1. Purchasing Rules and Regulations . AM580
Purchasing and Distributions Services
Office of Financial Affairs (

2. Purchasing and Distribution Services
Director – John Clifford
Assistant Director - Lane Brinson
Procurement Specialists
Paul Duke, ext. 4064
Julie Gohlke, ext. 5076
Patty Burrier, ext. 4062
Sandra Calderon, ext. 8680
Mariano Alaniz, ext. 5077
Brian Bird, ext. 4068
eProcurement Specialist
Elizabeth Raymond, ext. 4598
Purchasing Business Analyst
Yvette Medina, ext. 4974
Purchasing and Distribution Services

3. Organizational Chart Purchasing and Distribution Services HUB Office
Central
Receiving
Mail Services
(1604)
Mail Services
(DT & ITC)
Purchasing and Distribution Services

4. Purchasing and Distribution Services
Course Objectives
Discuss and evaluate Purchasing Rules
Examine compliance in relation to Purchasing
Outline HUB requirements from the state and university
Evaluate Ethics in regards to self and working with vendors
Review Spending Thresholds for procurement
Breakdown and demonstrate various Procurement Methods
Differentiate and discuss Small vs. High dollar procurement
Demonstrate the uses of the UTSA Supplier Mall and Purchasing website
Purchasing and Distribution Services

5. Questions before we get started?
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6. Purchasing and Distribution Services
Purchasing Terms
Requisition – A request to purchase goods or services
Quotation – Obtaining a price for a good or service
Purchase Order – A formal agreement to purchase based on an offer to sell
Informal Bid – Low value, low risk procurement conducted through informal methods
Formal Bid – High value, high risk procurement conducted utilizing formal purchasing methods
Receiving Report – A report informing appropriate parties of goods received by the University
Invoice – A request for payment for goods or services which were delivered
Category Code - A code describing a commodity or a group of commodities pertaining to goods classification.
UNSPSC 8 digit codes
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7. Purchasing and Distribution Services
Purchasing Rules
Purchasing and Distribution Services

8. Compliance (State and UTSA Purchasing)
Section , Education Code definition of “Best Value“
The Board of Regents' Rules and Regulations
UTSA's HUB (Historically Underutilized Businesses) policies
Senate Bill 20
To Standards of Ethical Conduct
All Applicable Laws, Rules, and Regulations
Sec.    ACQUISITION OF GOODS AND SERVICES.  
acquire goods or services by the method that provides the best value to the institution, competitive bidding; competitive sealed proposals; catalogue purchases; group purchases; or open market contracts.
BOR Rules – Delegated Spending Authority, Construction Authority,
HUB Requirements mandated by state to utilize HUBs when possible.
SB20 – specific standards regarding procurement and requirement public posting of public purchases and contracts (this includes no-bid contracts, sole source/exclusive acquisition, etc.)
Purchasing and Distribution Services

