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COMMISSIONERS' COURT AGENDA REQUEST
MADE BY: Paula J. Hargis OFFICE: Auditor's Office
MEETING DATE: Apri128, 2008 TIME PREFERRED:
Before payment of Bills
SUBJECT: Consider, Discuss and Take Appropriate Action to institute a Purchasing
Policy for Kerr County. Request any modifications or changes to the draft of Purchasing
Policy from Commissioner's Court. This policy is the first step in providing a guide to
all Kerr County Staff and Elected Officials on the purchasing standards required by the
Commissioner's Court and the State. It also sets the levels for instituting the
Decentralized Purchasing procedures for the on-line Incode Purchasing System. In
addition to approval of the Purchasing Policy, I request that Commissioners Court raise
the Capital Outlay unit cost from $1,000 to $5,000. This level is used to set the items
that require depreciation and provides for a better level of reportable accountability.
EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON)
NAME OF PERSON ADDRESSING THE COURT: Paula J. Hargis
ESTIMATED LENGTH OF PRESENTATION: 10 minutes
IF PERSONNEL MATTER -NAME OF EMPLOYEE:
Time for submitting this request for Court to assure that the matter is posted in
accordance with Title 5, Chapter 551 and 552, Government Code, is as follows:
Meeting scheduled for Mondays:
THIS REQUEST RECEIVED BY:
THIS RQUEST RECEIVED ON:
5:00 PM previous Tuesday
@ .M.
All Agenda Requests will be screened by the County Judge's Office to determine if adequate
information has been prepared for the Court's formal consideration and action at time of Court
Meetings. Your cooperation will be appreciated and contribute towards your request being
addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners'
Court.
FOREWARD
Public purchasing is the process of acquiring goods and services that are necessary to provide the
public with the services they require.
The goals of public purchasing include the following:
• Purchase quality goods and services
• Get the best possible price for goods and services
• Delivery of goods and services when and where needed
• Assure a continuing supply of needed goods and services
• Guard against misappropriation of any assets procured
Most importantly, public purchasing must ensure:
That responsible bidders are given a fair opportunity to compete for the County's
business. This is done partially by the statutory requirements for competitive bids and
proposals, and partially by the county's own purchasing procedures.
• That public funds are safeguarded. Although the Auditor's Office does not usually
designate the types of purchases to be made, it should see that the best value is received
for the public dollar.
• That public spending is not used to enrich elected officials or government employees, or
to confer favors on favored constituents.
This manual has been adopted by the Commissioners Court of Kerr County for use by all elected
and appointed officials and employees of such. It is intended to assist them in reaching these
goals while complying with all applicable laws and local policies. This manual cannot address
every situation. When an unusual situation occurs or a difficult legal problem arises, the fmal
authority for county purchasing procedures is the law itself.
STATEMENT OF PURCHASING POLICY
It is the policy of Kerr County that all purchasing shall be conducted strictly on the basis of
economic and business merit to best promote the interests of citizens of Kerr County. Kerr
County encourages free and unrestricted competition on all bid requests and purchases ensuring
the taxpayers the best possible return on each dollar. All contracts and purchases shall be
handled so as to obtain the best value for the County, with bids or quotes solicited whenever
practical.
The responsibility of purchasing ultimately rests with the Commissioners Court. The Auditor's
Office, as an agent of the Commissioners Court, aids in the purchasing process but is subject to
the Court's direction as to reasonable specifications and maximum prices on items to be
purchased. The Kerr County Commissioners Court has established purchasing guidelines to
assist each elected official, department head, and their staff to procure necessary goods and
services at the best possible price within all Federal, State and County purchasing laws.
The Texas State Legislature has passed and made a part of the Local Government Code, Section
262, more commonly known as the County Purchasing Act. It shall be the policy of Kerr County
to fully comply in all aspects with the rules, regulations, and procedures, as they appear and are
amended from time to time, in that act. Kerr County will further comply with Section 113.901 of
the Local Government Code as it pertains to the requirements for approval of accounts and
requisitions.
Furthermore, it is the intention of the Kerr County Commissioners Court that all individuals
within each department directly or indirectly involved in the purchasing function shall follow the
purchasing policies and procedures approved and adopted by the Commissioners Court as
outlined in this manual.
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GLOSSARY OF TERMS
Authorized Signature - A signature that has been approved by the department head to initiate a
purchase request and which is recognized by the County Auditor to authorize the expenditure of
funds from a designated account.
Award Basis -Factors that have been determined to be necessary, which lead to a decision to
make a purchase at what has been determined to be the "best price" and for which delivery will
be accepted from a selected vendor.
Bid Advertisement - A public notice put in a newspaper of general circulation containing
information about an Invitation for Bid or a Request for Proposal.
Bid Bond - A bond required of a contractor that ensures that the contractor will enter into the
contract for which he has submitted a formal written bid and/or proposal.
Bidders List - A list (maintained by the Auditor's Office -Purchasing Division) of vendors
who have signified in writing an interest in submitting bids for particular categories of goods and
services.
Buyer -Any employee of the Auditor's Office -Purchasing Division functioning under the
direction of the Commissioners Court.
Capital Items - A capital item is generally an item that has a unit cost in excess of $5,000 and
has a life expectancy of greater than three (3) years. Certain items with a unit cost of less than
$5,000 are designated as reportable for the purpose of equipment accountability, e.g. computers
and computer equipment, calculators, chain-saws, electric or air powered tools, etc. (THE
CURERNT THRESHOLD IS $1,000. THIS IS A MORE REALISTIC AMOUNT FOR
DEPRECIATING AND SHOWING AS FIXED ASSETS. FOR YOUR CONSIDERATION)
Commodity Code - A specific group of materials categorized into distinct classes that have
been assigned a numerical reference within the accounting and reporting system.
Competitive Bidding -The process wherein a vendor openly competes with other vendors
through a formal process for the County's business.
Contract - A formal, written agreement executed by the County and a vendor containing the
essential terms and conditions under which goods or services are to be furnished to the County.
A contract becomes a commitment of the County's funds when properly signed and dated by the
County Judge.
Customers - A term that encompasses all the operating departments within the County.
Encumbrance -The process wherein the County sets aside funds for the purchase of supplies,
goods, services, or equipment in accordance with the approved purchase order.
Expedite -The procedure to do what is necessary to speed up the process of delivery of
merchandise to the department, either through the requisition process or through vendor
assistance.
F.O.B. Destination Point - A designation that indicates transportation charges are paid by the
vendor, and vendor is responsible for the merchandise until it reaches the County's designated
delivery point.
F.O.B. Shipping Point - A designation that indicates shipping charges are added to the invoice
and paid for by the County. The County takes possession of the goods at the point of shipment
and is responsible for them from that point.
Fund Approval -The process wherein the County Auditor verifies that moneys are available at
the specific budgetary fund level to encumber the expenditure within the approved budget, as
well as available to make the payment for the goods and services when delivered.
Goods - A generic term that includes all types of property to be purchased by the County;
equipment, supplies, materials, component and repair parts.
Invitation To Bid - A formal written document that requests from bidders a firm price and
delivery details for specified merchandise listed on a purchase requisition. An Invitation to Bid
is always required when the anticipated level of expenditure will be greater than $25,000. It may
be used anytime the Auditor's Office -Purchasing Division and/or the Commissioners Court
deem it is justified.
Lease - A specific contract for the use of real estate or personal property for a specified period
of time with a specified rent or other compensation to be paid.
Lowest Responsible Sid -The lowest bid or offer received by the County. It meets all the
specifications, requirements, terms and conditions of the Invitation to Bid. It is expressly
understood that the lowest responsible bid includes any related costs to the County, using a total
cost concept. The term "responsible" refers to the fmancial and practical ability of the bidder to
perform the contract. The term is also used to refer to the experience record of the vendor with
the County or the vendor's safety record.
Performance Bond - A bond that is normally required of all contractors doing business with the
County, which guarantees vendor performance during the execution of the contract.
Purchase - An act that includes the acquisition of goods or services, to include the act of leasing
personal or real properly. Separate, sequential and component purchases shall be treated as a
single purchase.
Purchasing -The act, function and responsibility for the acquisition of goods and services.
Purchase Order - A formal, binding, legal agreement issued by the County Auditor's Office -
Purchasing Division. A purchase order is requested by a departmental requisition that details the
merchandise or services required. When accepted by a vendor without qualifications within a
specified time period, the agreement becomes a contract. A purchase order grants the vendor the
authority to deliver an invoice for goods and services. It is the County's commitment to accept
the goods and services and pay for them at the agreed price.
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Request for Proposal - A formal written document requesting that potential vendors make an
offer for services to the County. The offer allows for negotiations after the proposals have been
received, but before a contract is awarded. This process is normally used for the acquisition of
insurance coverage and high technology items.
Required Delivery Date - A specific date for delivery requested by the ordering department and
which has been placed on the purchase order by the Auditor's Office -Purchasing Division and
transmitted to the vendor.
Requisition -The source document for all purchasing activity. This form communicates a
department's needs to the Auditor's Office -Purchasing Division and authorizes such office to
enter into a contractual relationship for delivery of the goods and/or services. The requisition is
for communicating internal requirements and should not be used by the departments for the order
and delivery of goods and/or services.
Services - A generic term to include all work or labor performed for the County on an
independent contractor basis, including maintenance, construction, manual, clerical or
professional services.
Specifications -This statement contains a detailed description of the terms of the contract, as
well as an enumeration of particulars, required details, and all other restrictions for goods and/or
services. The enumeration of the specifications should be descriptive, but not restrictive.
State Contract Item - An item available through the State of Texas General Services
Commission Cooperative Purchasing Program. The State has publicly advertised and received
qualified bids for specific items. These appear on a listing periodically published by the State.
Kerr County has elected to participate in the cooperative purchasing program for governmental
subdivisions and other state agencies. (NEED TO ADD BUY-BOARD AND HGAC)
Surplus Property - An item no longer required by a department, regardless of its value or
condition.
Vendor - A generic term applied to individuals and companies alike who provide goods and
services to Kerr County.
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ETHICAL STANDARDS AND RELATIONSHIPS
I. ETHICAL STANDARDS
Public employees should conduct themselves in such a manner as to foster public confidence in
the integrity of Kerr County's purchasing process. To achieve this purpose, it is essential that
persons or companies doing business with Kerr County observe the ethical standards prescribed:
A. It shall be a breach of ethics to attempt to realize personal gain through public
employment with Kerr County by any conduct inconsistent with the proper
discharge of the employee's duties.
B. It shall be a breach of ethics to attempt to influence any public employee of Kerr
County to breach the standards of ethical conduct set forth in this code.
C. It shall be a breach of ethics for any employee of Kerr County to participate
directly or indirectly in a procurement when the employee knows that:
• The employee or any member of the employee's immediate family has a financial
interest pertaining to the purchase.
• A business or organization in which the employee or any member of the
employee's immediate family has a financial interest in the purchase.
• Any other person, business or organization with whom the employee or any
member of the employee's immediate family is negotiating or has an arrangement
concerning prospective employment and is involved in the procurement.
D. It shall be a breach of ethics to offer, give, or agree to give any employee or
former employee of Kerr County, or for any employee of Kerr County to solicit,
demand, accept or agree to accept from another person, a gratuity or an offer of
employment in connection with any decision, approval, disapproval,
recommendations, preparation of any part of a program requirement or purchase
request, influencing the content of any other advisory capacity in any proceeding
or application, request for ruling, determination, claim or controversy, or other
particular matter pertaining to any program requirement or a contract or
subcontract, or to any solicitations or proposal therefore pending before this
County.
