Page Updated 2/20/08
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The Vendor Handbook is a guide to help Mohave vendors provide quality goods and services to Mohave members throughout Arizona. CONTENTS
QUESTIONS
ABOUT THE VENDOR HANDBOOK? |
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Welcome to the group of Mohave contractors serving agencies throughout Arizona. We look forward to working with you and your organization. We have prepared this guide to answer some of the most frequently asked questions about working with Mohave. 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 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. |
| Now That I Have a Contract, What Do I Need to Do? | Start selling. The Mohave contract is a great sales tool, but the award itself does not guarantee any business. Mohave simplifies the purchasing process, making it easier for members to do business with you. However, we do not do marketing and it is up to you to make our members aware of your contract and the benefits they can derive from it. You can obtain member information on the Member List page. Your contract contains terms and conditions that are binding upon you and Mohave. To be successful, your representatives must be aware of those terms and conditions, as well as the products, services and prices that were included in the contract award. It is strongly suggested that you provide copies of the contract to all members of your firm that will be working with your Mohave contract. |
Your contract has been assigned to one of Mohave’s procurement specialists who will coordinate and review member purchase orders for your company. You can find the name of the procurement specialist assigned to your contract by visiting the Product/Vendor Finder. You may also call us at (928) 753-6945 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. The procurement specialist assigned to your contract is committed to quick turnaround of orders. This means that if a member faxes an order to Mohave before noon, you will generally receive a faxed or emailed Mohave purchase order that evening or the following business morning. However, problems with the member’s purchase order (such as incorrect prices, including products or services that are not under contract, failing to attach your quotation, etc.) will delay processing. Peak ordering periods, such as the beginning and end of a fiscal year (June and July), may have longer order turn around time. Even during peak periods, your procurement specialist will make every effort to process all orders as quickly as possible. If a member needs to change an order, they must do this in accordance with the above outlined information. Do not make changes to orders without prior approval from Mohave. |
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Some orders, such as leases and maintenance agreements, require special order processing. Instructions for processing such orders have been included in the exhibits at the end of this handbook. |
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Invoices are billed directly to the Mohave member after products are shipped to, or services are performed for, the member. After receipt of the invoice, the member should pay that invoice within 30 days of receipt of the goods or services. If the member fails to pay within that timeframe, you may contact Mohave for assistance in obtaining payment. Remember, you must only sell awarded materials and services under your Mohave contract. Contact us if you have any questions about what products or services are covered under your contract. Mohave procurement solicitations include provisions for vendors to offer payment discounts. Members may participate in these discount programs and retain the savings made by the early payment. |
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Because Mohave contracts are often diverse and feature broad categories, maintaining current pricing can be difficult. However, it is essential that your Mohave contract contain current products and pricing at all times. It is your responsibility to keep the contract up-to-date. Mohave produces pamphlets and uses our website to provide members with information about our contracts. To check your contract description, see the Product/Vendor Finder. In the Vendor/Product Finder search area, find your company’s name, highlight it, and click “Start Search.” A summary of your contract will appear. Contact Mohave’s Director of Contracting Programs to make revisions to your contract summary. Contract summaries should be of an informational, not promotional, nature. |
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Mohave contracts are public documents. In accordance with Arizona law, they are available for inspection by interested parties, including competitors. 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 fixed price, percentage off a specified pricelist, or a combination of both. If your contract uses a discount off a pricelist, you must provide us with new pricelists as the manufacturers issue them to you. New pricelists are in effect upon Mohave’s approval of them. Fixed price contracts must be updated with a complete price update on each anniversary of your contract. Generally, that is the only time fixed price contracts can be adjusted. However, in rare instances when a legitimate, demonstrable cost increase clearly affects the contractor’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. See your contract for details on price changes. All price changes are subject to Mohave’s approval. Price increases and reductions, special offers, quantity discounts, etc., must be received and approved by Mohave, before they are offered to members. All price reductions must be made available to all members and generally must be for 30 days or more. Beginning July 1, 2004, most Mohave contract prices include the 1% administrative fee that funds our operation. This fee is included in the price of all contracts except those listed by separate exhibit at the end of this handout. Mohave is audited each year by an independent audit firm. In the course of the audit, prices on purchase orders will be randomly checked against our contracts. Results of the audit will be a factor in contract renewals. |
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Your Mohave contract allows you to add products or services as long the additions are within the scope of the contract, are similar to, or an extension of, the products or services originally awarded, and are priced or discounted at the same or to a greater degree as the original award. Mohave reserves the right to review proposed additions to contracts, and to accept or reject them as determined appropriate under the contract and in the members’ best interests. Please advise Mohave of discontinued products or services as soon as possible. |
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Mohave is a self-supporting entity with finite resources. Therefore, we generally only renew the contracts that members use regularly. The following criteria have been established for renewing Mohave contracts.
Mohave may choose not to renew a contract if:
It is Mohave’s policy to cancel a contract if:
Contracts
are subject
to cancellation
for contract
violations. Offering
products or
services that
were not
included in
the contract
award, selling
at non-contract
prices, and
having members
send purchase
orders for
Mohave purchases
directly to
the vendor
are all
contract violations.
Vendors must
avoid such
violations to ensure
continuation of
their contracts.
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Mohave has many contracts, each with a unique policy regarding returns. Regardless of your particular policy, all returns on products purchased under Mohave contract should be arranged through you and the terms of return must be clearly spelled out to the member. If there are problems in this process, you may contact your Mohave procurement specialist for assistance. After the member has met the requirements of your return policy and accepted the obligation to pay any restock fees, you should arrange for return of the product. |
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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. We maintain membership in professional organizations to further the professional stature of our organization and to provide continuing professional development for our staff. |
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A list of current Mohave members (approximately 350) is available on the Member List page. Those members are eligible to purchase from Mohave contracts. Please contact us if you are unsure if a prospective customer is a Mohave member. Additionally, there may be other state, city, county, and other public groups that would like to use our contracts. If you become aware of those individuals or groups, please contact us. We will then contact them and have them complete the necessary Cooperative Purchasing Agreement paperwork. |
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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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Contract
Questions Purchase
Order and Invoice Follow-up and/or Revisions Accounting Business
and Operations/General Questions We trust this handbook will help your firm be a successful Mohave vendor. Please contact us any time we can be of assistance. |
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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 |
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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 |
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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. 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 |
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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 |
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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 |
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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 |
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TAX GUIDELINES FOR MOHAVE CONTRACTS Mohave Educational Services Cooperative is not a tax collecting entity. Responsibility for collection and payment of sales tax rests 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. 2/4/08, CP |
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| Exhibit 7 | SAMPLE VENDOR QUOTE |
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