9. Historically Underutilized Business “HUB” Program
What is the purpose of the HUB Program?
What classifies a HUB?
Why are HUB’s Important to UTSA?
HUB Program Events
Quarterly Newsletter
HUB Awards Ceremony (November)
Vendor Fair (March/April)
How to search for a HUB Vendor?
Purpose of the HUB Program –
An initiative to encourage and assist Historically Underutilized Businesses (HUB) with University contracting and purchasing opportunities.
UTSA is committed to increasing the number and value of purchases with HUBs
It is a policy of UTSA to maximize opportunities for HUBs
What classifies a HUB: 51% of the company owned by a minority or woman who
resides in Texas
demonstrates active participation in the control, operations, and management of the business’ affairs.
has obtained HUB certification with the State of Texas as a Historically Underutilized Business
Why are HUB’s important to UTSA:
As a state university, we are required to make a good faith effort to utilize minority businesses for our procurement opportunities.
We must report our HUB performance/ compliance to our governing bodies.
As a minority serving university, we believe in the program
How to search for HUB vendors?
CMBL (Central Master Bidders List) – State Website
UTSA Vendor Database in PeopleSoft
HUB Website (UTSA registered HUB vendor Database – centralized list)
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10. Historically Underutilized Business “HUB” Program
UTSA HUB Program Contact: Bruce Williams Phone: Website:
Best mode of contact is .
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11. Purchasing and Distribution Services
Procurement Ethics
Ethics of self and university
Tax Payer
Impropriety
Ethics with vendors
No Special Consideration
Equal Opportunity
Further information of U.T. System Ethics Policies and Guidelines is available on UT systems web site. 
Ethics of self and university
Serve the best interest of UTSA & tax payers, honesty in sales representation shall be demanded. 
Avoid acts which are improper or give appearance of impropriety
Know and uphold laws & statutes governing state purchasing –
Buyers and others authorized by or under these regulations shall not accept personal gifts or gratuities that might in any way result in an obligation to individuals or firms seeking business. 
Obtain maximum value for each dollar of expenditure
Prevent unethical conduct, such as:
Conflicts of Interests; acceptance of gifts; leaking confidential information; conducting self-dealing; gaining personal investments; having outside employment;
Purchases From/By Employees:
Must be approved by proper channels and no employee may purchase equipment or property from the institution without appropriate approvals.
Ethics with vendors
All qualified, reputable bidders shall be given equal opportunity to submit bids on a uniform basis when competition is possible. 
No bidder shall receive special consideration or be allowed to revise a bid after the time set for opening formal bids
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12. Procurement Spending Thresholds
Dollar Range
Procedure
$0.01 to $14,999.99
(Small Dollar)
Authorization limit for department buyers. Bids are not required.
Small dollar requisitions are created by Department Buyers
Use HUBs (Historically Underutilized Businesses) when available
$15, to $50,000.00
(Informal Bid)
Purchasing must compete the purchase order by competitive bidding (soliciting to a minimum of two certified HUB vendors)
Purchase Orders are completed by Purchasing
$50, and over
(Formal Bid)
Purchasing must compete the purchase order by a formal proposal (soliciting to a minimum of two certified HUB vendors) with posting requirements
Automatic sourcing from PeopleSoft for small dollar
Discuss details of Informal and Formal later in the presentation.
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13. Purchasing and Distribution Services
Questions?
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14. Purchasing and Distribution Services
Procurement Methods
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15. Purchasing and Distribution Services
Procurement Methods
Best Value
Competitive Bid
Group Purchases
Sole Source
Request for Proposal (RFP)
Emergency Purchase
Exempt Purchases
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16. Best Value Procurement
Best value - optimum combination of economy and quality through specifications of its end user and the University.
House Bill 1545
Senate Bill 20
The university uses an evaluation criteria other than price alone to determine Best Value.
“Best Value” means the optimum combination of economy and quality that is the result of fair, efficient and practical procurement decision-making and which achieves the procurement objectives of UTSA.
House Bill 1545 amends the Education and Government codes authorizing an institution to acquire goods and services  by the method that provides the best value to the institution and provides criteria for determining the best value (Sec , Education Code).
In determining best value, the buyer shall consider:
purchase price;
(2) reputation of the vendor and of the vendor’s goods or services;
(3) quality of the vendor’s goods or services;
(4) extent to which the goods or services meets UTSA's needs;
(5) vendor’s past relationship with UT and/or components of UT System;
(6) impact on the ability of UTSA to comply with the laws and rules relating to the HUB program;
(7) impact on the ability of UTSA to comply with the laws and rules relating to the procurement of goods and services from persons with disabilities;
(8) long term cost to the institution of acquiring the vendor’s goods or services; and
(9) any relevant factor that a private business entity would consider in selecting a vendor.
SB20 – public posting of all procurements, including small dollar. Provide justification of procurement method and contract terms.
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17. Purchasing and Distribution Services
Competitive Bidding
What is competitive bidding?
Why compete goods and services?
Restrictions to Competitive Bidding:
Set Specifications
Limited Ability to Negotiate
What is competitive bidding? – A procurement method that stimulates competition to obtain goods and services at the lowest price.
Why compete goods and services?
Obtain Lower Pricing,
Quicker Turn Around Process, and
Invoke More Competition
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18. Purchasing and Distribution Services
Group Purchases
What is a group purchase?
Types of Group Purchases
Group Cooperatives
State Contracts
Link to Group Purchasing Organizations
Govern Abbott Directives – Competitive Process on GPO’s
Vice Chancellor Scott Kelly – Limitation to GPO’s
What are group purchases? - Contracts established by an organization which combines the purchasing power of multiple entities for deeper discounts
There is NO bidding necessary when using group purchasing organizations, because the contracts have already been competed.
Scott Kelly directive limiting the GPO usage to the following:
TXMAS – Texas Multiple Award Schedule (mirrors GSA contracts)
DIR – Department of Information Resource (specific for technology and technology related purchases)
E&I – Educational and Institutional (various educational contracts, provides good university rebates)
UT Supply Chain Alliance
Premier (Health Organization GPO)
Visit the UTSA Supplier Mall for links to group purchasing organizations
Purchasing and Distribution Services

