Chapter 1: Introduction

Purchasing Policy

and

Procedures Manual

Office of the Purchasing Agent

Adopted April, 2007

Updated April, 2014

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 2

Updated: April, 2014

David Harder, CPSM, CPPB

Purchasing Agent

900 S. Polk St., Suite 604

Amarillo, Texas 79101-3412

[email protected]ter.tx.us

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 3

Updated: April, 2014

Potter County Purchasing Policy and Procedures

Table of Contents

Section Title Page Adopted Date

Chapter 1

Introduction. . . . . . . . 4 . . Apr 2007

Chapter 2

Purchasing Authority and Application. . . . . 7 . . Apr 2007

Chapter 3

Potter County Purchasing Code of Ethics . . . . 9 . . Apr 2007

Chapter 4

Purchasing Agent Authority and Responsibilities . . . 12 . . Apr 2007

Chapter 5

Purchasing Process, Roles and Responsibilities . . . 14 . . Apr 2007

Chapter 6

Other General Purchasing Policies . . . . . 19 . . Apr 2007

Chapter 7

The Requisitioning Process . . . . . . 26 . . Apr 2007

Chapter 8

Open Market Purchases Under $50,000 . . . . 30 . . Apr 2007

Chapter 9

Specifications .. . . . . . . 32 . . Apr 2007

Chapter 10

Competitively Solicited Purchases Exceeding $50,000 . . 35 . . Apr 2007

Chapter 11

State Purchasing Programs . . . . . . 44 . . Apr 2007

Chapter 12

Cooperative Purchasing Agreements . . . 47 . . Apr 2007

Chapter 13

Procurement of Professional Services . . . . 49 . . Apr 2007

Chapter 14

Construction Procurement . . . . . . 60 . . Apr 2007

Chapter 15

Exemptions to the Competitive Procurement Process . . . 71 . . Apr 2007

Chapter 16

Renewal of Equipment Leases and Maintenance Contracts . . 73 . . Apr 2007

Chapter 17

Receipt of Goods . . . . . . . 75 . . Apr 2007

Chapter 18

Contract Modifications . . . . . . 77 . . Apr 2007

Chapter 19

Contract Administration . . . . . . 78 . . Apr 2007

Chapter 20

Professional Development and Certification . . . . 82 . . Apr 2007

Chapter 21

Definitions . . . . . . . . 83 . . Apr 2007

Appendix

1 Potter County Procurement Card Policy and Procedures Manual. . 89 . . Apr 2007

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 4

Updated: April, 2014

Chapter 1: Introduction

Background

This manual provides county departments enough information to

make decisions necessary to request the purchase of goods and

services needed to perform the functions of their departments

effectively.

Mission

The mission of the Potter County Purchasing Department is to:

 Ensure compliance with the County Purchasing Act as well as

other state and federal laws applying to county purchasing;

 Provide equal access to all vendors participating through

competitive acquisition of goods and services;

 Conduct the procurement process in a manner that promotes

and fosters public confidence in the integrity of the County

procurement procedures; and

 Protect the interests of Potter County taxpayers without

regard to any undue influence or political pressures.

Goals of Public

Purchasing

Public purchasing has several goals including but not limited to:

 Purchasing the proper goods and services;

 Obtaining the best possible price for the goods or services

without sacrificing the quality needed;

 Ensuring goods and services are available where and when

needed and there is a continuing supply available; and

 Guarding against the misappropriation of assets that have

been acquired through the procurement process.

Public purchasing must also ensure:

 Responsible bidders are given a fair opportunity to

compete for the County’s business. This can be

accomplished by abiding by statutory requirements regarding

competitive bids and proposals, and by the County’s

purchasing policy.

 Public funds are safeguarded. Although the Purchasing

Department does not usually designate the types of

purchases to be made, it should attempt to see that the best

value is received for the public dollar.

 Public spending is not used to enrich elected officials or

County employees, or to confer favors. To accomplish this,

it is necessary to adopt and implement a code of ethics and

train County employees to ensure they are aware of their

responsibilities in the purchasing area.

Potter County Commissioners Court has adopted a centralized

purchasing structure that provides many benefits:

 It allows for the consolidation of smaller purchases by

individual departments into larger purchases for the entire

county, resulting in lower unit prices and savings;

 Vendors and the business community have a single, central

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 5

Updated: April, 2014

link to the county procurement process to facilitate consistent

communication and understanding;

 Purchasing Department personnel accumulate a solid

foundation of knowledge and experience about purchasing,

marketing trends, prices, and vendors. This expertise assists

users to define their needs in order to better save the county

money and promotes a more efficient procurement process;

and

 Centralized expertise puts the purchasing processes on a

professional footing and inspires public confidence in the

actions of the County.

