200-12 Purchasing Process Flashcards by Cameron King

Unauthorized expenditures shall…

not be made

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All employees shall adhere to the
procurement procedures of the City of Houston,
Strategic Procurement Division, unless
otherwise directed by

HPD’s Office of Budget and Finance

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DPU:

HPD’s Departmental Purchasing Unit,
which is responsible for purchasing functions
within the department, designated by
the Chief of Police.

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Emergency (For the purpose of this General Order):

circumstances that require action by an administrative official or City Council to obtain goods and/or services
through other than the formal bidding procedures
required by the Texas Local Government Code;

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Emergency. For the purpose of this General Order, circumstances that require action by an administrative official or City Council to obtain goods and/or services
through other than the formal bidding procedures
required by the Texas Local Government Code; includes the following conditions described in that Code:

(a) a public calamity that requires the immediate
appropriation of money to meet the needs
of the city’s residents or to preserve the
property of the City,

(b) a threat to the public health or safety of the city’s residents, or

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Formal Bid:

Sealed bid to provide goods or services valued at greater than $50,000.

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Informal Bid:

Bid to provide goods or services valued at greater than $100 and equal to or less than $50,000.

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Sole Source Procurement:

Purchases available only from a single vendor because other competing products or services are
not available

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Goods or services may be procured utilizing

one of the following methods:

a. Purchase order (PO)
b. Emergency purchase order (EPO)
c. Contracts greater than $50,000
d. Professional services
e. Purchasing card (P-Card)
f. Fuel card
g. Petty cash

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Funds for purchasing goods and/or services

are appropriated to the designated accounts during…

the annual budget process

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Expenditures are applied against the appropriations

in these accounts as prescribed by…

the City of Houston chart of accounts

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Employees are expected to manage

their financial affairs within…

the appropriated amounts

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If goods and/or services must be purchased
because of an emergency or unforeseen
circumstance, budgeted funds for the affected
division shall…

be reallocated through the budget transfer process

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For purchases greater than $100 and equal

to or less than $50,000, a routine requisition shall be prepared and submitted to HPD’s…

Departmental Purchasing Unit (DPU)

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The department is authorized to issue purchase
orders (POs) against an existing
supply contract in conjunction with…

the department contract allotment.

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The following procedures shall be used for
the issuance of a PO for the procurement of
goods and/or services such as, but not limited
to, …

office supplies, 
equipment,
professional services, 
uniforms, 
and maintenance supplies.

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To ensure proper accounting of the transaction,

approval shall be obtained from…

the appropriate assistant chief (or civilian equivalent) or above.

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The command’s budget
coordinator shall determine if funds are
available for the expenditure and shall verify…

the organization and account numbers

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If an expenditure is to be charged to an assigned
account outside the division, approval
shall be obtained from…

the persons responsible for that account.

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If the requisition is for goods and/or services
currently available under an existing
contract, it shall be forwarded to the ____
where it shall be processed in accordance
with standard operating procedures.

DPU (Departmental Purchasing Unit)

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If the requisition is for goods and/or services
not currently available under an existing
contract, then the requesting division
shall follow the procedures contained herein
for the____

Upon completion of this process, the requisition
shall then be forwarded to the ____ where it
shall be processed in accordance with standard operating procedures.

1) informal bidding process.

2) DPU (Departmental Purchasing Unit)

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(If the requisition is for goods and/or services
not currently available under an existing contract)

If the requesting division does not have the necessary
expertise to conduct the informal bidding process, the ____shall be contacted and they shall provide the necessary guidance to help the requesting division accomplish the task or they shall obtain the
bids as required.

DPU (Departmental Purchasing Unit)

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(If the requisition is for goods and/or services
not currently available under an existing contract)

The requisition shall be verified and the financial
system updated to reflect a decrease
in funds. The ____ shall issue a PO in accordance with the department’s purchasing authority limit.

DPU (Departmental Purchasing Unit)

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(If the requisition is for goods and/or services
not currently available under an existing contract)

The DPU shall forward a copy of the approved
PO to the ____ and the ____. The DPU shall also file the PO in a purchase order file.

ordering division and the vendor

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(If the requisition is for goods and/or services not currently available under an existing contract) Upon receipt of the material and/or services, the ordering division shall forward the delivery receipt/packing slip to the ____. The command office shall enter the receipt into Systems Applications and Products (SAP) and forward the original delivery receipt to Accounts Payable in ____. Accounts Payable shall process the invoice in a 3-way match (i.e., PO, delivery receipt, and invoice).

