANT
INFORMATION Mohave must have a copy of the lease documents for its files, particularly the signature pages and amortization schedule. NOTE: Mohave assists members with purchase verification. However, it is the member’s responsibility to independently verify that quotations and purchase orders comply with the terms of the award of a contract or procurement. This responsibility is set by rule and statute, and cannot be changed by Mohave. Contract documentation files are available on our website to assist members in meeting this due diligence responsibility. Rev. 9/12/05, JTP |
| Exhibit 5 | MAINTENANCE
SERVICE CONTRACTS A member is purchasing maintenance service from a Mohave contract. Purchase order and payment processing shall be as follows. 1. The member issues a PO to Mohave for the maintenance service purchase.
2. The member should enclose a copy of the maintenance service agreement, if any. 3. The PO amount is equal to the Mohave admin fee.
4. Mohave issues a PO to the vendor. 5. Mohave invoices the member for the admin fee. 6.
The vendor invoices member for all maintenance service costs. NOTE: Mohave assists members with purchase verification. However, it is the member’s responsibility to independently verify that quotations and purchase orders comply with the terms of the award of a contract or procurement. This responsibility is set by rule and statute, and cannot be changed by Mohave. Contract documentation files are available on our website to assist members in meeting this due diligence responsibility. Rev. 12/29/04, JTP |
| Exhibit 6 | TAX GUIDELINES FOR MOHAVE CONTRACTS Mohave Educational Services Cooperative is not a tax collecting entity. That responsibility rests with the vendor. Mohave’s invoice to the member will include the amount of tax charged by the vendor. Mohave’s payment to the vendor will include the amount of tax paid by the member. The vendor shall forward all taxes to the proper revenue office. As a service to our members, we will do our best to see that the appropriate tax is charged. However, responsibility for collection and payment of sales tax remains with the vendor. There are four basic scenarios of taxation: In-State Vendor: This vendor charges and collects the rate of sales tax from the locality where the merchandise is sold (Point of Sale). Out-of-State Vendor: Vendors outside of Arizona collect no sales tax and the Mohave member pays 5.6% Arizona Use Tax to the State of Arizona -OR- the vendor collects 5.6% Arizona Use Tax which is paid to the Arizona Department of Revenue by the vendor. Out-of-State Vendor with Presence in Arizona: This vendor’s main operations are located outside of Arizona, but they have a presence in Arizona such as a store or office. If the vendor has the appropriate sales tax licenses, this vendor collects the tax rate of the location where the merchandise is being delivered (Point of Delivery). The vendor collects this rate and pays 5.6% to the State of Arizona and the remaining city sales tax to the appropriate jurisdiction. Contractor’s Tax Rule: Some vendors that do construction may use this rule, which allows them to collect tax without separating the labor from materials. The tax is determined by taking 65% of the job cost and multiplying that amount by the sales tax rate that is collected locally. Generally, vendors do not collect tax on labor, service contracts, licensing, or the Mohave Administration fee. Please email questions regarding Mohave’s tax policy to Sue Watts, Accounting Manager, at sue@mesc.org. NOTE: Mohave assists members with purchase verification. However, it is the member’s responsibility to independently verify that quotations and purchase orders comply with the terms of the award of a contract or procurement. This responsibility is set by rule and statute, and cannot be changed by Mohave. Contract documentation files are available on our website to assist members in meeting this due diligence responsibility. Rev. 12/29/04 |
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