Texas A&M Health Science Center HUB Program & Procurement Services An Overview of HSC Procurement Guidelines Presented by: Robby Bounds, CTPM Sr. Procurement Officer and Asst. HUB Coordinator

Why do we need Purchasing Guidelines? Because it’s required! System Regulation 25.99.02 Component Purchasing Authority GENERAL The Texas A&M University system was granted additional purchasing authority by the 77th Legislature. The System Procurement Code was developed to guide the purchasing activities of the System. The code is hereby adopted and replaces the TBPC Procurement Manual. The code is located at http://sago.tamu.edu/policy/Code.htm. 2. REQUIREMENTS System components will follow the code in all purchasing activities. Components will develop additional rules, processes and standard operating procedures for component purchasing activities to define delegations of authority, time lines, dollar amounts, etc.

Why do we need a Purchasing Department? Purchasing departments have professional staff trained to maximize value, while minimizing risks, and… Because it’s required! Texas A&M University System Procurement Code GENERAL Each component of the Texas A&M University System shall establish or contract with a Central Procurement Office that is responsible for purchases of supplies, materials, services, and equipment. That leads us to…

Purchasing Procedures Texas A&M Health Science Center Purchasing Procedures www.tamhsc.edu/departments/administration/finance/hub/Procurement%20Services.php

Documented! Documented!! Documented!!! Texas A&M Health Science Center Purchasing Procedures Section 1 GENERAL ALL purchases must comply with: TAMUS Regulations TAMUS Procurement Code HSC Purchasing Procedures …and all purchases MUST be: Documented! Documented!! Documented!!!

Competitive bidding is not required! Texas A&M Health Science Center Purchasing Procedures Section 2 DELEGATED DEPARTMENTAL PURCHASES Departments may purchase goods and services totaling $5000 and under, including ALL applicable charges, such as: Freight Postage Installation Competitive bidding is not required!

Texas A&M Health Science Center Purchasing Procedures Section 2 DELEGATED DEPARTMENTAL PURCHASES (cont.) Purchases $5000 and under: Do NOT require a requisition Should be recorded on a Limited Document (FAMIS screen 240) Should reference Legal Descriptive Text (LDT) Code 65, “Purchase made by an institution of higher education, Section 51.9335 Education Code.” And…

Texas A&M Health Science Center Purchasing Procedures Section 2 DELEGATED DEPARTMENTAL PURCHASES (cont.) MUST be purchased from persons with disabilities (currently TIBH Industries) whenever possible, see www.tibh.org. Should be purchased from Historically Underutilized Businesses (HUB) whenever possible, see www.tbpc.state.tx.us/cmbl/cmblhub.html Should not include debarred vendors, see www.tbpc.state.tx.us/stpurch/venman.html#vensus But, most importantly…

INTENTIONALLY PURCHASES MAY NOT Texas A&M Health Science Center Purchasing Procedures Section 2 DELEGATED DEPARTMENTAL PURCHASES (cont.) PURCHASES MAY NOT INTENTIONALLY be broken down into small purchases in order to meet the authorized limit of authority!!!

INTENTIONALLY PURCHASES MAY NOT Texas A&M Health Science Center Purchasing Procedures Section 2 DELEGATED DEPARTMENTAL PURCHASES (cont.) PURCHASES MAY NOT INTENTIONALLY be broken down into small purchases in order to meet the authorized limit of authority!!! (Just in case you may have missed the previous slide)

Texas A&M Health Science Center Purchasing Procedures Section 3 NON-DELEGATED PURCHASES Purchases $5000.01 and over: Require a requisition (FAMIS screen 250) Require detailed specifications Require detailed conditions of purchase; ex. payment options, FOB, freight charges, warranties, etc. Require sufficient time for the competitive bidding process!

