Procurement Academy Over $5K and Contracts
Authority to Obligate <ul><li>The Purchasing department is delegated their authority to purchase for the organization from...
Authority to Sign Contracts <ul><li>The authority to sign any contract for the purchase of goods and services is delegated...
Process of Procuring Goods and Services >$5,000.00 <ul><li>Local contract </li></ul><ul><li>UT System Supply Chain Allianc...
Local Contracts <ul><li>Local Contracts:   UTHSC-H enters into contracts for goods and services that are used routinely by...
Local Contracts <ul><li>These contracts cover such things as office supplies, architectural services, household goods movi...
UT System Supply Chain Alliance contracts <ul><li>A group purchasing organization that works on behalf of all UT component...
State and Group Purchasing Organization (GPO) contracts <ul><li>Contracts for goods and services that are used routinely <...
Sole Source Purchases <ul><li>If a faculty or staff member feels that there is only one supplier who is capable of supplyi...
Sole Source Purchases <ul><li>The written justification must: </li></ul><ul><li>1) explain the need for the products or se...
Sole Source Purchases <ul><li>The Purchasing department will review the request to assure that the justification is valid ...
Service Contracts <ul><li>What is a Service Contract – aka – Professional or Personal Service contract and when is it used...
Service Contracts <ul><li>No work should be performed until the contract is signed by both parties </li></ul><ul><li>If th...
Service Contracts <ul><li>For all contracts that exceed $5K a Sole Source form must also be completed and approved prior t...
Special Purchases <ul><li>Purchases of these types of products require additional approvals: </li></ul><ul><ul><li>Radioac...
Vendors Status with the State <ul><li>All vendors are checked across several databases including; </li></ul><ul><ul><li>St...
Competitive Bid Process <ul><li>There are several types of competitive bids used by the Purchasing department: </li></ul><...
Invitation to Bid - Informal <ul><li>Informal bids (e-mail, fax, phone) are utilized for purchases $5K-$25K </li></ul><ul>...
Invitation to Bid - Formal <ul><li>Formal ITB is utilized for purchases >$25K </li></ul><ul><li>Scope of Work </li></ul><u...
RFP Bid Process <ul><li>Scope of Work </li></ul><ul><ul><li>The requesting department is responsible for developing the SO...
Terms & Conditions <ul><li>All purchases are governed by terms and conditions whether it is printed on quote or on a purch...
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  1. 1. Procurement Academy Over $5K and Contracts
  2. 2. Authority to Obligate <ul><li>The Purchasing department is delegated their authority to purchase for the organization from the President of the University. </li></ul><ul><li>The Purchasing department authorizes individual departments to purchase goods and services up to but not exceeding $5,000. </li></ul>
  3. 3. Authority to Sign Contracts <ul><li>The authority to sign any contract for the purchase of goods and services is delegated to the Purchasing department and select additional individuals from the President of the University. </li></ul><ul><li>Individuals within departments do not generally have the authority to sign contracts on behalf of UTHSC-H for the acquisition of goods and services. </li></ul>
  4. 4. Process of Procuring Goods and Services >$5,000.00 <ul><li>Local contract </li></ul><ul><li>UT System Supply Chain Alliance contracts </li></ul><ul><li>State contracts (DIR,TXMAS) </li></ul><ul><li>GPO’s (E&I, Novation…) </li></ul><ul><li>Sole Source determination </li></ul><ul><li>Competitive processes (ITB,RFP,RFI,RFQ) </li></ul>
  5. 5. Local Contracts <ul><li>Local Contracts: UTHSC-H enters into contracts for goods and services that are used routinely by departments within the University </li></ul><ul><li>These contracts are competitively bid </li></ul><ul><li>They normally have an effective period of 3-5 years </li></ul><ul><li>They are normally renewed on an annual basis subject to satisfactory performances </li></ul>
  6. 6. Local Contracts <ul><li>These contracts cover such things as office supplies, architectural services, household goods moving services, housekeeping services, etc. </li></ul><ul><li>When using these contracts, no bidding is required regardless of amount </li></ul><ul><li>Terms and conditions are pre-negotiated </li></ul><ul><li>http://buy.uth.tmc.edu/Forms/LC%20Listing%20for%20Web%20Posting.pdf . </li></ul>
  7. 7. UT System Supply Chain Alliance contracts <ul><li>A group purchasing organization that works on behalf of all UT components </li></ul><ul><li>Current contracts include laboratory equipment and laboratory consumables distribution. </li></ul><ul><li>Contracts are competitively bid </li></ul><ul><li>When using these contracts, no bidding is required regardless of amount </li></ul><ul><li>Terms and conditions are pre-negotiated </li></ul>
  8. 8. State and Group Purchasing Organization (GPO) contracts <ul><li>Contracts for goods and services that are used routinely </li></ul><ul><li>Contracts are competitively bid </li></ul><ul><li>When using these contracts, no bidding is required regardless of amount </li></ul><ul><li>GPO contracts terms and conditions are not specific to University </li></ul>
  9. 9. Sole Source Purchases <ul><li>If a faculty or staff member feels that there is only one supplier who is capable of supplying the good or service they require, they may submit a request to the Purchasing department in accordance with the Sole Source procedure outlined in the Purchasing Procedures Manual . </li></ul>