E. It shall be a breach of ethics for any payment, gratuity or offer of employment to
be made by or on behalf of a subcontractor under a contract to the prime
contractor or higher tier subcontractor for any contract for Kerr County, any
person associated therewith, an inducement for the award of a subcontract or
order.
F. The prohibition against gratuities and kickbacks prescribed above shall be
conspicuously set forth in every contract and solicitation therefore.
G. It shall be a breach of ethics for any employee or former employee of Kerr
County knowingly to use confidential information for actual or anticipated
personal gain, or the actual or anticipated gain of any person.
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Note: These common standards of ethics have been reproduced from the Model
Procurement Code for State and Local Governments developed by the Texas State
Comptroller's Office.
II. RELATIONSIIIPS
The buyer-seller relationship is one of mutual confidence and satisfaction between the County
and the Supplier. It is the Auditor's Office responsibility to maintain a list of approved, qualified
bidders for all commodities needed and to maintain a list of preferred providers for annual
contracts.
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RESPONSIBILITIES
I. AUDITOR'S OFFICE (WE ARE DOING A LOT OF THIS NOW, BUT IT
WOULD MAKE IT EASIER IF IT WERE IN WRITING)
A. Assist in the selection of responsible vendors.
B. Assist in obtaining pricing information.
C. Determine that the purchase price is reasonable and that requirements of
competition and performance have been met.
D. Assist individual departments to develop quality and quantity specifications for
goods and services to be purchased along with required delivery schedules.
E. Encourage competition between vendors through negotiations, competitive
bidding and quantity buying.
F. Utilize annual supply agreements, whenever possible, in order to maximize the
advantages and economics of quantity buying.
G. Continuously monitor requisitions by all departments to facilitate consolidation of
purchases where possible.
H. Ensure that the County has the ability to take advantage of quantity and pricing
discounts whenever they are available.
I. Explore the use of cooperative purchasing programs with the State of Texas and
other local governmental units.
J. Control the cost of purchasing for the County.
II. DEPARTMENT/REQUISITIONER
A. Allow sufficient time for the Auditor's Office to issue a purchase order and the
vendor to make delivery.
B. Assist the Auditor's Office with specifications that require an engineering or
technical background.
C. When requested, supply the Auditor's Office a list of anticipated requirements in
advance.
D. Inform the Auditor's Office of any abnormal or unusual demands.
E. Under any circumstances, not to obligate Kerr County without a purchase order,
except for an emergency or expedited purchase, as outlined in this manual.
F. Avoid illegal purchases.
G. Requisition items with a complete, clear, concise description of the item(s) or
service(s) requested.
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PURCHASE CATEGORIES
The County has established various levels of purchasing categories that have been outlined
below. The purchase of all goods and services described in this manual will fall within one of
the established categories. These categories are necessary in order to evaluate whether or not
competitive bidding requirements do not apply, then the purchase category will indicate what
pricing information must be obtained from the vendor before a purchase order can be placed.
When evaluating into which category a purchase will fall, it is important to bear in mind certain
requirements established by County Statutes and State law. The Texas Local Government Code
requires competitive bidding or proposals for all county purchases exceeding $25,000 in amount
for a product or with a vendor. The laws also prohibit the County from making "separate,
sequential, or component purchases to avoid the competitive bidding requirements". A violation
is a Class B misdemeanor ($2,000 fine and/or 180 days in jail) and conviction results in
immediate removal from employment and ineligibility for other public office for four years
(LGC Section 262.034-262.035).
By routing all purchases through the Auditor's Office, it becomes possible for purchases of
similar goods and/or services to be identified and the purchases from the same vendor to be
noted. In this manner it becomes possible to identify areas where competitive bidding or
proposals will be required.
THE AUDITOR'S OFFICE RESERVES THE RIGHT TO DEVIATE FROM THE POLICY
FOR ANY PURCHASES UNDER THE $25,000 COMPETITIVE BIDDING THRESHOLD, if
it is in the best interest of the County and if it will facilitate specific County operations. If a
deviation from the policy is required, the Auditor's Office will authorize the deviation by signing
the Purchase Order giving approval for the deviation. A written explanation may be requested
from the using department by the Auditor's Office. (IN ORDER TO IMPLEMENT THE NEW
ON-LINE PURCHASIGN WITH INCODE WE NEED LEVELS OF APPROVAL -THIS IS A
GOOD GUIDE FOR EACH DEPARTMENT -EACH DEPARTMENT MAY WANT HIGHER
OR LOWER LEVELS OF APPROVAL. THIS IS A SUGGESTION)
I. CATEGORY I -PURCHASES LESS THAN $2,000
The individual department head may exercise discretionary purchasing and acquisition of
such purchases as authorized within the scope of the purchasing procedure and within the
authority provided within the current fiscal year budget. These purchases will be
accomplished through the use of requisitions issued directly by the department and
approved by the Department Head. Competitive quotations are encouraged, but not
required. All such purchases require a purchase order issued by the Auditor's Office.
The Auditor's Office will verify budget authorization.
II. CATEGORY II -PURCHASES OF $2,000 OR MORE BUT LESS THAN $10000
Three telephone quotations, at a minimum are required for purchases of goods and
services with a total cost of $2,000 or more, but less than $10,000. The ordering
department may solicit the quotations or request the Auditor's Office to do so. The
ordering department is responsible for initiating the requisition. All such purchases
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require a purchase order issued by the Auditor's Office. Approvals by the Department
head are required before a purchase order will be assigned.
III. CATEGORY III -PURCHASES OF $10,000 OR MORE, BUT LESS THAN
$25,000
The Auditor's Office will be responsible for securing specifications and for soliciting
vendor responses and price quotes. All purchases require a minimum of three written
quotes. All purchases require a purchase order issued by the Auditor's Office.
IV. CATEGORY IV -PURCHASES OF $25,000 OR MORE
Sealed competitive bids or proposals must be secured by the Auditor's Office for all
transactions reasonably anticipated to be equal to or in excess of $25,000 (annually
county wide). This category not only includes single product or service purchases, but
several purchases with the same vendor for different products. (See Competitive Bid
Process.) Purchases from this category must have Commissioner's Court approval prior
to the issuance of the purchase order.
V. CATEGORY V -BANK CREDIT CARD PURCHASES (WE DON'T HAVE
THIS WE MAY WANT CONSIDER SOMETYPE OF PROGRAM)
Kerr County has arranged with VISA for bank credit cards to be used for the following
purposes:
1. Travel -Travel expenses such as hotel, rental car, air travel and other such travel
expenses requiring credit cards for reservation purposes and charging purposes.
2. Seminars and Training -Seminar and training reservations where purchase orders
are not accepted.
Credit cards are not to be used for food or any personal items. Credit cards are to be used
ONLY for pre-approved items.
When requiring the use of the credit card submit an approved requisition to the Auditor's
Office with the appropriate information and the dates the credit card will be required and
a purchase order will be assigned. Pick up the credit card from the Auditor's Office
when required. You will be required to sign for the card. Return the credit card along
with the original receipts to the Auditor's Office upon completion of the trip.
The credit card may also be used by the Auditor's Office for County purchases from
vendors not accepting purchase orders when no other vendor is available. This is not
limited to travel related items.
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THE REQUISITION PROCESS
The purpose of this section is to guide you through the requisition process.
I. GENERAL INFORMATION
A. Local Government Code, Section 113.901 requires the use of requisitions.
One copy must be delivered to the person from whom the purchase is to be
made before the transaction is made. A second copy shall be filed in the
Auditor's Office and a third copy should remain with the department
requesting the purchase.
B. Any commitment to acquire goods or services without an authorized
purchase order is prohibited except as allowed in this manual for
emergency situations and/or in times when downtime of equipment or
idleness of that equipment would result in unnecessary hardship or
expense to the County. (See Emergency/Expedited Purchase Orders.)
C. The following examples illustrate purchasing procedures that have as their
intent the avoidance of competitive bidding requirements. They are in
violation of the law (Local Government Code, Section 262.023).
• Component Purchases - purchasing a series of components that
normally would have been purchased as a whole.
• Separate Purchases - purchasing an item in a series of separate
purchases that normally would have been purchased in one.
• Sequential Purchases -purchases made over a period of time that
in normal purchasing practices would be made as one purchase.
D. The requisition must be prepared far enough in advance of the Required
Delivery Date to enable the Auditor's Office to perform its duties and to
allow for delivery by vendor.
E. The department head, or duly authorized person within the department,
initiates, prepares, and signs the requisition. THE DEPARTMENT HEAD
IS ULTIMATELY RESPONSIBLE FOR VERIFYING THAT
SUFFICIENT FUNDS ARE AVAILABLE TO COVER THE
PURCHASE AND MAY BE PERSONALLY LIABLE FOR THE
PAYMENT IF FUNDS ARE NOT AVAILABLE TO COVER THE
PURCHASE.
F. In order to ensure a timely purchase, a requisition must be completed
totally and contain all required data, thereby allowing proper processing.
G. The Auditor's Office is available to assist end-user departments with
vendor selection. Users can be referred to vendors whose products or
services have been satisfactorily utilized by other County offices.
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H. If a trade-in is involved, requisitions must show the equipment number of
the equipment to be traded. Items that lack. an assigned equipment number
should be identified on the requisition by the complete serial number,
make, model and any other pertinent descriptive information.
I. It is recommended that each department maintain some internal control of
its requisitions. The department should keep a copy of each requisition
until the requested item is received.
II. THE REQUISITION
A. The following information should be provided by the using department on
each requisition form submitted.
1. Vendor Name and Information: Include the name, address,
phone number and contact person's name, if known
2. Date: Include date requisition is generated.
3. Description: Specifications or complete description of item
and/or service, model or parts number if applicable of item being
requested. Use attachments if necessary.
4. Quantity: Amount required
5. Unit Price: Price per unit, if known
6. Freight: Shipping and handling costs, if known
The requisition must be signed by an authorized department
representative/department head or an authorized signature must be on file
in the Auditor's Office for requisitions received via email.
B. It is the intention of the Auditor's Office to process all requisitions within
a reasonable amount of time. If a request cannot be processed timely, the
requesting department will be notified.
C. The requisition will then be converted to a purchase order and distributed
as follows:
Copy 1-Vendor
Copy 2 -Auditor's Office- This copy shall be retained in the Auditor's
Office.
Copy 3 -Requesting Department -This copy shall be retained by the
requesting department.
D. Once the goods and/or services are received, the packing slip and/or
invoice shall be signed and dated by the receiving department and
forwarded to the Auditor's Office for processing.
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THE PURCHASE ORDER PROCESS
I. GENERAL INFORMATION
A. The purchase order is a contract between the County and a vendor. A purchase
order authorizes the vendor to both invoice and ship the materials or supplies
specified. It is also the vendor's indication to expect timely payment if goods
and/or services are rendered as specified on the purchase order. All purchase
orders will be written concisely and clearly to avoid misunderstandings and
unnecessary correspondence with vendors.
II. TYPES OF PURCHASE ORDERS
Several types of purchase orders exist. The Standard Purchase Order, the Blanket
Purchase Order and the Emergency Purchase Order will all be used depending on the
individual situation and/or purchase being made.
A. Standard Purchase Order:
The standard purchase order is used for routine purchases. If for any reason a
request cannot be processed within a reasonable time, the department will be
notified. The standard purchase order is the most commonly used purchase order.
B. Blanket Purchase Order
The blanket purchase order (sometimes referred to as an open purchase order) is a
contract with a specific vendor that allows frequent- or small purchases by
departments without going through repetitive bidding procedures, (e.g., annual
contracts, office supplies, shop supplies, etc.). Blanket purchase orders are not to
be used to circumvent the competitive pricing system employed by the County.
