Transcript Best Practice for Purchasing

Best Practice Purchasing
for School Districts
Red River TASBO
Region 9 ESC
January 9, 2008
Wichita Falls ISD
Janet Powell – Director of Purchasing
[email protected]
New Phone Number - 940-235-1017 x13002
Randy Montgomery – Purchasing Buyer
[email protected]
New Phone Number - 940-235-1017 x13004
Texas Education Code
Procurement Threshold






$20,000 School Bus Lease/Purchase
$25,000 Public Works Contract
Real Property
$25,000 Personal Property
$25,000 Nonprofessional Services
$25,000 Energy Management Systems
$10,000-$25,000 – Competitive Quotes
Texas Education Code, Section 44.031
Competitive Procurement Categories
…in the aggregate for a 12 month period. TEC 44.031 (a)






Athletics
Custodial
Food Service
Instructional-Capital
InstructionalSupplies
Maintenance






Transportation
Bank Depository
Printed Forms
Non-Professional
Services
Real Property
Insurance
Reference: Texas Education Agency – Financial Accountability System Resource Guide
http://www.tea.state.tx.us/school.finance/audit/resguide12/purchase/
Texas Education Code 44.031










Competitive Bidding
Request for Proposals, other than construction
Inter-Local Contracts***
Design-Build Contracts
Contract to Construct, construction manager
Competitive Sealed Proposals
Contract Purchases, (DIR, TCPN, BuyBoard, etc***)
Job Order Contract
Reverse Auction
Formation of a political subdivision corporation***
***Do not require advertisement.
Advertisement









Name of District
Description & Term of Bid
Run ad once a week, for two (2) weeks
Should not open bid earlier than ten (10) days from last
advertising date
Ad in newspaper in which District’s Administrative Offices
located or in nearest county.
Date, Time and Location Bids are received
Address and Telephone number for location where bid
documents may be obtained
Date, Time, and Location - Bids will be opened and read
Bid Documents should be ready for distribution the first
day of advertisement
Texas Local Government Code, 271.025
Bid or Proposal Process








Define the task to be performed by vendor or define
item(s) to be purchased
Establish criteria for selection of bid or proposal
Determine relative importance of criteria
Identify potential vendors
Set timelines
Advertise
Pre-Proposal conference (optional)
Receipt of bid or proposal
(Establish a procedure ++)




Bid or proposal evaluation
Negotiation with vendor(s)
Award of contract
Contract monitoring
Bid Opening
TEA Recommends:
1) Two District employees at the opening with
one being directly involved in procurement
2) No waiving technicality for late bids
3) Time stamp bids and establish bid log
procedure that verifies all bids accounted for
4) Verify Documents: SIGNED Bid, Executed
Bid Bond/Cashier’s Check & any other forms
required in Bid
5) Other statutory procedures
Texas Local Government Code, Section 271.06
Interlocal Contracts




First, BOT Resolution
Examples: Department of Information
Resources (DIR), BuyBoard (TASB), The
Cooperative Purchasing Network
(TCPN), other school districts, Regional
Education Service Centers.
Follow procedure defined by Co-Op
Strive to obtain “Best Value”
BEST VALUE
Evaluation / Recommendation
As of September 1, 2007, wording changed from MAY
include to SHALL include weights for:








_____% Purchase Price
_____% Reputation of vendor & their goods or services
_____% Quality of goods or services
_____% Meet the District needs
_____% Vendor’s past relationship with the District
_____% Comply with HUB requirements
_____% Long-term cost to the District
_____% Any other relevant factor listed in Request for Bid or
Proposal
100% Total
Texas Education Code, Sections 44.035, 44.039 & 44.040
Construction Requirements
Before you bid, the Board of
Trustees:


MUST determine method of
construction procurement that will
provide the best value for the
District (before bidding).
MAY adopt a policy designating one
of the methods as a default best
value method (Resolution?)
Texas Education Code, Section 44.031
Additional Specifics Regarding
Architects & Engineers
Architect’s seal Required:


New Buildings – Costing
$100,000+
Alterations or Additions –
Costing $50,000+
Texas Revised Civil Statutes, Article 249A
Engineer’s Seal Required:


Projects involving structural,
electrical or mechanical
engineering costing $8,000+
Projects NOT involving
structural, electrical or
mechanical engineering costing
$20,000+
Texas Revised Civil Statutes, Article 3271a, Title
52A
Selection of an Architect or
Engineer
Two Step Process
1) Issue Request for
Qualifications
2) Negotiate with the most
qualified.
Texas Government Code, Chapter 2254.001
Payment/Performance Bonds,
Insurance, Change Orders

•
•
•
•
Payment Bond - Construction $25,000+
Performance Bond – Construction $100,000+
Bonds at $100,000+ must hold a certificate of authority from the
U.S. Secretary of Treasury or reinsurance for any liability in excess
of $100,000
Worker’s Compensation as required by statute
Insurance - General Liability, Automobile Liability, Builders Risk
Texas Government Code, Section 2253.021
Change Orders

Only increase/decrease up to 25% of project costs

Cannot redefine or make a major change of the project scope.
No statute in regards to Districts; however, the statute that covers this area in connection with county
governments illustrates legislative intent.
Catalog Purchases
Texas Comptroller of Public Accounts (TCPA) Texas
Administrative Code 113.19


CISV repealed as of September 1, 2007
Technology procurement contracts transferred
from TBPC (Texas Building & Procurement
Commission) to DIR (Department of Information
Resources)
http://www.dir.state.tx.us/servlet/dirStore#searchcisv

Follow Best Practice guidelines:
1.
2.
3.
Obtain minimum of 3 quotes if purchase exceeds spotpurchase limit of $5,000
Verify that vendors are currently active contract holders
Retain documentation
Catalog Purchases
(continued)
Texas Comptroller of Public Accounts (TCPA) Texas
Administrative Code 113.19

Contracts for products or services other
than automation (computer equipment)
or telecommunication systems,
including hardware, software,
programming, maintenance, repair,
installation of systems, etc. may be
found here:
http://www2.cpa.state.tx.us/cat_page/
Job Order Contracts
TEC 44.041

A School District may award Job Order
Contracts for the minor construction, repair,
rehabilitation, or alteration of a facility by:







Establishing Rates by trade
Specify contract period (9-1-07 to 8-31-08)
Award trade by rank, may award multiple vendors
Request & receive estimate before requesting PO
Work does not begin until authorized
Changes must be approved in advance by District
Invoice submitted upon completion for payment
HB914 - Conflict of Interest





New Requirement
District to provide information to
vendors
Vendor responsible for compliance
Post on web-site (all)
Include in all procurement documents
RESOURCES



TASBO Membership Directory
TASBO Membership Communities
TASBO Purchasing Committee E-Mail List
[email protected]


Local Purchasing Organizations
Internet


TEA - http://www.tea.state.tx.us/
TCPA - http://www.window.state.tx.us/procurement/