Procurement Academy

1
Procurement Academy

• Over 5K and Contracts

2
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.

3
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.

4
Process of Procuring Goods and Services
gt5,000.00

• Local contract
• UT System Supply Chain Alliance contracts
• State contracts (DIR,TXMAS)
• GPOs (EI, Novation)
• Sole Source determination
• Competitive processes (ITB,RFP,RFI,RFQ)

5
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

6
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/LC20Listing20for20
  Web20Posting.pdf.

7
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

8
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

9
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.

10
Sole Source Purchases

• The written justification must
• 1) explain the need for the products or services
• 2) explanation of specific need/request
• 3) Reason why competing products are not
  satisfactory
• 4) Specific impact on department
• 5) The individual who is writing the
  justification must also sign a conflict of
  interest statement

11
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

12
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

13
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

14
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

15
Special Purchases

• Purchases of these types of products require
  additional approvals
• Radioactive approval by EHS
• Controlled Substances approval by Procurement
• Motor Vehicles approval by EHS 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

16
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 (POs,
  Payments,) 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

17
Competitive Bid Process

• There are several types of competitive bids used
  by the Purchasing department
• Informal Bid
• ITB Invitation to Bid
• RFP Request for Proposal
• RFQ Request for Qualifications
• RFI Request for Information

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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

19
Invitation to Bid - Formal

• Formal ITB is utilized for purchases gt25K
• 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

20
RFP Bid Process

• Scope of Work
• The requesting department is responsible for
  developing the SOW (Scope of Work) and/or
  products specifications
• Clear evaluation criteria is necessary
• Evaluation teams will score proposals
• Purchasing will score pricing and delivery
• Purchasing awards the contract

21
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