Its general purpose is to eliminate numerous requisitions and purchase orders for
small or frequent dollar items or services, and to allow for consolidation of the
payment process.
The blanket purchase order will be used in the following situations:
1. When the vendor and price of the desired item(s) is set by
competitive bid or contract but the total quantities are not
determinable at the initiation of the project.
2. For small, frequent purchases of office supplies, computer
supplies, shop supplies, etc.
Blanket purchase orders must be requisitioned as with any purchase and must
contain the same information as a standard purchase order. All requests for
blanket purchase orders are to follow normal requisition procedures. All blanket
purchase orders will be encumbered.
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It is the responsibility of the elected/appointed official and/or department head to
maintain positive budget levels. If a departments overall budget becomes
negative, it can become the responsibility of the official to cover the deficit.
C. Emergency Purchase Order
The expedited purchase order (often referred to as an emergency purchase order)
is intended to be used in (1) a case of public calamity where the prompt purchase
of items are required to provide for the needs of the public or to preserve the
property of the County; (2) a case where the item is necessary to preserve or
protect the public health or safety of residents of the County; and, (3) a case
where the purchase of an item is made necessary due to unforeseen damage to
public property.
If an emergency arises during normal working hours, the affected department
head, or his/her authorized shall:
1. Notify the Auditor's Office of the situation and actions, services
andlor goods needed.
2. Notifying department will submit a requisition noting the reason
for the emergency.
3. A purchase order will then be processed for the emergency.
If an emergency should arise after regular hours, the department head or his/her
authorized representative may proceed with the emergency acquisition. On the
next business day a requisition and invoice, if available, will be sent to the
Auditor's Office for payment processing. EMERGENCY PURCHASES
EXCEEDING $10,000 CANNOT BE MADE WITHOUT PRIOR
APPROVAL FROM COMMISSIONERS COURT.
III. CHANGE ORDERS
Change orders will be processed in the same manner as the standard purchase order.
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THE COMPETITIVE BIDDING PROCESS
I. COMPETITIVE BIDDING
A. Purchases of more than $25,000 from one vendor must be made through formal,
written, sealed, competitive bids. Departments are prohibited from making "split
purchases" in an effort to circumvent the formal bid requirement.
B. Upon request, the Auditor's Office will place a formal request before
Commissioners Court requesting approval to advertise for bids.
C. The user department shall be responsible for establishing specifications and
providing a complete written set of the specifications along with a completed
requisition. Specifications may be written on a technical or functional basis. The
use of brand names in the specifications is discouraged but may be used for
comparison purposes only. When brand names must be used it will be stated "or
approved equal". When developing specifications, one should ensure that a fair
competitive environment exists. The Auditor's Office will finalize the
specifications to ensure they are proper for inserting in the bid package and will
submit to the user department for fmal approval. The procedure is jointly
undertaken in order to establish a quality level of goods or services being
procured.
D. Once bid specifications are approved by the user department, the advertisement
and bid process begins. The Auditor's Office will coordinate and operate the
bidding system. Likewise, the Auditor's Office will be responsible for adhererice
to any and all legal requirements of competitive bidding and will develop standard
terms and conditions that will be used for all of the County's formal bidding
situations.
E. In addition to soliciting vendors through newspaper advertisements, county
personnel will work to identify possible vendors with interest in submitting a bid
to Kerr County. Pre-bid conferences may be used when it is anticipated that they
will be useful in answering vendor's questions and to ensure that the. same
information is disseminated equally. It is of utmost importance that those who
intend to bid understand the County's needs. All material changes to bidding
conditions or specifications (resulting from pre-bid conferences, vendor inquiries,
and all other reasons) will be documented and issued in an addendum by the
Auditor's Office to all known bidders (i.e., all vendors who have requested a bid
packet). All questions from vendors concerning the bid package are to be
addressed to the Auditor's Office.
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F. It will be the Auditor's Office responsibility to receive all bid proposals and to
document such receipt on the date and time as advertised. It will be the Auditor's
Office responsibility to coordinate with the user department a time to evaluate the
bids. The County will follow the practice of using a total cost bid analysis for
evaluating the lowest responsible bid, unless the bid specifications dictate
otherwise. Once an evaluation has been prepared, the Auditor's Office and user
department head will make a j oint recommendation to the Commissioners Court
for consideration and award.
II. REQUEST FOR PROPOSALS
A. The request for proposals (RFP) is a process similar to the sealed bid procedure
used for the procurement of goods and services that are highly specialized and
technical in nature. The user department shall consult with the Auditor's Office
before specifications are written for an RFP. Once proposal specifications are
approved by the user department, the advertisement and proposal process begins.
The Auditor's Office will coordinate and operate the request for proposals. The
Auditor's Office will be responsible for adherence to any and all legal
requirements of competitive proposals. In addition, the Auditor's Office will
develop standard terms and conditions that will be used for all of the County's
formal request for proposals.
1. Important distinctions between a normal sealed bid and an RFP include:
a. Normal bids stipulate the award of the contract to the "lowest and
most responsible bidder." An RFP permits price and other factors
to be considered, allowing a contract award to a vendor other than
the one offering the lowest price.
b. Normal bids utilize detailed specifications about the nature of the
goods and services required by the County. An RFP may specify
only the function to be served by the goods and services, leaving
the vendors to determine how to best achieve the desired function.
c. State law requires that the RFP specify the relative importance of
price and other evaluation factors. The user department and/or the
Auditor's Office may conduct discussions with vendors after the
submission proposal. The final terms of the contract may be
negotiated during these discussions and prior to the award of the
contract by the Commissioners Court.
16
III. PROFESSIONAL SERVICES
A. GENERAL
1. These services are characterized by their reliance on mental or intellectual
skills, often accompanied by formal certification or licensing by a state or
other regulatory agency. Examples of professional services include
accounting, auditing, architecture, economics, engineering, financial
advisory services, law, laboratory services and consulting, medicine,
surveying, etc.
2. State law exempts the procurement of these services from competitive
bidding requirements (Professional Service Acts, VCTS). Professional
service consultants should be selected on the basis of demonstrated
competence and qualifications. User departments should negotiate fees on
the basis of what is fair and reasonable for similar services, rather than on
a low bid basis.
B. INFORMAL SELECTION
1. The following process should be followed in the selection of the
consultant. First, initial selection of the consultant based on demonstrated
competence and qualifications. Price should not be considered at this
time. Second, the department head (with the assistance of the Auditor's
Office) should then proceed to negotiate an acceptable fee structure with
the selected consultant. If the fee negotiations are not acceptable, then the
fee negotiation process should be undertaken with the second qualified
consultant. Negotiations should continue with prospective consultants
until an agreement can be reached. Third, the negotiated contract and fee
structure document should be turned over to County legal council for
review. Finally, the document, once approved by legal council, should be
placed on the agenda of the Commissioners Court for approval,
acceptance and signing.
C. FORMAL SELECTION PROCEDURE
1. When a user department wishes to initiate an RFP to procure professional
services, it should submit the following information to the Auditor's
Office.
a. A description of the project or the activity to be undertaken.
b. An estimate of the cost of construction, including an estimate of
the cost for the consultant, for projects involving construction.
c. A statement of the available funds for the program in the current
operating budget.
17
d. A description of the minimum and desirable qualifications for the
consultant.
e. An outline of the types of information (e.g., education,
professional memberships, results of similar projects, references)
to be submitted by the consultant for evaluation.
2. The Auditor's Office will prepare a draft RFP to be reviewed and
approved by the user department. Once approved, the Auditor's Office
will submit to Commissioners Court for approval to advertise. The
Auditor's Office will then place advertisements in the newspaper(s) and
distribute RFPs to potential consultants. Proposals will either be evaluated
by the user department and the Auditor's Office, or a committee (that will
include the user department and the Auditor's Office) established by
Commissioners Court. A recommendation is made and a fee is negotiated.
Once negotiations are completed, the County legal department will draft a
contract based on the RFP and the consultant's proposal. The fmal
agreement will be brought back to Commissioners Court for review and
approval.
IV. LOCAL PREFERENCE
As per House Bill 2787, 76th Legislature: In a County with a population of 300,000 or
less, the law reads: "In purchasing under this title any real property or personal property
that is not affixed to real property, if a local government receives one or more bids from a
bidder as per House Bill 2787, 76th Legislature: In a County with a vendor whose
principal place of business is in the local government and whose bid is within three
percent of the lowest bid price received by the local government from a bidder who is not
a resident of the local government, the local government may enter into a contract with:
a. The lowest bidder
(Or)
b. The bidder whose principal place of business is in the local government if
the governing body of the local government determines, in writing, that
the local bidder offers the local government the best combination of
contract price and additional economic development opportunities for the
local government created by the contract award, including the employment
of residents of the local government and increases tax revenue to the local
government.
18
EXEMPTIONS FROM THE COMPETITIVE BID PROCESS
I. GENERAL
Local Government Code, Section 262.024 allows the purchase of any of the following
items as exempt from the requirements established by this policy if the Commissioners
Court by order grants the exemption:
A. An item to be purchased in a case of public calamity, if prompt purchase is
necessary to relieve the necessity of the citizens or to preserve the property of the
County. This exemption may only be requested by a member of the
Commissioners Court or the County Sheriff.
B. An item necessary to preserve or protect the public health or safety of the
residents of the County.
C. An item necessary because of unforeseen damage to public property.
D. A personal or professional service.
E. Any work performed and paid for by the day, as the work progresses.
F. Any land or right-of--ways.
G. An item that can be obtained from only one source, to include:
1. Items for which competition is precluded because of the existence of
patents, copyrights, secret processes, or natural monopolies.
2. Films, manuscripts, books.
3. Electric power, gas, water and other utility services.
4. Captive replacement parts or components for equipment.
H. An item of food.
I. Personal property sold:
1. At an auction with the use of a state licensed auctioneer.
2. At a going out of business sale held in compliance with Subchapter F,
Chapter 17 of the Business & Commerce Code.
3. By a political subdivision of the state of the federal government.
J. Any work performed under a contract for community and economic development
made by the County under LGC 381.004.
19
K. Renewal or extension of a lease or of equipment maintenance agreements are
exempt from the requirements as set out in this policy if the Commissioners Court
so orders and grants the exemptions, and if:
1. The lease and/or maintenance agreement has gone through the competitive
bidding procedure within the preceding year.
2. The renewal and/or extension does not exceed one year.
3. The renewal and/or extension is the first such renewal and/or extension.
II. EXEMPTION PROCEDURE
A. If an item or vendor is granted an exemption under these provisions by the
Commissioner Court, then an exemption form will be prepared and maintained by
the Auditor's Office. One copy of the form will be placed in the vendor's
accounts payable file (when a vendor is granted exemption). One copy will be
attached to the requisition and purchase order (when exemption is granted for a
single purchase).
B. If an item is deemed to be a sole source purchase, the ordering department will
need to verify, in writing, the reasons why to the Auditor's Office. (A letter from
the vendor may be requested.) If the requesting department and the Auditor's
Office both agree that the vendor is sole source, the purchase order will then be
approved.
20
COOPERATIVE PURCHASING
I. GENERAL
Cooperative purchasing is one of the ways that local governments can save time and money in
their purchasing programs. It occurs when two or more entities (state, federal or local
governments) coordinate some or all of their purchasing needs so that they can join in purchases
to the mutual benefit of all the entities concerned. There are any number of levels of cooperative
purchasing, from very occasional minor cooperation in a purchase, to a level where all purchases
are done through the cooperation of two or more governments. There are also several types of
cooperative purchases, ranging from one government "riding" on the contract of another
government to splitting the purchasing duties equally.