19. Sole Source Purchase
A Sole Source is defined as having availability from ONLY one source.
Sole Source can only be used when:
Sole Manufacturer – NO distributors or retailers
Sole Brand – to avoid warranty issues
Exclusive Acquisition Justification
Types of Sole Source:
patents, copyrights, secret processes, or natural monopolies
Films, manuscripts, or books published and available from only one source
Electricity, gas, water and other utility services
Captive replacement parts or components for equipment
Books, papers and other library materials for a public library that are available only from the person holding exclusive distribution right to the materials
Maintenance services required to maintain warranty coverage
MUST BE JUSTIFIED & DOCUMENTED and filed with Purchasing
EAJ – Form on Purchasing website – 1. Proprietary
2. Best Value
3. Professional Services

20. Purchasing and Distribution Services
Request for Proposal
What is a RFP?
When do I need a RFP?
What is the process of a RFP procurement?
What is an RFP? – a solicitation requesting submittal of a proposal in response to the required scope of services that usually includes some form of a cost proposal.
When do I need an RFP? - It is reserved for high risk, high dollar, or highly technical procurements requiring a defined scopes of service.
What is the process of a RFP procurement?
PB4 is created, approved, and routed to purchasing
Buyer and Department develop:
scope of services
evaluation criteria,
Schedule (opening date, closing date, walk thru, etc)
Proposals are submitted to purchasing for opening
Evaluation Team
Scoring Matrix
Notice of Award
Contract
Purchase Order or (Notice to Proceed followed by PO)
Side Note:
Vendor Presentations are permitted
Price negotiation is permitted with a BAFO (Best and Final Offer)
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21. Purchasing and Distribution Services
Emergency Purchases
Purchase of good(s) or service(s) so badly needed that UTSA will suffer financial or operational damage unless secured immediately
Require written justification approved by Purchasing with Signature Authority
The reason for the emergency
The  financial or operational damage/risk possible to the University
Why standard procedures could not be used to obtain the products/services
The reason and process used for selecting the vendor
Use Emergency Purchase Justification form
3 QUOTES IF POSSIBLE
Competition may not be precluded
Normal purchasing procedures are not necessarily followed.
REQUIRES VICE PRESIDENT APPROVAL
EAJ Required – 4. Emergency Purchases
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22. Purchasing and Distributions Services
Exempt Purchases
Exemption is given to specific commodities and services
Exempt purchases do not require a competitive procurement process
Exempt purchases do not need a sole source justification
For a full listing of Exempt commodities and services, visit the Purchasing website.
Exempt Purchases are governed by Chapters 771 and 2155, Government Code, the Texas Procurement and Support Services Division of the Texas Comptroller’s Office State of Texas Procurement Manual (Procurement Manual) and the Texas Comptroller’s Office State of Texas Purchase Policies and Procedures Guide (Comptroller Guide)
Exemption is given to specific commodities and services used on a regular or continuing basis where competitive procurement methods are not practical or do not add value.
Examples of Exempt Purchases:
Hotel Purchases
Demonstrations or Speaker Fees
Interagency Agreements
Performances by entertainment groups or theatre groups
Direct publication purchases (made with the publisher)
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23. Purchasing and Distribution Services
Questions?
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24. Purchasing and Distribution Services
Purchase Requisition
PeopleSoft Requisition
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25. Small Dollar Requisition
“Small Dollar” or Low Risk / Low Value
Department authorized and approved
Informal purchasing process
Requires quote(s) from vendor(s)
HUB participation is strongly encouraged
Utilization of Sustainability Vendors and Products
Orders under $15,000 may be processed by the department and should not be sent to purchasing.
Reminder 3 Quotes
Usage of restricted GPO’s
Requisition entry in PeopleSoft – please sign up for PS
Scope of Service – who, what, when, where, why, how.
2. Vendor Selection – quotes, bidding, group cooperatives
3. Accuracy – detailing services so the vendor understands what to deliver
4. Precision – important to delivery of services and billing
Service based Purchase Orders – billed based on amount or quantity. PO setup imperative for DTS payment.
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26. Small Dollar Exceptions
Orders containing the following commodities should be submitted to purchasing for processing:
Processing small dollar exceptions using UTShare PeopleSoft
Follow the instructions listed on Purchasing with UTShare PeopleSoft (
Radio Active Material
Leases (Space)
Anything Requiring a Signature
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27. High/Large Dollar Requisition
Initiates the Purchasing Process
Representative of High Risk or High Value Purchases
Can range in cost from $0.01 to $???
Routes to Purchasing
When processing an over $15K requisition, PeopleSoft will route these orders to Purchasing for processing.
Purchasing and Distribution Services

