Agenda Plus
School Board of Clay County
June 29, 2017 - Regular School Board Meeting
Title
C31 - Change Order #1 (Direct Purchasing) for Wilkinson Junior High School HVAC Replacement Buildings 1, 4, & 5
Description

Direct purchase of materials and/or equipment to realize cost savings. 

Gap Analysis

Direct purchasing change orders are almost always deductive and are the sole initiative of the owner.  These change orders represent the purchase of materials and/or equipment directly by the School Board in order to save the sales tax.  The direct purchases are deducted from the original contract in the form of a change order.  

Previous Outcomes

The School Board is tax exempt from sales tax on the purchase of construction materials, supplies and equipment that are part of this contract.  Sales tax savings have been used in the past to fund capital projects that may otherwise have not been funded.

Expected Outcomes

Money saved with sales tax savings will be used for capital projects that may otherwise have not been funded.

Strategic Plan Goal

Ensure effective management of the organization, operations and facilities to maximize the use of resources and promote a safe, efficient and effective learning environment for Clay County students.

Recommendation

School Board approve the change order.

Contact
Dr. Michael Kemp, Assistant Superintendent for Operations, (904) 529-4966, Michael.Kemp@myoneclay.net
Financial Impact
The deduction from the construction contract in the amount of $92,270.00 will not impact the budget. A total tax savings in the amount of $5,270.00 is realized as a result of this direct purchasing change order.
Review Comments
Attachments
WJH HVAC Replacement DP CO 1.pdf