Basic Purchasing ProceduresPurchases through Purchasing Services Any order over $3000.00 should be processed through Purchasing All requisitions require clear specifications of what

Basic Purchasing Procedures

Texas A&M University-Commerce

Purchasing Department

Code of Ethics

We subscribe to the National Association of Educational Procurement; as well as the Systems Ethics Policy. This can be found on-line at:http://www.tamu-commerce.edu/purchasing/codeEthics.html

Conflict of Interest

An employee of Texas A&M University System may not:– Participate in work on a System purchase or

contract with a personal financial interest actual or potential

– Solicit or accept anything of value– Be employed by, or agree to work for a vendor– Knowingly disclose confidential information for

personal gain

Conflict of Interest

A vendor or potential vendor may not:– Offer, give or agree to give an employee anything

of value– Retain another to secure a contract for a contingent

fee except for bonafide employees or sales representatives

Purchasing Policies, Procedures, and Regulations

So Many Questions ???????– State Laws, Purchasing Authority, University Purchasing

Policies and Procedures.

By accessing the Texas A&M University-Commerce website at: www.tamu-commerce.edu/purchasing/index.html you can find the following information.

Component Purchasing AuthorityA&M-Commerce Proposed Purchasing RuleContract Administration RuleA&M-Commerce HUB Rule

University Purchasing Procedure

The University Purchasing Procedure, 25.99.02.R0.01 was recently approved in July 2009. This Procedure can be accessed at: http://www.tamu-commerce.edu/administration/Rules&Procedures/

Three Types of Purchasing Procedures

Delegated Purchases

Purchases through Purchasing & Contract Administration

Procurement Card Purchases

Delegated Purchasing Authority

Implemented to allow purchase of goods/services needed immediately for procurements that are $3000.00 or lessThis includes freight charges!Recurring services need to be processed as a requisitionUse of HUB vendors is encouraged

HUB Program

Texas A&M-Commerce has developed a new HUB initiative programThe HUB Coordinator for A&M-Commerce is Travis A. Ball.HUB Program: http://www.tamu-commerce.edu/purchasing/hubAmCommerce.html

HUB Vendor List can be found on our web page under Faculty/Staff Help

Debarred and Suspended Vendors and Vendors on HoldDebarred and Suspended Vendor site:

http://www.cpa.state.tx.us/procurement/prog/vendor_performance/debarred/

Federal Listing:http://www.epls.gov/

Tax status is now automatically checked through FAMIS.

Purchasing Categories

TIBH (Texas Industries for the Blind and Handicapped) -http://www.purchaseplus.com

State Contracts -http://www.window.state.tx.us/procurement//cat_page/

University/System Wide ContractsEmergency PurchasesServicesCommoditiesContracts

No splitting of orders!

Departments may not exceed the authorized delegated limit. Purchases may not be broken down into small purchases in order to meet the authorized limit of authority. Delegation of purchase authority will be revoked for intentional misuse.

SPLITTING

Emergency Purchases

Emergency: What is an emergency purchase?“The purchase of goods or services so badly needed that an agency will suffer operational or financial damage unless they are secured immediately.”Must notify the Purchasing Department as soon as possible.

Emergency Purchase

– Prior to commitment notify Purchasing – Obtain at least 3 informal bids, if possible– Submit requisition– Document why emergency exists and why

requirements were not anticipated– Sole Source if needed

Sole Source Justifications

What is the unique feature?Why is unique feature needed?Why will competing products not be satisfactory?

Exempt Purchases

Classified Advertising (newspapers and magazines)Conference Expenses - related to conference room servicesMembership fees and duesRental of exhibit spaceTravelRegistrations

Goods

Pre-Approval Required for:– Fume hood, flow hood, biological safety cabinets,

exhaust systems– Equipment & supplies requiring

installation/modification of facility and/or grounds– Modification, construction, and renovation– Hand held radios, security radios– Radioactive and/or hazardous materials– Temporary buildings– Technology equipment and/or accessories

Trade-in of Equipment

You must list item for trade-in and include the location, serial number, asset number, condition of equipment and a contact person with phone numberInventory Coordinator’s approval requiredVendor must quote dollar amount

Used Equipment

Rules for used equipment: Used equipment is referred to as demo or previously owned equipmentMust include reason for wanting used vs newPurchasing will bid out for both new and used unless you can provide a written justification with a quote justifying that used is a better value for the University.

