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TITLE 34PUBLIC FINANCE
PART 1COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 20STATEWIDE PROCUREMENT AND SUPPORT SERVICES
SUBCHAPTER BPUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION
DIVISION 1PRIMARY AND DELEGATED PROCUREMENT AUTHORITY
RULE §20.82Delegated Purchases

(a) General delegation. The purchasing functions for the purchase of the following goods or services are delegated to state agencies:

  (1) one-time purchases of goods, including goods for resale that do not exceed $50,000;

  (2) emergency purchases;

  (3) purchases of perishable goods;

  (4) purchases of services, including services for resale, the estimated cost of which does not exceed $100,000;

  (5) purchases of publications directly from the publisher;

  (6) fuel, oil, and grease purchases; and

  (7) distributor purchases.

(b) Provisions generally applicable to delegated purchases.

  (1) Competitive bidding is not required for purchases of $5,000 or less.

  (2) All bids must be obtained from sources which normally offer for sale the merchandise being purchased.

  (3) Items purchased under delegated authority may not include scheduled items, items available under a term contract (unless purchased in quantities less than minimum ordering quantities shown in contract), or any item required by law to be purchased from a particular source.

  (4) The comptroller must solicit formal bids from all eligible vendors on the centralized master bidders list (CMBL) when making purchases in excess of $25,000. The comptroller waives the requirement for state agencies to solicit bids from all eligible vendors on the list when making purchases under subsection (d) of this section. State agencies must solicit from all eligible vendors on the CMBL when making service purchases in excess of $100,000 that the comptroller has delegated to an agency.

(c) Withdrawal of delegated purchase authority. The comptroller will verify compliance with established procedures for delegated purchases and may withdraw delegated purchase authority in whole or part from a state agency for continued violations after giving adequate warning. The comptroller will report to the governor, lieutenant governor, speaker of the house of representatives, and Legislative Budget Board the findings that a state agency has not followed the comptroller's rules or the laws related to the delegated purchases.

(d) Provisions applicable to particular delegated purchases.

  (1) Goods purchases. Purchases of goods may be made in accordance with the following provisions.

    (A) State agencies must attempt to obtain at least three informal bids, including a minimum of two bids from historically underutilized businesses (HUBS), on all purchases of goods in excess of $5,000 and not over $25,000. State agencies must meet competitive bidding requirements and may supplement the list of bidders obtained from the CMBL with potential bidders contained in the HUBs Directory, which is maintained and accessible electronically on the comptroller's website. If a state agency is unable to locate two HUBs from the comptroller's CMBL and HUB Directory or other available sources, the state agency must make a written notation in the purchase file of all reference sources used.

    (B) State agencies must attempt to provide a copy of the bid to the last vendor who held the contract in addition to the informal bid requirement.

  (2) Emergency purchases. The comptroller will approve payment for emergency purchases in accordance with the following provisions.

    (A) At least three informal bids should be obtained whenever possible.

    (B) For an emergency purchase of goods or services exceeding $25,000, a state agency must send a full written explanation of the emergency along with other documentation required by the comptroller.

    (C) The agency may contact the comptroller for advice and assistance in the handling of emergency purchases. The comptroller may not approve an invoice for an emergency purchase unless the agency has complied with the foregoing requirements. This section does not apply to purchases made in accordance with Government Code, Chapter 418 (Texas Disaster Act of 1975).

  (3) Perishable goods. Purchases made under this authority must be obtained through competitive bids, and appropriate documentation must be forwarded to the comptroller.

  (4) Services. Purchases of services estimated to cost no more than $100,000 per year per contract are delegated and must be obtained through a competitive selection process, and appropriate documentation must be forwarded to the comptroller for prepayment approval.

    (A) A state agency is required to maintain documentation justifying proprietary purchases of services over $25,000 and for purchases expected to cost more than $25,000 per year.

    (B) State agencies must attempt to obtain at least three informal bids, including a minimum of two bids from HUBs, on all service purchases in excess of $5,000 and not over $25,000. As a supplement to the CMBL, agencies may refer to the comptroller's HUB Directory, which is maintained and accessible electronically, to locate HUBs in the agencies' geographic region. If an agency is unable to locate two HUBs from the comptroller's HUB Directory or other available sources, the state agency must make a written notation in the purchase file of all reference sources used.

    (C) For purchases of services estimated to cost more than $25,000 and less than $100,000, state agencies shall, as a minimum, solicit formal bids from all CMBL and HUB Directory vendors located in the state agencies' geographic region.

    (D) For purchases of services estimated to cost more than $100,000 per year, the comptroller must review any proposed specifications or statements of work and determine whether the comptroller or the state agency should make the advertisement and award. The comptroller may determine that the service should be advertised to the entire CMBL rather than to only those vendors in the state agency's geographical area. If no competitive advantage would be obtained by having the comptroller make the advertisement and award, the comptroller may permit the state agency to do so as a delegated purchase.

  (5) Publications. A state agency may purchase publications directly from the publisher when such publications are not available through statewide contract or through competitive bidding. Direct publication orders shall be made by following guidelines established by the comptroller. Examples of direct publications include, but are not limited to:

    (A) foreign publications;

    (B) out-of-print or rare publications;

    (C) back issues of magazines, journals, and newspapers;

    (D) publications of professional societies;

    (E) prepared films, tapes, and discs (audio, visual, or both);

    (F) computer software;

    (G) collections of any of the foregoing items, and microfilm or microfiche copies of any of the foregoing items; and

    (H) Library of Congress cards.

  (6) Fuel, oil, and grease. A state agency may make fuel, oil, and grease purchases at service stations or in bulk. Fuel, oil, and grease purchases shall be made by following guidelines suggested by the comptroller. Non-competitive and emergency purchase procedures apply to purchases at service stations.

  (7) Distributor purchases. A state agency may make distributor purchases by following guidelines established by the comptroller. A state agency may not purchase any of the following on a distributor purchase basis: consumable items; labor of any kind (see "service"); "will fit" parts (non-OEM); parts for stock; contract items; electrical parts for electric motors; electrical switch panel boards; electrical accessories.

(e) Specific delegations. The authority to grant specific delegations resides with the director. The application method, review process, delegation finding, and appeal process will be set forth by policy statement of the director. At a minimum, state agencies granted specific delegations shall meet the following criteria:

  (1) procurement audit standards set forth in §20.510 of this title (relating to Auditing of Purchase Related Documentation);

  (2) minimum training and certification standards established in the State Procurement Manual and Contract Management Guide; and

  (3) approved processes and procedures for the specific type of delegation being requested. All processes and procedures are subject to the prior review, revision and approval of the director.

(f) Debarred vendors. State agencies shall ensure that debarred vendors do not participate in state contracting and will establish procedures to ensure awards are not made to debarred vendors.


Source Note: The provisions of this §20.82 adopted to be effective January 24, 2017, 42 TexReg 229

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