|(a) As used throughout this chapter, words and terms
defined in the State Purchasing and General Services Act, Government
Code, Title 10, Subtitle D, and the Code Construction Act, Government
Code, Chapter 311 shall have the same meaning as defined therein,
and each word or term listed in this chapter shall have the meaning
set forth herein, unless:
(1) its use clearly requires a different meaning; or
(2) a different definition is prescribed for a particular
chapter or portion thereof.
(b) The following words and terms, when used in this
chapter, shall have the following meaning unless the context clearly
(1) Act--The State Purchasing and General Services
Act, Government Code, Title 10, Subtitle D, Chapter 2151, et seq,
including any amendments thereto that may be made from time to time.
(2) Advisory groups--A group that advises and assists
the standards and specification program in establishing specifications.
The advisory group may include representatives from federal, state
and local governments, user groups, manufacturers, vendors and distributors,
bidders, associations, colleges, universities, testing laboratories,
and others with expertise and specialization in particular product
(3) Agent of record--An employee or official designated
by a qualified cooperative entity as the individual responsible to
represent the qualified entity in all matters relating to the program.
(4) Approved products list--The list is also referred
to as the approved brands list or qualified products list. It is a
specification developed by evaluation of brands and models of various
manufacturers and listing those determined to be acceptable to meet
the minimum level of quality. Testing is completed in advance of procurement
to determine which products comply with the specifications and standards
(5) Award--The act of accepting a bid, thereby forming
a contract between the state and a bidder.
(6) Bid--An offer to contract with the state, submitted
in response to a bid invitation issued by the comptroller.
(7) Bid deposit--A deposit required of bidders to protect
the state in the event a low bidder attempts to withdraw its bid or
otherwise fails to enter into a contract with the state. Acceptable
forms of bid deposits are limited to: cashier's check, certified check,
or irrevocable letter of credit issued by a financial institution
subject to the laws of Texas and entered on the United States Department
of the Treasury's listing of approved sureties; a surety or blanket
bond from a company chartered or authorized to do business in Texas.
(8) Bidder--An individual or entity that submits a
bid. The term includes anyone acting on behalf of the individual or
other entity that submits a bid, such as agents, employees, and representatives.
(9) Blanket bond--A surety bond which provides assurance
of a bidder's performance on two or more contracts in lieu of separate
bonds for each contract. The amount for a blanket bond shall be established
by the comptroller based on the bidder's annual level of participation
in the state purchasing program.
(10) Brand name--A trade name or product name which
identifies a product as having been made by a particular manufacturer.
(11) Centralized master bidders list (CMBL)--A list
maintained by the comptroller containing the names and addresses of
prospective bidders and catalog information systems vendors.
(12) Comptroller--The Comptroller of Public Accounts
of the State of Texas or the designated and authorized representative
of the Comptroller of Public Accounts of the State of Texas.
(13) Contract value or the value of a contract--The
estimated dollar amount that a state agency may be obligated to pay
pursuant to the contract and all executed and proposed amendments,
extensions and renewals of the contract.
(14) Contractor--A vendor that contracts to provide
goods or services to the state under the Act and all successors-in-interest
to that contractor.
(15) Cooperative purchasing program--A program to provide
purchasing services to qualified cooperative entities, as defined
(16) Customer choice--Customer choice as the term is
defined under Utilities Code, §31.002(4).
(17) Debarment--An exclusion from contracting or subcontracting
with state agencies on the basis of any cause set forth in the Act
or these rules, commensurate with the seriousness of the offense,
performance failure, or inadequacy to perform.
(18) Director--The director of the division.
(19) Distributor purchase--Purchase of repair parts
for a unit of major equipment that are needed immediately or as maintenance
contracts for laboratory/medical equipment.
(20) Division--The organizational division within the
office of the Comptroller of Public Accounts for the State of Texas
performing the responsibilities identified in the Act for and under
the direction of the comptroller.
(21) Emergency procurement--A situation requiring the
state agency to make the procurement more quickly to prevent a hazard
to life, health, safety, welfare, or property or to avoid undue additional
cost to the state.
(22) Environmentally sensitive products--Products that
protect or enhance the environment, or provide less risk to the environment
than traditionally available products.
(23) Equivalent product--A product that is comparable
in performance and quality to the specified product.
(24) Electronic State Business Daily (ESBD)--A business
daily made available on the Internet at an electronic procurement
marketplace to which state agencies post contract opportunities that
will exceed $25,000 in value.
(25) Formal bid--A written bid submitted in a sealed
envelope in accordance with a prescribed format, or an electronic
data interchange transmitted to the comptroller in accordance with
procedures established by the comptroller.
(26) Group purchasing program--A purchasing program
that offers discount prices to two or more state agencies, which is
formed as a result of interagency or interlocal cooperation and follows
all applicable statutory standards for purchases.
(27) Historically Underutilized Business or HUB--A
historically underutilized business as defined by Government Code,
Chapter 2161 and Subchapter D, Division 1 of these rules.
