Procurement Academy

Over $5K and Contracts

Authority to Obligate

The Purchasing department is delegated their authority to purchase for the organization from the President of the University.

The Purchasing department authorizes individual departments to purchase goods and services up to but not exceeding $5,000.

Authority to Sign Contracts

The authority to sign any contract for the purchase of goods and services is delegated to the Purchasing department and select additional individuals from the President of the University.

Individuals within departments do not generally have the authority to sign contracts on behalf of UTHSC-H for the acquisition of goods and services.

Process of Procuring Goods and Services >$5,000.00

Local contract UT System Supply Chain Alliance contracts State contracts (DIR,TXMAS) GPO’s (E&I, Novation…) Sole Source determination Competitive processes (ITB,RFP,RFI,RFQ)

Local Contracts

Local Contracts: UTHSC-H enters into contracts for goods and services that are used routinely by departments within the University

These contracts are competitively bid They normally have an effective period of 3-5

years They are normally renewed on an annual basis

subject to satisfactory performances

Local Contracts

These contracts cover such things as office supplies, architectural services, household goods moving services, housekeeping services, etc.

When using these contracts, no bidding is required regardless of amount

Terms and conditions are pre-negotiated http://buy.uth.tmc.edu/Forms/LC%20Listing%20for%20Web%20Posting.pdf

.

UT System Supply Chain Alliance contracts A group purchasing organization that works on

behalf of all UT components Current contracts include laboratory equipment

and laboratory consumables distribution. Contracts are competitively bid When using these contracts, no bidding is

required regardless of amount Terms and conditions are pre-negotiated

State and Group Purchasing Organization (GPO) contracts

Contracts for goods and services that are used routinely

Contracts are competitively bid When using these contracts, no bidding is

required regardless of amount GPO contracts terms and conditions are

not specific to University

Sole Source Purchases

If a faculty or staff member feels that there is only one supplier who is capable of supplying the good or service they require, they may submit a request to the Purchasing department in accordance with the Sole Source procedure outlined in the Purchasing Procedures Manual.

Sole Source Purchases

The written justification must:1) explain the need for the products or services2) explanation of specific need/request3) Reason why competing products are not satisfactory 4) Specific impact on department5) The individual who is writing the justification must also sign a conflict of interest statement

Sole Source Purchases

The Purchasing department will review the request to assure that the justification is valid and that only one product and/or supplier can provide the goods or services requested

If approved, the Buyer will write a statement to describe their due diligence that supports the justification and sign the request

The request must be approved and signed by both the Buyer and Manager or AVP, Procurement

Service Contracts

What is a Service Contract – aka – Professional or Personal Service contract and when is it used? A Service contract is an agreement between the

Contractor and the University that: Describes the work to be completed (Scope of Work) and

Contractor deliverables Defines the total not-to-exceed fee to be paid to the

Contractor Defines the time frame in which the Contractor has to

perform the work

Service Contracts

No work should be performed until the contract is signed by both parties

If the work to be completed will be paid for by grant funds it must first be reviewed by OSP

The contract period can be for multiple years

Service Contracts

For all contracts that exceed $5K a Sole Source form must also be completed and approved prior to work beginning

Fees owed to contractors can be paid via a purchase order or a non-PO voucher – contact the Purchasing department to determine which is appropriate

Special Purchases

Purchases of these types of products require additional approvals: Radioactive – approval by EH&S Controlled Substances – approval by Procurement Motor Vehicles – approval by EH&S fleet manager Animals – approval by Animal Care department Capital Assets – approval by Capital Assets

Management IT products and services over $5K – approval by IT

For MSB – IT approval is needed for any amount

Vendors Status with the State

All vendors are checked across several databases including; State of Texas Comptroller of Public Accounts US Department of Treasury Excluded Parties List System HHS Office of Inspector General Health & Human Services Office of Inspector General

University cannot conduct business (PO’s, Payment’s,…) with debarred vendor until the issue is resolved

University conducts audit of random sample monthly Vendor is responsible for resolving the issues and notify when

complete

Competitive Bid Process

There are several types of competitive bids used by the Purchasing department: Informal Bid ITB – Invitation to BidRFP – Request for ProposalRFQ – Request for QualificationsRFI – Request for Information

Invitation to Bid - Informal

Informal bids (e-mail, fax, phone) are utilized for purchases $5K-$25K

Price and delivery are the evaluation criteria for an informal bid

Departments or Purchasing can solicit these informal bids

Invitation to Bid - Formal

Formal ITB is utilized for purchases >$25K Scope of Work

The requesting department is responsible for developing the SOW (Scope of Work) and/or products specifications

Purchasing will evaluate bids based on price and delivery

Purchasing awards the contract

RFP Bid Process

Scope of WorkThe requesting department is responsible for

developing the SOW (Scope of Work) and/or products specifications

Clear evaluation criteria is necessaryEvaluation teams will score proposalsPurchasing will score pricing and deliveryPurchasing awards the contract

Terms & Conditions

All purchases are governed by terms and conditions whether it is printed on quote or on a purchase order

The University has in place standard terms and conditions to govern all purchases of goods and services in accordance with the laws of The State of Texas