DAN MORALES 

ATTORNEY GENERAL 

QBffice of tty JZlttornep @enera 

diMate of Qexas 

June 6,199s 

Mike Moses, Ph.D. 

Commissioner of Education 

Texas Education Agency 

1701 North Congress Avenue 

Austin, Texas 78701-1494 

Honorable John W. Segrest 

Criminal District Attorney 

McLennan County 

209 North Sii Street, Suite 200 

Waco, Texas 76701 

Dear Commissioner Moses and Mr. Segmst: 

Opiion No. DM-350 

Re: Whether purchases made by a local 

government through the state catalogue 

purchasing procedure established by article 

6Olb, section 3.081, must be competitively 

bid (RQs-744,754) 

We have been asked whether purchases made by local governments through the 

state catalogue purchasing procedure established by article 6Olb. section 3.081, V.T.C.S., 

must be competitively bid. Section 3.081 establishes a state catalogue purchasmg 

procedure whereby vendors wishing to sell or lease automated information systems to 

certain state agencies apply to the General Services Commission (the “commission”). A 

state agency may purchase or lease automated information systems directly frbm vendors 

who have been designated as qualified information systems vendors by the commission. 

Subsection (g) of section 3.08 1 provides as follows: 

The commission shall make the catalogue purchasing procedure 

enumerated in this section available to local govemments that qualify 

for cooperative purchasing under Sections 271.082 and 271.083, 

Local Guvemtnent Code. In this subsection, “local government” has 

the meaning assigned to it by Section 271.081, Local Government 

Code.1 

V.T.C.S. art. 6Olb. 8 3.081(g) (footnote added). 

‘See Local God code 5 271.081 (ddioing “local govmmmt- to mm0 -II afmlty, mlmicipality, 

q&al dirtriff s&Jo1 disuic& juoior aluege distriq or other lcgdly constiMcd politicd -00 of 

the state”). 
Mike Moses, Ph.D. - Page 2 

Honorable John W. Segrest 

(DM-350) 

Subchapter D of chapter 271 of the Local Government Code provides for state 

cooperation in local government purchasing programs. Section 271.081 of the Local 

Government Code ddines “local government” to mean “a county, municipality, special 

district, school district, junior college district. or other legahy constituted political 

subdivision of the state.” Section 271.082 requires the commission to “establish a 

program by which the commission performs purchasmg services for local governments.” 

The services must include the following: 

(1) the extension of state contract prices to participating local 

governments when the commission considers it feasible; 

(2) solicitation of bids on items desired by local governments if 

the solicitation is considered feasible by the commission and is 

desiied by the local government; 

(3) provision of tiormation and technical assistance to &al 

governments about the purchasing program. 

Local Gov’t Code 8 271.082(a)(l) - (3). 

Section 271.083 provides that a local govemment may participate in this 

purchasing program by 6ling a resolution with the commission adopted by its governing 

body requesting that the local govetnment be permitted to participate. Id. 

8 271.083(a)(l). The resolution must also state that the local government will designate a 

representative to act for the local government with respect to the program, will be 

responsible for submitting requisitions to the commission and for payment to the vendor, 

and wig be responsible for the vendor’s compliance with all conditions of delivery and 

quality. Id. 8 271,083(a)(2), (3). SignGantly, subsection (b) of section 271.083 provides 

as follows: 

A local government that purchases an item under a state contract 

satisfies any state law requiting the local government to seek 

competitive bids for the purchase of the item. 

Mr. Segrest explains that McLennan County (the “county”) is a member of the 

cooperative purchasing program established under sections 271.082 and 271.083 of the 

hc.al Government Code. The commission recently advised the county of the opportunity 

to purchase automated information systems through the state catalogue purchasing 

procedure. The commission’s letter states in pertinent part: 

Article 601b, Section 3.081(g), V.T.C.S., mandates that the General 

Services Commission “make the Catalog Purchase Procedure . . gy&& to local govemments that qua@ for Cooperative 

Purchasing. . . r]; however, this procedure may not satisfy 

p. 1865 
Mike Moses, Ph.D. - Page 3 

Honorable John W. Segrest 

(DM-350) 

competitive bidding requirements that govern a local government. 