1) command office | 2) HPD's Office of Budget and Finance (B&F)

An emergency purchase order (EPO) shall | be used when...

an item or service is needed on an emergency basis.

To purchase goods and/or services using an EPO, the below listed procedures shall be followed: a. The DPU may issue an EPO up to the...

department's purchase order limit

To purchase goods and/or services using an EPO, the below listed procedures shall be followed: b. Only the City of Houston, Finance Department's Strategic Procurement Division (SPD) may issue an EPO for purchases in excess of the...

department purchase order limit.

To purchase goods and/or services using an EPO, the below listed procedures shall be followed: c. The user division shall follow the guidelines or steps in preparing the requisition. If the nature of the emergency does not permit the solicitation of bids, the ____ is required

written approval of the department single point of contact (SPOC)

To purchase goods and/or services using an EPO, the below listed procedures shall be followed: d. To expedite the process during an emergency situation, the purchasing employee shall contact the ____ to discuss the urgency of the emergency condition and vendor recommendations. The purchasing employee shall also obtain an emergency control number from ____ authorizing a continuation of the process prior to the preparation of the requisition.

1) appropriate assistant chief (or civilian equivalent) or above 2) the SPOC

To purchase goods and/or services using an EPO, the below listed procedures shall be followed: e. The requisition package shall be submitted to...

the DPU

To purchase goods and/or services using an EPO, the below listed procedures shall be followed: f. The DPU shall review the requisition, verify if an emergency exists, obtain the required approvals, and...

post it in the system

To purchase goods and/or services using an EPO, the below listed procedures shall be followed: g. If approved, the DPU shall issue an ____to the vendor, send a copy to the user division, andmaintain a copy in the file.

EPO

To purchase goods and/or services using an EPO, the below listed procedures shall be followed: h. If the EPO is in excess of the· department's purchase order limit, the posted requisition shall...

be submitted to SPD for review and issuance of an EPO to the vendor

Should combined City of Houston purchases of the same or similar items from the same vendor knowingly exceed $50,000 within any 12-month period, it is necessary to____. The ____ shall monitor department purchase requisitions to determine if a City contract is required.

1) establish a City contract | 2) SPOC

(New Contracts) Once it is determined the required goods and/or services are not currently under contract, the division requiring the goods and/or services shall develop the necessary specifications. A written request including ____shall be submitted to the DPU.

a justification for the requirement, the specifications, estimated quantities, and accounting information

(New Contracts) When required, the requesting division shall work with the DPU and SPD to conduct the formal bidding process, which may include...

quantity verification or modification of the | specifications.

(New Contracts) Once the bid package is complete, the requesting division shall review it for accuracy and ____. The requesting division shall also attend the pre-bid conference and work with the DPU to prepare any ____.

1) suggest modifications as necessary to the DPU | 2) necessary clarification letters.

(New Contracts) After the bidding is complete, the requesting division shall ____ the bids and make a recommendation to the DPU as to which bidder should be recommended.

review and help evaluate

(Contract Renewal) Requesting divisions shall be notified approximately ____ prior to the expiration of an existing contract. The division shall review the current contract and revise the scope of work (SOW) or specifications as necessary, note the anticipated expended dollars and item quantity for the contract term, and ____.

1) nine months | 2) forward this information along with accounting information to the DPU

(Professional/Personal Services) These contracts have as their predominant purpose the procurement of services that can be performed competently only by persons...

having special skills, expertise, education, or knowledge that is primarily mental or intellectual in nature.

(Professional/Personal Services) a. If the cost of professional services required is within department purchasingauthority, the requesting division shall prepare a requisition document, prepare a scope of services, and secure the approval of ____. The ____ shall determine if funds are available. The requisition and supporting documents shall be routed to the DPU to be processed in accordance with standard operating procedures.

1) the appropriate assistant chief (or civilian equivalent) or above 2) command's budget coordinator

(Professional/Personal Services) b. If the cost of professional services required is not within the department purchasing authority, the same procedure in the previous paragraph shall be followed with the exception that the request shall____. SPD shall then determine if it should be processed in accordance with their standard operating procedures or ____ for final processing.

1) be routed by the DPU to SPD | 2) forwarded to the City Legal Department

Purchasing Card:

A purchasing card (P-Card) is a credit card used for small dollar purchases of contract and non-contract goods and/or services for official City business.