Additional

Responsibilities

In addition to the above, the Purchasing Department

 Encourages and supports compliance with Texas purchasing

laws;

 Works in conjunction with the Auditor and other County

officials in the development of efficient financial processes;

 Promotes local business participation in County procurement

processes;

 Provides the business community with a central link to County

business;

 Proposes and administers Interlocal Purchasing Agreements

and Cooperative Purchasing Agreements;

 Develops, implements, and manages a Fixed Asset

Management System;

 Oversees and conducts Auctions of Surplus and Salvaged

Property;

 Disposes of Seized and Abandoned Property; and

 Oversees and administers risk management procedures

concerning property and equipment.

The Purchasing Department is committed to promoting effective,

professional, and consistent procurement in Potter County, as well

as championing the public perception that tax dollars are wisely

spent.

This purchasing manual is not static. Purchasing procedures in

Potter County will change as needed, evolving to incorporate

technological advances and changes mandated by legislation.

The organization chart of the Purchasing Department is attached as

Exhibit 1.

There are many terms that are used throughout this manual that

pertain to purchasing activities. Definitions of key terms are found in

Chapter 21.

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 6

Updated: April, 2014

Exhibit 1

Potter County Purchasing Office Organizational Chart

Potter County Purchasing Board

5 District Judges

1 County Judge

Potter County Purchasing Agent

Assistant

Purchasing Agent /

Office Manager

Commodities Balance

& Receiving

Senior Buyer /

Construction

Contract Manager

Contract Preparation

and Management

> $10,000

Fixed Asset &

Inventory Specialist

Buyer

Commodities

< $10, 000

Purchasing Clerk

Total Staffing:

5 FTE Positions

1 PTE Position

Potter County Auditor

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 7

Updated: April, 2014

Chapter 2: Purchasing Authority and Application

Purchasing

Laws

The Texas Legislature has enacted purchasing laws. It is the policy of

Potter County, acting through its duly appointed Purchasing Agent, to

fully comply in all aspects with these laws as they are amended from

time to time.

Application

The Purchasing Act (Texas Local Government Code Chapter 262)

applies to all departments, all district, county, and precinct officials and

employees. The Purchasing Agent must purchase or lease all goods

and services, including maintenance and repair, for all departments. The

Purchasing Agent must perform all purchasing for all officials, County

department heads and employees.

Consequences

Non-

Compliance

Making separate, sequential or component purchases to avoid the

County Purchasing Act’s requirement of competitive bidding, or

otherwise violating the competitive bidding requirements of the County

Purchasing Act, may constitute a class B misdemeanor. See Texas

Local Government Code sections 262.034. Failure to comply with lawful

purchasing requirements also may subject the county to a costly lawsuit

with the end result of the purchase or contract being voided.

Effective Date

These policies and procedures are adopted by the County Purchasing

Agent and approved by the Commissioners Court under the authority of

the Texas Local Government Code, Chapter 262, and supersedes any

previous policies and procedures regarding purchasing.

Precedents

and

Interpretation

These policies and procedures shall become effective upon approval by

the Commissioners Court.

a. These policies and procedures shall be construed liberally to

accomplish their purpose.

b. If there is any conflict between the policies and procedures and a

State law, or a rule adopted under a State law, the stricter of the two

provisions prevails.

c. The masculine, feminine, and neuter genders shall be construed to

include the other genders as required. The singular and plural shall

be construed to include the other number as required.

d. Headings and titles at the beginning of the various sections of these

policies and procedures have been included only to make it easier to

locate the subject matter covered by that section or subsection and

are not to be used in construing these policies and procedures.

e. If any provision of these policies and procedures or the application of

them to any person or circumstances is held invalid, the validity of

the remainder of these policies and procedures and the application

of them to other persons and circumstances shall not be affected.

f. In general, the Purchasing Agent interprets these policies and

procedures but the Commissioners Court shall resolve any question

about any interpretation of these policies and procedures when there

is a conflict related to an area that is not within the statutory authority

of the Purchasing Agent.