Texas A&M Health Science Center Purchasing Procedures Section 4 PURCHASE CATEGORIES State Contracts Search: www.tbpc.state.tx.us/search/termContract.html Index: www.tbpc.state.tx.us/cat_page/index.html Competitive bidding not required Increase overall HUB percentage Require a FAMIS requisition and processing through the Purchasing Dept. at any dollar amount

Texas A&M Health Science Center Purchasing Procedures Section 4 PURCHASE CATEGORIES (cont.) Department of Information Resources (DIR) contracts Search: www.dir.state.tx.us Competitive bidding not required Many HUB vendors on contract May be utilized by department if under $5000 and permitted by vendor

Texas A&M Health Science Center Purchasing Procedures Section 4 PURCHASE CATEGORIES (cont.) Texas Multiple Award Schedules (TXMAS) Index: portal.tbpc.state.tx.us/txmas/txmas_index.asp Competitive bidding not required, but several quotes should be requested to obtain best value Many HUB vendors on contract May be utilized by department if under $5000 and permitted by vendor

Texas A&M Health Science Center Purchasing Procedures Section 4 PURCHASE CATEGORIES (cont.) Texas A&M University Contracts, a.k.a. Supplier Mall (including TAMU Telecommunications Dept. and TAMU Computer Information Services Dept.) Search: purchasing.tamu.edu/suppmall Competitive bidding not required Several HUB vendors on contract May be utilized by department if under $5000 and permitted by vendor

Texas A&M Health Science Center Purchasing Procedures Section 4 PURCHASE CATEGORIES (cont.) Available Group Purchasing Contracts Educational & Institutional (E&I) Cooperative www.eandi.org Horizon Resource Group www.horizonrg.com The Cooperative Purchasing Network (TCPN) www.tcpn.org/index-texas.htm U.S. Communities www.uscommunities.org Contact Purchasing Services for more information.

Texas A&M Health Science Center Purchasing Procedures Section 4 PURCHASE CATEGORIES (cont.) The following types of purchases should ALWAYS be processed through Purchasing Services: Lease Purchase Installment Payment Purchase Lease of Space

Texas A&M Health Science Center Purchasing Procedures Section 4 PURCHASE CATEGORIES (cont.) Sole Source and/or Proprietary purchases always require JUSTIFICATION!!! www.tamhsc.edu/departments/administration/finance/hub/Forms.php Sole Source – there is only ONE vendor that sells this product, usually the manufacturer. Can NOT be competitively bid. Price determined by negotiation. Proprietary or “brand sole source” – a product that has a characteristic not shared by any competing product, but is available from more than one vendor. (Examples: Chevrolet truck, Nikon camera) Price determined by competitive bid.

Texas A&M Health Science Center Purchasing Procedures Section 4 PURCHASE CATEGORIES (cont.) Emergency Purchases: A purchase of goods or services so badly needed that the Health Science Center will suffer… Financial Damage Operational Damage …unless they are secured immediately. Emergency Purchases ALWAYS require…

Texas A&M Health Science Center Purchasing Procedures Section 4 PURCHASE CATEGORIES (cont.) You guessed it, JUSTIFICATION, citing the following: 1. The Nature of the emergency: Hazard to life, health, safety, welfare or property, avoidance of undue costs, etc. 2. The Cause of the emergency and… The reason it could not be ANTICIPATED! 3. And the Estimated Impact or damage that will occur by following normal procurement procedures. Obtain three informal bids whenever possible.

Texas A&M Health Science Center Purchasing Procedures Section 4 PURCHASE CATEGORIES (cont.) Exempt Purchases (p. 11) are exempt from competitive bidding regardless of dollar amount. Purchases with exempt object codes (FAMIS screen 306) may be processed by department using an Exempt Document (screen 235) regardless of dollar amount Purchases with non-exempt object codes must be processed by Purchasing Services if over $5000.

Texas A&M Health Science Center Purchasing Procedures Section 5 HISTORICALLY UNDERUTILIZED BUSINESS PROGRAM In accordance with State Law, TAMUS Policy 25.06, and TAMUS Regulation 25.06.01, the Texas A&M Health Science Center will involve qualified Historically Underutilized Businesses (HUB) to the greatest extent allowed by law in the institution’s construction contracting, professional services, and purchase, lease, or rental of all supplies, materials, services and equipment.

Texas A&M Health Science Center Purchasing Procedures Section 6 OFFICE OF RESPONSIBILITY HUB Operations & Procurement Services Thomas Bosquez, M.P.A. 979-458-7276 bosquez@tamhsc.edu Robby Bounds, CTPM 979-458-7281 bounds@tamhsc.edu Susan Warren, CTPM 979-458-7282 warren@tamhsc.edu

Texas Education Code, 51.9335 Texas A&M Health Science Center Purchasing Procedures Section 6 GOVERNING STATUTE Texas Education Code, 51.9335