Authori In Texas, cooperative purchasing is addressed in two main statutes:
A. VTCS Article 4413(32c) -Inter-local Cooperation Act allows local governments
to contract with and between each other, to provide governmental functions and
services, and to join together in contracting with others to provide goods and
services.
B. Local Government Code Chapter 271, Subchapter D, 271.081 - 271.083 -State
Cooperation in Local Purchasing Programs. Allows a local government to
purchase goods on the state's purchasing contracts, and allows the state to solicit
bids on the local government's behalf, when considered feasible by the State
Purchasing and General Services Commission. The Commission is also required
to provide information and technical assistance to local governments about the
purchasing program.
II. TYPES OF COOPERATIVE PURCHASES
There are several ways cooperative purchasing can be done. One way is for one government to
perform all the tasks necessary to make a purchase, and for the other government to purchase on
the first government's contracts. Another way is for the governments involved to share in the
responsibilities of purchasing. A third way is to have a third party do the actual purchasing for
the cooperating governments. The following is a discussion of the normal types of cooperative
purchasing.
A. Piggy-backing -One government purchases for themselves and for others. Both
governments should protect themselves by establishing an agreement in writing,
even when the arrangement is very informal. The agreement should specify the
duties and responsibilities of each parry.
B. Buying from state contracts -Under the provisions of Local Government Code
Sections 271.081 - 271.083, the State Purchasing and General Services
Commission has established a cooperative purchasing program. This is a form of
piggy-backing. Under this program, a local government may participate in all
state contracts that have been automated after it complies with certain legal
requirements.
21
C. Purchasing through a third party -Several local governments agree to allow an
independent agency to do all or part of the purchasing for them. This may be
done by an agency formed especially for the purpose, or through an established
council of governments. This type of agreement should be implemented by a
contract which details the duties and responsibilities for both the agency and the
local governments involved. It may include a continuing arrangement or be for a
single purchase.
III. LEGAL CONSTRAINTS
Although the Inter-local Cooperation Act encourages extensive cooperation between local
governments, other statutes place certain constraints on cooperative arrangements.
A. Local Government Code chapter 262 specifies Purchasing and Contracting
Authority of Counties.
B. The strictest statute applies to all the parties to the agreement even if it doesn't
apply when the party makes the same purchase on its own.
C. Cities, Municipalities, and Schools all have different statutes that apply. See:
LGC Chapter 252 -Municipalities
LGC Chapter 271 -Municipalities, Counties, Others
VTCS Article 4413 (32c) -Inter-local Cooperation Act
IV. DEVELOPING SPECIFICATIONS
One of the most important aspects of any purchase is the development of the specifications, and
this is especially true of cooperative purchasing. The specifications must satisfy the needs of all
parties to the purchase. But, at the same time, it isn't always necessary to write entirely new
specifications for the cooperative purchase. Following are some procedures to make it easier,
while still developing acceptable specifications.
A. Check within the group -Before starting to write new specifications, see what
kind of specifications the cooperating governments have. You may find a good
specification, or one which will work with only minor rewriting.
Don't "reinvent the wheel". An older specification can usually be
reworded, or at least some good material can be retrieved from it.
2. Meet to develop requirements for the group. Since all parties will
have to be satisfied by one specification, all the details must be
worked out before the purchase order goes in -prior meetings axe
a must.
B. Work to the group's requirements -Specifications must conform to the group's
requirements, and. each party must approve of the specifications. This can lead to
endless discussions, and sometimes failure of an otherwise worthwhile
cooperative venture. Developing specifications is the most critical step in
successful cooperative purchasing.
22
3. Rule of the day -each party must be willing to compromise
reasonably. If you don't absolutely have to have a particular
feature, be willing to negotiate. At the same time, know in
advance those features you must have and those areas where you
can't afford to compromise. Be as flexible as possible while
protecting your critical needs.
4. Use as many standard specifications as possible. These will tend
to satisfy more of the parties.
S. Iron out difficulties before the transaction. Don't wait until the last
minute to insist on having your way on some feature. This will
lead to possible failure of the whole project, at great cost to all.
6. Make sure your needs are addressed adequately. You must do
your homework so that you will know what you can and cannot
negotiate on. Most items are negotiable to some degree.
V. COOPERATIVE PURCHASING WITH THE STATE
The Local Government Code (271.081 - 271.083) provides for purchasing by local governments
through state contracts. This frequently saves time and effort in local purchasing. Also, all
statutory bidding requirements are satisfied when purchases are made through state contracts,
and the vendors are frequently the same ones with whom the local governments are already
dealing.
There are some drawbacks, as you might expect. You will have to do some planning, since you
are committing to make all purchases of whatever items you select through the state, and not
from any other source. All in all, the advantages should outweigh the disadvantages. The
following are some points to consider when making the decision:
A. Price -How do the state prices compare with what you now pay? They are
usually lower, but not always.
B. Quality -Try to determine how the state products compare on quality? They are
usually acceptable, sometimes better than your current supplier.
C. Delivery requirements - Do the delivery terms in the state contract satisfy your
needs? It should be as good as you are able to contract for on your own.
D. Vendor dependability -See if you can determine who will be the vendor in your
area, so you can find out about their dependability.
E. Convenience -This should not be the leading criteria for deciding, but it should
be a consideration.
23
VI. PARTICIPATION
Kerr County may participate in the purchasing program of the State Purchasing and General
Services Commission by filing with the Commission a resolution adopted by Commissioners
Court in accordance with LGC 271.083.
Other co-operative purchasing programs will be reviewed by the Auditor's Office and
Commissioners Court advised accordingly.
24
INSPECTING, TESTING, AND RECEIVING
Departments should contact the vendor, or Auditor's Office, if materials and/or services are not
received or performed by the due date. Always keep the Auditor's Office appraised of the
situation.
I. INSPECTION
Since there is no central receiving point, each department is responsible for receiving
commodities and services. Any shortages, late deliveries, damaged merchandise or other
problems relating to the vendor's performance should be reported to the Auditor's Office
as soon as possible. It should also be notated on the packing slip and/or invoice.
A. When receiving ordered goods, the user will conduct an initial inspection
of the merchandise to determine its condition. A comparison is made of
the goods received against the product specifications. Once a
determination has been made that article(s) received meet specifications
and are not damaged, the receiving report (packing slip and/or invoice)
should be signed and sent to the Auditor's Office.
B. If there is damage, notify the vendor at once.
C. All boxes and packing materials should be kept in the event of visible or
concealed damaged freight shipments.
D. Damaged freight should always be reported to the freight line, within the
same day of delivery when possible.
E. If the vendor requests return of the items, it should be returned by the
department after determining that a claim has been filed, and that
authorization has been given by the vendor. Document all
communications with the vendor and freight company.
II. INCOMPLETE OR PARTIAL SHIPMENTS
A. In the event an order is incomplete, the department should make the
inquiry for scheduled shipment of the remaining order or contact the
Auditor's Office to make that inquiry.
B. To authorize payment for a partial order, an invoice, indicating the
purchase order number, date, vendor, and items received are to be
forwarded to the Auditor's Office, accompanied by a photocopy of the
purchase order marked clearly "PARTIAL DELIVERY".
25
INVOICES
I. INVOICES
A. The invoice is an itemized statement of merchandise shipped or delivered to an
end user and is a guide for the County in settling financial obligations incurred.
Invoices are based upon purchase orders and therefore should contain the same
information. Any difference between the invoice and the packing slip/invoice
should be resolved with the vendor immediately and always before forwarding for
payment.
B. All invoices should be mailed or delivered by the vendor directly to the Auditor's
Office at the address listed below:
Kerr County Auditor's Office
700 Main St., Suite 103
Kerrville, Texas 78028
C. All invoices should contain the following information:
1. The purchase order number
2. An itemized list of merchandise received/shipped.
3. The prices, terms, quantities and other pertinent information from the
purchase order.
26
PROPERTY SALVAGE AND DISPOSAL
I. SALVAGE
A. Equipment no longer needed by a department shall be reported to the Auditor's
Office by completing a Property Acquisition, Transfer and Disposition form. If it
is found this item is of no further use by any County Department, the Auditor's
Office will dispose of it in accordance with LGC 263, Subchapter D -
DISPOSITION OF SALVAGE OR SURPLUS PROPERTY.
II. DISPOSAL
A. Upon approval by Commissioners Court, surplus or salvage material and
equipment maybe disposed of in one of the following methods:
1. Public auction
2. Trade-in on new equipment
3. Sealed competitive bids
4. Ordered destroyed or distributed as unsalvageable
B. Upon written notification by the department that an item is in need of disposal,
the Auditor's Office will assume ownership until final disposal.
27
ANNUAL INVENTORY
I. ANNUAL INVENTORY
A. A physical inventory of all Kerr County property shall be completed annually by
the Auditor's Office. Upon completion of the physical inventory, a copy of the
inventory report shall be submitted to the Kerr County Commissioners Court and
to the Board of District Judges. The report should include a listing all county
property notated as `located' or `not located'; the condition of the property and all
physical attributes, i.e., serial number, make/model, etc. A Missing Items report
shall be submitted to each department head where items were found to be missing.
The Kerr County Commissioners Court will determine the necessary action to be
taken on property found to be missing.
COMMENTS:
I have attached a purchase order/requisition for your review and approval. When we
begin the on-line Incode System, Incode provides the requisition and purchase
order forms.
Everything that is shown in the YELLOW color is for your review and approval. Please
let me have comments and then I will revise this document and bring it to court
for approval. If it needs to be brought up at Commissioner's Court before you
make revisions, please let me know.
Thank you for assistance and guidance.
Jeannie Hargis
Kerr County Auditor
28

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Page 1 of 20
LOCAL GOVERNMENT CODE
CHAPTER 262. PURCHASING AND CONTRACTING AUTHORITY OF COUNTIES
SUBCHAPTER A. GENERAL PROVISIONS
§ 262.001. APPOINTMENT OF AGENT TO MAKE CONTRACTS.
(a) The commissioners court of a county may appoint an agent to
make a contract on behalf of the county for:
(1) erecting or repairing a county building;
(2) supervising the erecting or repairing of a county
building; or
(3) any other purpose authorized by law.
(b) A contract or other act of an agent appointed under this
section that is properly executed on behalf of the county and is
within the agent's authority binds the county to the contract for
all purposes.
Acts 1987, 70th Leg., ch. 149, ~ 1, eff. Sept. 1, 1987.
~ 262.002. AUTHORITY TO PURCHASE ROAD EQUIPMENT AND
TIRES THROUGH COMPTROLLER. (a) The commissioners court of a
county may purchase through the comptroller road machinery and
equipment, tires, and tubes to be used by the county.
(b) The commission must purchase an item under this section
on competitive bids and in accordance with any rules of the
commission.
(c) A purchase under this section must be made on the
requisition of the commissioners court. When the court sends the
requisition to the commission, the court must include with the
requisition a general description of the item desired and a
certification of the funds available to pay for the item.
(d) The commission may adopt rules to carry out the purpose
of this section.
Acts 1987, 70th Leg., ch. 149, ~ 1, eff. Sept. 1, 1987.
Amended by:
Acts 2007, 80th Leg. , R.S. , Ch. _9___3_7__, ~ 1.101, eff .
September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 937_, ~ 1.102, eff.
September 1, 2007.
~ 262.003. SMALL, SOLE-SOURCE PURCHASE EXEMPT FROM
COMPETITIVE BIDDING. (a) Any law that requires a county to follow
a competitive bidding procedure in making a purchase requiring the
http://tlo2.tlc.state.tx.us/statutes/docs/LG/content/htm/1g.008.00.000262.00.htm 4/18/200
Page 2 of 20
expenditure of $25,000 or less does not apply to the purchase of an
item available for purchase from only one supplier.