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 8

Updated: April, 2014

g. Updates may be made to this policy and procedures manual without

Commissioners’ Court approval so as long as the general meaning

of the policy or procedure is unchanged or to comply with new State

and or Federal rules or regulations.

Additional

Resources

For additional information, the following are listed as references:

 The Model Procurement Manual for Texas Cities and Counties,

March 2005, Carole Keeton Strayhorn, Texas Comptroller,

http://www.window.state.tx.us/lga/purchasing/96449. pdf

 The State of Texas Contract Management Guide, Version 1.1

http://www.tbpc.state.tx.us/stpurch/ContractManagementGuide11.

pdf

 The American Bar Association’s 2000 Model Procurement Code

for State and Local Governments

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 9

Updated: April, 2014

Chapter 3: Potter County Purchasing Code of Ethics

Policy

It is the policy of Potter County that the following ethical principles

govern the conduct of every employee involved, directly or indirectly,

in the County procurement process.

The following is adapted from the American Bar Association’s 2000

Model Procurement Code for State and Local Governments:

Public employment is a public trust. It is the policy of Potter

County to promote the objective of protecting government

integrity and the objective of facilitating the recruitment and

retention of personnel needed by the County. Such policy is

implemented by prescribing essential standards of ethical

conduct without unnecessary obstacles to entering public

service.

Public employees must discharge their duties impartially so as to

assure fair competitive access to County procurement by

responsible contractors. Moreover, public employees should

conduct themselves in such a manner that fosters public

confidence in the integrity of the Potter County procurement

process.

To achieve the purpose of this policy, it is essential that those

doing business with the Potter County Purchasing Office also

observe the ethical standards prescribed in this policy.

Responsibility

to County

Employees shall avoid activities that compromise or give the

perception of compromising the best interests of Potter County.

Employees shall not knowingly use confidential proprietary information

for actual or anticipated personal gain.

Conflict of

Interest

Employees shall avoid any activity that would create a conflict

between their personal interests and the interest of Potter County.

Conflicts exist in any relationship where the County's best interest

may be different from the employee’s best interests or the best

interest of someone associated with the employee. Conflicts of

interest include an employee participating in any way in any

procurement in which:

 The employee or any member of the employee's family has a

financial interest in the results of the County procurement

process;

 A business or organization in which the employee, or any

member of the employee's family, has a financial interest in the

result of the County procurement process; or

 Any other person, business, or organization with whom the

employee or a member of the employee's family is negotiating

for or has an arrangement concerning prospective employment.

Perception

If conflicts of interest exist, the employee shall notify the Purchasing

Agent in writing and remove him or herself from the County

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 10

Updated: April, 2014

procurement process.

Gratuities

Employees shall avoid the appearance of unethical or compromising

practices in relationships, actions, and communications associated

with County procurement.

Employees shall not solicit or accept money, loans, gifts, favors, or

anything of value, from present or potential contractors that might

influence or appear to influence a purchasing decision. Generally,

goods or services with a value of $50 or less in the aggregate from a

vendor during a year do not violate this prohibition unless they

influence or appear to influence a specific purchasing decision. If

anyone is in doubt about whether a specific transaction complies with

this policy, the person should disclose the transaction to the

Purchasing Agent for a determination of compliance.

Confidential

Information

Employees shall keep the proprietary information of vendors

confidential. Employees shall keep County procurement information

obtained from a solicitation confidential until after contract award if the

solicitation provides for it to be kept secret.

Confidentiality

Memorandum

 All information in the vendor’s response is to be kept

confidential.

 No discussion of the proposal is to occur with anyone outside

of the proposal evaluation committee members with the

exception of the designee’s Department Head/Elected Official.

 Proposal responses are not to be reproduced and should be

returned to the designated Purchasing Department staff after

evaluation is completed.

The Purchasing Department is the sole point of communication

for any questions from vendors that arise during the evaluation.

All questions and requests for information should be referred to

the Purchasing Department. There should not be any

discussions between evaluation committee members and

vendors during the evaluation and award process.

 Evaluation committee members must be familiar with and read

the Potter County Purchasing Code of Ethics and agree to

comply with its requirements including reporting any potential

conflict of interest, undue influence from vendors, or attempted

communications from vendors during the evaluation process.

