CHC - PURCHASING

GENERAL PURCHASING AUTHORITY

TSBVI, as an agency of the State of the Texas, is required to follow all purchasing rules and regulations of the Texas Building and Procurement Commission (TBPC) for the purchase of all supplies, materials, services, and equipment.

ETHICAL STANDARDS

When acting under authority delegated from the TBPC, TSBVI employees must comply with the following ethical standards of conduct:

A TSBVI employee may not:

  1. participate in work on a TSBVI contract knowing that the employee, or member of their immediate family has an actual or potential financial interest in the contract, including prospective employment;
  2. solicit or accept anything of value from an actual or potential vendor;
  3. be employed by, or agree to work for, a vendor or potential vendor;
  4. knowingly disclose confidential information for personal gain.

For purposes of 1 through 4, above:

  1. "Participated" means to have taken action as an employee through decision, approval, disapproval, recommendation, giving advice, investigation, or similar action.
  2. "Particular matter" means a specific investigation, application, request for a ruling or determination, rulemaking proceeding, contract, claim, charge, or other proceeding.

A vendor or potential vendor may not offer, give, or agree to give an employee anything of value.

When an actual or potential violation of numbers 1 through 4, above, is discovered, the person involved shall promptly file a written statement concerning the matter with an appropriate supervisor. The person may also request written instructions and disposition of the matter.

If an actual violation of numbers 1 through 4, above, of this section occurs or is not disclosed and remedied, the employee involved may be either reprimanded, suspended, or dismissed. The vendor or potential vendor may have a pending bid or proposal rejected, be barred from receiving future contracts and/or have an existing contract canceled.

1 TAC 111.4

REQUISITIONS

The accounting, purchasing and supply office is responsible for the establishment of proper controls to ensure that all requisitions for purchases of the School are properly authorized.

COMPETITIVE BIDDING

Whenever possible, purchases are to be based on competitive bids. Negotiation of purchases are permitted for:

  1. emergency purchases: when there is insufficient time to solicit bids;
  2. proprietary purchases for which there is only one source of supply;
  3. purchases by means of competitive sealed proposals (This procedure is similar to the open market procurement process: however, instead of sealed competitive bids, a negotiation phase is included and a best and final offer is permitted.); and
  4. proposed purchases in circumstances where competitive specifications have been advertised but the School has received only one acceptable bid, or no acceptable bids; provided, however, such negotiation may not result in a material change to the advertised specifications.

Texas Gov't Code 2155.063; 1 TAC 113.1

BID AWARDS

When making a purchase, the School shall award a contract to the bidder offering the best value for the state while conforming to the specifications required.

In determining the bidder offering the best value, the School may consider the safety record of the bidder, the entity represented by the bidder, and any person acting for the represented entity only if:

  1. the TBPC or other state agency has adopted a written definition and criteria for accurately determining the safety record of a bidder; and
  2. the TBPC or state agency provided notice in the bid specifications to prospective bidders that a bidder's safety record may be considered in determining the bidder offering the best value for the state.

A determination of a bidder's safety record may not be arbitrary and capricious.

In determining the bidder offering the best value, in addition to price the School shall consider:

  1. the quality and availability of the goods or contractual services and their adaptability to the use required;
  2. the scope of conditions attached to the bid;
  3. the bidder's ability, capacity, and skill to perform the contract or provide the service required;
  4. the bidder's ability to perform the contract or provide the service promptly, or in the time required, without delay or interference;
  5. the bidder's character, responsibility, integrity, and experience or demonstrated capability;
  6. the quality of performance of previous contracts or services;
  7. the bidder's previous and existing compliance with laws relating to the contract or service;
  8. the bidder's previous or existing noncompliance with specification requirements relating to the time of submission of specified information, including samples, models, drawings, or certificates;
  9. the sufficiency of the bidder's financial resources and ability to perform the contract or provide the service; and
  10. the bidder's ability to provide future maintenance, repair parts, and service for the use of the contract's subject.

Texas Government Code 2156.007.

DELEGATED PURCHASES

TBPC has delegated certain purchasing functions to the School:

  1. commodity purchases of goods that do not exceed $25,000;
  2. emergency purchases;
  3. purchases of perishable items;
  4. purchases of services the estimated cost of which does not exceed $100,000;
  5. purchases of publications directly from the publisher;
  6. fuel, oil and grease purchases; and
  7. distributor purchases.