(b) If a county makes a purchase covered by Subsection (a),
the county auditor or other appropriate county officer or employee
may not refuse payment for the purchase because a competitive
bidding procedure was not followed.
Acts 1987, 70th Leg., ch. 149, ~ 1, eff. Sept. 1, 1987. Amended
by Acts 1993, 73rd Leg., ch. 757, ~ 12, eff. Sept. 1, 1993; Acts
2001, 77th Leg., ch. 115, § 4, eff. Sept. 1, 2001.
~ 262.004. CONTRACT AND OTHER INSTRUMENTS VEST RIGHTS IN
COUNTY; SUIT ON CONTRACT OR OTHER INSTRUMENT. (a) A note, bond,
bill, contract, covenant, agreement, or writing in which a person
is bound to a county, to the court or commissioners of a county, or
to another person for the payment of a debt or for the performance
of a duty or another action for the county vests in the county the
same right, interest, or action that would vest in any other person
if the contract had been made with that other person.
(b) A suit may be initiated and prosecuted on an instrument
covered by Subsection (a) in the name of a county, or in the name of
the person to whom the document was made for the use of the county,
in the same manner that any other person may sue on a similar
document made to that person.
Acts 1987, 70th Leg., ch. 149, ~ 1, eff. Sept. 1, 1987.
~ 262.005. APPLICATION OF OTHER LAW. The purchasing
requirements of Section 361.426, Health and Safety Code, apply to
county purchases made under this chapter.
Added by Acts 1991, 72nd Leg., ch. 303, ~ 18, eff. Sept. 1, 1991.
~ 262.006. LEAST COST REVIEW PROGRAM. The commissioners
court of a county may establish a least cost review program for
public improvements to be constructed by the use of personnel,
equipment, or facilities of the county that may exceed a cost of:
(1) $100,000; or
(2) an amount less than $100,000 as determined by the
commissioners court.
Added by Acts 1999, 76th Leg., ch. 62, ~ 13.11(f), eff. Sept. 1,
1999.
~ 262.007. SUIT AGAINST COUNTY ARISING UNDER CERTAIN
', CONTRACTS. (a) A county that is a party to a written contract for
engineering, architectural, or construction services or for goods
related to engineering, architectural, or construction services
may sue or be sued, plead or be impleaded, or defend or be defended
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Page 3 of 20
on a claim arising under the contract. A suit on the contract
brought by a county shall be brought in the name of the county. A
suit on the contract brought against a county shall identify the
county by name and must be brought in a state court in that county.
(b) The total amount of money recoverable from a county on a
claim for breach of the contract is limited to the following:
(1) the balance due and owed by the county under the
contract as it may have been amended, including any amount owed as
compensation for the increased cost to perform the work as a direct
result of owner-caused delays or acceleration;
(2) the amount owed for change orders or additional
work required to carry out the contract;
(3) reasonable and necessary attorney's fees that are
equitable and just; and
(4) interest as allowed by law.
(c) An award of damages under this section may not include:
(1) consequential damages, except as allowed under
Subsection (b)(1);
(2) exemplary damages; or
(3) damages for unabsorbed home office overhead.
(d) This section does not waive a defense or a limitation on
damages available to a party to a contract, other than a bar against
suit based on sovereign immunity.
(e) This section does not waive sovereign immunity to suit
in federal court.
Acts 2003, 78th Leg., ch. 1203, ~ 2, eff. Sept. 1, 2003.
SUBCHAPTER B. PURCHASING AGENTS
~ 262.011. PURCHASING AGENTS. (a) Aboard composed as
provided by this subsection, by majority vote, may appoint a
suitable person to act as the county purchasing agent. In a county
with a population of 150,000 or less, the board is composed of the
judges of the district courts in the county and the county judge.
In any other county, the board is composed of three judges of the
district courts in the county and two members of the commissioners
court of the county unless the county has fewer than three district
court judges, in which case the board is composed of one district
court judge and one member of the commissioners court. If members of
the board who are district judges must be selected, the selection is
made by a majority vote of all the district judges in a county
having more than one district judge. If members of the board who
are members of the commissioners court must be selected, the
selection is made by a majority vote of the commissioners court.
The term of office of the county purchasing agent is two years.
(b) The board may remove the county purchasing agent from
office.
(c) A person appointed under this section must execute a
bond in the amount of $5,000, payable to the county, conditioned
that the individual will faithfully perform the duties of county
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Page 4 of 20
purchasing agent.
(d) The county purchasing agent shall purchase all
supplies, materials, and equipment required or used, and contract
for all repairs to property used, by the county or a subdivision,
officer, or employee of the county, except purchases and contracts
required by law to be made on competitive bid. A person. other than
the county purchasing agent may not make the purchase of the
supplies, materials, or equipment or make the contract for repairs.
(e) The county purchasing agent shall supervise all
purchases made on competitive bid and shall see that all purchased
supplies, materials, and equipment are delivered to the proper
county officer or department in accordance with the purchase
contract.
(f) A purchase made by the county purchasing agent shall be
paid for by a warrant drawn by the county auditor on funds in the
county treasury in the manner provided by law. The county auditor
may not draw and the county treasurer may not honor a warrant for a
purchase unless the purchase is made by the county purchasing agent
or on competitive bid as provided by law.
(g) The county purchasing agent may cooperate with the
purchasing agent of a municipality in the county to purchase any
item in volume as may be necessary. The county treasurer shall
honor a warrant drawn by the county auditor to reimburse the
municipality's purchasing agent making the purchase for the county.
(h) The county purchasing agent is not required to make
purchases for a municipal-county hospital or other joint
undertaking of the municipality and county.
(i) On July 1 of each year, the county purchasing agent
shall file with the county auditor and each of the members of the
board that appoints the county purchasing agent an inventory of all
the property on hand and belonging to the county and each
subdivision, officer, and employee of the county. The county
auditor shall carefully examine the inventory and make an
accounting for all property purchased or previously inventoried and
not appearing in the inventory.
(j) To prevent unnecessary purchases, the county purchasing
agent, with the approval of the commissioners court, shall transfer
county supplies, materials, and equipment from a subdivision,
department, officer, or employee of the county that are not needed
or used to another subdivision, department, officer, or employee
requiring the supplies or materials or the use of the equipment.
The county purchasing agent shall furnish to the county auditor a
list of transferred supplies, materials, and equipment.
(k) The board that appoints the county purchasing agent
shall set the salary of the agent in an amount not less than $5,000 a
year, payable in equal monthly installments or by any other
distribution at the option of the county. The salary shall be paid
by warrants drawn on funds in the county treasury.
(1) The county purchasing agent may have assistants to aid
in the performance of the agent's duties. A person who is
authorized by the county purchasing agent to use a county
purchasing card while making a county purchase is considered an
assistant of the county purchasing agent to the extent the person
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complies with the rules and procedures prescribed for the use of
county purchasing cards as adopted by the county purchasing agent
under Subsection (o). The county purchasing agent and assistants
may have any help, equipment, supplies, and traveling expenses that
are approved and considered advisable by the board that appointed
the agent.
(m) A person, including an officer, agent, or employee of a
county or of a subdivision or department of a county, commits an
offense if the person violates this section. An offense under this
subsection is a misdemeanor punishable by a fine of not less than
$10 or more than $100, by confinement in the county jail for not
less than 30 days or more than one year, or by both the fine and
confinement. Each act in violation of this section is a separate
offense.
(n) This section applies to all purchases of supplies,
materials, and equipment for the use of the county and its officers,
including purchases made by officers paid out of fees of office or
otherwise, regardless of whether the purchase contract is made by
the commissioners court or any other officer authorized to bind the
county by contract. An officer making a purchase out of fees of
office in violation of this section may not deduct the amount of the
purchase from the amount of any fees of office due the county.
(o) The county purchasing agent shall adopt the rules and
procedures necessary to implement the agent's duties under this
section subject to approval by the commissioners court.
Notwithstanding Subsection (f) or other law, rules and procedures
adopted under this subsection may include rules and procedures for
persons to use county purchasing cards to pay for county purchases
under the direction and supervision of the county purchasing agent.
(p) During each two-year term of office, a county purchasing
agent shall complete not less than 25 hours in courses relating to
the duties of the county purchasing agent. The courses must be:
(1) accredited by a nationally recognized college or
university;
(2) recognized by a national purchasing association,
such as the National Association of Purchasing Management; or
(3) courses offered by state agencies, or by state
professional associations, related to purchasing.
Acts 1987, 70th Leg., ch. 149, ~ 1, eff. Sept. 1, 1987. Amended
by Acts 1989, 71st Leg., ch. 1, ~ 87(q), eff. Aug. 28, 1989; Acts
1989, 71st Leg., ch. 561, ~ 1, 2, eff. Aug. 28, 1989; Acts 1989,
71st Leg., ch. 1250, ~ 5, 6, eff. Sept. 1, 1989; Acts 1991, 72nd
Leg., ch. 16, ~ 13.02(a), (d), eff. Aug. 26, 1991; Acts 1991,
72nd Leg., ch. 874, ~ 4, eff. June 16, 1991; Acts 1993, 73rd
Leg., ch. 367, ~ 1, eff. Aug. 30, 1993; Acts 1999, 76th Leg., ch.
505, ~ 1, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 57, ~
1, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 321, ~ 1, eff.
Sept. 1, 2001.
~ 262.0115. PURCHASING AGENTS IN COUNTIES WITH
POPULATION OF MORE THAN 100,000. (a) In a county with a
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population of more than 100,000, the commissioners court may employ
a person to act as county purchasing agent. However, this section
does not apply to a county that has appointed a purchasing agent
under Section 262.011 and that has not abolished the position as
authorized by law.
(b) A purchasing agent employed under this section serves at
the pleasure of the commissioners court.
(c) The commissioners court may employ other persons
necessary to assist the purchasing agent in performing the agent's
functions.
(d) Under the supervision of the commissioners court, the
purchasing agent shall carry out the functions prescribed by law
for a purchasing agent under Section 262.011 and for the county
auditor in regard to county purchases and contracts and shall
administer the procedures prescribed by law for notice and public
bidding for county purchases and contracts.
(e) A county that has established the position of county
purchasing agent under this section may abolish the position at any
time. On the abolition of the position, the county auditor shall
assume the functions previously performed by the purchasing agent.
Added by Acts 1989, 71st Leg., ch. 1, § 11(g), eff. Aug. 28,
1989. Amended by Acts 1995, 74th Leg., ch. 63, § 1, eff. May 9,
1995; Acts 1999, 76th Leg., ch. 369, § 1, eff. May 29, 1999.
§ 262.012. COUNTY AUDITORS AS PURCHASING AGENTS IN
CERTAIN COUNTIES. (a) The commissioners court of a county that
employs a county auditor jointly with one or more counties under
Section 84.008 may require the auditor to act as the purchasing
agent for the county, in addition to performing the regular duties
of the auditor as required by law.
(b) In a county with a population of 41,680 to 42,100, the
county auditor shall act as the purchasing agent for the county in
addition to performing the regular duties of the auditor as
required by law.
(c) This section applies only to a county in which a county
purchasing agent has not been appointed under Section 262.011.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987. Amended
by Acts 1989, 71st Leg., ch. 561, § 3, eff. Aug. 28, 1989; Acts
1989, 71st Leg., ch. 1250, § 7, eff. Sept. 1, 1989; Acts 1991,
72nd Leg., ch. 204, § 1, eff. Sept. 1, 1991.
