UPPS 05.02.02 - Texas State Purchasing Policy

POLICY STATEMENT

Texas State University is committed to supporting the need to procure goods and services for the university in a timely and cost-effective manner, while ensuring compliance with applicable regulations and requirements.

1. SCOPE

   1. The purpose of this policy is to identify the requirements when purchasing goods and services for Texas State University.

   2. In accordance with The Texas State University System (TSUS) Rules and Regulations, Chapter III, Section 10, Subsection 10.8, the president has delegated authority to obligate funds for the purchase of goods or services in the amount of $500,000 or less whether said amount is income or expenditure.

   3. In accordance with federal law, state law (Texas Government Code 2155.063) and TSUS Rules and Regulations, any purchase of or contract for goods or services shall be accomplished through a competitive bidding process. Texas State is strictly prohibited from splitting orders to circumvent threshold values that require competitive solicitation requirements and processes, or other applicable purchasing requirements.

   4. The director of Procurement and Strategic Sourcing has the authority, and is responsible, for promulgating and communicating Texas State purchasing policies and procedures. The ultimate responsibility and authority to oversee the procurement and/or lease of goods and services for the university will be placed with the Division of Finance and Support Services (FSS) and the Department of Procurement and Strategic Sourcing (P&SS). While P&SS maintains final authority concerning procurement activities, P&SS shall in accordance with university policies delegate to the university divisions, colleges, and departments the ability to make purchases using TSUS Marketplace, SAP, and the Procurement Card (PCard). P&SS shall review procurements to ensure compliance with government, state, and local policies.

   5. Texas State shall assume no liability for payment of obligations incurred by unauthorized means.

      1. P&SS will follow the TSUS Contract Management Handbook (CMHB) for all procurements.

      2. Persons making unauthorized purchases may be held personally liable for any damages resulting from the repudiation of a contract, agreement, or purchase order. Persons making unauthorized purchases may be subject to disciplinary actions consistent with university policies.

      3. Texas State shall make payments to individuals or businesses based on the receipt of good/service and an approved invoice.

      4. All faculty and staff will be responsible for adhering to all policies and procedures when procuring and paying for goods and services purchased for Texas State.

   6. This policy will apply regardless of funding source.

2. PROCUREMENT METHODS

   1. The following procurement methods are authorized by Texas State:

      1. TSUS Marketplace;

      2. SAP purchase orders;

      3. P-cards;

      4. inter-agency/interlocal;

      5. cooperative contracts and group purchasing organizations; and

      6. open market (<$50k), competitive informal (<$100k), and formal solicitations equal to $100k or greater.

3. PROPRIETARY JUSTIFICATION

   1. A purchase may be justified when an equivalent good or service is not available or not suitable or when it is in the best interest of the institution to use a particular product or service even if more than one source is available (a best value purchase). When a specification limits consideration to one manufacturer, one product, or one service provider, and the amount of the purchase exceeds $50,000, a written proprietary justification must be provided by the originating department and approved by P&SS to support the purchase. Written justification must follow requirements with all provisions listed in TSUS CMHB Section 3.2.2 subsection B.

   The account manager shall review and approve the Proprietary Justification form, and P&SS will review for final approval.

4. COMPETITIVE SOLICITATIONS

   1. Section 51.9335(a)-(e) of the Texas Education Code authorizes institutions of higher education to use “best value” procurement process which provides greater autonomy and flexibility in the procurement of goods and services. The university shall follow the TSUS CMHB for all competitive solicitation requirements.

5. EXEMPT PURCHASES

   1. The following purchases are exempt from the competitive solicitation process, in accordance with TSUS CMHB 3.2.3 §E:

      Note: Proprietary justification is not required for exempt purchases.

