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