(Purchasing Card) Purchases on a P-Card shall be made according to approved P-Card procedures and ____ for the concerned division or command.

in accordance with the expenditure approval | procedures

(Purchasing Card) ____develops and administers procedures for the use of P-Cards. They also establish guidelines and criteria for transactions and cumulative dollar limits for the cards

SPD

(Purchasing Card) ``` Designated departmental purchasing card coordinators are responsible for setting limits based on the purchasing requirements for each P-Card. Under no circumstance shall these limits exceed ____ ```

the limits established by the Purchasing Card Program | administrator in SPD.

(Purchasing Card) P-Cards may be used to purchase items or services for immediate use and not prohibited by procedures consistent with...

City of Houston Administrative Procedure No. 5-6: Purchasing Card Policy and Procedures, any policy approved by the Mayor, or any ordinance of the City of Houston.

(Purchasing Card) ``` The City's tax-exempt number shall be given to the vendor when a P-Card is used to pay for City business expenditures. The City's tax-exempt number can be obtained from the ____. ```

DPU

advances

(Purchasing Card) The City P-Card restrictions are governed by Administrative Procedure No. 5-6, which contains a list of items for which P-Cards shall not be used. The most common prohibited uses are: b. Personal...

expenditures

unforeseen or emergency purchases of less than $500)

food and/or travel expenditures approved in writing by the department director pursuant to the City's then-current travel policy. Written approvals by department directors shall be renewed at the beginning of each budget year.)

Technology

rental equipment (for which state law does not exempt local government), and some expenses associated with travel

cards

washes

(Purchasing Card) Any improper disbursements from the fund shall be the responsibility of the ____. Those persons shall be held personally liable for the reimbursement of improper expenditures and shall be subject to disciplinary action.

cardholder and the approving authority

(Fuel Card) Fuel card procedures shall be consistent with City of Houston Administrative Procedure...

5-5: Corporate/Government Fuel Cards.

(Fuel Card) To obtain a fuel card, the requesting division shall submit a request to Staff Services Command's Fleet Unit indicating all of the following: a. Name of...

employee requesting the fuel card

(Fuel Card) To obtain a fuel card, the requesting division shall submit a request to Staff Services Command's Fleet Unit indicating all of the following: b. The employee...

number

(Fuel Card) To obtain a fuel card, the requesting division shall submit a request to Staff Services Command's Fleet Unit indicating all of the following: c. The ____ number of the vehicle

shop

(Fuel Card) To obtain a fuel card, the requesting division shall submit a request to Staff Services Command's Fleet Unit indicating all of the following: d. The requesting...

division

(Fuel Card) To obtain a fuel card, the requesting division shall submit a request to Staff Services Command's Fleet Unit indicating all of the following: e. The ____ location the vehicle is assigned.

work

(Fuel Card) To obtain a fuel card, the requesting division shall submit a request to Staff Services Command's Fleet Unit indicating all of the following: f. A ____ explaining the need for the fuel card

justification

(To obtain a fuel card) The Fleet Unit shall provide all of the following information to the City of Houston's Fleet Management Department (FMD): g. A ____ stating sufficient funds are available to support the request

budget verification

(To obtain a fuel card) The Fleet Unit shall provide all of the following information to the City of Houston's Fleet Management Department (FMD): h. ____ for fuel card use

Justification

(To obtain a fuel card) The Fleet Unit shall provide all of the following information to the City of Houston's Fleet Management Department (FMD): i. ____ of approval for the card

Signature

(Fuel Card) Once issued, the Fleet Unit shall maintain records on fuel card ____. The Fleet Unit shall initiate an investigation against any employee who abuses or misuses the fuel card (see General Order 200-03, Investigation of Employee Misconduct). Fuel cards shall be used only for fuel and oil.

transactions, receipts, reconciliations, and reimbursements

All divisional vehicle purchases shall be coordinated with the . The ____ shall coordinate with the FMD on vehicle purchases for the department.

HPD Fleet Unit

(Informal Bids) The informal bidding process shall be used for one-time purchases when the total cost of an item or service is greater than ____ and equal to or less than ____.

$100 and equal to or less than $50,000.

(Informal Bids) When purchasing goods or services that are not City contract items, the following procedures shall be followed. The purchaser shall: a. Pursue bids from capable vendors listed in the City's ____and ____and ____ Directory. 1. ____quote for purchases ranging from $100.01 through $3,000. 2. ____or more quotes for purchases ranging from $3,000.01 through $50,000.

