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Budget and Financial Guidelines
Capital Outlay and Competitive Bids
Capital Outlay & Competitive Bids
Capital outlay refers to costs more than $10,000 for equipment, building purchase or renovation project costs. An individual item or a project that totals over $10,000 is capital outlay.
ISDs should follow their board policies for capital outlay requests and update their GSRP fiscal policies to reflect approval of capital outlay expenses, minimally requiring ECC review and approval. Careful consideration should be given to ensure all subrecipients are able to meet capital outlay fiscal policies, thus reducing barriers for larger projects or purchases such as playground equipment, vehicles for transportation, and/or classroom supplies/materials. MiLEAP will no longer require ISDs to submit capital outlay requests that exceed a specific amount for approval.
Capital Outlay items/projects that exceed the Competitive Bid Threshold must follow the ISD/subrecipient competitive bid policy in compliance with MDE requirements (see the Competitive Bid Threshold Memo in the resources for this section). It is the responsibility of the ISD to ensure that bid requirements are met for all subrecipients, supporting CBOs as needed. An ISD may require CBOs to gather several quotes and provide justification for choosing a particular quote in place of the competitive bid process. An LEA or PSA is not required to obtain competitive bids for items purchased through MiDeal, the bulk purchasing program operated by the State of Michigan Department of Management and Budget. Other cooperatives to which a subrecipient may belong or participate in for discounted supplies/equipment may not be utilized in place of the competitive bid requirements if reflected in the entity’s policies.