Compliance with the requirements outlined in the Confidentiality

Memorandum (exhibit 2) is crucial. If proprietary information of any

vendor is compromised during the procurement process, all proposals

may be rejected.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 11

Updated: April, 2014

Purchasing Department

David Harder, CPSM, CPPB, Purchasing Agent

900 S. Polk, Suite 604 Amarillo, Texas 79101-3415

Phone: (806) 349-4818 Fax: (806) 349-4825

Email: pages@co.potter.tx.us

TO: Proposal Evaluation Team Member

FROM: David Harder, CPSM, CPPB

DATE: December 27, 2013

SUBJECT: Request for Proposal (RFP) # 885-06, Widgets

In accordance with the County Purchasing Act, this project was issued as a competitive proposal, and, therefore,

all information contained in the responses is to be kept CONFIDENTIAL until an award is approved by

Commissioners Court.

Until that time, and due to the confidential nature of these proposals, no discussion of these proposals shall

occur with anyone outside the Proposal Evaluation Committee members. Proposal documents may not be

reproduced for any reason and must be returned to (buyer’s name) after the evaluation is complete.

Certain information about the proposal, such as vendor name, is public information but may only be released by

the Purchasing Office. Please refer all questions or requests for information to the buyer.

Please note that if any information about these proposals is compromised, it may be cause for rejection of

all proposals.

I understand the above information and instructions and agree to not reveal any content of any proposal to

anyone outside the evaluation committee membership. I will not discuss the deliberations of the committee with

anyone outside the evaluation committee. I will report any vendor contact concerning this evaluation process or

any undue influence on my evaluation of proposals to the responsible buyer.

Additionally, I have read the attached “Potter County Purchasing Code of Ethics”, extracted from the Potter

County Purchasing Policy and Procedures Manual, and agree to conduct myself in accordance with that code of

ethics.

Signature of Evaluation Committee Member Date

Attached: Potter County Purchasing Code of Ethics

Exhibit 2

Example – Potter County Confidentiality Memorandum

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 12

Updated: April, 2014

Chapter 4: Purchasing Agent Authority and Responsibilities

Appointment

The Potter County Commissioners Court and the District Judges have

created a Purchasing Board to implement a centralized purchasing

structure and have given the Purchasing Department that mission. The

Purchasing Board, composed of five District Judges and the County

Judge, appoints the Purchasing Agent for Potter County to a two-year

term and approves the budget for the Purchasing Department,

including the Purchasing Agent's salary.

Statutory

Authority and

Duties

Texas Local Government Code, Chapter 262, Subchapter B & C

outlines the following duties for purchasing agents:

 The Purchasing Agent shall purchase all goods required or

used, and contract for all repairs to property used by the County

or a department or employee, except purchases and contracts

required by law to be made on competitive bid. A person other

than the Purchasing Agent may not purchase the goods or

make the contract for repairs.

 The Purchasing Agent shall supervise all purchases made on

competitive bid and shall see that all purchased goods are

delivered to the proper department in accordance with the

purchase contract.

 A purchase made by the Purchasing Agent shall be paid for by

a warrant drawn by the Auditor on funds in the County treasury

in the manner provided by law. The Auditor may not draw and

the County Treasurer may not honor a warrant for a purchase

unless the purchase is made by the Purchasing Agent or on

competitive bid as provided by law.

 On July 1 of each year, the Purchasing Agent shall file with the

Auditor and each member of the Purchasing Board an inventory

of all property on hand and belonging to the County and each

subdivision, officer, and employee. The Auditor shall carefully

examine the inventory and make an accounting for all property

purchased or previously inventoried and not appearing in the

inventory.

 Subject to Commissioners Court approval, to prevent

unnecessary purchases, the Purchasing Agent shall

recommend the transfer of County goods that are not needed or

used, from one department or employee, to another department

or employee requiring the goods or the use of the goods. The

Purchasing Agent shall furnish the Auditor a list of transferred

goods.

 Subject to Commissioners Court approval, the Purchasing

Agent shall adopt the rules and procedures necessary to

implement the agent's inventory duties.

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 13

Updated: April, 2014

 Rules and procedures adopted by the County Purchasing Agent

include rules and procedures for persons to use county

purchasing cards to pay for county purchases under the

direction and supervision of the Purchasing Agent (Appendix 1).

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 14

Updated: April, 2014

Chapter 5: Purchasing Process, Roles and Responsibilities

Purchasing

Process

The general purchasing process as outlined in Exhibit 3 contains several

stages with responsibilities that are often designated by statute. It begins

with requirements planning and identification and culminates with the

receipt of and payment for goods and services.

