Procurement Method- SPD Non-Delegated Purchases

Question 1

What are the Non-Delegated Purchases?

Answer 1

1) State and Federal Surplus (no competitive bid)
2) Set Aside Programs (TCI or State Use)
3) Term Contracts (for goods and services used in large quantities): Term Contracts, Managed Term Contracts, Travel Services Contracts
4) Interagency Cooperative Contracts (no comp. bid)
5) Interlocal Cooperative Contracts
6) SPD Administered Agency Specific Procurements
7) Proprietary Purchases (some could be done under delegation by rule)
8) Mail and Messenger Service Contracts
9) Printing Services
10) Used equipment
11) Contracts established by another state agency
12) Federal Govt. or Interstate Agreements

Question 2

What is a proprietary purchase?

Answer 2

specifications or conditions of the proposed purchase are proprietary (distinctive feature not shared by competing products or services) to one vendor and do not permit an equivalent product or service to be supplied (e.g. patented, copyrighted, rights under trade secret)

1) Sole source- product or service is only available through a single vendor (e.g. back issue of a magazine, or educational conference only from conference sponsor)
2) Competitive- The specified product is available for purchase through more than one vendor (e.g. dealers, distributors, resellers) Examples include: Brand specific replacement parts or software (Microsoft Suite)

Question 3

What must a proprietary purchase justification include?

Answer 3

(1) describe the product or service and agency’s business need and planned use;
(2) explain why specifications are necessary to accomplish the agency’s goal for the procurement;
(3) state the reason that no other competing products or services will satisfy the need and provide examples of the technical, practical, or operational risks that would occur if competing products or services are selected; and
(4) specify whether the purchase is sole source or competitive.

Question 4

When is a proprietary justification not required?

Answer 4

procurements valued at $5,000 or less.

Question 5

What must agencies use for printing valued at $2,500 or more?

Answer 5

SPD approved State Print Shops- using Print Shop Job Request Form and competitively procured.

Question 6

For print purchases, who must be given the final opportunity to meet or beat the lowest price?

Answer 6

TCI

Question 7

What must an agency do before issuing a PO for printing (more than $2,500)

Answer 7

Best value determination by getting bids from State Print Shops and TCI must be given opportunity to meet or beat the lowest price

Question 8

What is the State and Federal Surplus Program?

Answer 8

Acquisition and disposal of surplus or salvage property

Federal program is only for acquisition

Question 9

What must state agencies use for the disposal of surplus and salvage state agency property unless exempted

Answer 9

TFC’s Surplus property program- state and federal

Question 10

Are acquisitions from surplus property competitively bid?

Answer 10

NO

Question 11

What are 2 methods of acquiring State Surplus property?

Answer 11

1) Transfer from agency through posting for 10 business days

2) From the TFC storefront that is public sales

Question 12

What are examples of items commonly available for transfer through Statue Surplus property?

Answer 12

office furniture and equipment, vehicles, heavy equipment, trailers, computer equipment

Question 13

Where do items come from for State Surplus Property?

Answer 13

state agencies and Transportation Security Administration (airports)

Question 14

What are details of the Federal Surplus program?

Answer 14

1) Property comes from US govt agencies
2) Available to “donees” no public sales
3) Wider variety of property than State Surplus
4) Lower fees than state program

Question 15

When is an Interagency Cooperation Contract (IAC) not required?

Answer 15

1) an emergency for the defense or safety of the civil population or in the planning and preparation for those emergencies;
2. cooperative efforts, proposed by the governor, for the economic development of the state; or
3. a situation in which the amount involved is less than 50,000

Question 16

What must contracting agencies certify to ensure that an Interagency Cooperation Contract is statutorily compliant?

Answer 16

1) the services are NECESSARY AND ESSENTIAL AND WITHIN STATUTORY FUNCTIONS of the affected agencies of state government;
2) the arrangements serve the interest of EFFICIENT AND ECONOMICAL ADMINISTRATION of those agencies;
3) the contract neither requires, nor permits, either party to exceed its duties or the limitations of its appropriated funds.

