5101:9-4-01 Acquisition standards definitions.

As used in this chapter:

(A) "Acquisition cost" means the net invoice price of an item, including the cost of:

(1) Delivery;

(2) Installations;

(3) Modifications; and

(4) Attachments, accessories, or auxiliary apparatus necessary to make the item usable for the purpose for which it is acquired, regardless of whether purchased together or separately.

When an item is acquired by trading in another item and paying an additional amount, the acquisition cost is the amount received for the trade-in plus the additional outlay.

(B) "Asset" means buildings, capital improvements, and equipment.

(C) "Code of conduct" means standards governing conduct of employees involved in the procurement process.

(D) "Competitive sealed bidding" means methods that include competitive sealed bidding requirements referenced in paragraph (C) of rule 5101:9-4-07 of the Administrative Code.

(E) "Cost analysis" means the review and evaluation of the separate cost elements and the application of judgment to determine how well the proposed costs represent what the cost should be, assuming reasonable economy and efficiency. Comparisons should be with one or more of the following costs:

(1) Actual costs previously incurred by the same supplier;

(2) Previous cost estimates for the same or similar items;

(3) Other cost estimates received in response to the solicitation;

(4) Independent cost estimates by technical personnel; or

(5) Forecasts of planned expenditures.

(F) "County family services agency" (CFSA) is as defined in section 307.981 of the Revised Code and means any of the following:

(1) County department of job and family services (CDJFS);

(2) Child support enforcement agency (CSEA);

(3) Public children services agency (PCSA); and

(4) Any private or government entity designated by the board of county commissioners to serve as a CFSA.

(G) "Equipment" means tangible personal property that has a useful life of more than one year and an acquisition cost of five thousand dollars or more, except that CFSAs may adopt an acquisition cost limit lower than five thousand dollars as defined by the county auditor for financial reporting purposes.

(H) "Expensing" means method of claiming the cost of an asset in its entirety in the period it is acquired for purposes of federal and/or state reimbursement.

(I) "Facilities" means land and buildings or any portion thereof; equipment, either in individual pieces or pieces aggregated for a common purpose; and any other tangible capital asset.

(J) "Invitation to bid" (ITB) means the acquisition process used by CFSAs to solicit competitive sealed bids from vendors.

(K) "Maintenance" means expenditures for services and items that:

(1) Keep assets in an efficient operating condition;

(2) Are not already included in a rental agreement or other charges for space; and

(3) Do not add to the asset's permanent value.

Repair work to an agency building that adds to the permanent value of the property or appreciably prolongs its intended life is a capital improvement and is not considered maintenance.

(L) Non-profit organization as defined in office of management and budget (OMB) circular A-133 is as follows:

(1) Any corporation, trust, association, cooperative, or other organization that:

(a) Is operated primarily for scientific, educational, service, charitable, or similar purposes in the public interest;

(b) Is not organized primarily for profit;

(c) Uses its net proceeds to maintain, improve, or expand its operations; and

(2) Non-profit institutions of higher education and hospitals.

(M) "Price analysis" means the process of examining, evaluating, and comparing a proposed price to determine if it is fair and reasonable, without evaluating its separate cost elements. Comparisons should be made with one or more of the following:

(1) Other prices and quotations submitted;

(2) Published catalog or market prices;

(3) Prices set by law or regulation;

(4) Prices for the same or similar items;

(5) Market data (indexes); or

(6) Other standardized data.

(N) "Purchasing or procurement contract" means the agreement by which the vendor, as defined in rule 5101:9-1-88 of the Administrative Code, and the CFSA bind themselves to the terms of a purchase or purchases.

(O) "Purchase order" means an encumbering document used for all contracts to put into effect the prior certification of funds under division (D) of section 5705.41 of the Revised Code.

(P) "Service contract" means the contract by which the vendor, as defined in rule 5101:9-1-88 of the Administrative Code, providing the service and the CFSA bind themselves to the terms of a service agreement for the purchase of services.

(Q) "Sub-grant" means an award of financial assistance in the form of money, or property in lieu of money, made under a grant by a grantee to an eligible sub-grantee. The term includes financial assistance when provided by contractual legal agreement, but does not include procurement purchases, nor does it include any form of assistance that is excluded from the definition of grant in this part.

(R) "Sub-grantee" means the government or other legal entity to which a sub-grant is awarded and that is accountable to the grantee for the use of the funds provided as defined in 7 C.F.R. 3016.3 , 29 C.F.R. 97.3 , and 29 C.F.R. 45 C.F.R. 92.3.

(S) "Sub-recipient" means a non-federal entity that expends federal awards from a contract or grant agreement with either a CFSA, a local area for workforce investment responsibilities as defined in section 6301.01 of the Revised Code, or a workforce development agency functioning as a pass-through entity to carry out a federal program, but does not include an individual who is a beneficiary of such a program. The characteristics of a sub-recipient are as outlined in rule 5101:9-1-88 of the Administrative Code.

(T) "Supplies" means items consumed in the CFSA or workforce development agency operations that do not fit the definition of equipment.

(U) "Use allowance" means the method of allocating the cost of an asset in lieu of depreciation for purposes of federal and/or state reimbursement.

(V) "Useful life" means the period of time over which an asset is depreciated, and is determined by taking into consideration the type of construction, the nature of the equipment used, historical usage patterns, technological developments, and manufacturer documentation.

(W) "Vendor" means a dealer, distributor, merchant, or other seller providing goods or services required for the conduct of a federal program. These goods or services may be for an organization's own use or for the use of beneficiaries of the federal program.

(X) "Workforce development agency" (WDA) means the entity given responsibility for workforce development activities designated by the board of county commissioners in accordance with section 330.04 of the Revised Code, the chief elected official of a municipal corporation in accordance with section 763.05 of the Revised Code, or the chief elected officials of a local area as defined in section 6301.01 or the Revised Code.

Replaces: 5101:9-4-01

Effective: 01/22/2010
Promulgated Under: 111.15
Statutory Authority: 5101.02
Rule Amplifies: 307.86 , 329.04
Prior Effective Dates: 9/20/80, 8/13/82, 5/1/96, 9/5/97, 9/12/05, 10/30/06, 1/30/07