Recommendations Contributors Chapter 1 Legal Parameters Municipal governments must comply with Texas law regarding purchasing procedures for supplies and services. The state statutes require competitive bidding to ensure acceptable products at the lowest cost and to prevent favoritism or discrimination in awarding purchases or contracts. This chapter examines state and local purchasing laws applicable to the city with a focus on authority and accountability. City governments request competitive sealed bids from vendors to fulfill procurement needs at the lowest cost.
Vendors submit their bids as offers to contract with the city.
Only the lowest bid may be accepted. Competitive sealed proposals are requested by government entities when purchasing items that must meet subjective criteria other than the lowest cost. Although a city's procurement practices must always consider the importance of the expense element, the competitive proposal process allows local governments to look for best value for the dollar. Local officials may include a negotiation phase after the proposals are received, and a best and final offer is permitted. Competitive proposals may be used only for the purchase of insurance and for high-technology procurements such as building energy management systems, data processing or telecommunications equipment, and technical services related to those items.