SUBCHAPTER C. COMPETITIVE BIDDING IN GENERAL
§ 262.021. SHORT TITLE. This subchapter may be cited as
the County Purchasing Act.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.
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~ 262.022. DEFINITIONS. In this subchapter:
(1) "Bond funds" means money in the county treasury
received from the sale of bonds, and proceeds of bonds that have
been voted but that have not been issued and delivered.
(2) "Component purchases" means purchases of the
component parts of an item that in normal purchasing practices
would be purchased in one purchase.
(3) "Current funds" means funds in the county treasury
that are available in the current tax year, revenue that may be
anticipated with reasonable certainty to come into the county
treasury during the current tax year, and emergency funds.
(4) "High technology item" means a service, equipment,
or good of a highly technical nature, including:
(A) data processing equipment and software and
firmware used in conjunction with data processing equipment;
(B) telecommunications, radio, and microwave
systems;
(C) electronic distributed control systems,
including building energy management systems; and
(D) technical services related to those items.
(5) "Item" means any service, equipment, good, or
other tangible or intangible personal property, including
insurance and high technology items.
(6) "Purchase" means any kind of acquisition,
including a lease, of an item.
(7) "Separate purchases" means purchases, made
separately, of items that in normal purchasing practices would be
purchased in one purchase.
(8) "Sequential purchases" means purchases, made over
a period, of items that in normal purchasing practices would be
purchased in one purchase.
(9) "Time warrant" means any warrant issued by a
county that is not payable out of current funds.
Acts 1987, 70th Leg., ch. 149, ~ 1, eff. Sept. 1, 1987. Amended
by Acts 1989, 71st Leg., ch. 1, ~ 59(b), eff. Aug. 28, 1989; Acts
1989, 71st. Leg., ch. 1250, ~ 8(a), eff. Sept. 1, 1989.
~ 262.0225. ADDITIONAL COMPETITIVE PROCEDURES. (a) In
the procedure for competitive bidding under this subchapter, the
commissioners court of the county shall provide all bidders with
the opportunity to bid on the same items on equal terms and have
bids judged according to the same standards as set forth in the
specifications.
(b) A county shall receive bids or proposals under this
subchapter in a fair and confidential manner.
(c) A county may receive bids or proposals under this
subchapter in hard-copy format or through electronic transmission.
A county shall accept any bids or proposals submitted in hard-copy
format.
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Added by Acts 2001, 77th Leg., ch. 1063, ~ 1, eff. Sept. 1, 2001.
~ 262.023. COMPETITIVE REQUIREMENTS FOR CERTAIN
PURCHASES. (a) Before a county may purchase one or more items
under a contract that will require an expenditure exceeding
$25,000, the commissioners court of the county must:
(1) comply with the competitive bidding or competitive
proposal procedures prescribed by this subchapter;
(2) use the reverse auction procedure, as defined by
Section 2155.062(d), Government Code, for purchasing; or
(3) comply with a method described by Subchapter H,
Chapter 271.
(b) The requirements established by Subsection (a) apply to
contracts for which payment will be made from current funds or bond
funds or through anticipation notes authorized by Chapter 1431,
Government Code, or time warrants. Contracts for which payments
will be made through certificates of obligation are governed by The
Certificate of Obligation Act of 1971 (Subchapter C, Chapter 271).
(b-1) A county that complies with a method described by
Subchapter H, Chapter 271, as provided by Subsection (a)(3), to
enter into a contract for which payment will be made through
anticipation notes authorized by Chapter 1431, Government Code, may
not issue anticipation notes for the payment of that contract in an
amount that exceeds the lesser of:
(1) 20 percent of the county's budget for the fiscal
year in which the county enters into the contract; or
(2) $10 million.
(c) In applying the requirements established by Subsection
(a), all separate, sequential, or component purchases of items
ordered or purchased, with the intent of avoiding the requirements
of this subchapter, from the same supplier by the same county
officer, department, or institution are treated as if they are part
of a single purchase and of a single contract. In applying this
provision to the purchase of office supplies, separate purchases of
supplies by an individual department are not considered to be part
of a single purchase and single contract by the county if a specific
intent to avoid the requirements of this subchapter is not present.
Acts 1987, 70th Leg., ch. 149, ~ 1, eff. Sept. 1, 1987. .Amended
by Acts 1989, 71st Leg., ch. 1, ~ 57(a), eff. Aug. 28, 1989; Acts
1989, 71st Leg., ch. 1250, ~ 9, eff. Sept. 1, 1989; Acts 1991,
72nd Leg., ch. 16, ~ 13.02(b), eff. Aug. 26, 1991; Acts 1993,
73rd Leg., ch. 757, ~ 13, 38, eff. Sept. 1, 1993; Acts 1997, 75th
Leg., ch. 442, ~ 1, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch.
505, ~ 2, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 436, ~
4, eff. May 28, 2001; Acts 2001, 77th Leg., ch. 1063, ~ 2, eff.
Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1409, ~ 4, eff. Sept. 1,
2001; Acts 2003, 78th Leg., ch. 1276, ~ 12.004, eff. Sept. 1,
2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 689, ~ 1, eff. September 1,
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2007.
~ 262.0235. PROCEDURES ADOPTED BY COUNTY PURCHASING
AGENTS FOR ELECTRONIC BIDS OR PROPOSALS. The county purchasing
agent, before receiving electronic bids or proposals, shall adopt
rules in conformance with Section 262.011(0) to ensure the
identification, security, and confidentiality of electronic bids
or proposals.
Added by Acts 2001, 77th Leg., ch. 1063, § 3, eff. Sept. 1, 2001.
~ 262.024. DISCRETIONARY EXEMPTIONS. (a) A contract
for the purchase of any of the following items is exempt from-the
requirement established by Section 262.023 if the commissioners
court by order grants the exemption:
(1) an item that must be purchased in a case of public
calamity if it is necessary to make the purchase promptly to relieve
the necessity of the citizens or to preserve the property of the
county;
(2) an item necessary to preserve or protect the
public health or safety of the residents of the county;
(3) an item necessary because of unforeseen damage to
public property;
(4) a personal or professional service;
(5) any individual work performed and paid for by the
day, as the work progresses, provided that no individual is
compensated under this subsection for more than 20 working days in
any three month period;
(6) any land or right-of-way;
(7) an item that can be obtained from only one source,
including:
(A) items for which competition is precluded
because of the existence of patents, copyrights, secret processes,
or monopolies;
(B) films, manuscripts, or books;
(C) electric power, gas, water, and other utility
services; and
equipment;
(D) captive replacement parts or components for
(8) an item of food;
(9) personal property sold:
(A) at an auction by a state licensed auctioneer;
(B) at a going out of business sale held in
compliance with Subchapter F, Chapter 17, Business & Commerce
Code; or
(C) by a political subdivision of this state, a
state agency of this state, or an entity of the federal government;
(10) any work performed under a contract for community
and economic development made by a county under Section 381.004; or
(11) vehicle and equipment repairs.
(b) The renewal or extension of a lease or of an equipment
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maintenance agreement is exempt from the requirement established by
Section 262.023 if the commissioners court by order grants the
exemption, and if:
(1) the lease or agreement has gone through the
competitive bidding procedure within the preceding year;
(2) the renewal or extension does not exceed one year;
and
(3) the renewal or extension is the first renewal or
extension of the lease or agreement.
(c) If an item exempted under Subsection (a)(7) is
purchased, the commissioners court, after accepting a signed
statement from the county official who makes purchases for the
county as to the existence of only one source, must enter in its
minutes a statement to that effect.
(d) The exemption granted under Subsection (a)(8) of this
section shall apply only to the sealed competitive bidding
requirements on food purchases. Counties shall solicit at least
three bids for purchases of food items by telephone or written
quotation at intervals specified by the commissioners court.
Counties shall award food purchase contracts to the responsible
bidder who submits the lowest and best bid or shall reject all bids
and repeat the bidding process, as provided by this subsection. The
purchasing officer taking telephone or written bids under this
subsection shall maintain, on a form approved by the commissioners
court, a record of all bids solicited and the vendors contacted.
This record shall be kept in the purchasing office for a period of
at least one year or until audited by the county auditor.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987. Amended
by Acts 1989, 71st Leg., ch. 1, § 59(c), eff. Aug. 28, 1989; Acts
1989, 71st Leg., ch. 962, § 1, eff. Sept. 1, 1989; Acts 1989,
71st Leg., ch. 1001, § 2, eff. Aug. 28, 1989; Acts 1989, 71st
Leg., ch. 1060, § 1, eff. Aug. 28, 1989; Acts 1991, 72nd Leg.,
ch. 16, § 13.03, eff. Aug. 26, 1991; Acts 1997, 75th Leg., ch.
442, § 2, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 1065,
§ 1, eff. June 15, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 1272_, § 3, eff. September
1, 2007.
§ 262.0241. MANDATORY EXEMPTIONS: CERTAIN RECREATIONAL
SERVICES. (a) This section applies only to a county that:
(1) has a population of 20,000 or less; and
(2) owns not more than one golf course open for public
use.
(b) The competitive bidding and competitive proposal
procedures prescribed by this subchapter do not apply to the
purchase of:
(1) management services for:
(A) a county-owned golf course; or
(B) a retail facility owned by the county and
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located on the premises of the golf course; and
(2) landscape maintenance services for a county-owned
golf course.
Added by Acts 2001, 77th Leg., ch. 1065, § 2, eff. June 15, 2001.
§ 262.0245. COMPETITIVE BIDDING PROCEDURES ADOPTED BY
COUNTY PURCHASING AGENTS. A county purchasing agent shall adopt
procedures that provide for competitive bidding, to the extent
practicable under the circumstances, for the county purchase of an
item under a contract that is not subject to competitive bidding
under Section 262.023.
Added by Acts 1991, 72nd Leg., ch. 16, § 13.02(c), eff. Aug. 26,
1991. Renumbered from § 262.0241 by Acts 2001, 77th Leg., ch.
1065, § 2, eff; June 15, 2001.
§ 262.025. COMPETITIVE BIDDING NOTICE. (a) A notice of
a proposed purchase must be published at least once a week in a
newspaper of general circulation in the county, with the first day
of publication occurring before the 14th day before the date of the
bid opening. If there is no newspaper of general circulation in the
county, the notice must be posted in a prominent place in the
courthouse for 14 days before the date of the bid opening.
(b) The notice must include:
(1) the specifications describing the item to be
purchased or a statement of where the specifications may be
obtained;
(2) the time and place for receiving and opening bids
and the name and position of the county official or employee to whom
the bids are to be sent;
(3) whether the bidder should use lump-sum or unit
pricing;
(4) the method of payment by the county; and
(5) the type of bond required by the bidder.
(c) If any part of the payment for a proposed purchase will
be made through time warrants, the notice also must include a
statement of the maximum amount of time warrant indebtedness, the
rate of interest on the time warrants, and the maximum maturity date
of the time warrants.
(d) In a county with a population of 3.3 million or more, the
county and any district or authority created under Article XVI,
Section 59, of the Texas Constitution of which the governing body is
the commissioners court may require that a minimum of 25 percent of
the work be performed by the bidder and, notwithstanding any other
law to the contrary, may establish financial criteria for the
surety companies that provide payment and performance bonds.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987. Amended
by Acts 1989, 71st Leg., ch. 1019, § 1, eff. Aug. 28,1989; Acts
2001, 77th Leg., ch. 669, § 78, eff. Sept. 1, 2001.
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~ 262.0255. ADDITIONAL NOTICE AND BOND PROVISIONS
RELATING TO PURCHASE OF CERTAIN EQUIPMENT. (a) A notice of a
proposed purchase of earth-moving, material-handling, road
maintenance, or construction equipment under Section 262.025 may
include a request for information about the costs of the repair,
maintenance, or repurchase of the equipment.
