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Dec 31, 2015
*HEALTH & HUMAN SERVICESProcurement Card ProgramProgram and Policy Overview for Procurement Cardholder Managers
*The purpose of the Health and Human Services (HHS) Procurement Card Program is to establish an efficient, cost-effective method of purchasing and paying for goods and services while maintaining strict compliance with all state and federal laws, rules and regulations governing procurement and accounting functions.
*Key PlayersAccounts Payable The program department responsible for fiscal operations.
CardholdersProgram Cardholders - Program staff who use their procurement card to pay for authorized, acceptable purchases of goods or services.
PCS Purchasers - Procurement and Contracting staff who purchase for HHS departments statewide.
Central Delivery Location/Warehouse StaffStaff responsible for ensuring all goods ordered by cardholders over the telephone, secured Internet or fax are received and delivered at their program in accordance with the HHS Procurement Card Policy requirements.
Citibank- CitiThe Comptroller of Public Accounts (CPA) term contract vendor that issues procurement cards through August 31, 2015for use by all state agencies for purchases of goods and services.
Procurement Card Administrators PCAThe PCA is responsible for the day to day overall administration of the program for all HHS agencies.
Procurement Card Coordinators PCCThe PCC is the staff member assigned as the liaison between a program or region and the PCA.
Procurement Cardholder Managers PCMThe PCM is the staff member responsible for the procurement cardholders supervision
*AdministratorThe Procurement Card Administrator is responsible for the day to day overall administration of the program for all HHS agencies.Procurement and Contracting ServicesProcurement Card Program AdministrationMin Schettino - PCAPhone (512) 776-4209Email [email protected]
Tanya Vernon PCAPhone (512) 776-4221Email [email protected]
Sharon Kaiser Administrative supportPhone (830) 253-1365Email [email protected]
*HHS Procurement Card Policy Highlights
*Policy InformationHB3042 placed "administrative" purchases, as opposed to "client" purchases, under the purchasing statutes, rules and procedures of the Texas Building and Procurement Commission (TBPC). Effective September 1, 2007, pursuant to HB3560, 80th Legislature, the procurement and contracting powers and duties performed by the Texas Building and Procurement Commission were transferred to the Texas Comptroller of Public Accounts (CPA).
What is an "administrative" purchase?A purchasing request for a good or service will be defined as an administrative purchase if the primary benefit of the purchase will be for agency internal use. i.e. the goods or services are not directly for a client or touch a client. Examples of administrative goods and services: Grounds keeping equipment, supplies and services; maintenance equipment, supplies and services; kitchen equipment, supplies and services; laundry equipment, supplies, and services, etc. These requirements do not apply to Automated Information Systems (AIS)/telecommunications commodities and services purchases, inter local or interagency contracts.How do we purchase these items?Review the CPA term contracts for availability of needed goods or services. If the good or service is not on term contract, the procurement card may be used as the method of payment for the program-approved expense. If the needed good or service is available via CPA term contract, a requisition should be submitted for a PCS purchaser to issue CPA term contract purchase order. If a requisition is submitted for a CPA term contract item, the commodity code number (contract number) must be provided.
CPA term contracts may be viewed at: http://www.txsmartbuy.com/#contracts
*Policy Information Historically Underutilized Business (HUB)
Make a good faith effort to utilize HUB vendors from the CPA CMBL HUB directory at https://mycpa.cpa.state.tx.us/tpasscmblsearch/index.jsp for all non-consumer related purchases in accordance with CPA procurement guidelines. Purchases of general commodities and services $5,000 and above require HUB participation and compliance with the thresholds established by CPA. HHS cardholders single transaction limits exempt the majority of transactions from the requirement, however, HHS agencies are committed to meeting or exceeding the annual goals associated with the HUB program and cardholders should make a faith effort to utilize HUB vendors for procurement card purchases. This does not mean that a cardholder is required to pay more for the goods or service in order to achieve the stated goals. All cardholder transactions with HUB vendors are identified through Citibank HUB reports and reported quarterly to HHS agency HUB coordinators and HHS agency management.
