Purchasing Best Practices Purchasing Training 09/30/08; 10/02/08

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Purchasing Best PracticesPurchasing
Training09/30/08 10/02/08

• Purchasing Department 235-1017
• Randy Montgomery Anna Rogers
• Purchasing Agent Purchasing Buyer
• rmontgomery_at_wfisd.net amrogers_at_wfisd.net
• x13004 x13003
• Joan Jimenez Courtney Reames
• Associate Buyer Purchasing/Records Clerk
• jjimenez_at_wfisd.net creames_at_wfisd.net
• x13001 x13007

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District Policies Regulations

• CH Legal
• Lists legal requirements, laws, and codes
• Methods, penalties, exceptions, and rules for
  specific products
• Bid over 25k
• Formal quote process 10k-25k
• http//www.tasb.org/policy/pol/private/243905/pol.
  cfm?DisplayPageCH(LEGAL).html

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District Policies Regulations

• CH Local
• BOT approval requirements
• If purchase exceeds 100k
• If awarded to other than low bidder
• Contracts not in the current budget
• All contracts that state law requires the BOT to
  approve.
• http//www.tasb.org/policy/pol/private/243905/pol.
  cfm?DisplayPageCH(LOCAL).html

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District Policies Regulations

• CH Regulation
• Quote all orders over 1k (Maintenance - 2k)
• District Funds Purchase order required for 40
  and above
• Activity Funds Purchase order required for
  purchases 500 and above payment of personal /
  professional services where a 1099 is required

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Texas Education CodeProcurement Annual Threshold

• 20,000 School Bus Lease/Purchase
• 25,000 Public Works Contract
• Real Property
• 25,000 Personal Property
• 25,000 Nonprofessional Services
• 25,000 Energy Management Systems
• 10,000-25,000 Competitive Quotes
• Texas Education Code, Section 44.031

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Texas Education Code 44.031(Methods)

• Competitive Bidding
• Request for Proposals, other than construction
• Inter-Local Contracts
• Design-Build Contracts
• Contract to Construct, construction manager
• Competitive Sealed Proposals
• Catalog Purchases, (CPA) DIR Vendors
• Job Order Contract
• Reverse Auction
• Formation of a political subdivision
  corporation
• Do not require advertisement.

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Competitive Procurement Categoriesin the
aggregate for a 12 month period. TEC 44.031 (a)

• Athletics
• Custodial
• Food Service
• Instructional-Capital
• Instructional-Supplies
• Maintenance

• Transportation
• Bank Depository
• Printed Forms
• Non-Professional Services
• Real Property
• Insurance

Reference Texas Education Agency Financial
Accountability System Resource Guide http//www.te
a.state.tx.us/school.finance/audit/resguide12/purc
hase/
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Bid, Proposal, or Quote Process(Information
provided by end user)

• Define the task to be performed by vendor or
  define item(s) to be purchased
• Establish criteria for selection of bid or
  proposal
• Determine relative importance of criteria
• Identify potential vendors

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Bid, Proposal or Quote Process(Purchasing)

• Set timelines (mutually developed)
• Advertise (if required)
• Pre-Proposal conference (optional)
• Define required criteria percentages (requires
  input from end user)
• Receipt of bid or proposal
• Bid or proposal evaluation (requires input from
  end user)
• Negotiation with vendor(s)
• Award of contract
• Contract monitoring (requires input from end user)

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BEST VALUEEvaluation/Recommendation

• BIDS MUST INCLUDE PERCENTAGES FOR
• Purchase Price
• Reputation of Vendor their goods or services
• Quality of goods or services
• Meet the District needs
• Vendors relationship with District
• Comply with laws/policies HUB
• Long-term cost to the District
• Any other relevant factor listed in request for
  bid or proposal
• (Total 100)
• Texas Education Code, Sections 44.035, 44.039
  44.040

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Interlocal Contracts

• Requires BOT resolution prior to agreement
• Examples Texas Comptroller of Public Accounts
  (CPA), TASB BuyBoard, The Cooperative Purchasing
  Network (TCPN), Texas Department of Information
  Resources (DIR), another school district,
  Education Service Centers.
• Follow procedure defined by Co-Op
• Strive to obtain Best Value

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Catalog Purchases Texas Department of
Information Resources (DIR) Texas Administrative
Code 113.19

• http//www.dir.state.tx.us/servlet/dirStoresearch
  cisv
• Products or services that are associated with
  automation (computers) or telecommunication
  systems. Includes hardware, software,
  programming, maintenance, repair, and
  installation of systems. (Computers, printers,
  network services, etc.)

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Catalog Purchases Texas Department of
Information Resources (DIR) Texas Administrative
Code 113.19

• Best Practice
• Obtain minimum of 3 quotes
• Verify that vendors are currently active members
  of Department of Information Resources (DIR)
• Retain documentation

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Other Funding Sources

• Booster Clubs
• Follow UIL rules for all purchases
• Direct to Purchasing if
• Fixed asset
• Item already on bid
• facility improvements

• Activity Funds
• Direct to Purchasing if
• Item already on bid
• 500 above
• Personal / Professional Service requiring 1099

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RESOURCES

• Purchasing Department (Purchasing Manual)
• Finance Department
• Internal Auditor
• Campus Secretary
• Internet
• WFISD - wfisd.net/departments/purchasing
• Texas Education Agency (FASRG) - http//www.tea.st
  ate.tx.us/school.finance/audit/resguide12/purchase
  /
• DIR - http//www.dir.state.tx.us/servlet/dirStore
  searchcisv
• Revised 9/29/08 rm