28. High Dollar Requisition Process
Orders $15,000 - $50,000
Purchasing involvement required
Requires solicitation of HUB vendors
Pricing obtained by informal procurement
Orders over $50,000
Purchasing involvement required
Requires solicitation of HUB vendors
Pricing obtained by formal procurement
Public Posting
For orders between 15K to 50K, a three –five day minimum solicitation is required.
For orders over 50K, a 14 or 21 (for RFP’s) day minimum solicitation is required, GPO orders is a 3-5 days solicitation
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29. Purchasing and Distribution Services
Questions?
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30. Purchasing and Distribution Services
Purchasing Website
and additional purchasing information
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31. Purchasing Supplier Mall
Purchasing Resource
Contracts with volume discounted pricing
Efficient ordering method
Emphases on HUB presence
Purchases can be made by Purchase Order or Procard (as applicable)
UTSA Purchasing & Distribution Services Department – Supplier Mall is resource for contracts offering goods and services which meet the Universities “Best Value” procurement policy, based on restricted GPO contacts.
Departments can access direct links to preferred suppliers to help maximize time and money when making small dollar purchases.
Establishes “Strategic Contracts” that Leverage UTSA’s Purchasing Power
Consolidates Purchases for Commonly Utilized Goods & Services
Provides departments with Efficient Ordering Methods and access to contracts of everyday use
Currently Added Contracts:
- Printer Purchases (HP, Dell, Toshiba, Lexmark, Oki Data)
Computer Purchases (UTSA Standards – Dell Computers)
Other contracts to be added:
Hotels
Cell Phone Carriers
Copier Leases
Computer Purchases
Scientific Supplies
Office Supplies
Also inside the “mall” departments can find Sustainability Vendors who provide “Green” products or solutions.
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32. PeopleSoft Purchasing Resources
Procurement Procedures
Purchase Order Corrections
Radio Active Orders
Return to Vendor Process
PeopleSoft Training Information
Instructional Guides
User Productivity Kits (UPK’s)
Encourage registration of PS (class is following Friday after AM580 – in most cases).
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33. Additional Purchasing Information
Contract
NEVER sign contracts or agreements
Only the President can delegate authority to sign contracts
OGC (Office of General Counsel) provides sample contracts
Departments should submit all purchasing contracts to the Purchasing Department
Construction, Renovations & Facilities
Any proposed construction and/or renovations are to be routed through UTSA Facility Services via a work order
Facility Services will determine the best way to procure the renovations
Information Technology
Any request for hardware or software should be coordinated through Information Technology. Visit the OIT website for Computer Standards.
Contracts:
All “contracts” requiring a signature. If the vendor requests a signature, more than purchase order, question and contact Contracts to determine if document should be routed to them.
DELEGATED AUTHORITY
- AUTHORITY TO SIGN
RICARDO ROMO – PRESIDENT OF UNIVERSITY
KATHY FUNK-BAXTER – VP OF BUSINESS AFFAIRS – PRIMARY SIGNER
Robert Dickens – Delegated on some contracts
Construction, Renovations, & Facilities:
All requests should be submitted through a Facilities Work Order. To include renovations, installations (mounted to wall or structure of bldg, etc. ) A Project Manager will be assigned to the project and evaluate the request to proceed accordingly.
JOA/JOC/JOE CONTRACTS
Information Technology:
Software and Hardware purchases should be run by OIT to make sure there is compatibility with the network system. Send questions to OIT Support Services.

34. Purchasing and Distribution Services
THANK YOU
Purchasing and Distribution Services

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Office of Financial Affairs