Exhibit 3:

Purchasing Process

Step

Performed By:

Identify requirements and obtain budget

User Department

(Purchasing Department may

assist)

Define/finalize requirements

Department and Purchasing

Submit electronic requisition outlining requirements

to Purchasing

User Department

Solicit, advertise, and generate

Purchase Orders and Contracts from requisition

and send to vendor

Purchasing

Deliver good/service as outlined in contract and

submit invoice

Vendor

Match packing slips and invoices to purchase

orders and verify completeness against contract

Purchasing

Electronically receive item in GEMS

system and submit original invoice to

Auditor’s Department

Purchasing

Match received amount with invoice

and audit

Auditor

Submit payment claim to

Commissioners Court for approval

Auditor

Approve payment of claim

Commissioners Court

Disburse payment of claim

County Treasurer

Transfer or Dispose of Assets at end of life cycle

Purchasing

User Do’s and

Don’t’s

Coordination among many County departments and Offices is

necessary for the process to work smoothly. To avoid delays and

comply with County policy and state law, user departments should

remember the following:

 Do not authorize the purchase of any goods or services.

 Do not purchase any goods or services for your own

personal benefit.

 Do not obligate the purchase of goods that are delivered

for use on a trial basis.

 Do not commit to acquire goods or services without an

authorized purchase order. Anyone obligating an

expenditure of funds for goods or services before securing a

purchase order may be held personally responsible for the

payment.

 Adhere to the County Purchasing Code of Ethics and

avoid activities and behaviors that are unethical or create

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 15

Updated: April, 2014

a conflict of interest or the perception of a conflict of

interest. Examples of activities that are inappropriate include:

o Soliciting or accepting gratuities of any kind from

present or potential contractors which might influence

or appear to influence a purchasing decision;

o Failing to disclose in writing to the Purchasing Agent a

conflict of interest and not removing yourself from the

procurement process when there is a conflict; and

o Disclosing confidential proprietary information from

solicitations to other vendors or using the information

for personal gain.

 Do not use purchasing strategies that violate the law to

avoid competition. A county officer or employee who

intentionally or knowingly makes or authorizes separate,

sequential, or component purchases to avoid the competitive

bidding requirements of Texas Local Government Code,

Section 262.023, is committing a Class B misdemeanor

according to Texas Local Government Code, section

262.034(a). Strategies that are prohibited by law include:

o Purchasing a series of component parts that would

normally be purchased as a whole (component

purchases);

o Purchasing items in a series of separate purchases

that normally would be purchased as a single purchase

(separate purchases); and

o Purchasing over a period of time, which would

normally be done as one purchase (sequential

purchases).

 Do not violate or authorize the violation of the

Purchasing Act. Any person who knowingly violates or

authorizes the violation of the Purchasing Act and any county

or precinct person who fails to use the Purchasing Agent for

purchases, including an agent or employee of the County or

of a department of the County commits a criminal offense

which is a misdemeanor. Each act in violation of the law is a

separate offense.

 Ensure funding is available before submitting a

requisition. The law does not allow expenditures that exceed

budgets. Purchasing does not process requisitions for which

there is not adequate funding.

 Plan purchases to minimize the use of emergency and

expedited purchases. Rush purchases are generally more

expensive and they delay other requisitions already in the

system. Vendors may attempt to charge premium prices for

goods and services when there is insufficient time allowed to

explore alternative sources or options.

 Plan purchases to allow sufficient time to process

purchase requests. The Purchasing Department is

committed to processing all requisitions within a reasonable

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 16

Updated: April, 2014

amount of time. In general, departments should allow 2–3

weeks for all non-contract purchases under $50,000 and 6–8

weeks on all purchases requested over $50,000 that are not

covered by an existing contract. Contract requisitions are

generally processed within one day of receipt.

 Ensure that purchasing policies and procedures are

understood before ordering. Departments must assure that

all employees responsible for making department purchase

requests (“purchasing liaisons”) have read and understand

the purchasing procedures in this manual. Departments

should also ensure that liaisons attend any training provided

by the Purchasing Department.

 Coordinate with Purchasing on receipt of goods and

services. Since the County does not have centralized

receiving, each department is responsible for individually

receiving goods and services. Departments should contact

the individual listed as the buyer on the purchase order to

make Purchasing aware of vendor performance issues such

as shortages, late delivery, or damaged merchandise. If the

item received is a fixed asset that must be tracked and

reported, departments should contact the Fixed Asset

Manager in Purchasing to coordinate tagging.

