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RULE §20.82Delegated Purchases

(a) General delegation. The purchase of the following goods and services is delegated to state agencies:

  (1) one-time purchases of goods, including goods for resale, the estimated cost of which does 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;

  (7) distributor purchases; and

  (8) professional memberships.

(b) Provisions generally applicable to delegated purchases.

  (1) Competitive bidding is not required for purchases of $10,000 or less.

  (2) All required solicitations of informal bids must be directed to vendors which normally offer for sale the goods and services being purchased.

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

  (4) The state agency must solicit formal bids from all eligible vendors on the centralized master bidders list (CMBL) when making purchases in excess of $25,000.

  (5) The state agency must maintain documentation justifying a proprietary purchase in excess of $10,000. A solicitation for a proprietary purchase must indicate that it is proprietary and products or services other than those specified will not be considered.

  (6) An agency's cost estimate must be developed in good faith using a method that is reasonable under the circumstances.

(c) Withdrawal of delegated purchase authority. The comptroller will monitor 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 and services purchases. Purchases of goods and services may be made in accordance with the following provisions.

    (A) State agencies must solicit at least three informal bids, including at least two bids from historically underutilized businesses (HUBs), on all purchases of goods and services exceeding $10,000 and not exceeding $25,000. State agencies must, to the extent possible, solicit bids from vendors on the CMBL and vendors in the HUB Directory. If a state agency is unable to locate two HUBs, it must make a note in the contract file.

    (B) For delegated purchases of goods and services estimated to cost more than $25,000, state agencies shall post a solicitation or notice of solicitation on the ESBD and, at a minimum, solicit formal bids from all eligible vendors within the NIGP classes and items designated for the procurement that are active on the CMBL. See §20.207 of this title (relating to Competitive Sealed Bidding), and §20.208 of this title (relating to Competitive Sealed Proposals).

  (2) Emergency purchases. State agencies shall make 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 retain a full written explanation of the emergency along with other documentation required by the comptroller in the contract file.

    (C) A state agency may contact the comptroller for advice and assistance in the handling of emergency purchases.

  (3) Perishable goods. Purchases of perishable goods must be obtained through competitive bids, and appropriate documentation must be retained in the contract file.

  (4) 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.

  (5) 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.

  (6) 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.

  (7) Professional memberships. A state agency may purchase professional memberships as described in Government Code, §2113.104 directly from a professional organization when such memberships are not available through competitive bidding, the administrative head of the agency, or that person's designee, has approved the purchase, the purchase will serve a public purpose, and the agency will receive adequate consideration in exchange for the purchase.

(e) Specific delegations.

  (1) The authority to grant specific delegations resides with the director. Upon request of a state agency, the director shall determine whether to delegate a procurement to a state agency or to carry out the procurement.

  (2) A state agency seeking a specific delegation shall submit its proposed specifications for goods and services and evaluation criteria to the division using a procedure specified by the division. Alternately, a state agency may request for the division to develop specifications and evaluation criteria.

  (3) At a minimum, state agencies granted specific delegations shall meet the following criteria:

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

    (B) minimum training and certification standards established in §20.133 of this title (relating to Training and Certification Program); and

    (C) 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.

Source Note: The provisions of this §20.82 adopted to be effective January 24, 2017, 42 TexReg 229; amended to be effective May 1, 2022, 47 TexReg 2553

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