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Handbook of Business Procedures

Date published: 
Last revised: 
Issued by: 

March 5, 2012
May 5, 2016
Purchasing

 

Part 7. Purchasing - Table of Contents


7.5.2. USE OF EXISTING CONTRACTS

There are a variety of contracts that are available to faculty and staff for the purchase of goods and services. These contracts have already been competitively solicited and are in compliance with terms and conditions that are acceptable to The University of Texas at Austin.

A. Local Contracts

Local contracts are contracts that have been competitively bid by the university for certain goods and services that are useful to multiple schools and departments. Commonly used local contracts can be found on the Existing Contracts Web page, and users can review the contracts listed to determine if the products or services meet their needs.

B. The University of Texas System Contracts

The University of Texas System has a list of competitively bid System-Wide Contracts that are available for use by all University of Texas Institutions. Note: Use of the System-Wide Contracts website requires a UT EID and password.

C. State Contracts

There are a variety of contracts available for use by state of Texas agencies. These contracts are accessed through the use of a purchase order which references a specific contract number.

  1. Contracting Authorities
    • Texas Multiple Award Schedule (TXMAS)
      Furniture, chemicals, scientific equipment, audio/visual equipment, various services (office moves, event planning, consulting, training, etc.), apparel, boats/carts/vehicles, etc.
    • Department of Information Resources (DIR)
      Computers, hardware, software, telecommunications, networking, training, IT services, etc.
    • Term Contracts
      • TxSmartBuy Term Contract Index
        Art supplies, service awards, bookbinding, laboratory equipment and supplies, computer accessories, rubber stamps, janitorial supplies, furniture, business cards, etc.
      • Managed Term Contract IndexManaged Contracts
        Lab equipment and supplies, animal feed, laundry services, etc.
        Note: To find the Managed contracts, look in the Contract Category column for Managed.
      • Managed Term Contract IndexCouncil on Competitive Government (CCG) Contracts
        Document destruction, mail services, print shop, Geographic Information Services (GIS), etc.
        Note: To find the CCG contracts, look in the Contract Category column for CCG.
      • “Green” Items on TxSmartBuy Term Contracts
        Recycled, remanufactured, and environmentally sensitive products

  2. Processing Guidelines

    A minimum of three quotes/proposals are required to make an award for all commodities and services with an expected value that will exceed $15,000 from suppliers in the same category (e.g., Web design, furniture, data migration, audio/visual equipment, implementation services, etc.).

      • A minimum of three quotes/proposals are required from suppliers in the same category. Note:  This can include obtaining quotes from three resellers on a specific DIR contract.
      • If there are only two suppliers in a category, obtain quotes from both.
      • If only one supplier has a contract, this must be documented in the purchasing file, and the purchase can be made without further justification.
      • For purchases that will exceed $1 million, approval from The University of Texas Board of Regents Audit, Compliance and Management Review Committee (ACMR) is required prior to issuance of a purchase order or contract.
      • The Board of Regents approval is required for purchases that exceed $3 million.
    1. Commodities
      • For purchases with an expected value between $15,000 and $50,000, the school/department may obtain the quotes, and the quotes must be valid for a minimum of 20 days from the date sent to the Purchasing Office.
      • For purchases with an expected value over $50,000, schools/departments must provide specifications to the Purchasing Office.  The Purchasing Office will request quotes from suppliers.
    2. Services
      • For all purchases with an expected value of greater than $15,000, the Purchasing Office is required to obtain proposals from suppliers.  The schools/departments must work with the Purchasing Office to develop a detailed scope of work (SOW). Proposals may be evaluated utilizing best value criteria and be scored by an evaluation team.

D. Group Purchasing Organizations

The university belongs to several group purchasing organizations (GPOs) for the purpose of aggregating spend volume with other purchasers to achieve contracts with advantageous prices and services. These contracts are accessed through the use of a purchase order that references the specific GPO contract being used. Participation in a GPO must be authorized by the assistant vice president and director of procurement services.

Sales representatives whose companies have contracts with GPOs can provide information to faculty and staff regarding the specifics of those contracts. The contract type and number must be included on all sales quotes. In addition, Purchasing Office staff members are familiar with GPO contracts and can provide assistance to faculty and staff in procuring goods and services.

  1. GPOs Approved for Use
  2. Processing Guidelines:
    1. UT System Supply Chain Alliance
      • Only one quote or proposal is required regardless of the amount of the purchase.
      • UT System Board of Regents approval is required for amounts greater than $3 million.
    2. Premier, Inc.
      • For amounts between $15,000 and $3 million only one quote or proposal is required.
      • For amounts greater than $3 million, a minimum of three quote or proposals are required from suppliers in the same category
        • If there are only two suppliers in a category, obtain proposals from both.
        • If only one supplier has a contract, this must be documented in the purchasing file, and the purchase can be made without further justification.
      • For purchases that will exceed $3 million, approval from the UT System Board of Regents Audit, Compliance and Management Review Committee (ACMR) must be received prior to issuance of a purchase order or contract.
      • UT System Board of Regents approval is required for amounts greater than $3 million.
    3. Other GPOs
      • A minimum of three quotes or proposals are required from suppliers in the same category.
        • If there are only two suppliers in a category, obtain quote or proposals from both.
        • If only one supplier has a contract, this must be documented in the purchasing file, and the purchase can be made without further justification.
      • For purchases of commodities with an expected value between $15,000 and $50,000, the school/department must obtain the quote, and the quote must be valid for 20 days from the date sent to the Purchasing Office.
      • For purchases of commodities with an expected value greater than $50,000, schools/departments must provide specifications to the Purchasing Office. Purchasing will request quotes from suppliers.
      • For purchase of services with an expected value greater than $15,000:
        • The schools/departments must work with the Purchasing Office to develop a detailed scope of work (SOW). The Purchasing Office is required to obtain proposals from suppliers.
        • Proposals may be evaluated utilizing best value criteria and be scored by an evaluation team.
      • For purchases that will exceed $1 million, approval from the UT System Board of Regents Audit, Compliance and Management Review Committee (ACMR) must be received prior to issuance of a purchase order or contract.
      • For purchases that will exceed $3 million, UT System Board of Regents approval must be received prior to issuance of a purchase order or contract.

E. Other State Agencies

Texas law authorizes institutions of higher education to use the group purchasing procurement method. This allows the university to utilize contracts competitively bid by other higher education institutions (i.e., MD Anderson, Texas A&M University). Contracts commonly used by the university can be found on the Existing Contracts Web page.

 

 

Part 7. Purchasing - Table of Contents