Question 17

What is an Interlocal Cooperation Contract?

Answer 17

A written agreement between local government entities, between local govt entity and federally recognized Indian tribe within boundaries of Texas, or between local govt entity and state agency or another state.

Question 18

What are the requirements of an Interlocal Cooperation Contract?

Answer 18

1) must be authorized by the governing body of each party to the contract
2) state the purpose, terms, rights, and duties of the contracting parties
3) specify that each party paying for the performance of functions makes those payments from current revenues

Question 19

What are Term Contracts? From the slide presentation, list the 3 types of Term Contracts.

Answer 19

1) Contracts established by SPD for the purchase or lease of goods and services used in large quantities by several agencies- can find by NIGP code
2) competitive bidding by agencies is not required for items purchased from Term Contracts
3) Ordered through Texas SmartBuy
4) Not allowed to use delegated authority to purchase goods or services available through Term Contracts UNLESS quantity required is less than the minimum required
3 types of term contracts: Term contracts, managed contracts, travel services contracts

Question 20

When would an agency be permitted to use delegated authority to purchase goods or services that are already available through Term Contracts?

Answer 20

When the quantity required is less than the minimum order specified in the Term Contract

Question 21

What is a Managed Term Contract?

Answer 21

1) Type of Term Contract that requires manual processing
2) Have different pricing structures or require a quote that is based on a discount percentage due to agency’s business need or for deliveries
3) Found on Texas SmartBuy BUT NOT PURCHASED through the e-system- instead through a PO directly to the vendor

Question 22

What are Travel Service Contracts?

Answer 22

Negotiated contracts with travel agents, travel and transportation providers, commercial lodging

Question 23

What are exceptions to using Travel Service Contracts?

Answer 23

1) Lower cost to the state (e.g. based on advance reservation, promotional reductions)
2) Unavailability of contract travel services (based on time, location, required service not included in contract, or contractor unable to provide service due to force majeure event)
3) Special needs. The traveler’s health, safety, physical condition, or disability requires accommodations, including medical emergency or other necessary services, not available from SPD’s travel service contracts
3) Custodians of persons. The traveler has custody of a person pursuant to statute or court order and the traveler is required to provide a degree of security and safety
4) In travel status. The traveler is in the course of travel and changes in scheduling render the use of SPD’s travel services contracts impractical or the appropriate travel services are not available.
5) Group program. The traveler is using a group program wherein reservations were made through a required source to obtain a particular rate or service
6) Emergency response. The traveler is responding to a public health or safety emergency situation
7) Legally required attendance. The traveler is required by a court, administrative tribunal, or other entity to appear at a particular time and place without sufficient notice

Question 24

When is competitive bidding not required for proprietary procurements?

Answer 24

1) Sole source equal to or less than $25,000

Question 25

What are some example of surplus and salvage property that must have oversight from TFC for advertisement or disposal?

Answer 25

• Scrap metal, recycling (except paper),
• Vehicles, including wrecked/salvage,
• Modular furniture (cubicles),
• Office furniture and equipment,
• Computer peripherals and other electronics, and
• Computers.

Question 26

What is an Interagency Cooperation Contract?

Answer 26

A written understanding between two or more agencies for services, materials, or equipment. Authorized by Chapter 771 of the Texas Government Code. Competitive bidding requirements do NOT apply to Interagency Contracts.

Question 27

What are examples on non-compliant proposed Proprietary Purchase Justification?

Answer 27

“[Vendor] is the exclusive patent holder of product. No other manufacturer can legally produce [the product] with the same properties.”
This vendor is our incumbent and only their products will work with the equipment we already have.
Our agency has performed research [on these products]. The manufacturer can provide [a range of products] that will enable [our agency] to [meet our statutory requirement].”