University Rules

Home - University Rules - Purchasing Procedures

25.99.02.C1.01	Purchasing Procedures
	Approved September 4, 2002 Supplements System Regulation 25.99.02

GENERAL

1.1

All purchases must comply with University purchasing procedures. Each purchase must be fully documented with all documents retained in accordance with the University's records retention schedule. Purchases are defined as delegated departmental purchases, purchases processed through the Department of Purchasing, or purchases classified as exempt.

1.2

In the acquisition of goods and services, the following methods may be utilized:

(1) competitive bidding;
(2) competitive sealed proposals;
(3) catalogue purchase procedure;
(4) group purchasing; and
(5) alternate methods relevant to specific application of goods or services purchased.

1.3

All purchases shall be based on a best value concept. In determining the best value, the University shall consider the following.

(1)

the purchase price;

(2)

the reputation of the vendor and of the vendor's goods or services;

(3)

the quality of the vendor's goods or services;

(4)

the extent to which the goods or services meet the University's needs;

(5)

the vendor's past relationship with the University;

(6)

the impact on the ability of the University to comply with laws and rules relating to Historically Underutilized Businesses and to procurement of goods and services from persons with disabilities;

(7)

the total long-term cost to the University of acquiring vendor's goods and services;

(8)

the use of material in construction or repair to real property that is not proprietary to a single vendor unless the University provides a written justification in the request for bids of the unique material specified; and

(9)

any other relevant factor that a private business entity would consider in selecting a vendor.

PURCHASE PROCEDURES
Requisitions for purchases in excess of $5,000 per fiscal year must be forwarded to the Department of Purchasing.

2.1

Delegated Departmental Purchases
The Department of Purchasing has delegated the authority to departments to make purchases of goods and services for $5,000 or less (including freight and/or postage). The exception to this delegation is the purchase of printing services, for any dollar amount, when utilizing state-appropriated funds. Article 21 of the Texas Constitution requires competitive bidding for these services. All employees making purchases under this delegated purchasing authority shall adhere to the Texas A&M University System Ethics Policy 07.01 and adopt the NAEB Code of Ethics found in University Rule 25.99.02.C1, section 2.1.

2.1.1

Purchases within these dollar limits require proper documentation on the Limited Purchases screens in the Purchasing Module or as provided in the University Guidelines for procurement card purchases. Purchases may not be broken down into small purchases in order to meet the authorized limit of authority.

2.1.2

Departments shall identify and utilize, whenever possible, Historically Underutilized Businesses (HUBs) for the purchase of goods and services. The Department of Purchasing will assist in identifying HUBs for such purchases. Assistance in identifying HUBs may be found at http://falcon.tamucc.edu/~purchase for an on-line listing of HUBs.

2.1.3

Departments shall purchase goods and services, whenever possible, from persons with disabilities (Texas Industries for the Blind and Handicapped). The Department of Purchasing will assist in identifying TIBH contracts. TIBH contracts may be viewed at the following web-site: http://www.purchaseplus.com/catindex.htm.

2.2

Purchases Through Purchasing Services
All purchases in excess of the authorized departmental purchase limit shall be submitted as a requisition to the Department of Purchasing. Upon receipt of the purchase requisition, the Department of Purchasing will determine the appropriate method of procurement and process accordingly. The Department of Purchasing will solicit bids/requests for proposals and make an award

2.3

Purchase Categories
The following purchase categories determine the process in which goods and services are obtained:

2.3.1

State Contracts
The State of Texas has awarded contracts that are available for use by all state agencies and institutions of higher education. These contracts are either non-automated or automated state contracts. For information regarding what types of goods are available on state contracts, you may visit the following web-site: http://falcon.tamucc.edu/~purchase

2.3.1.1

Non Automated Contracts (Discount from list)
If the items requisitioned are on a non-automated contract, the Department of Purchasing will verify the class and item number, the price and the name and address of the contract vendor and forward a purchase order to the vendor.

2.3.1.2

Automated Contracts (Firm, fixed price)
If the items on the requisition are on an automated state contract, the Department of Purchasing will verify the class and item number, the commodity number and the departmental code and forward a purchase order to the vendor. Departments are highly encouraged to review and utilize the state contracts whenever possible.

2.3.2

University Contracts
The Department of Purchasing administers many University contracts and use of system-wide blanket-pricing contracts. The contracts are based on the best value concept and streamline the procurement process for the requisitioner. For a detailed description of the available University contracts, visit the following web-site: http://falcon.tamucc.edu/~purchase

2.3.3

Emergency Purchases

2.3.3.1

An emergency purchase is defined as a purchase of goods or services so badly needed that a department will suffer financial or operational damage unless they are secured immediately. In the case of an emergency, departments must notify the Department of Purchasing immediately. If the emergency happens after normal business hours, the department shall notify the Department of Purchasing on the next business workday.

2.3.3.2

A written emergency justification is required for this type of purchase. While bids are not required, the departments are encouraged to obtain bids if at all possible.

2.3.4

Services

2.3.4.1

Purchase of services is defined as the furnishing of skilled or unskilled labor or professional work, but does not include: (1) professional service subject to Subchapter A, Chapter 2254; (2) service of a state agency employee; (3) consulting service as defined by Subchapter B, Chapter 2254; or (4) service of a public utility.


2.3.4.1.1	Requisitions must be submitted for the purchase of services and the award issued before the service begins. If the service can only be provided by a sole course provider, a letter of justification explaining why the service is needed and why it cannot be obtained competitively must be submitted with the requisition.