(28) Informal bid--An unsealed, competitive bid submitted
by letter, telephone, or other means.
(29) Invitation for bids (IFB)--A written request for
submission of a bid; also referred to as a bid invitation.
(30) Invoice--A document presented by a contractor
for payment, which includes information necessary for payment processing,
and is received by mail, hand delivery, electronically, or by facsimile
(31) Late bid--A bid that is received at the place
designated in the bid invitation after the time set for bid opening.
(32) Level of quality--The ranking of an item, article,
or product in regard to its properties, performance, and purity.
(33) Local government--A county, municipality, special
district, school district, junior college district, regional planning
commission, or other political subdivision of the state pursuant to
Local Government Code, §271.101.
(34) Manufacturer's price list--A price list published
in some form by the manufacturer and available to and recognized by
the trade. The term does not include a price list prepared especially
for a given bid.
(35) Multiple award contract (as it applies to Multiple
Award Schedule Contracts)--An award of a contract for an indefinite
amount of one or more similar goods or services from a vendor.
(36) Multiple award contract procedure--A purchasing
procedure by which the comptroller establishes one or more levels
of quality and performance and makes more than one award at each level.
(37) Non-competitive purchase--A purchase of goods
or services (also referred to as "spot purchase") that does not exceed
the amount stated in §20.82 of this title (relating to Delegated
(38) Notice of award--A letter signed by the comptroller
or the designee which awards and creates a term contract.
(39) Open market purchase--A purchase of goods, usually
of a specified quantity, made by buying from any available source
in response to an open market requisition.
(40) Performance bond--A surety bond which provides
assurance of a bidder's performance of a certain contract. The amount
for the performance bond shall be based on the bidder's annual level
of potential monetary volume in the state purchasing program. Acceptable
forms of bonds are those described in the definition for "bid deposit."
(41) Perishable goods--Goods that are subject to spoilage
within a relatively short time and that may be purchased by agencies
under delegated authority.
(42) Post-consumer materials--Finished products, packages,
or materials generated by a business entity or consumer that have
served their intended end uses, and that have been recovered or otherwise
diverted from the waste stream for the purpose of recycling.
(43) Pre-consumer materials--Materials or by-products
that have not reached a business entity or consumer for an intended
end use, including industrial scrap material, and overstock or obsolete
inventories from distributors, wholesalers, and other companies. The
term does not include materials and by-products generated from, and
commonly reused within, an original manufacturing process or separate
operation within the same or a parent company.
(44) Prescribed form--The entry screens available in
(45) Proprietary--Products or services manufactured
or offered under exclusive rights of ownership, including rights under
patent, copyright, or trade secret law. A product or service is proprietary
if it has a distinctive feature or characteristic which is not shared
or provided by competing or similar products or services.
(46) Public utility or utility--A public utility or
utility as the term is defined under Utilities Code, §11.004.
(47) Purchase orders--A document issued by a qualified
ordering entity to make a purchase under a term contract issued by
the comptroller by these rules.
(48) Purchasing functions--The development of specifications,
receipt and processing of requisitions, review of specifications,
advertising for bids, bid evaluation, award of contracts, and inspection
of merchandise received. The term does not include invoice, audit,
or contract administration functions.
(49) Qualified cooperative entity--An entity that qualifies
for participation in the cooperative purchasing program and includes:
(A) a local government;
(B) a mental health and mental retardation community
center identified in Government Code, §2155.202, that receive
grants-in-aid under the provisions of Health and Safety Code, Chapter
534, Subchapter B;
(C) an assistance organization as defined in Government
Code, §2175.001, that receive any state funds; and
(D) a political subdivision, as defined by Government
Code, Chapter 791.
(50) Qualified Ordering Entity--An entity that is either:
(A) a state agency; or
(B) a qualified cooperative entity that has registered
with the comptroller to participate in the cooperative purchasing
program as defined in Local Government Code, Subchapter D, §271.081.
(51) Recycled material content--The portion of a product
made with recycled materials consisting of pre-consumer materials
(waste), post-consumer materials (waste), or both.
(52) Recycled materials--Materials, goods, or products
that contain recyclable material, industrial waste, or hazardous waste
that may be used in place of raw or virgin materials in manufacturing
a new product.
(53) Recycled product--A product, including recycled
steel that meets the requirements for recycled material content as
prescribed by the rules established by the Texas Commission on Environmental
Quality in consultation with the comptroller.
(54) Registered agent--A representative designated
by each state agency responsible for posting eligible procurement
opportunities in the ESB.
(55) Remanufactured product--A product that has been
repaired, rebuilt, or otherwise restored to meet or exceed the original
equipment manufacturer's (OEM) performance specifications; provided,
however, the warranty period for a remanufactured product may differ
from the OEM warranty period.
(56) Request for proposal--A written request for offers
concerning goods or services the state intends to acquire by means
of the competitive sealed proposal procedure.
(A) Open market purchase requisition. An initiating
request from an agency describing needs and requesting the comptroller
to purchase goods or services to satisfy those needs.