1. Know the basics of purchasing

2. Why Can’t We Just Buy It? State law requires that public entities:
have specific legal authority to make the purchase
meet the requirements of specialized purchasing statutes
engage in competitive bidding
meet certain budget and finance restrictions

3. What are the Laws that I Need to Know?
There are entity specific statutes that provide basic purchasing requirements:
Cities: Local Government Code (LGC), Chapter 252
Counties: LGC, Chapter 262
School Districts: Education Code, Chapter 44
Higher Education: Education Code, Chapter 51
State Agencies: Government Code, Chapters
Special Districts: District enabling statutes

4. Is That All There Is?
A number of other statutes also govern governmental purchasing. Some of these are included in the following sections of Texas law: Local Government Code (LGC) Government Code (GC) Education Code (EdC) Code of Criminal Procedures Health and Safety Code Human Resources Code

5. Is That All There Is?
You will also want to be familiar with the following laws: LGC, Chapter 271—Purchasing and Contracting by Municipalities, Counties and Certain Other Local Governments GC, Chapter 791—Interlocal Cooperation Act GC, Chapter 2258—Prevailing Wage Rates LGC, Chapter 140—Financial Provisions Affecting Local Governments

6. Is That All There Is?
LGC, Chapter Regulation of Conflicts of Interest Code of Criminal Procedures, Art Disposition of Abandoned or Unclaimed Property Code of Criminal Procedures, Art —Disposition of Forfeited Property Human Resources Code, Chapter 122—Council on Purchasing from People with Disabilities GC, Chapter 2251—Prompt Payment Act GC, Chapter 2269—Construction Procurement

7. Is That All There Is?
GC 2252, Subch. A—Nonresident Bidders GC 2252, Subch. B—Interest on Retained Public Works Contract Payments GC 2253—Public Work Performance and Payment Bonds GC 2254—Subch. A—Professional and Consulting Services Worker’s Compensation Agency, Rule —Requirements for Worker’s Compensation Coverage

8. How do I Find the New Legislation that Everyone is Talking About?
If you have a bill number, you may do a bill search at Recent legislation that impacts our member entities is summarized at the Government Procurement Services website: news/events Scroll to Legislative Watch

9. What Are the Ways that I May Legally Make Purchases?
For purchases under $50,000 (under the legal bid limit) your specific law has provisions that guide you in the methods to use. Your entity may develop entity specific purchasing policies and procedures that are used for these purchases in compliance with your laws. The policies and procedures generally should be approved by your governing body

10. What Are the Ways that I May Legally Make Purchases?
Following the specific law under which you make purchases, for bids exceeding the legal bid limit ($50,000), you may use the following methods: Sealed Bids Sealed Proposals (RFP, CSP) Awarded Cooperative Contracts that were bid following state law Various construction methods allowed under GC 2269
$25,000 for state agencies

11. What Must I Consider when Using Bid or Proposal Methods?
Which method is best for the type purchase you are making
Keeping a level playing field for vendors—each provided the same information
Specifications should not have bias toward any vendor
Specifications govern what is desired and what may be considered in making award of contract
HUB requirements

12. What Must I Consider when Using Bid or Proposal Methods?
Consider payment or performance bond and insurance requirements
Advertise according to your statute
Open the sealed bids or proposals (paper and electronic) according to law
Protect information contained in the submittals according to law
Submit bids or proposals to the governing body for award according to law and local policy and procedures

13. Additional Considerations
Requests for exemptions from bidding
Requests for a vendor to be considered a sole source
Protect your department from protests and violations of the laws
Determine how to work best with your user departments, governing body, vendors and the public

14. Where Else May I Find Help?
TxPPA offers a memberconnect where you may ask questions. All members are eligible to use the listserve. No question is a bad question.
The Texas Comptroller of Public Accounts offers a Model Purchasing Manual for Texas Cities and Counties
_Purchasing_Manual_11_10.pdf
Texas Education Agency Resource Guide

15. THANK YOU! Narita Holmes, MBA, C.P.A., CIA naritaholmes@utexas.edu
Carol Cooper, C.P.M., CPPO, CPSM