Purchases through Purchasing Services

Any order over $3000.00 should be processed through PurchasingAll requisitions require clear specifications of what item you are wanting us to purchase Include part numbers, manufacturer’s part numbers (if available), recommended vendor/manufacturerSend all documentation to Purchasing

Purchases in Excess of $3,000.00

Submittal of FAMIS requisition is requiredInclude competitive specifications or sole source documentationInclude suggested sourcesAllow 2-12 weeks for processing depending on amount of procurementFor questions, contact Buyer in Purchasing

Purchases over $25,000.00 and RFP (Request for Proposal)

Submittal of FAMIS requisitionCompetitive specificationsSuggested sourcesPosting on Electronic State Business Daily (ESBD)Allow 12-16 weeks for processing for over $100,000.00Allow 4-6 months for processing of RFP

Equipment Maintenance Service Agreements

Requisitions must be submitted:– Full description of what type of maintenance

you are expecting (ie: how often, certification)– Location of equipment– List period of coverage (ie. 9-1-08 to 8-31-10)

– Make, model, and serial number of equipment– Sole source justification, if necessary

Purchase of ServicesA Service is defined as the furnishing of skilled or unskilled labor or professional work.Due to the University’s insurance requirements, this type of purchase is not delegated

to departments, unless you have been pre-approved by the Purchasing Department.

The following information must be submitted to Purchasing for processing:

FAMIS requisition must be submittedFull description of service requiredTime period of service (Begin & End Date)List of deliverables Suggested sources

Professional Services

Professional service is defined as a person licensed as an Accountant, Architect, Landscape Architect, Land Surveyor, Physician, including a Surgeon, Optometrist, Professional Engineer, Real Estate Appraiser, Registered NurseRequest for Qualifications (RFQ) is recommendedRequisition and Contract Required

Consulting ServicesConsulting Service means the service of studying or advising a state agency under a contract that does not involve the traditional relationship of employer and employee

Major Consulting Service contract means a consulting service contract for which it is reasonably foreseeable that the value of the contract will exceed $25,000, if appropriated funds, the approval of the Governor of the State of Texas is required

Consulting Services cont.

Consultant means a person that provides or proposes to provide a consulting service. The term includes a political subdivision but does not include the federal government, a state agency, or a state governmental entityAll of these require a requisition and contractMajority of these services will be bid out unless service is proprietary to that vendor

Software Requisitions

Requirements for Requisition:

• Pre-Approval from Technology Services

• Requisition for ALL Software• Manufacturer of Software• Purchasing may give approval for Procard

purchasing of software depending on source, on case-by-case basis.

NOCONFIRMING

ORDERS

Purchasing Processes -Timeline

Requisition is entered in FAMIS – R000XXXPurchasing transfers to bid or catalog offerB000XXX approximately one to two weeks for development Opening date is a minimum of 2 weeks (RFP or construction approx. 6 weeks)Bids/offers opened, tabulated, evaluated by buyer, and department contacted for review - 2 weeks

Purchasing Processes -Timelinecontinued:

Review is returned and bid is transferred to a purchase order (P000XXX) and/or contract is processedAverage time can be 8 weeksUsing screens 290, 291, and 914 will allow you to track the progress of your orders

Contract AdministrationContract Administrator for the University:Bert A. WhitePhone – X5059All contracts, excluding Advertising, are to be routed to the Office of Contract Administration prior to execution of contractThe State of Texas requires the review and approval of contractual service by the Contract Administrator when the service exceeds $50.00Contracts of $50,000 or more required the review of the Office of General Counsel, Texas A&M System

Contract Administration Cont.All contracts are reviewed for compliance to State of Texas Statues and A&M System PoliciesThe Contract Administrator or Director of Purchasing are the ONLY people delegated to sign contracts for the UniversityThe standard services agreement/contract can be found on the Purchasing & Contract Administration web page at: http://www.tamu-commerce.edu/purchasing/contractAdmin.html

Questions and Answers

Purchasing & Contract Administration Homepage

http://www.tamu-commerce.edu/purchasing/index.html