1. 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

2. Why do we need Purchasing Guidelines?
Because it’s required!
System Regulation 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
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.

3. 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…

4. Purchasing Procedures
Texas A&M Health Science Center
Purchasing Procedures

5. 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!!!

6. 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!

7. 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 Education Code.”
And…

8. 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
Should be purchased from Historically Underutilized Businesses (HUB) whenever possible, see
Should not include debarred vendors, see
But, most importantly…

9. 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!!!

10. 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)

11. Texas A&M Health Science Center Purchasing Procedures
Section 3 NON-DELEGATED PURCHASES
Purchases $ 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!

12. Texas A&M Health Science Center Purchasing Procedures
Section 4 PURCHASE CATEGORIES
State Contracts
Search:
Index:
Competitive bidding not required
Increase overall HUB percentage
Require a FAMIS requisition and processing through the Purchasing Dept. at any dollar amount

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

14. 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

15. 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

16. Texas A&M Health Science Center Purchasing Procedures
Section 4 PURCHASE CATEGORIES (cont.)
Available Group Purchasing Contracts
Educational & Institutional (E&I) Cooperative
Horizon Resource Group
The Cooperative Purchasing Network (TCPN)
U.S. Communities
Contact Purchasing Services for more information.

17. 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

18. Texas A&M Health Science Center Purchasing Procedures
Section 4 PURCHASE CATEGORIES (cont.)
Sole Source and/or Proprietary purchases always require
JUSTIFICATION!!!
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.

19. 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…

20. 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.

21. 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.

22. 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 , 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.

23. Texas A&M Health Science Center Purchasing Procedures
Section 6 OFFICE OF RESPONSIBILITY
HUB Operations & Procurement Services
Thomas Bosquez, M.P.A.
Robby Bounds, CTPM
Susan Warren, CTPM

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