Roles and

Responsibilities

There are specific roles and responsibilities for both users and the

Purchasing Department during the competitive procurement

process. They protect the integrity of the process and provide fair

and equal access to all vendors seeking to do business with Potter

County. Exhibit 4 outlines the primary roles and responsibilities.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 17

Updated: April, 2014

Exhibit 4

Purchasing Process Roles and Responsibilities

Process

User Department

Role/Responsibility

Purchasing Department

Role/Responsibility

Requirements

Definition/

Specification

Development

1. Identifies what is needed, when it

is needed, the quantity needed

and where it is needed and works

with Purchasing Department to

document need in writing a

specification.

2. Ensures funding (budget) is

available to support need.

3. Sends specification and

requisition with funding to

Purchasing Department.

4. Works with Purchasing

Department to develop evaluation

criteria/formats (as applicable).

1. Consults with User Department in

development of specification and

procurement process to be used.

2. Reviews specification to ensure

that it is descriptive and specific

but does not prevent competitive

bidding of comparable goods

3. Works with user department to

develop evaluation

criteria/formats (as applicable)

4. Prepares agenda item for

Commissioners Court (if

applicable)

Solicitation

1. Reviews solicitation documents

before issuance to ensure

department needs are met.

2. Provides Purchasing Department

with a list of potential vendors that

can meet the solicitation

requirements.

3. Provides technical clarifications to

Purchasing Department if vendor

questions arise

4. Supports pre-solicitation

conferences (as applicable)

1. Develops solicitation documents

based on specification and sends

to user department for review

before final issuance.

2. Issues solicitation to vendors on

the vendor list (and those

identified by user department).

3. Advertises solicitation in

accordance with State law.

4. Conducts pre-solicitation

conferences (as applicable).

5. Provides answers or clarifications

to vendors before solicitation

closes.

6. Receives and logs vendor

responses

7. Prepares responses for

evaluation and sends to user

department.

Evaluation and

Negotiation (as

applicable)

1. Evaluators from Department sign

confidentiality memorandum and

send to Purchasing Department

(as applicable).

2. Evaluates response based on

established evaluation criteria and

formats.

3. Completes evaluation and

submits recommendation to

Purchasing Department.

4. Works with Purchasing

Department to develop

negotiation strategy (as

applicable).

5. Participates as member of

1. Issues confidentiality

memorandum to all evaluators

before evaluation commences (as

applicable).

2. Supervises evaluation process to

ensure consistent and fair

application of evaluation criteria.

3. Acts as point of contact for

evaluator requests and

communications to vendors for

additional information.

4. Compiles individual evaluation

results and works with users to

develop recommendation for

award and prepares contract

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 18

Updated: April, 2014

Process

User Department

Role/Responsibility

Purchasing Department

Role/Responsibility

negotiating team to negotiate Best

and Final Offers (BAFOs) (as

applicable).

6. Works with Purchasing

Department to co-develop final

recommendation for award.

7. Provides information to

Purchasing Department

(memorandum) to support

contract award agenda item

preparation and drafting.

award agenda item for

Commissioners Court or

5. Works with user department to

develop negotiation strategy (as

applicable),

6. Leads negotiating team to

negotiate BAFOs (if applicable).

7. Receives BAFOs and co-

develops final recommendation

for award (if applicable) and

8. Prepares contract award agenda

request for Commissioners Court.

Contract

Modifications

1. Request modifications in writing to

Purchasing Department

2. Reviews draft and final

modification to ensure it meets

department needs

1. Evaluates modification request

and works with user department

to develop modifications

2. Coordinates with vendor and user

department to develop draft

modifications

3. Works with County Attorney to

review and finalize modifications

4. Obtains appropriate signatures

(vendor, attorney, etc.)

5. Purchasing Agent approves

modifications or develops

Commissioners Court agenda

item for approval depending on

type and amount of modification

Contract

Performance

Monitoring

1. Receives copy of contract and

monitors vendor performance and

delivery

2. Notifies Purchasing Office of non-

performance and provides written

documentation outlining details of

non-performance (dates,

description of problem, etc.)

