Texas A&M Health Science Center HUB Program & Procurement Services An Overview of HSC Procurement Guidelines Presented by: Robby Bounds, CTPM Sr. Procurement.

Texas A&M Health Science Center

HUB Program & Procurement Services

An Overview of HSC Procurement Guidelines

Presented by:

Robby Bounds, CTPM

Sr. Procurement Officer and Asst. HUB Coordinator

Why do we need Purchasing Guidelines?

Because it’s required!System Regulation 25.99.02 Component Purchasing Authority

1. GENERALThe Texas A&M University system was granted additional purchasing authority by the 77th Legislature. The System Procurement Code was developed to guide the purchasing activities of the System. The code is hereby adopted and replaces the TBPC Procurement Manual. The code is located at http://sago.tamu.edu/policy/Code.htm.

2. REQUIREMENTSSystem components will follow the code in all purchasing activities. Components will develop additional rules, processes and standard operating procedures for component purchasing activities to define delegations of authority, time lines, dollar amounts, etc.

Why do we need a Purchasing Department?

Purchasing departments have professional staff trained to maximize value, while minimizing risks, and…

Because it’s required!

Texas A&M University SystemProcurement Code

1.GENERAL(a)Each component of the Texas A&M University System shall establish or contract with a Central Procurement Office that is responsible for purchases of supplies, materials, services, and equipment.

That leads us to…

Texas A&M Health Science Center

Purchasing Procedureswww.tamhsc.edu/departments/administration/finance/hub/Procurement%20Services.php

Texas A&M Health Science CenterPurchasing Procedures

Section 1 GENERAL

ALL purchases must comply with:

TAMUS Regulations

TAMUS Procurement Code

HSC Purchasing Procedures

…and all purchases MUST be:

Documented! Documented!!

Documented!!!

Texas A&M Health Science CenterPurchasing Procedures

Section 2 DELEGATED DEPARTMENTAL PURCHASES

Departments may purchase goods and services totaling

$5000 and under, including ALL applicable charges, such as:

Freight

Postage

Installation

Competitive bidding is not required!

Texas A&M Health Science CenterPurchasing Procedures

Section 2 DELEGATED DEPARTMENTAL PURCHASES (cont.)

Purchases $5000 and under:

Do NOT require a requisition

Should be recorded on a Limited Document (FAMIS screen 240)

Should reference Legal Descriptive Text (LDT) Code 65, “Purchase made by an institution of higher education, Section 51.9335 Education Code.”

And…

Texas A&M Health Science CenterPurchasing Procedures

Section 2 DELEGATED DEPARTMENTAL PURCHASES (cont.)

MUST be purchased from persons with disabilities (currently TIBH Industries) whenever possible, see www.tibh.org.

Should be purchased from Historically Underutilized Businesses (HUB) whenever possible, see www.tbpc.state.tx.us/cmbl/cmblhub.html

Should not include debarred vendors, see www.tbpc.state.tx.us/stpurch/venman.html#vensus

But, most importantly…

Texas A&M Health Science CenterPurchasing Procedures

Section 2 DELEGATED DEPARTMENTAL PURCHASES (cont.)

PURCHASES MAY NOTINTENTIONALLY

be broken down into small purchases in order to meet the

authorized limit of authority!!!

Texas A&M Health Science CenterPurchasing Procedures

Section 2 DELEGATED DEPARTMENTAL PURCHASES (cont.)

PURCHASES MAY NOTINTENTIONALLY

be broken down into small purchases in order to meet the

authorized limit of authority!!!

(Just in case you may have missed the previous slide)

Texas A&M Health Science CenterPurchasing Procedures

Section 3 NON-DELEGATED PURCHASES

Purchases $5000.01 and over:

Require a requisition (FAMIS screen 250)

Require detailed specifications

Require detailed conditions of purchase; ex. payment options, FOB, freight charges, warranties, etc.

Require sufficient time for the competitive bidding process!

Texas A&M Health Science CenterPurchasing Procedures

Section 4 PURCHASE CATEGORIES

State Contracts

Search: www.tbpc.state.tx.us/search/termContract.html Index: www.tbpc.state.tx.us/cat_page/index.html

Competitive bidding not required

Increase overall HUB percentage

Require a FAMIS requisition and processing through the Purchasing Dept. at any dollar amount

Texas A&M Health Science CenterPurchasing Procedures

Section 4 PURCHASE CATEGORIES (cont.)