(b) The commissioners court may require the bidder to
furnish, to the county in a contract for the purchase of the
equipment, a bond to cover the repurchase costs of the equipment.
Added by Acts 1991, 72nd Leg., ch. 416, ~ 1, eff. Sept. 1, 1991.
~ 262.0256. PRE-BID CONFERENCE FOR CERTAIN COUNTIES OR A
DISTRICT GOVERNED BY THOSE COUNTIES.
Text of section as amended by Acts 2003, 78th Leg., ch. 660, ~ 1
(a) This section applies only to a county with a population
of 2.8 million or more.
(b) The commissioners court of the county or the governing
body of a district or authority created under Section 59, Article
XVI, Texas Constitution, if the governing body is the commissioners
court of the county in which the district is located, may require a
principal, officer, or employee of each prospective bidder to
attend a mandatory pre-bid conference conducted for the purpose of
discussing contract requirements and answering questions of
prospective bidders.
(c) After a conference is conducted under Subsection (b),
any additional required notice for the proposed purchase may be
sent by certified mail, return receipt requested, only to
prospective bidders who attended the conference. Notice under this
subsection is not subject to the requirements of Section 262.025.
Added by Acts 2001, 77th Leg., ch. 255, ~ 1, eff. May 22, 2001.
Amended by Acts 2003, 78th Leg., ch. 660, ~ 1, eff. Sept. 1,
2003.
~ 262.0256. PRE-BID CONFERENCE.
Text of section as amended by Acts 2003, 78th Leg., ch. 725, ~ 1
The commissioners court of a county or the governing body of a
district or authority created under Section 59, Article XVI, Texas
Constitution, if the governing body is the commissioners court of
the county in which the district is located, may require a
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principal, officer, or employee of each prospective bidder to
attend a mandatory pre-bid conference conducted for the purpose of
discussing contract requirements and answering questions of
prospective bidders.
Added by Acts 2001, 77th Leg., ch. 255, § 1, eff. May 22, 2001.
Amended by Acts 2003, 78th Leg., ch. 725, § 1, eff. Sept. 1,
2003.
§ 262.026. OPENING OF BIDS. (a) The county official
who makes purchases for the county shall open the bids on the date
specified in the notice. The date specified in the notice may be
extended if the commissioners court determines that the extension
is in the best interest of the county. All bids, including those
received before an extension is made, must be opened at the same
time. The commissioners court may adopt an order that delegates the
authority to make extensions under this subsection to the county
official who makes purchases for the county.
(b) Opened bids shall be kept on file and available for
inspection by anyone desiring to see them.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987. Amended
by Acts 1999, 76th Leg., ch. 505, § 3, eff. Sept. 1, 1999.
§ 262.027. AWARDING OF CONTRACT. (a) The officer in
charge of opening the bids shall present them to the commissioners
court in session. Except as provided by Subsection (e), the court
shall:
(1) award the contract to the responsible bidder who
submits the lowest and best bid; or
(2) reject all bids and publish a new notice.
(b) If two responsible bidders submit the lowest and best
bid, the commissioners court shall decide between the two by
drawing lots in a manner prescribed by the county judge.
(c) A contract may not be awarded to a bidder who is not the
lowest dollar bidder meeting specifications unless, before the
award, each lower bidder is given notice of the proposed award and
is given an opportunity to appear before the commissioners court
and present evidence concerning the lower bidder's responsibility.
(d) In determining the lowest and best bid for a contract
for the purchase of earth-moving, material-handling, road
maintenance, or construction equipment, the commissioners court
may consider the information submitted under Section 262.0255.
(e) In determining the lowest and best bid for a contract
for the purchase of road construction material, the commissioners
court may consider the pickup and delivery locations of the bidders
and the cost to the county of delivering or hauling the material to
be purchased. The commissioners court may award contracts for the
purchase of road construction material to more than one bidder if
each of the selected bidders submits the lowest and best bid for a
particular location or type of material.
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(f) Notwithstanding any other requirement of this section,
the commissioners court may condition acceptance of a bid on
compliance with a requirement for attendance at a mandatory pre-bid
conference under Section 262.0256.
Acts 1987, 70th Leg., ch. 149, ~ 1, eff. Sept. 1, 1987. Amended
by Acts 1991, 72nd Leg., ch. 416, ~ 2, eff. Sept. 1, 1991; Acts
1993, 73rd Leg., ch. 127, ~ 1, eff. May 11, 1993; Acts 2001, 77th
Leg., ch. 255, ~ 2, eff. May 22, 2001.
~ 262.0271. CONSIDERATION OF HEALTH INSURANCE PROVIDED
BY BIDDER. (a) In this section, "comparable health insurance
coverage" means health insurance benefits provided by a bidder or a
subcontractor a bidder intends to use that are comparable to the
health insurance benefits provided for employees of the county.
(b) In purchasing items under this chapter through a
competitive bidding process, if a county receives one or more bids
from a bidder who provides comparable health insurance coverage to
its employees and requires a subcontractor the bidder intends to
use to provide comparable health insurance coverage to the
subcontractor's employees and whose bid is within"five percent of
the lowest bid price received by the county from a bidder who does
not provide or require comparable health insurance coverage, the
commissioners court of the county may give preference to the bidder
who provides and requires comparable health insurance coverage.
(c) This section does not prohibit a county from rejecting
all bids.
Added by Acts 2005, 79th Leg., Ch. 1299_, ~ 1, eff. September 1,
2005.
~ 262.0275. SAFETY RECORD OF BIDDER CONSIDERED. In
determining who is a responsible bidder, the commissioners court
may take into account the safety record of the bidder, of the firm,
corporation, partnership, or institution represented by the
bidder, or of anyone acting for such a firm, corporation,
partnership, or institution if:
(1) the commissioners court has adopted a written
definition and criteria for accurately determining the safety
record of a bidder;
(2) the governing body has given notice to prospective
bidders in the bid specifications that the safety record of a bidder
may be considered in determining the responsibility of the bidder;
and
(3) the determinations are not arbitrary and
capricious.
Added by Acts 1989, 71st Leg., ch. 1, ~ 58(c), eff. Aug. 28,
1989.
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§ 262.0276. CONTRACT WITH PERSON INDEBTED TO COUNTY.
(a) By an order adopted and entered in the minutes of the
commissioners court and after notice is published in a newspaper of
general circulation in the county, the commissioners court may
adopt rules permitting the county to refuse to enter into a contract
or other transaction with a person indebted to the county.
(b) It is not a violation of this subchapter for a county,
under rules adopted under Subsection (a), to refuse to award a
contract to or enter into a transaction with an apparent low bidder
or successful proposer that is indebted to the county.
(c) In this section, "person" includes an individual, sole
proprietorship, corporation, nonprofit corporation, partnership,
joint venture, limited liability company, and any other entity that
proposes or otherwise seeks to enter into a contract or other
transaction with the county requiring approval by the commissioners
court.
Added by Acts 2003, 78th Leg., ch. 156, § 2, eff. Sept. 1, 2003.
§ 262.028. LUMP-SUM OR UNIT PRICE METHOD. A purchase
may be proposed on a lump-sum or unit price basis. If the county
chooses to use unit pricing in its notice, the information
furnished bidders must specify the approximate quantities
estimated on the best available information, but the compensation
paid the bidder must be based on the actual quantities purchased.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.
§ 262.029. TIME WARRANT ELECTION. If before the date
tentatively set for the authorization of the issuance of time
warrants applying to a contract covered by this subchapter or if
before that authorization a petition signed by at least five
percent of the registered voters of the county is filed with the
county clerk protesting the issuance of the time warrants, the
county may not issue the time warrants unless the issuance is
approved at an election ordered and conducted in the manner
provided for county bond elections under Chapter 1251, Government
Code.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987. Amended
by Acts 2001, 77th Leg., ch. 1420, § 8.291, eff. Sept. 1, 2001.
§ 262.0295. ALTERNATIVE MULTISTEP COMPETITIVE PROPOSAL
PROCEDURE. (a)(1) If the county official who makes purchases for
the county determines that it is impractical to prepare detailed
specifications for an item to support the award of a purchase
contract, the official shall notify the commissioners court of such
determination.
(2) Upon a finding by the commissioners court that it
is impractical to prepare detailed specifications for an item to
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support the award of a purchase contract, after a notification of
such determination by the county official who makes purchases for
the county, the county official who makes purchases for the county
may use the multistep competitive proposal procedure provided by
this section.
(3) This section applies only to a county with a
population of 125,000 or more.
(b) Quotations must be solicited through a request for
proposals. Public notice for the request for proposals must be made
in the same manner as provided in the competitive bidding
procedure, except that the notice may include a general description
of the item to be purchased, instead of the specifications
describing the item or a statement of where the specifications may
be obtained, and may request the submission of unpriced proposals.
(c) On the date specified in the notice, the county official
shall open the proposals and, within seven days after that date,
solicit by mailed request priced bids from the persons who
submitted proposals and who qualified under the criteria stated in
the first solicitation.
(d) Within 30 days after the date the unpriced proposals are
opened under Subsection (c), the county official shall present the
priced bids to the commissioners court. The award of the contract
shall be made to the responsible offeror whose bid is determined to
be the lowest evaluated offer resulting from negotiation. All
proposals and bids that have been submitted shall be available and
open for public inspection after the contract is awarded.
(e) As provided in the request for proposals and under rules
adopted by the commissioners court, discussion may be conducted
with responsible offerors who submit priced bids determined to be
reasonably susceptible of being selected for award. Offerors must
be accorded fair and equal treatment with respect to any
opportunity for discussion and revision of proposals, and revisions
may be permitted after submission and before award for the purpose
of obtaining best and final offers.
Added by Acts 1989, 71st Leg., ch. 1250, ~ 10, eff. Sept. 1,
1989.
~ 262.030. ALTERNATIVE COMPETITIVE PROPOSAL PROCEDURE
FOR CERTAIN GOODS AND SERVICES. (a) Except for Subsection (d) of
this section, the competitive proposal procedure provided by this
section may be used for the purchase of insurance, high technology
items, and the following special services:
(1) landscape maintenance;
(2) travel management; or
(3) recycling.
(b) Quotations must be solicited through a request for
proposals. Public notice for the request for proposals must be made
in the same manner as provided in the competitive bidding
procedure. The request for proposals must specify the relative
importance of price and other evaluation factors. The award of the
contract shall be made to the responsible offeror whose proposal is
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determined to be the lowest evaluated offer resulting from
negotiation, taking into consideration the relative importance of
price and other evaluation factors set forth in the request for
proposals.
(c) If provided in the request for proposals, proposals
shall be opened so us to avoid disclosure of contents to competing
offerors and kept secret during the process of negotiation. All
proposals that have been submitted shall be available and open for
public inspection after the contract is awarded, except for trade
secrets and confidential information contained in the proposals and
identified as such.
(d) A county in which a purchasing agent has been appointed
under Section 262.011 or employed under Section 262.0115 may use
the competitive proposal purchasing method authorized by this
section for the purchase of insurance or high technology items. In
addition, the method may be used to purchase other items when the
county official who makes purchases for the county determines, with
the consent of the commissioners court, that it is in the best
interest of the county to make a request for proposals.