The following provisions are generally applicable to delegated purchases:

  1. Competitive bidding is not required for purchases of $5,000 or less.
  2. All bids must be obtained from sources which normally offer for sale the merchandise being purchased.
  3. Items purchased under delegated authority may not include scheduled items, items available under a term contract (unless purchased in quantities less than minimum ordering quantities shown in contract), or any item required by law to be purchased from a particular source.
  4. The TBPC must solicit formal bids from all eligible vendors on the centralized master bidders list (CMBL) when making purchases in excess of $25,000. The TBPC waives the requirement for the School to solicit bids from all eligible vendors on the list when making purchases under subsection (e) of this section. State agencies must solicit from all eligible vendors on the CMBL when making service purchases in excess of $100,000 that the TBPC has delegated to an agency.

1 TAC 113.11

BID REQUIREMENTS

Commodity Purchases

Commodity purchases may be made in accordance with the following provisions:

  1. The School must attempt to obtain at least three informal bids, including a minimum of two bids from historically underutilized businesses (including at least one bid each from a minority-owned business and a woman-owned business), on all commodity purchases in excess of $5,000 and not over $25,000.
  2. The School must meet competitive bidding requirements and may supplement the list of bidders obtained from the CMBL with potential bidders contained in the HUBs Directory. If the School is unable to locate two HUBs from the Commission's CMBL and HUB Directory or other available sources, the School must make a written notation in the purchase file of all reference sources used.
  3. Commodity purchases in excess of $25,000 are not delegated to the School.
  4. The School must attempt to provide a copy of the bid to the last vendor who held the contract in addition to the informal bid requirement.

1 TAC 113.11(e)(1)

Emergency Purchases

TBPC will approve payment for emergency purchases in accordance with the following provisions.

  1. At least three informal bids must be obtained whenever possible on all purchases in excess of $5,000, up to $25,000.
  2. At least three formal bids must be obtained whenever possible on all purchases in excess of $25,000.

3.For an emergency purchase of goods or services exceeding $25,000, the School must send a full written explanation of the emergency along with other documentation required by the TBPC for prepayment approval.

1 TAC 113.11(e)(2)

Perishable Items

Purchases of perishable items must be obtained through competitive bids, and appropriate documentation must be forwarded to the TBPC for approval.

1 TAC 113.11 (e) (3)

Services

Purchases of services estimated to cost no more than $100,000 per year per contract are delegated and must be obtained through a competitive selection process, and appropriate documentation must be forwarded to the TBPC for approval.

  1. The School is required to submit documentation to the TBPC for proprietary purchases of services over $25,000 and for purchases expected to cost more than $25,000 per year.
  2. The School must attempt to obtain at least three informal bids, including a minimum of two bids from HUBs , on all service purchases in excess of $5,000 and not over $25,000.

1 TAC 113.11(e)(4)

Purchases Of Services Estimated More Than $25,000 And Less Than $100,000

For purchases of services estimated more than $25,000 and less than $100,000, the School shall, as a minimum, solicit bids from all CMBL and HUB Directory Vendors located in the School's geographic region.

1 TAC 113.11(e)(4)

Purchases Of Services Estimated To Cost More Than $100,000 Per Year

For purchases of services estimated to cost more than $100,000 per year, the TBPC must review any proposed specifications or statements of work and determine whether the TBPC or the School should make the advertisement and award. The TBPC may determine that the service should be advertised to the entire CMBL rather than to only those vendors in the agency's geographical area. If no competitive advantage would be obtained by having the TBPC make the advertisement and award, the TBPC may permit the School to do so as a delegated purchase1 TAC 113.11(e)(4)

POSTING REQUIREMENT FOR PURCHASES GREATER THAN $25,000

When making a purchase greater than $25,000, the School is required to following the requirements of Texas Government Code Section 2155.083(g) through (m) related to posting in the state business daily.

IMPERMISSIBLE PRACTICES

An employee of the School shall not intentionally, or knowingly, make, or authorize, separate, sequential, or component purchases to avoid the competitive bidding requirements set out in this policy.

"Component purchases" means purchases of the component parts of an item that in normal purchasing practices would be made in one purchase. "Separate purchases" means purchases, made separately, of items that in normal purchasing practices would be made in one purchase. "Sequential purchases" means purchases, over a period, of items that in normal purchasing practices would be made in one purchase.

EXEMPTION OF GOODS OR SERVICES OF BLIND OR VISUALLY IMPAIRED PERSONS

The competitive bidding provisions of this policy do not apply to a state purchase of goods or services that:

  1. are made or provided by blind or visually impaired persons;
  2. are offered for sale to the School through efforts made under law by the Texas Council on Purchasing from People with Disabilities;
  3. meet state specifications for quantity, quality, delivery, and life cycle costs; and
  4. cost not more than the fair market price of similar items.