The rules for this procedure are enclosed and you should seek 

cmmsel from your legal statf as to whether you may use this 

procedure or not. 

Mr. Segrest asks us to resolve the issue raised but not answered by the commission, that 

is, whether the county is exempted from otherwise applicable competitive bidding 

requirements when it makes a purchase through the state catalogue purchasing procedure. 

~Commissioner Moses’ predecessor in office asked essentially the same question: 

Does a purcham by a school district using the catalogue 

purchasing procedure established by the General Services 

Commission under Section 3.081 of the State Purchasing and 

General Services Act satisfy competitive bidding requirements in the 

same manner as a purchase by a school district under a state contract 

as provided by Section 271.083(b), Local Government Code? 

Based upon our review of the applicable statutes,’ we conclude that a local 

government satisfies otherwise applicable competitive bidding requirements when it makes 

a purchase through the state catalogue purchasing procedure. As noted above, section 

3.081(g) of article 601b requires the commission to “make the catalogue purchasing 

procedure. . available to local governments that qualify for cooperative purchasing” 

under sections 271.082 and 271.083 of the Local Government Code. Section 27 1.083 of 

the Local Government Code expressly provides that a local government that makes a 

purchase under a state contract through the cooperative purchasing program “satisties any 

state law requiring the local government to seek competitive bids for the purchase of the 

item.” Local Gov’t Code 8 271.083(b). We believe that the legislature, in requiring the 

commission to make the state catalogue purchasing procedure available to local 

governments that participate in cooperative purchasing, intended to incorporate the state 

catalogue purchasing procedure into that program. Thus it follows that a local 

government purchase made through the state catalogue purchasing procedure “satisfies 

any state law requiring the local government to seek competitive bids for the purchase of 

the item” as provided by section 271.083(b) of the Local Government Code. 

We also believe that subsection (g) of article 6Olb. section 3.081 requires local 

governments that use the’ state catalogue purchasing procedure to abide by the same 

requirements applicable to state agencies. The state catalogue purchasing procedure 

p. 1866 
Mike Moses, Ph.D. - Page 4 

Honorable John W. Segrest 

(DM-350) 

requires a state agency, and local governments by virtue of subsection (g), to determine 

that a purchase or lease is “based on the best vah~ii available and is in the state’s best 

interest.‘~ See V.T.C.S. art. 6Olb, § 3.081(d) (footnotes added). The requirement that 

state agencies obtain the “‘best value” demonstrates the state catalogue purchasing 

procedure is intended as an alternative to competitive bidding for purchases and leases of 

automated information systems at the state level. See id. 8 3.081(t) (?urchases of 

automated infonnation systems shall be made through the catalogue procedure 

enumerated in this section unless the commission or state agency determines that the best 

‘SccIion 1.02(5) of8nkIe 601b dctim the tetm “beat vpluc” to mean the 

(F)tbctccbnicalsupponfequircmcntsformaintaunceofdataactossa 

lb%wWkplPtfnmaadmanaganaItoftherutworl’cbard~alld~and 

(0) atm@ii with qpliable stathde standa& adopted by tbc 

DcpMmcnt of lnfonn8tion llclmac MIrubfalucntmtityUvalidatedby 

critcriaatablirhedbythcdcppNnentM8rubsequmt~ti~inin 

de. 

*Subsection (d) of ration 3.081 of article 6Olb requires a state agency to consider the following 

factorsinderminingwhichpmductsor leIvkes8rclathclI8t8’rbcltimerrrt: 

(I) installation cost5 and hardware asts; 

(2) tbeover8lllifeqclea3ltofthrynanMcquipmcnt; 

(3)eslimatedcostofunployccuaiaingarldertimatcdioacuein~ 

produc(ivitr, 

(4) clw8taircdtwpn.8odm8in-colll;88d 

tpmP~-PwithwP~~le-~adDptcdpy~Dcprtmat 

RaGlrasM8~aImy8cv8hd8I8dbyultori8 

enabliSbCdbytbcdepsr(mcntManrbstqumt~d~~~~e. 

