Best Practice for Purchasing

Report
Purchasing Best Practices
Purchasing Training
09/30/08; 10/02/08
Purchasing Department – 235-1017
Randy Montgomery
Anna Rogers
[email protected]
[email protected]
Purchasing Agent
x13004
Purchasing Buyer
x13003
Joan Jimenez
Courtney Reames
[email protected]
[email protected]
Associate Buyer
x13001
Purchasing/Records Clerk
x13007
District Policies & Regulations
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CH Legal
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Lists legal requirements, laws, and codes
Methods, penalties, exceptions, and rules
for specific products
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Bid over $25k
Formal quote process $10k-25k
http://www.tasb.org/policy/pol/private/243905/pol.cfm?DisplayPage=CH(LEGAL).html
District Policies & Regulations
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CH Local
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BOT approval requirements
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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?DisplayPage=CH(LOCAL).html
District Policies & Regulations
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CH Regulation
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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
Texas Education Code
Procurement Annual Threshold
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$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
Texas Education Code 44.031
(Methods)
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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.
Competitive Procurement Categories
…in the aggregate for a 12 month period. TEC 44.031 (a)
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Athletics
Custodial
Food Service
Instructional-Capital
InstructionalSupplies
Maintenance
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Transportation
Bank Depository
Printed Forms
Non-Professional
Services
Real Property
Insurance
Reference: Texas Education Agency – Financial Accountability System Resource Guide
http://www.tea.state.tx.us/school.finance/audit/resguide12/purchase/
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
WICHITA FALLS ISD PURCHASING DEPARTMENT
P R O C U R E M E NT R E QU ES T F O R M
Important: Complete this form and submit to Purchasing with complete specifications.
Bid / Quote Title:
Date:
Request submitted by:
Timeline for Project / Items:
Fund Source:
Account Code:
Estimated Cost:
.
.
.
.
.
$
.
.
Potential Vendors:
Specific Evaluation Criteria (for purchases over $10,000 - must total 100%)
Criteria
Purchase price
Reputation of the vendor and of the vendor’s goods or services
Quality of the vendor’s goods or services
Extent to which the goods or services meet the district’s needs
Vendor’s past relationship with the district
Impact on the ability of the district to comply with laws and rules relating to
historically underutilized business
Total long-term cost to the district to acquire the vendor’s goods or services
Any other relevant factor specifically listed in request for bid or proposal
Percentage
Authorized Signature:
PURCHASING DEPARTMENT USE ONLY
Date received from user / department:
Account Code Verified
Location of specification:
Comments:
Funds Available
Bid, Proposal or Quote Process
(Purchasing)
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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)
BEST VALUE
Evaluation/Recommendation
BIDS MUST INCLUDE PERCENTAGES FOR:
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Purchase Price
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Reputation of Vendor & their goods or services
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Quality of goods or services
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Meet the District needs
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Vendor’s relationship with District
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Comply with laws/policies HUB
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Long-term cost to the District
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Any other relevant factor listed in request for bid or
proposal
(Total = 100%)
Texas Education Code, Sections 44.035, 44.039 & 44.040
Interlocal Contracts
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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”
Catalog Purchases:
Texas Department of Information Resources
(DIR) Texas Administrative Code 113.19
http://www.dir.state.tx.us/servlet/dirStore#searchcisv
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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.)
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
Other Funding Sources
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Booster Clubs
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Follow UIL rules for
all purchases
Direct to Purchasing
if:
 Fixed asset
 Item already on
bid
 facility
improvements
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Activity Funds
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Direct to Purchasing
if:
 Item already on
bid
$
 500 & above
 Personal /
Professional
Service requiring
1099
RESOURCES
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Purchasing Department
Finance Department
Internal Auditor
Campus Secretary
Internet
(Purchasing Manual)
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WFISD - wfisd.net/departments/purchasing
Texas Education Agency (FASRG) -
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DIR -
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http://www.tea.state.tx.us/school.finance/audit/resguide12/purchase/
http://www.dir.state.tx.us/servlet/dirStore#searchcisv
Revised 9/29/08 rm

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