Texas Government Code 2155.138

TERM CONTRACT PURCHASES

TBPC enters into term contracts for the purchase, or lease, of items used in large quantities by multiple state agencies. The term of the contract is determined by the TBPC; usually the term is twelve months. TSBVI is required to purchase items from the term contracts obtained by TBPC unless the products offered do not meet the needs of the School.

1 TAC 113.10; State of Texas Procurement Manual, Section 2.7

OPEN MARKET PURCHASES

Open market purchases are purchases required to be made through the TBPC. Open market purchases are required for all non-delegated purchases, primarily for purchases in excess of $100,000.

Texas Gov't Code 2156, Subchapter B; State of Texas Procurement Manual, Section 2.8

PROPRIETARY PURCHASES

Proprietary products, or services, are those products, or services, that have distinctive features, or characteristics, which are not shared, or provided, by competing, or similar products, or services. Proprietary purchases are permitted provided that the School provides written justification for the proprietary purchase that includes:

  1. need for the specifications or conditions;
  2. the reasons why any competing or equivalent products identified by the TBPC are not satisfactory, addressing each such product individually;
  3. any other information requested by the TBPC.

The request must be approved by the Superintendent or the Superintendent's designee.

1 TAC 113.3(c)

TEXAS DEPARTMENT OF CRIMINAL JUSTICE PURCHASES

Unless a written waiver has been secured from the Texas Department of Criminal Justice (TDCJ), the School must purchase from the Texas Correctional (TCI) Division of the TDCJ goods and services for which TBPC has contracted and notified the School of the availability of such goods and services.

1 TAC 113.13

PREFERENCES

When purchasing goods and services, the School shall give preference to the following:

  1. manufactured products of workshops, organizations, or corporations whose primary purpose is training and employing persons with mental or physical disabilities, if the products or services meet state specifications as to quantity, quality and price. Competitive bids are not required for purchases of blind-made goods or services offered as a result of efforts by the Texas Council for Purchasing from People with Disabilities - TIBH, if the goods or services meet state specifications as to quantity, quality and price.

Texas Government Code 2155.441; 1 TAC 113.8

  1. rubberized asphalt paving material made from scrap tires by a facility in this state if the cost, as determined by life-cycle cost benefit analysis, does not exceed the bid cost of alternative paving materials by more than 15%.

Texas Government Code 2155.443; 1 TAC 113.8

  1. products and services from economically depressed or blighted areas as defined in Texas Government Code, §2306.004 or that meet the definition of a historically underutilized business zone as defined by 15 U.S.C. §632(p). recycled, remanufactured or environmentally sensitive products, including recycled steel products, if the products meet state specifications as to quantity and quality and defined best value factors.

Texas Government Code 2155.449; 1 TAC 113.8

  1. energy efficient products if they meet state specifications as to quantity and quality, and are equal to or less that the cost of other products that are not energy efficient.

Texas Government Code 2155.442; 1 TAC 113.8

  1. agricultural products grown in Texas and supplies, materials or equipment produced in Texas, over comparable goods grown or produced outside Texas when the cost and quality of the goods are comparable.
  2. Texas resident bidders, over a nonresident bidder, when the cost and quality of the goods, or services, are equal.

Texas Government Code 2155.444

  1. United States produced supplies, material, equipment, or agricultural products, over foreign products, when the cost and quality are equal, if comparable goods of equal cost and quality produced or grown in Texas or offered by Texas bidders are not available.

Texas Government Code 2155.444; 1 TAC 113.8

  1. motor oils and lubricants that contain at least 25% recycled oil if the quality is comparable and the cost is equal to, or less than, new oil and lubricants.

Texas Government Code 2155.447; 1 TAC 113.8

  1. products produced at a facility located on property for which the owner has received a certificate of completion under §361.609, Health and Safety Code, if the goods meet state specifications regarding quantity, quality, delivery, life cycle costs, and price.

Texas Government Code 2155.450; 1 TAC 113.8

  1. vendors that meet or exceed air quality standards.

Texas Government Code 2155.451; 1 TAC 113.8

HISTORICALLY UNDERUTILIZED BUSINESSES

The School shall make a good faith effort to increase the contract awards for the purchases of goods or services that the School expects to make during a fiscal year to historically underutilized businesses based on rules adopted by the TBPC to implement the disparity study described by Section 2161.002 (c) of the Texas Government Code.

Texas Gov't Code Section 2161.181

AUTOMATED INFORMATION SYSTEM PURCHASES

The School shall purchase automated information systems through the catalog procedure provided by Chapter 2157 of the Texas Government Code unless the School determines that the best value may be obtained through another authorized purchase method.

Texas Gov't Code Section 2157.061

Adopted: 11/7/80

Amended: 3/16/81, 11/19/93, 9/29/95, 5/23/97, 3/21/03, 11/18/05

Reviewed:

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