p. 1867 
Mike Moses, Ph.D. - Page 5 

Honorable John W. Segrest 

(DM-350) 

value available accrues from an alternative purchase method authorized by this Act.“).5 

We believe that the legislature intended the same result for purchases and leases of 

automated information systems at the local level.6 

Piiy, it has been suggested that subsection (g) merely requires the commission 

to make information, i.e., vendor catalogues, available to local governments and that 

subsection (g) is not intended to make the catalogue purchasing procedure available to 

local governments as a mechanism to actually purchase products and services. We 

disagree. Subsection (9) provides that “the commission shall make the catalogue 

purchasing prucedure enumerated in this section available to local govemments.” 

(Emphasis added.) Subsection (g) on its face requires that the cstalogue purchasing 

procedure in its entirety, not just the information compiled in vendor cetalogues about 

products and services, be made available to local govemments. 

%c bills propoktg to amend article 6Olb, V.T.C.S., by adding CCCIIM 3.081 and its 

acoompaoytng definitions. section 1.02(4)-(a), wao inttodmxd in the Sovcnty-third Legislature largely in 

mponst to a report fmm the Texas Pcrformanco Review. see 2 Tat. Comptroller of Poblic Aaxmnu, 

AONNST THE GFWN: HIOHQJALITY LOWCOST GOVEWMENT Fat TEMS (1993). in which the 

comptrollct ofpublic accounts proposed nmnorous K&Win8 moasmm for state goWnmat. scr Home 

l’temamh t3rganimtion, Bill Analysis, C.S.S.B. 381, 73d Lo8. (1993). As immdo@ the bills did not 

pmposc to establii the catdoguc pomhasing promdom now set forth in section 3.081; indcod, the 

comptroller bad not suggested that such a proccdnm be implemontcd. Tbe bills wme amauled to add the 

catalogoc purchasing prom&e wlun they worn in aWmittce. Src Hearings on S.B. 381 Bofom the 

SmaIc &MI. on State Affairs, 73d Log. (Mar. 3, 1993) (statement of Se&or &Joy, author) (tape 

available from Senate Staff SW&S); Hearings M H.B. 2626 Before the Home Comm. on State A5aia. 

73d Log. (Apr. 5, 1993) (statamnt of Rcprmcntativc E&k) (tape available from House Vidoo/Aodio 

Services G&e). Senator Haly explained that the amendment woold enable state agency pxsonncl 

dirdy to pmdasc computer systems, cofhwc, and tcl cc~~onkations badwarc. Hearings on S.B. 

381 Before the Senate Comm. on State NT&s. 73d Log. (Mar. 3. 1993) (statemom of Senator Haley, 

author) (tape available from Hcusc VidcdAudio services Of&). Hc liulhcr explained that the proposed 

catalogoc pmchasing procodum would allow state agacics to avoid the competitive bidding p- and 

inscad find the bca buys on automated information systems. Id. 

%okction (t) of section 3.081 provides that ‘~bncha.~ of mttomatul information systems 

shall be made through the cataloguc procodom mmmmatcd in tbir section onlcm the commimion or state 

agency dctennincs that the bcc~ value available accrom from an altcmativc purcbacc mcthod.” Gn tbc 

basis that sobmotion (9) mattes all pmvisiotu applicable to state agencies also applicable to local 

gctvammts, we believe that a local govamncn tmayomanabanativcstatotorypmch&ngmdhodif 

determine5 that it is ncce5saryto&soinor&rtecbUinthebcstvalucavailable. 

p. 1868 
Mike Moses, Ph.D. - Page 6 

Honorable John W. Segrest 

(DM-350) 

SUMMARY 

A local government that participates in the cooperative 

purchasing program established under sections 271.082 and 271.083 

of the Local Government Code satisfies otherwise applicable 

competitive biddmg requirements when it makes a purchase through 

the catalogue purchasing procedure established by article 601b. 

section 3.081, V.T.C.S. 

DAN MORALES 

Attorney General of Texas 

JORGE VEGA 

First Assistant Attorney General 

SARAH J. SHIRLEY 

Chair, Gpiion Committee 

RCparedbyMaryRCrouta 

Assistant Attorney General 

p. 1869