In accordance with TEC 44.031(l), contracts proposed for the purchase or lease of one or more school buses, including a lease with option to purchase, must be submitted to competitive bidding when the contract is valued at $20,000 or more. number of qualified sources. Although the federal Small Purchase Procedures are applicable to costs below the Simplified Acquisition Threshold**, state law requires competition for contracts valued at $50,000 or more. Therefore, price or rate quotations may only be used for costs under $50,000. $50,000 or more Competitive Procurement State is more restrictive than Federal TEC 44.031(a) 2 CFR 200.320(c); 2 CFR 200.320(d) STATE: Contracts valued at $50,000 or more in the aggregate*** for each period. TEC 44.031(a) Use one of seven procurement methods, as appropriate, to provide the best value to the LEA Exceptions: Excludes purchase of produce or vehicle fuel. TEC 44.031(a) Refer to “Professional Services Contracts” section of this manual for options related to contracting professional services Does NOT apply if school equipment, a school facility, or a portion of a school facility is destroyed, severely damaged, or experiences a major STATE: Seven Procurement Methods: Competitive bidding for services other than construction services; Competitive sealed proposals for services other than construction services; Request for proposals for services other than construction services; Interlocal contract; Method provided by Govt Code 2269 for construction services; Reverse auction procedure according to Govt Code 2155.062(d) (for bidding via Internet); Formation of a political subdivision corporation under Local Govt Code
unforeseen operational or structural failure, and the board of trustees determines the delay posed by the contract methods of TEC 44.031(a) would prevent or substantially impair the conduct of classes or other essential school activities. TEC 44.031(h) An LEA may acquire computers and equipment, including computer software through the Department of Information Resources under contracts entered into in accordance with Govt Code 2054 or 2157. TEC 44.031(i) Sole-source (Refer to section of this chart) Contracts proposed for the purchase or lease of one or more school buses, including a lease with option to purchase, must be submitted to competitive bidding when the contract is valued at $20,000 or more. TEC 44.031(l) LEAs that have formally adopted a site-based decision making plan under Subchapter F, Chapter 11, and delegate purchasing decisions to the campus level: TEC 44.031 applies 304.001 (for negotiating the purchase of electricity) FEDERAL: Although the federal law requires competition for amounts over the Simplified Acquisition Threshold ($150,000**), the State is more restrictive, requiring competition for contracts $50,000 or more in the aggregate. Sealed bids: Bids are publicly solicited and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price. Preferred method for procuring construction. Appropriate when: A complete, adequate, and realistic specification or purchase description is available; Two or more responsible bidders are willing and able to compete effectively for the business; and The procurement lends itself to a firm and fixed
LEA must have a written method for conducting technical evaluations of the proposals received and for selecting recipients Must perform a cost or price analysis before receiving proposals, if the amount is over the Simplified Acquisition Threshold** Over $150,000** Cost or Price Analysis must be performed before receiving bids or proposals Federal 2 CFR 200.323 The LEA must perform a cost or price analysis in connection with every Procurement Action in excess of the Simplified Acquisition Threshold ($150,000**), including contract modifications. Make independent estimates before receiving bids or proposals (during planning process) In all cases of cost analysis, profit must be negotiated as a separate element of the price Profit must be negotiated as a separate element of the price for each Sole-Source contract Cost or price analysis must be documented in writing The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, the LEA must make independent estimates before receiving bids or proposals. Non-Competitive (Sole-Source) Federal; State 2 CFR 200.320(f); TEX 44.031(j,k) FEDERAL: Sole-source method may be used only when one or more of the following circumstances apply: Solicitation of a proposal from only one source. Per TEA’s “New EDGAR Regulations FAQ” document, an affidavit or sole-source letter from a
[Insert local procedures.] Professional Services Contracts In accordance with TEC 44.031(f), the procurement methods listed in TEC 44.031(a) do not apply to “a contract for professional services rendered, including services of an architect, attorney, certified public accountant, engineer, or fiscal agent. An LEA may, at its option, contract for professional services rendered by a financial consultant or a technology consultant in the manner provided by Government Code 2254.003, in lieu of” the procurement methods provided in TEC 44.031(a). In accordance with Government Code 2254.003, a governmental entity may not select a provider of professional services or a group or association of providers or award a contract for the services on the basis of competitive bids submitted for the contract or for the services, but shall make the selection and award: (1) on the basis of demonstrated competence and qualifications to perform the services; and (2) for a fair and reasonable price. The professional fees under the contract may not exceed any maximum provided by law. Whereas Government Code 2254.002 defines professional services within the scope of the practice of (i) accounting; (ii) architecture; (iii) landscape architecture; (iv) land surveying; (vi) optometry; (vii) professional engineering; or (ix) professional nursing, attorneys general opinions have held that the term professional services may encompass more than the services of physicians, attorneys or others traditionally regarded as professional and may include “members of disciplines requiring special knowledge or attainment and a high order of learning, skill and intelligence. [Texas Comptroller of Public Account’s “Model Purchasing Manual for Texas Cities and Counties 2010”, no longer accessible on the Comptroller’s website.] The LEA follows the requirements of Government Code 2254 (known as the Professional Services Procurement Act) for all professional services contracts, using competitive proposal procedures rather than competitive bidding. When procuring architectural, engineering, or land surveying services, the LEA complies with the requirements of Government Code 2254.004. Local procedures for contracting professional services [Insert your local procedure for using the competitive proposal method when obtaining contracted professional services.] Refer to the “Competitive Sealed Proposals/Request for Proposals Process” section under the heading of “The Purchasing Process” section of this manual and the “TEA Guidance and Best Practices for Professional Services Contracts” section of this manual for additional local procedures.