2.3.4.2

Rental of machines and equipment: Rentals of machines and equipment that do not include an operator are considered goods, and rentals that include an operator provided by the supplier are considered services.

All rentals in excess of $5,000 must be processed through the Department of Purchasing prior to the date of required use. For rentals with an estimated value of less than $5,000, the department may purchase the services using their delegated authority.2.3.4.3 Requisitions for purchases in excess of $5,000 per fiscal year using state funds must be forwarded to the Department of Purchasing.

2.3.5

Computer Software

2.3.5.1

All software with a cost in excess of $5,000 is classified as capital equipment and must be inventoried. All purchase requisitions over $5,000 for software shall be sent to the Department of Purchasing for processing.

2.3.5.2

Software with a cost not exceeding $5,000 and requiring the execution of a third party contractor license must be submitted to the Department of Purchasing for review prior to any commitment for the purchase of the software. Only the Purchasing Department has authority to execute license agreements.

2.3.6

Use of Private Consultant

2.3.6.1

Consulting services of $5,000 or less may be processed utilizing the Limited Order screens through the Purchasing Module.

2.3.6.2

Consulting services in excess of delegated authority shall be requisitioned through the Department of Purchasing.

2.3.6.3

Consulting services requisitions will be processed according to guidelines addressed in the oversight requirements listed in System Regulation 25.99.03: Contracting for Private Consultants and Professional Services.

2.3.7

Lease of Space
All lease-of-space requirements for Texas A&M University-Corpus Christi must be submitted to Department of Purchasing. A purchase requisition and specific lease information must be submitted to the Department of Purchasing to initiate the lease process.

2.3.8

Lease/Purchase of Installment Payment Purchases

2.3.8.1

Requests for all lease-purchases or installment payment purchases shall be submitted to the Department of Purchasing. The Department of Purchasing will assist departments in developing lease-purchase specifications, determining available lease-purchase options, and in obtaining the required approvals.

2.3.8.2

The Director of the Department of Purchasing is authorized to approve lease-purchases of $100,000 or less with a term of five years of less.

2.3.8.3

The Executive Vice President for Finance and Administration is authorized to approve a lease/purchase of more than $100,000, but not to exceed $200,000 and with a term of five years or less. The President must sign lease/purchases over $200,000.

2.3.8.4

The Texas Bond Review Board is required to approve any lease purchase or installment payment purchase in excess of $250,000 or having a stated term of longer than five years if state-appropriated funds are utilized.

2.3.9

Exempt Purchases
The following services are exempt from competitive bidding requirements and may be purchased in accordance with delegated departmental purchases, found in Section 2.1 of this rule, regardless of dollar amount:

(1)

Classified Advertising: such as newspaper and magazine advertisements (does not include public relations/advertising campaign related services).

(2)

Conference Expense: expenses related to conference room services such as audio/visual/network and food services. Includes hotels and conference rooms. (Does not include goods purchased for attendees or transportation services).

(3)

Moving Expenses: (employee) Institutional funds only.

(4)

Lecturers/Guest Speakers: fees for speakers/lecturers hired on a one-time basis (does not include fees for speakers/lecturers on a continuous basis).

(5)

Student Travel: expenses related to student travel with the exception of air and bus charter.

(6)

Library materials specific for TAMU-CC Library.

(7)

Legislative information services; bill analysis services.

(8)

Membership fees and dues.

(9)

Newspaper and magazine subscriptions direct from the publisher.

(10)

Freight.

(11)

Services provided by other State of Texas agencies or by other local governments. (Inter-agency and Inter-local agreements must be reviewed by the Department of Contract Administration.)

(12)

Intra-agency payments.

(13)

Registration fees and associated books and materials.

(14)

Rental of exhibit space (such as booths for display purposes).

(15)

Goods and services provided by the Texas Department of Criminal Justice.

(16)

Goods and services provided by the Texas Industries for the Blind and Handicapped.

(17)

Internal repairs.

(18)

Purchases from Federal agencies.

(19)

Utilities

2.3.10

Federal Fund Purchase Requirements

2.3.10.1	Each requisition for the purchase of equipment with federal funds may be screened by the Property Manager to make certain that such equipment is not available on campus. The requisition must reflect the class code(s) under which the equipment being requisitioned can be found.

2.3.10.2	If such equipment is available, the Property Manager will contact the owner of the equipment and the requisitioner to consider the feasibility of using the available equipment. If the available equipment meets the requirements for equipment requisitioned for the project but use of this equipment is not mutually agreeable between the owner and the requisitioner, written justification to the Property Manager from the dissenting party or parties must be submitted through and approved by the appropriate Vice President.

2.3.10.3	If satisfactory equipment is not available, the Property Manager will approve the requisition and forward it to the Department of Purchasing Services. If applicable, an option to lease will be included in the procurement process for comparative purposes.

2.3.10.4	If the equipment requisitioned exceeds $5,000 and is available only from a single source, the requisitioner is responsible for obtaining prior approval of the purchase or a waiver of the prior approval option from the sponsoring agency.

2.3.10.5	Upon award, vendors must be in compliance with Executive Order 11246 (Equal Employment Opportunity) in all orders exceeding $10,000. A written copy of the vendor's affirmative action plan on all orders exceeding $50,000 is required. Additionally, the vendor's written assurance of compliance with the Clean Air Act of 1970 and the Federal Water Pollution Act must be obtained on all orders exceeding $100,000.

Contact for Interpretation: Director of Purchasing

GOVERNING STATUTE
Texas Education Code, 51.9335(a)-(e)

Return to top