  10. 10. Sole Source Purchases <ul><li>The written justification must: </li></ul><ul><li>1) explain the need for the products or services </li></ul><ul><li>2) explanation of specific need/request </li></ul><ul><li>3) Reason why competing products are not satisfactory </li></ul><ul><li>4) Specific impact on department </li></ul><ul><li>5) The individual who is writing the justification must also sign a conflict of interest statement </li></ul>
  11. 11. Sole Source Purchases <ul><li>The Purchasing department will review the request to assure that the justification is valid and that only one product and/or supplier can provide the goods or services requested </li></ul><ul><li>If approved, the Buyer will write a statement to describe their due diligence that supports the justification and sign the request </li></ul><ul><li>The request must be approved and signed by both the Buyer and Manager or AVP, Procurement </li></ul>
  12. 12. Service Contracts <ul><li>What is a Service Contract – aka – Professional or Personal Service contract and when is it used? </li></ul><ul><ul><li>A Service contract is an agreement between the Contractor and the University that: </li></ul></ul><ul><ul><ul><li>Describes the work to be completed (Scope of Work) and Contractor deliverables </li></ul></ul></ul><ul><ul><ul><li>Defines the total not-to-exceed fee to be paid to the Contractor </li></ul></ul></ul><ul><ul><ul><li>Defines the time frame in which the Contractor has to perform the work </li></ul></ul></ul>
  13. 13. Service Contracts <ul><li>No work should be performed until the contract is signed by both parties </li></ul><ul><li>If the work to be completed will be paid for by grant funds it must first be reviewed by OSP </li></ul><ul><li>The contract period can be for multiple years </li></ul>
  14. 14. Service Contracts <ul><li>For all contracts that exceed $5K a Sole Source form must also be completed and approved prior to work beginning </li></ul><ul><li>Fees owed to contractors can be paid via a purchase order or a non-PO voucher – contact the Purchasing department to determine which is appropriate </li></ul>
  15. 15. Special Purchases <ul><li>Purchases of these types of products require additional approvals: </li></ul><ul><ul><li>Radioactive – approval by EH&S </li></ul></ul><ul><ul><li>Controlled Substances – approval by Procurement </li></ul></ul><ul><ul><li>Motor Vehicles – approval by EH&S fleet manager </li></ul></ul><ul><ul><li>Animals – approval by Animal Care department </li></ul></ul><ul><ul><li>Capital Assets – approval by Capital Assets Management </li></ul></ul><ul><ul><li>IT products and services over $5K – approval by IT </li></ul></ul><ul><ul><ul><li>For MSB – IT approval is needed for any amount </li></ul></ul></ul>
  16. 16. Vendors Status with the State <ul><li>All vendors are checked across several databases including; </li></ul><ul><ul><li>State of Texas Comptroller of Public Accounts </li></ul></ul><ul><ul><li>US Department of Treasury </li></ul></ul><ul><ul><li>Excluded Parties List System </li></ul></ul><ul><ul><li>HHS Office of Inspector General </li></ul></ul><ul><ul><li>Health & Human Services Office of Inspector General </li></ul></ul><ul><li>University cannot conduct business (PO’s, Payment’s,…) with debarred vendor until the issue is resolved </li></ul><ul><li>University conducts audit of random sample monthly </li></ul><ul><li>Vendor is responsible for resolving the issues and notify when complete </li></ul>
  17. 17. Competitive Bid Process <ul><li>There are several types of competitive bids used by the Purchasing department: </li></ul><ul><ul><li>Informal Bid </li></ul></ul><ul><ul><li>ITB – Invitation to Bid </li></ul></ul><ul><ul><li>RFP – Request for Proposal </li></ul></ul><ul><ul><li>RFQ – Request for Qualifications </li></ul></ul><ul><ul><li>RFI – Request for Information </li></ul></ul>
  18. 18. Invitation to Bid - Informal <ul><li>Informal bids (e-mail, fax, phone) are utilized for purchases $5K-$25K </li></ul><ul><li>Price and delivery are the evaluation criteria for an informal bid </li></ul><ul><li>Departments or Purchasing can solicit these informal bids </li></ul>
  19. 19. Invitation to Bid - Formal <ul><li>Formal ITB is utilized for purchases >$25K </li></ul><ul><li>Scope of Work </li></ul><ul><ul><li>The requesting department is responsible for developing the SOW (Scope of Work) and/or products specifications </li></ul></ul><ul><ul><li>Purchasing will evaluate bids based on price and delivery </li></ul></ul><ul><ul><li>Purchasing awards the contract </li></ul></ul>
  20. 20. RFP Bid Process <ul><li>Scope of Work </li></ul><ul><ul><li>The requesting department is responsible for developing the SOW (Scope of Work) and/or products specifications </li></ul></ul><ul><ul><li>Clear evaluation criteria is necessary </li></ul></ul><ul><ul><li>Evaluation teams will score proposals </li></ul></ul><ul><ul><li>Purchasing will score pricing and delivery </li></ul></ul><ul><ul><li>Purchasing awards the contract </li></ul></ul>
  21. 21. Terms & Conditions <ul><li>All purchases are governed by terms and conditions whether it is printed on quote or on a purchase order </li></ul><ul><li>The University has in place standard terms and conditions to govern all purchases of goods and services in accordance with the laws of The State of Texas </li></ul>

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