      1. library books, periodicals, subscriptions, educational databases, and other related library materials, as defined by Texas Government Code, Section 2155.139(a);

      2. direct publications (newspaper or magazine subscriptions, back issues or reprints of magazines, journals, and newspapers, books, and foreign publications) purchased directly from the publisher);

      3. agreements with federal agencies, as defined by Texas Government Code, Section 2155.084; to include agencies with the state of Texas, local government agencies (e.g. counties, municipalities, school districts, etc.), institutions of higher education, and quasi-governmental agencies;

      4. utilities (e.g. water, electric, telecom, etc.) by a regulated public utility;

      5. advertisements in any medium including recruitment and sponsorship placement;

      6. allowable membership fees; training or conference registration fees, allowable accreditation or professional license fees;

      7. goods purchased for retail sale by an institution auxiliary enterprise;

      8. agreements for hotel rooms, lodging, or conference space;

      9. catering, meals, and event food services (not food for resale or related to student meal plans);

      10. athletic games and events (including facility use, facility catering, and other agreements required by the athletic event host);

      11. freight and postal services;

      12. agreements for the purchase of existing artwork; loaned art; artifacts; museum or art exhibits;

      13. commissioned artists or musicians, entertainers, theater groups, performers, or speakers;

      14. training services;

      15. executive search firm services for faculty and staff recruitment; and

      16. livestock/poultry (cattle, sheep, swine, horses, ostriches, etc.).

   2. Internal Repair – An internal repair is a repair to state-owned equipment where the extent of the work cannot be determined until the equipment is disassembled. An internal repair must contain labor and may also include parts. Internal repairs are usually the result of an unexpected, basic service outage. If an internal repair qualifies as an emergency, it must be processed as an emergency purchase, as defined in the Texas Administrative Code Title 34 Part 1 Chapter 20, Subchapter C, Rule 20.210.

   3. Emergency Purchases – An emergency purchase occurs as the result of unforeseeable circumstances and may require an immediate response to avert an actual or potential public threat. If a situation arises in which compliance with normal procurement practice is impractical or contrary to the public interest, an emergency purchase may be warranted to prevent a hazard to life, health, safety, welfare, property, or to avoid undue additional cost to the institution. Delay or negligence on the part of an institution does not constitute an emergency. All emergency purchases shall be accompanied by an Emergency Purchase Justification. The procurement file for an emergency purchase must include a written determination (basis for the emergency and for the selection of the vendor) provided by the originating department and approved by P&SS

6. PROFESSIONAL AND CONSULTING SERVICES

   1. Professional services are defined by Texas Government Code 2254 Subchapter A. These services must be provided in connection with a person who is licensed and employed in the profession or practice.

   2. Consulting services are defined by Texas Government Code 2254 Subchapter B. These are the services of studying or advising a state agency under a contract that does not involve the traditional relationship of employer and employee. Consultants can only be awarded on the basis of demonstrated competence and qualifications to perform the services and for a fair and reasonable price.

   3. P&SS will follow the TSUS CMHB for all professional service requirements, per TSUS CMHB 3.2.8.

   4. Guidelines for processing requests for the purchase of professional and consulting services will be available in the Procurement Procedures Handbook.

7. PURCHASES REQUIRING SPECIAL HANDLING

   1. Information for processing the purchase of goods and services in circumstances that occur infrequently can be found in UPPS No. 05.02.02, Texas State Purchasing Policy. Several of these circumstances require additional levels of approval or documentation that differ from normal purchasing approval processes, and additional information can be found in the Procurement Procedures Handbook.

   2. University purchasing procedures can be found in the Procurement Procedures Handbook.

8. REVIEWERS OF THIS UPPS

   1. Reviewer of this UPPS includes the following:

      Position	Date
      Director, Procurement and Strategic Sourcing	October 1 E5Y

9. CERTIFICATION STATEMENT

   This UPPS has been approved by the following individuals in their official capacities and represents Texas State policy and procedure from the date of this document until superseded.

   Director, Procurement and Strategic Sourcing; senior reviewer of this UPPS

   Assistant Vice President for Procurement & Financial Reporting

   Executive Vice President and Chief Operating Officer

   President