The Attorney General of Texas 

March 23, 1981 

MARK WHITE 

Altorney General 

Mr. Homer A. Foerster 

Executive Director 

State Purchasiw & General 

Services Commission 

L&J. State Offhe Building 

Austin, Texas 787 11 

Dear Mr. Poerster: 

Opinion No. MW-310 

Re: Construction of section 3.08(a) 

of article 60&i, V.T.C.S. 

You have requested our opinion regarding this question: 

Is the commission authorized by section 3.08(a) of 

article SOlb, V.T.C.S., to waive alI oompetitive 

bidding requirements, whether formal or informal, on 

delegated purchases mder $1000 

Artiele 6Olb, V.T.C.S., the State Purchasing and General Services Act, 

provides in pertinent part as follows: 

See. 3.08. (a) The commission shall establish a 

pmeedure by which state egencies shall be delagated 

the authority to purchase supplies, materials, and 

equipment if the purchase is less than $600 and shall 

provide in the procedure that formal competitive 

bidding is not required for purchases under $100. 

. . . . 

(d) A3encies making purchases under this section 

must attempt to obtain at least three competitive 

bids from sa~rces which normally offer for sale the 

merehandke being purchased. 

. . . . 

sec. 3.10. . . . All purchases of and contracts 

for supplies, materiab, services, and equipment shall, 

except as provided herein, be based whenever possible 

on competitive bids. 

n. QA7 
Mr. Homer A. Poerster - Psge Two (H-310) 

You state that the commission delegates authority to make such purchases to 

agencies under its Rule 028.12.OLO59b), but that it asks agencies to take a minimum of 

three informal competitive bicb where possible. Tbs rule does not distbguish between 

bids tmder $500 and those under $100, but requires an attempt at competitive bidding in 

each instance. You flrther state that the term “formaLcompetitive biddingw has a 

rather precise meaning in purchase cicltw and that it comprehends “a bid which has 

been submitted in a sealed envelope to prevent dissemination of its contents before the 

specified time and date set for bid opening.” 

For the following ressons, we snswer your question in the negative. First, 

section 3.08(a) exprcrssly provib that “formaP competitive bidding is not required for 

purchases under $100, not that %ompetitive bidding” is not required. We must assume 

that the legislature used the adjective “formal” for a purpose, Eddins-Walcher Butane 

Company v. Calvert, 298 S.W. 2d 93 (Tex. 1957k L & M-Surco Manufacturing, In 

%Ynn Title Company, 580 S.W. 2d 920 (Tax. Civ. App. - Tyler l979, writ dism’d),‘~~ 

that it did not regard “formal competitive bidding” and “competitive bidding” as 

synonymous We firther assume that the legislature intended that the term “formal 

competitive bidding,” which is not defined in the statute, would be given its commonly 

accepted meaning. See Sanford v. State, 492 S.W. 2d 581 (Tex. Crim. App. 1973); In’re 

Estate of. Purr, 553%W. 26 676 (Tex. Civ. App. - Amarillo 1977, writ ref’d n.r.e.); 

Texas Employers’ Insurance Association v. Haunsehild, 527 S.W. 26 270 (Tex. Civ. 

App. - Amarillo 1976, writ refkl eJ Second, section’S.O8(d), which provides that 

agencies making purchases mdeF&?tion 3.08 must attempt to obtain at least three 

competitive biQ from the designated sources, does not except purohese~ of less than 

$100. It applies to all purchases of less than $500, and its conditions must be satisfied. 

We therefore conclude that the commission is not authorieed by section 3.08(a) 

of article 6Olb, V.T.C.S., to waive all compstitiw! bidding requirements, whether 

formal or informal, on delegated purchases tmder $100. However, in view of the fact 

that section 3.10 only requires competitive bids “whenever possible,” we think the 

commission may promulgate rules indicating those instances in which it will consider 

that competitim bids are not posslhle. 

SUMMARY 

The State Ptxehesing snd General Servfces Commission is 

not authorized by section 3.08(a) of article SOlb, V.T.C.S., to 

waive all competitive bidding requirements, whether formal or 

informal, on deleted purchases under $100. 

veneNl* 

Attorney General of Texas 

p. 988 
Mr. Homer A. Poerster - Page Tluee @f-310) 

JOHN W. PAINTER, JR. 

First Assistant Attorney Qeneral, 

RICHARD E.GBAYUl 

Executive Assistant Attorney General 

Prepared by Jon Bible 

Assistant Attorney General 

APPROVRD: 

OPINION COMMrI’TEE 

Susan L. Garrison, Chairman 

Jon Bible 

Rick Gilptn 

Eva Loutzenhiser 

Bruce Youngblood 

p. 989