*Policy InformationSplitting purchases is not allowed under any circumstance Splitting occurs when staff act in a manner that causes the circumvention of state and federal laws, rules, regulations or policies. This is usually done by breaking up a large purchase into smaller purchases in order to circumvent state and federal laws, rules, regulations or policies.
Examples: two or more purchases from the same vendor, at virtually the same time, using the procurement card to pay for the goods or services that exceed the single purchase limit assigned to the cardholder or to divide the purchase between different dates or when two cardholders divide a purchase between their cards or when a cardholder divides a purchase for the same type goods or services between two vendors in order not to exceed the single purchase limit assigned to the cardholder.
*Policy InformationVendor warrant hold status
Before making a purchase, state agencies must determine whether or not a vendor is indebted to the State. If a vendor is, the Comptroller places the vendor on warrant hold or Comptroller hold and cardholders may NOT initiate procurement card transactions with the vendor until the warrant hold status is removed by the Comptroller. Cardholders must verify that their proposed vendor is NOT on warrant hold before making non-emergency procurement card purchases over $500. Vendor warrant hold verification is done through the Texas Identification Number System (TINS), the system of record for accessing vendor hold information. TINS is a "real-time" data base; meaning, a vendors status can change daily. Therefore, vendor warrant hold verification must be made the same day the goods or services are purchased. To determine if a vendor is on warrant hold, cardholders are to follow agency established vendor warrant hold verification procedures. Vendor warrant hold screen prints are dated the day verification is made and cardholders are to attach the verification screen print to their procurement card paperwork.
*Policy Information1st Choice Products
In accordance with Texas Government Code, Title 10, Subtitle D, Chapter 2155.448 concerning the identification and procurement of 1st Choice Recycled targeted Products, each HHS agency shall purchase the following as 1st Choice, recycled, products:Re-refined motor oils and lubricantsRecycled content toilet paper, toilet seat covers, paper towelsRecycled content printing, computer and copier paper, and business envelopesRecycled content plastic trash bagsRecycled content plastic covered bindersRecycled content recycling containersEnergy Star labeled photocopiers
The 1st Choice Products essentially become the default items for purchase by state agencies; that is, state agencies shall give these products preference over virgin (non-recycled) counterparts. A state agency may choose to buy the virgin (non-recycled) material counterpart of these designated products; however, a written justification letter signed by the executive head of the agency or designee must be submitted. The justification letter must state the reason (s) for the determination that the 1st Choice product did not meet the requirements of the agency and should include applicable supporting documentation. The 1st Choice justification letter is located at the following CPA website: http://www.window.state.tx.us/supportserv/prog/green/TPASS1stChoiceLetterTemplate.doc
The signed justification letter must be retained with the cardholders procurement card paperwork for auditing purposes and a copy must be submitted to the agencys designated person responsible for the agencys recycling reports.
*Policy InformationPrinting Per HHS Circular C-020, all HHS enterprise printing service requests must be submitted to the HHS consolidated print shop for review except for those outsourced projects or initiatives that have a printing component but for which printing is not the primary function. The HHS consolidated print shop will determine whether the service should be provided in-house or outsourced. This does not include incidental copying or copying services provided by the agency quick copy centers or for printed envelopes, business cards and custom printed continuous tractor fed and snap-out forms available from CPA term contracts. Circular C-020 may be viewed at the following link:http://www.hhsc.state.tx.us/news/circulars/C-020.shtml
A cardholder may use their procurement card only for printing services the HHS consolidated print shop has determined should be outsourced. A copy of the HHS consolidated print shops determination should be attached to the cardholders procurement card paperwork for auditing purposes.
Printing services available through CPA term contracts are: 966-A1 Printed envelopes, 966-N1 Busin