1) Minority, Women and/or Small Business Enterprises and Persons with Disabilities Business Enterprises and Disadvantaged Business Enterprises (MWSBE/PDBE and DBE) 2) One 3) Three

(Informal Bids) When purchasing goods or services that are not City contract items, the following procedures shall be followed. The purchaser shall: b. Request written or faxed bids as follows: 1. If there are three or more certified vendors listed in the MWSBE/PDBE and DBE Directory for the specific goods or services needed, the originating division shall ____. 2. If there are fewer than three certified vendors listed in the MWSBE/PDBE and DBE Directory for the specific goods or services needed, the originating division shall ____

1) contact a minimum of three of those vendors. 2) contact those vendors plus one or more nonMWSBE/ PDBE and DBE vendors to make a total of at least three vendor contacts.

(Informal Bids) When purchasing goods or services that are not City contract items, the following procedures shall be followed. The purchaser shall: c. Prepare a requisition in accordance with guidelines provided by SPD, including the ____

cost center and general ledger account numbers, and the material code.

(Informal Bids) When purchasing goods or services that are not City contract items, the following procedures shall be followed. The purchaser shall: d. Strictly follow the informal bidding process with the exception of...

when goods and/or services can be obtained only from a sole source supplier or manufacturer. In this case, the sole source procurement shall apply.

(Informal Bids) When purchasing goods or services that are not City contract items, the following procedures shall be followed. The purchaser shall: e. Evaluate and determine...

the lowest bid that meets bid specifications

(Formal Bids) The formal bidding process is used for onetime purchases to secure goods and/or services valued at...

greater than $50,000.

(Formal Bids) When purchasing goods and/or services that are not City contract items, the requester shall provide DPU the following: a. Detailed specifications or an...

SOW

(Formal Bids) When purchasing goods and/or services that are not City contract items, the requester shall provide DPU the following: b. ____ for the purchase

Justification

(Formal Bids) When purchasing goods and/or services that are not City contract items, the requester shall provide DPU the following: c. ____ quote

One

(Formal Bids) When purchasing goods and/or services that are not City contract items, the requester shall provide DPU the following: d. Approval by...

the appropriate assistant chief (or civilian equivalent) or above.

(Formal Bids) When purchasing goods and/or services that are not City contract items, the requester shall provide DPU the following: e. ____ source information

Funding

(Formal Bids) When purchasing goods and/or services that are not City contract items, the requester shall provide DPU the following: f. A ____

requisition

(Formal Bids) The DPU shall evaluate the required documents then forward them to ____for handling.

SPD

(Receiving Process) a. Obtain a ____ (hereinafter referred to as packing slip). b. Verify the packing slip shows ____. c. Verify the requested quantity ____. d. Verify the supplies or services meet the City's ____. e. Notify the delivery agent of any ____. f. Stamp, sign, and date the ____.

a. delivery receipt/packing slip b. an accurate description of the item c. was delivered d. published specifications e. overages, shortages, or damages f. packing slip

(Receiving Process) An authorized employee shall indicate receipt of accepted items in SAP within ____ business days following receipt, unless the receipt is in dispute.

five

(Receiving Process) If furniture or capital assets are delivered, employees shall verify the items have ____ in accordance with General Order 400-14, Control of Police Department Property.

HPD property tags

(Receiving Process) HPD property tag numbers may be obtained from the ____. Once an HPD property tag number has been assigned, ____ shall be contacted to obtain a SAP fixed asset number if required.

1) Office of Planning, Office Services Section | 2) B&F's Fixed Assets Group

(Receiving Process) If the receiver finds any overages, shortages, or damage, it shall be indicated on the ____ and on the ____. This information, along with the original packing slip shall immediately be forwarded to the division's command office for ____. The receiver shall retain a file copy of the packing slip. Following SAP entry, the command office shall forward the PO and the original packing slip to ____. The packing slip shall reference the PO number.

1) packing slip and on the PO 2) SAP entry 3) B&F

(Invoice Processing) Original invoices are sent to ____ for processing. All invoices shall reference a ____. B&F Accounts Payable shall process invoices for payments to vendors.

1) B&F Accounts Payable | 2) PO number

(SAP Budget Balances Review) Financial reports shall be reviewed for accuracy of budget transfers, encumbrances, and expenditures. Any overspending shall be addressed immediately. Balances not liquidated shall be adjusted for outstanding POs to...

determine available funds.

(SAP Budget Balances Review) Discrepancies between a division's internal accounting records and the City's SAP reports are to be investigated and corrected with the assistance of ___. Division personnel are responsible for tracking their division's requisitions and performing other responsibilities as defined in the ____procedures

1) B&F | 2) SAP

Any formalized changes to the bidding process | require the approval of the ____.

SPOC