How can school districts benefit from on-call procurement? Learn how on-call professional services can help improve efficiency and save resources for school districts seeking design services. This was first presented at the AASBO 63rd Annual Conference and Exposition in Tucson, Arizona.

5. • Bonnie Gonzalez CPPO at H2 Group
• Former Arizona Attorney General Janet Napolitano
• Arizona State Administrative Code, Chapter 23, Procurement
Code
• Arizona State Administrative Code, Title 7. Education, Chapter 2.
State Board of Education
• AZ School Facilities Board
Sources

6. • Describe objectives as related to on-call procurement
• Appropriateness of various on-call procurement strategies that
reduce district management resource allocation needs
• Understanding of allowable state procurement rules and
statutes
• Ability to weigh the benefits and cons of the procurement
method based on your needs
Learning Objectives

7. Rule R7-2-1001 defines:
• “Specified professional services” means services of an architect, engineer, land surveyor,
assayer, geologist and landscape architect.
Other pertinent definitions:
• “Procurement” means buying, purchasing, renting, leasing or otherwise acquiring any
materials, services or construction.
• “Cooperative purchasing” means procurement conducted by, or on behalf of, more than one
public procurement unit.
• “Contract” means all types of agreements, including purchase orders, regardless of what they
may be called, for the procurement of materials, services or construction or the disposal of
materials.
What is “Procurement of Specified
Professional Services”?

8. Professional services is awarded by qualifications based merit, rather than
competitive bid. Therefore competitively sealed proposals are used versus
competitively sealed bidding. A summary of the process is as follow:
1. Request for qualifications(RFQ) shall be issued at least 14 days before the time and date
set for bid opening. Invitations shall include, description of scope of services, type of
contract to be used, estimated budget and schedule closing date and time of receipt of
qualifications, evaluation criteria and their relative order of importance (Additional
requirements per R7-2-1042, R2-7-C301, A.R.S. 41-2534 or A.R.S. 41-2578)
2. Pre-Proposal Conference (optional but recommended / mandatory)
3. Conduct interviews with at least three and no more than five persons or firms
4. Negotiate contract with highest ranking firm based on evaluation criteria, notify those
not highest
5. Award contract, or if terms cannot be reached, negotiate contract with second highest
ranking firm based on evaluation criteria
What is the required procurement process?

9. • Per R7-2-1117, two methods of award of a contract for specified professional
services are the single negotiated fee method of award(R7-2-1122)
and multiple fee proposal method of award(R7-2-1123).
• Note, per A.R.S. 41-2578, C, 1, D, All construction-manager-at-risk construction
services or design-build construction services included in a procurement
under this section shall be limited to construction services to be performed
at a single location, a common location or, if the construction
services are all for a similar purpose, multiple locations. This
does not specifically apply to specified professional services, beyond that
precedence might be argued based on the above Statute.
Arizona Administrative Code
Chapter 2: State Board of Education, Title 7

10. • R7-2-1093 states
Unless otherwise provided by law, a contract for materials or services may be
entered into for a period of time up to five years, as deemed to be
advantageous to the school district, if the term of the contract and conditions of renewal or
extension, if any, are included in the solicitation and monies are available for the first fiscal
period at the time of contracting. Payment and performance obligations for succeeding
fiscal periods are subject to the availability and appropriation of monies.
This multi-term contract is allowed providing the governing board determines among other
things that “such a contract will serve the best interests of the school
district by encouraging effective competition or otherwise promoting
economies in school district procurement.”
**Upheld by Attorney General Opinion, Janet Napolitano (November 24, 1999)**
Arizona Administrative Code
Chapter 2: State Board of Education, Title 7

11. Specified Professional Services Procurement
Options
1. Traditional Procurement per R7-2-1122
single negotiated fee method of award(solicitation by district)
2. On-Call District Procurement per R7-2-1123
multiple fee proposal method of award(solicitation by district)
3. On-Call State Procurement per A.R.S 41-2581
single or multiple contracts, projects less than $250,000 for architectural services or $500,000
for Engineering services (solicitation by state)
4. Cooperative Purchasing Agreement Procurement (R7-2-1191)
single negotiated fee method of award(solicitation by cooperative)

12. Sample Master Contract & Work Order
• Set fee percentages
for different types of
projects
• Lists multiple
projects or project
types covered in the
RFP
• Incorporates overall
general conditions
and insurance
requirements

13. Sample Master Contract & Work Order
• Lists
other/supplementary
conditions
• Sets limits or types
of reimbursable
expenses

14. Master Contract & Work Orders
• Defines specific
project
• Sets Fee
• Further defines
reimbursable
expenses if needed
• Lists additional sub
consultants
• Defines deliverables
• Ties to master
agreement and
general conditions

15. On-Call Professional Services -
Recommendations
One or more design professionals selected to provide services for a period of up
to 5 years.
Recommended that the contract is awarded as a one year term with options to
extend up to four additional terms
Base fee as a percentage of Maximum Allowable Construction Cost (MACC) with
sliding scale for project complexity (Established for each year of service)
Hourly rates established for time and materials type projects and or additional
services / added scope (Established for each year of service)

16. Single project manager as point of contact throughout the term of the contact with
multiple project architects identified for specific project types, i.e. new facilities,
renovation and additions, tenant improvements, assessments etc.
Identification of consultants covering all disciplines, (local civil engineer
recommended)
On-Call Professional Services -
Recommendations

17. Sample Fee Schedule

18. Sample Fee Schedule

19. Benefits of District On-Call Procurement
One time solicitation to serve for a 5 year timeframe
• Time and cost savings, no repetitive procurement
• Ability to evaluate qualifications and personnel at the district level
• Set or negotiated price for each project
• Budget project design costs
Consistent representation
• Main point of contact / project manager
• Specialized expertise / project architects for different project types
• Knowledge of, or ability to establish, district standards
• Establish and test Owner Project Requirements (OPR) document

20. Benefits of District On-Call Procurement
Quickly contract new work through work orders
Resource available for assessments, planning and cost estimation
Advocacy and funding application support
Ability to run several project simultaneously and conserve district recourses
Advisor for maintenance and preventative maintenance planning (BIM)
Potential for reducing reimbursable expenses by combining project meetings

21. • Turnover – Might see turnover within architecture firm that changes the team
that you work with
• Expertise – Might not have an architect that has expertise in specific needs
• Capacity – Might overload your architect
• Complacency – Designs may not be innovative
• Perception – Best interest of the district….non-competitive
Potential Cons of District On-Call Procurement

22. Case Study
Gallup McKinley County School District
• One of three on-call architects
• Three four year on call-contracts
• 35 Projects
Not just design
• Planning
• Assessments
• Project budgeting
• 5 Year Master Planning support
• Funding application processing
• Community Facilitation & Bond campaign support
As needed summer renovations and repairs
Emergency repairs

23. Artesia Public Schools
• One on-call architect
• One year contract with possible 2 year extension
• 14 Projects in first year
Not just design
• Bond campaign support
• Assessments
• District wide utilization study
• Comprehensive operating cost comparisons
Flexibility to address a shift in district facility design priorities
Emergency structural and roofing repairs
Case Study

24. Summary
Objectives:
• Save time, money and District resources
• Creating a long term beneficial relationship
Application:
• Several under defined needs
• Limited district facility management and maintenance resources
Understanding of State on-call procurement rules:
• Procurement flexibility
• Promotes competition

25. Questions?