Procurement Methods Flashcards
Informal Bidding
1) From over $5,000 up and equal to $25,000
2) Must solicit from at least three (3) vendors
on Centralized Master Bidders List (CMBL), two (2)
of which must be HUB vendors
3) MUST be within the NIGP code and MAY be by geographic area
4) Negotiations not allowed (unless only one qualified vendor)
5) Lowest price wins
6) Acceptable methods to receive bid: in person, mail, fax, email, over the phone.
Invitation for Bids (IFB)
1) A formal written competitive sealed bid to obtain written bids
2) MUST be used for over $25,000 (when appropriate); MAY be used for those less than this
3) Most often used for goods when specifications can be clearly defined
4) Negotiations are not allowed (unless there is only one qualified bidder)
5) Must solicit all eligible vendors on CMBL with NIGP code
6) Lowest price wins
SPD Non-Delegated Purchases
1) State and Federal Surplus
2) Set Aside Programs: a) Texas Correctional Industries TCI and b) State Use Program- TWC oversees Texas Purchasing from People with Disabilities TPPD and WorkQuest administers the day to day operations)
3) Interagency Cooperative Contracts
4) Interlocal Cooperative Contracts
5) Term contracts, Managed contracts, Travel Services Contracts
6) Mail and Messenger Service Contracts
7) Used equipment
8) Printing Services
9) SPD Administered Agency Specific Procurements
10) Proprietary Purchases (some could be done under delegation by rule or under the review and delegation process)
What does Texas law mandate regarding contract award?
May only be made to vendors providing best value to the State
Why is selecting the correct procurement method so important?
The best value standard may vary according to procurement method, so if the incorrect method is selected, it will not result in best value.
Agencies must use SPD and DIR designated
procurement methods unless?
the procurement is subject to a statutorily specified exclusion or exemption.
How does SPD delegate its purchasing authority?
1) Delegated by rule for a pre-approved class or contract value
2) case by case basis when an agency obtains it through the SPD delegation and review process (OMR or POD portal)
How should SPD delegated purchases be accomplished?
Through competitive bidding whenever possible
Even if SPD has delegated its purchasing authority to an agency, what are these delegated procurements still subject to?
ESBD posting requirements and CAT and QAT reviews
What types of procurements has SPD delegated to agencies by rule?
1) one-time purchases of goods (including goods for resale) that do not exceed $50,000;
2) purchases of services that do not exceed $100,000 (excludes professional or consulting services, services of an employee of an agency, and services of public utilities);
3) direct publications;
4) purchases of perishable goods;
5) distributor purchases;
6) internal repair purchases;
7) fuel, oil, and grease purchases;
8) emergency purchases.
9) Spot purchases of $5,000 or less (excludes printing services of $2500 or more)
What is not permitted to avoid the competitive bidding requirement?
Dividing purchases into small lot purchases to match the delegation dollar thresholds
If a procurement type is not addressed by SPD delegated rule or statutory exemption, what must the agency do?
Obtain delegated authority by:
1) Submit an Open Market Request via email for goods greater than $50,000 OR
2) Submit request through Procurement & Oversight Delegation portal for services greater than $100,000
When an agency is required to request SPD’s authority for a purchase, when can the agency issue the solicitation?
not until it receives a letter of delegation from SPD, even if receipt of the letter takes longer than the typical 30 day review by SPD
What happens if SPD denies an agency’s request for delegation authority?
SPD will obtain goods or services on behalf of agency
What are agencies encouraged to do on their website to encourage a strong pool of vendor responses for solicitations?
Post upcoming solicitations in the next 6 months
What do you need to know to identify the procurement method? (Guide p. 15)
procurement type, cost estimate, and purchasing entity
What are the condensed purchasing process steps to determine procurement method (from slide presentation)
1) State and Federal Surplus
2) Set Aside Programs
3) Interagency Contract
4) SPD Term Contract
5) SPD Delegation by Rule
6) SPD Review & Delegation
What is the Texas Disaster Act of 1975? How can an agency make a purchase under this Disaster Act?
The Governor may suspend the provisions of any statute if compliance would prevent coping with the disaster. An agency’s purchase under a disaster must:
1) clearly relate to the disaster,
2) conform to the directives of the disaster declaration, 3) occur within the timeframe specified in the disaster declaration.
Can the “emergency purchase” be under the Texas Disaster Act?
Only if it falls within the parameters of the declared disaster.
Comparing the procurement process under “Emergency Purchases” and under “Texas Disaster Act” which one does SPD have authority over?
SPD only has authority over emergency purchases, not for purchases under Texas Disaster Act.
How are professional services procured? Are they delegated or non-delegated?
Usually by an RFQ. They are delegated by statute, so they don’t require SPD delegated authority.
What reporting/approval are professional services procurements subject to?
ESBD posting and CAT review and LBB reporting
What are professional services?
Within Scope of practice defined by law (Chapter 2254) or professional license (e.g. registered nurse, doctor, optometrist, architect, accountant, landscape architecture, engineer, real estate appraisal) Also includes interior design
What is award of a professional services contract based on?
competence and qualifications and fair and reasonable price