(e) As provided in the request for proposals and under rules
adopted by the commissioners court, discussions may be conducted
with responsible offerors who submit proposals determined to be
reasonably susceptible of being selected for award. Offerors must
be accorded fair and equal treatment with respect to any
opportunity for discussion and revision of proposals, and revisions
may be permitted after submission and before award for the purpose
of obtaining best and final offers.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987._ Amended
by Acts 1989, 71st Leg., ch. 1, § 59(d), eff. Aug. 28, 1989; Acts
1995, 74th Leg., ch. 464, § 1, eff. Aug. 28, 1995; Acts 1995,
74th Leg., ch. 746, § 3, eff. Aug. 28, 1995; Acts 1999, 76th
Leg., ch. 62, § 19.01(85), eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 640, § 1, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 1272, § 4, eff. September
1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 1272, § 5, eff. September
1, 2007.
§ 262.0305. MODIFICATION AFTER AWARD. (a) After award
of a contract but before the contract is made, the county official
who makes purchases for the county may negotiate a modification of
the contract if the modification is in the best interests of the
county and does not substantially change the scope of the contract
or cause the contract amount to exceed the next lowest bid.
(b) For the modified contract to be effective, the
commissioners court must approve the contract.
Added by Acts 1989, 71st Leg., ch. 1250, § 11, eff. Sept. 1,
1989.
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§ 262.031. CHANGES IN PLANS AND SPECIFICATIONS. (a) If
it becomes necessary to make changes in plans, specifications, or
proposals after a contract is made or if it becomes necessary to
increase or decrease the quantity of items purchased, the
commissioners court may make the changes. However, the total
contract price may not be increased unless the cost of the change
can be paid from available funds.
(b) If a change order involves an increase or decrease in
cost of $50,000 or less, the commissioners court may grant general
authority to an employee to approve the change orders. However, the
original contract price may not be increased by more than 25 percent
unless the change order is necessary to comply with a federal or
state statute, rule, regulation, or judicial decision enacted,
adopted, or rendered after the contract was made. The original
contract price may not be decreased by 18 percent or more without
the consent of the contractor.
Acts 1987, 70th Leg., ch. 149, ~ 1, eff. Sept. 1, 1987. Amended
by Acts 1993, 73rd Leg., ch. 104, ~ 1, eff. May 7, 1993; Acts
1993, 73rd Leg., ch. 891, ~ 1, eff. June 19, 1993; Acts 1995,
74th Leg., ch. 746, ~ 4, eff. Aug. 28, 1995.
~ 262.032. BID OR PERFORMANCE BOND; PAYMENT UNDER
CONTRACT. (a) If the contract is for the construction of public
works or is under a contract exceeding $100,000, the bid
specifications or request for proposals may require the bidder to
furnish a good and sufficient bid bond in the amount of five percent
of the total contract price. A bid bond must be executed with a
surety company authorized to do business in this state.
(b) Within 30 days after the date of the signing of a
contract or issuance of a purchase order following the acceptance
of a bid or proposal and prior to commencement of the actual work,
the bidder or proposal offeror shall furnish a performance bond to
the county, if required by the county, for the full amount of the
contract if that contract exceeds $50,000. This subsection does
not apply to a performance bond required to be furnished by Chapter
2253, Government Code.
(c) If the contract is for $50,000 or less, the county may
provide in the bid notice or request for proposals that no money
will be paid to the contractor until completion and acceptance of
the work or the fulfillment of the purchase obligation to the
county.
(d) A bidder or proposal offeror whose rates are subject to
regulation by a state agency may not be required to furnish a
performance bond or a bid bond under this section.
Acts 1987, 70th Leg., ch. 149, ~ 1, eff. Sept. 1, 1987. Amended
by Acts 1989, 71st Leg., ch. 1, ~ 59(e), eff. Aug. 28, 1989; Acts
1991, 72nd Leg., ch. 109, ~ 3, eff. Aug. 26, 1991; Acts 1991,
72nd Leg., ch. 696, ~ 1, eff. Sept. 1, 1991; Acts 1993, 73rd
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Leg., ch. 33, § 1, eff. Aug. 30, 1993; Acts 1995, 74th Leg., ch.
76, § 5.95(17), eff. Sept. 1, 1995.
§ 262.033. INJUNCTION. Any property tax paying citizen
of the county may enjoin performance under a contract made by a
county in violation of this subchapter.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.
§ 262.034. CRIMINAL PENALTIES. (a) A county officer or
employee commits an offense if the officer or employee
intentionally or knowingly makes or authorizes separate,
sequential, or component purchases to avoid the competitive bidding
requirements of Section 262.023. An offense under this subsection
is a Class B misdemeanor.
(b) A county officer or employee commits an offense if the
officer or employee intentionally or knowingly violates Section
262.023, other than by conduct described by Subsection (a). An
offense under this subsection is a Class B misdemeanor.
(c) A county officer or employee commits an offense if the
officer or employee intentionally or knowingly violates this
subchapter, other than by conduct described by Subsection (a) or
(b). An offense under this subsection is a Class C misdemeanor.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987. Amended
by Acts 1989, 71st Leg., ch. 1250, § 12, eff. Sept. 1, 1989.
§ 262.035. REMOVAL; INELIGIBILITY. (a) The final
conviction of a county officer or employee for an offense under
Section 262.034 (a) or (b) results in the immediate removal from
office or employment of that person.
(b) For four years after the date of the final conviction,
the removed officer or employee is ineligible:
(1) to be a candidate for or to be appointed or elected
to a public office in this state;
(2) to be employed by the county with which the person
served when the offense occurred; and
(3) to receive any compensation through a contract
with that county.
(c) This section does not prohibit the payment of retirement
or workers' compensation benefits to the removed officer or
employee.
Added by Acts 1989, 71st Leg., ch. 1250, § 13, eff. Sept. 1,
1989.
§ 262.036. SELECTION AND RETENTION OF INSURANCE BROKER.
(a) Notwithstanding any other provision in this chapter, a county
with a population of 800,000 or more may select an appropriately
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licensed insurance agent as the sole broker of record to obtain
proposals and coverages for insurance that provides necessary
coverage and adequate limits of coverage in all areas of risk,
including public official liability, property, casualty, workers'
compensation, and specific and aggregate stop-loss coverage for
self-funded health care.
(b) The county may retain a broker of record selected under
this section only on a fee basis paid by the county. A broker of
record retained in this manner may not directly or indirectly
receive any other remuneration, compensation, or other form of
payment from any other source for the placement of insurance
business under the broker of record contract.
(c) A broker of record retained under this section may not
submit any insurance carrier proposal to the county or direct any
county insurance business to an insurance carrier if the broker has
a business relationship or proposed business relationship with the
carrier, including an appointment, unless the broker first
discloses the nature of that relationship or proposed relationship,
in writing, to the county.
(d) A broker who violates this section is subject to any
disciplinary remedy available under Chapter 82, Insurance Code, or
Section 4005.102, Insurance Code, including license revocation and
fine.
Added by Acts 2005, 79th Leg., Ch. 353., ~ 1, eff. June 17, 2005.
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§ 113.901. REQUIREMENTS FOR APPROVAL OF ACCOUNTS AND
REQUISITIONS. (a) Except as provided by Subsection (c), a county
auditor may not audit or approve an account for the purchase of
supplies or materials for the use of the county or of a county
officer unless a requisition, signed by the officer ordering the
supplies or materials and approved by the county judge, is attached
to the account. The requisition requirement is in addition to any
other requirements of law.
(b) The requisition must be made, signed, and approved in
triplicate. The original must be delivered to the person from whom
the purchase is to be made before the purchase is made. The
duplicate copy must be filed with the county auditor. The
triplicate copy must remain with the officer requesting the
purchase. This subsection does not apply to a county that operates
an electronic requisition system.
(c) The commissioners court of a county that has the office
of county auditor may, by a written order, waive the requirement of
the county judge's approval of requisitions. The order must be
recorded in the minutes of the commissioners court. If the approval
of the county judge is waived, all claims must be approved by the
commissioners court in open court.
(d) The commissioners court of a county may establish an
electronic requisition system to perform the functions required by
Subsection (a). The county auditor, subject to the approval of the
commissioners court, shall establish procedures for administering
the system.
(e) An electronic requisition system established under this
section must be able to electronically transmit data to and receive
data from the county's financial system in a manner that meets
professional, regulatory, and statutory requirements and
standards, including those related to purchasing, auditing, and
accounting.
Acts 1987, 70th Leg., ch. 149, ~ 1, eff. Sept. 1, 1987. Amended
by Acts 1997, 75th Leg., ch. 1197, ~ 10, eff. June 20, 1997.
Amended by:
Acts 2005, 79th Leg., Ch. 936, ~ 1, eff. June 18, 2005.
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~ 271.081. DEFINITION. In this subchapter, "local
government" means a county, municipality, special district, school
district, junior college district, a local workforce development
board created under Section 2308.253, Government Code, or other
legally constituted political subdivision of the state.
Acts 1987, 70th Leg., ch. 149, ~ 1, eff. Sept. 1, 1987. Amended
by Acts 2001, 77th Leg., ch. 1004, ~ 4, eff. Sept. 1, 2001.
~ 271.082. PURCHASING PROGRAM. (a) The comptroller
shall establish a program by which the comptroller performs
purchasing services for local governments. The services must
include:
(1) the extension of state contract prices to
participating local governments when the comptroller considers it
feasible;
(2) solicitation of bids on items desired by local
governments if the solicitation is considered feasible by the
comptroller and is desired by the local government; and
(3) provision of information and technical assistance
to local governments about the purchasing program.
(b) The comptroller may charge a participating local
government an amount not to exceed the actual costs incurred by the
comptroller in providing purchasing services to the local
government under the program.
(c) The comptroller may adopt rules and procedures
necessary to administer the purchasing program. Before adopting a
rule under this subsection, the comptroller must conduct a public
hearing regarding the proposed rule regardless of whether the
requirements of Section 2001.029(b), Government Code, are met.
Acts 1987, 70th Leg., ch. 149, ~ 1, eff. Sept. 1, 1987.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 937, ~ 1.103, eff.
September 1, 2007.
~ 271.083. LOCAL GOVERNMENT PARTICIPATION. (a) A
local government may participate in the purchasing program of the
commission, including participation in purchases that use the
reverse auction procedure, as defined by Section 2155.062(d),
Government Code, by filing with the commission a resolution adopted
by the governing body of the local government requesting that the
local government be allowed to participate on a voluntary basis,
and to the extent the commission deems feasible, and stating that
the local government will:
(1) designate an official to act for the local
government in all matters relating to the program, including the
purchase of items from the vendor under any contract, and that the
governing body will direct the decisions of the representative;
(2) be responsible for:
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(A) submitting requisitions to the commission
under any contract; or
(B) electronically sending purchase orders
directly to vendors, or complying with commission procedures
governing a reverse auction purchase, and electronically sending to
the commission reports on actual purchases made under this
paragraph that provide the information and are sent at the times
required by the commission;
(3) be responsible for making payment directly to the
vendor; and
(4) be responsible for the vendor's compliance with
all conditions of delivery and quality of the purchased item.
(b) A local government that purchases an item under a state
contract or under a reverse auction procedure, as defined by
Section 2155.062(d), Government Code, sponsored by the commission
satisfies any state law requiring the local government to seek
competitive bids for the purchase of the item.
(c) The provisions of Chapter 2177, Government Code, shall
apply to a local government that exercises the ability to
electronically send purchase orders and information under the
provisions of this section.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987. Amended
by Acts 1991, 72nd Leg., ch. 428, ~ 1, eff. Aug. 26, 1991; Acts
1995, 74th Leg., ch. 746, ~ 6, eff. Aug. 28, 1995; Acts 1997,
75th Leg., ch. 494, ~ 5, eff. Sept. 1, 1997; Acts 2001, 77th
Leg., ch. 436, ~ 5, eff. May 28, 2001.
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