Department of Information Resources (DIR) contracts

Search: www.dir.state.tx.us

Competitive bidding not required

Many HUB vendors on contract

May be utilized by department if under $5000 and permitted by vendor

Texas A&M Health Science CenterPurchasing Procedures

Section 4 PURCHASE CATEGORIES (cont.)

Texas Multiple Award Schedules (TXMAS)

Index: portal.tbpc.state.tx.us/txmas/txmas_index.asp

Competitive bidding not required, but several quotes should be requested to obtain best value

Many HUB vendors on contract

May be utilized by department if under $5000 and permitted by vendor

Texas A&M Health Science CenterPurchasing Procedures

Section 4 PURCHASE CATEGORIES (cont.)

Texas A&M University Contracts, a.k.a. Supplier Mall (including TAMU Telecommunications Dept. and TAMU Computer Information Services Dept.)

Search: purchasing.tamu.edu/suppmall

Competitive bidding not required

Several HUB vendors on contract

May be utilized by department if under $5000 and permitted by vendor

Texas A&M Health Science CenterPurchasing Procedures

Section 4 PURCHASE CATEGORIES (cont.)

Available Group Purchasing Contracts

Educational & Institutional (E&I) Cooperative www.eandi.org

Horizon Resource Group www.horizonrg.com

The Cooperative Purchasing Network (TCPN) www.tcpn.org/index-texas.htm

U.S. Communities www.uscommunities.org

Contact Purchasing Services for more information.

Texas A&M Health Science CenterPurchasing Procedures

Section 4 PURCHASE CATEGORIES (cont.)

The following types of purchases should ALWAYS be processed through Purchasing Services:

Lease Purchase

Installment Payment Purchase

Lease of Space

Texas A&M Health Science CenterPurchasing Procedures

Section 4 PURCHASE CATEGORIES (cont.)

Sole Source and/or Proprietary purchases always requireJUSTIFICATION!!!

www.tamhsc.edu/departments/administration/finance/hub/Forms.php

Sole Source – there is only ONE vendor that sells this product, usually the manufacturer. Can NOT be competitively bid. Price determined by negotiation.

Proprietary or “brand sole source” – a product that has a characteristic not shared by any competing product, but is available from more than one vendor. (Examples: Chevrolet truck, Nikon camera)Price determined by competitive bid.

Texas A&M Health Science CenterPurchasing Procedures

Section 4 PURCHASE CATEGORIES (cont.)

Emergency Purchases: A purchase of goods or services so badly needed that the Health Science Center will suffer…

Financial Damage

Operational Damage

…unless they are secured immediately.

Emergency Purchases ALWAYS require…

Texas A&M Health Science CenterPurchasing Procedures

Section 4 PURCHASE CATEGORIES (cont.)

You guessed it, JUSTIFICATION, citing the following:

1. The Nature of the emergency:Hazard to life, health, safety, welfare or property,

avoidance of undue costs, etc.

2. The Cause of the emergency and…The reason it could not be ANTICIPATED!

3. And the Estimated Impact or damage that will occur by following normal procurement procedures.

Obtain three informal bids whenever possible.

Texas A&M Health Science CenterPurchasing Procedures

Section 4 PURCHASE CATEGORIES (cont.)

Exempt Purchases (p. 11) are exempt from competitive bidding regardless of dollar amount.

Purchases with exempt object codes (FAMIS screen 306) may be processed by department using an

Exempt Document (screen 235) regardless of dollar amount

Purchases with non-exempt object codes must be processed by Purchasing Services if over $5000.

Texas A&M Health Science CenterPurchasing Procedures

Section 5 HISTORICALLY UNDERUTILIZED BUSINESS PROGRAM

In accordance with State Law, TAMUS Policy 25.06, and TAMUS Regulation 25.06.01, the Texas A&M Health Science Center will involve qualified Historically Underutilized Businesses (HUB) to the greatest extent allowed by law in the institution’s construction contracting, professional services, and purchase, lease, or rental of all supplies, materials, services and equipment.

Texas A&M Health Science CenterPurchasing Procedures

Section 6 OFFICE OF RESPONSIBILITY

HUB Operations & Procurement Services

Thomas Bosquez, M.P.A.979-458-7276

bosquez@tamhsc.edu

Robby Bounds, CTPM979-458-7281

bounds@tamhsc.edu

Susan Warren, CTPM979-458-7282

warren@tamhsc.edu

Texas A&M Health Science CenterPurchasing Procedures

Section 6 GOVERNING STATUTE

Texas Education Code, 51.9335