3. Works with Purchasing Office to

develop acceptable corrective

actions (as applicable)

1. Maintains complete contract file

with supporting documentation

during term of contract

2. Works with vendor to resolve

performance issues as identified

by user department

3. Develops corrective actions and

timetables for completion to

resolve performance issues and

documents in contract file (as

applicable)

4. Works with user department and

County Attorney to terminate

contract when necessary

because of non-performance

5. Prepares contract termination

agenda item for Commissioners

Court action (if required)

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 19

Updated: April, 2014

Chapter 6: Other General Purchasing Policies

Vendor

Owing Taxes

Pursuant to Texas Local Government Code 262.0267, Potter County

Commissioner Court has adopted a policy which requires that vendors

taxes be current as of the date bids/proposals are due. Bidders with

delinquent taxes on the due date will not be eligible for award.

Whether or not a vendor’s taxes are delinquent will be determined by

an independent review of the Tax Office records. Vendors who

believe a delinquency is reflected in error must contact the Potter

County Tax Office to correct any errors or discrepancies prior to

submitting their bid in order to ensure that their bid will be considered.

Tax records are available online at the Potter Randall Appraisal District

website – www.prad.org. Prior to submitting a bid, vendors are

encouraged to visit the Potter Randal Appraisal District website, set up

a portfolio of their accounts and make their own initial determination of

the status of their tax accounts. Furthermore, if during the

performance of a contract, a vendor’s taxes become delinquent, Potter

County reserves the right to provide notice to the Auditor or Treasurer

pursuant to Texas Local Government Code §154.045.

County

Auditor

Funds

Verification

According to Texas Local Government Code, sections 113.064 and

113.065, the County Auditor shall:

 Examine and approve each claim, bill and account against the

county, and

 Audit and approve only those claims that have been incurred as

provided by law, including the laws governing county budgeting

and purchasing. Thus, a payment for a purchase that is not

included in the county budget, or for which funds are not

available, may be disapproved by the County Auditor.



IT Review of

Data

Processing

Equipment

The Information and Technology Department (IT) reviews all purchase

requests made by departments for software, hardware and other data

processing equipment and provides a written assessment to the

requesting department, Purchasing Department, and Commissioners

Court before court approval. This procedure is to ensure compatibility

and standardization. IT may provide the Purchasing Agent with a list of

the goods and services that have been pre-approved and need no

additional review. To purchase any other data processing goods or

services, the User Department must obtain IT approval.

Facilities

Maintenance

Review

When new equipment is being acquired, the Facilities Maintenance

Department provides a statement about whether adequate space and

other facilities resources necessary for the proper operation of the

equipment are available in a place accessible to the department

requesting it.

Sheriff’s

Review

For acquisition of security equipment and during the planning stages of

security projects, the Sheriff’s Department should be consulted.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 20

Updated: April, 2014

Records

Management

Review

Mailing supplies, record keeping equipment and record keeping

software should be coordinated with the Records Management

Department.

Recycling

Policy

Potter County supports the purchase of recycled materials, both in

products that are reduced to raw material and remade into material

that can be used for other purposes, as well as items that can be

rebuilt or remanufactured and placed back into service for continuous

use. In an effort to support recycling, the Purchasing Agent is

authorized to purchase recycled material if the price differential

between available non-recycled material and recycled material is

within ten percent and there is an insignificant impact on the overall

budget.

The Purchasing Department shall:

 Provide user departments with information to facilitate their

purchase of designated products and inform them of their

responsibilities;

 Revise minimum content standards as necessary to ensure that

designated products contain the maximum practical amount of

recovered material and are consistent with guidelines and

regulations promulgated by the United States Environmental

Protection Agency, and other Federal and State agencies; and

 Ensure that environmentally preferable products are designated

whenever practicable.

Contractors performing services for County are required to comply with

all applicable waste management law. Potter County prefers that all

printed material, produced by a contractor in the performance of a

contract, should be printed on recycled paper, labeled as printed on

recycled paper with multiple pages of text printed front and back

whenever practicable.

Risk

Management

Coverage

When departments sustain loss or damage to goods or buildings, and

funding for replacement or repair is coordinated through the

Purchasing department, the actual purchase still is processed by the

Purchasing Department. Additionally, an Inventory Form is completed

by the Fixed Asset Manager when the inventory files are updated if

applicable.

Vehicle accidents occurring during normal business hours M-F, 8-5,

must be reported within 4 hours to the Purchasing Agent. After normal

business hours the accident must be reported immediately on the next

business day.

Vehicle accidents occurring within the city limits must have a city

police report; accidents occurring outside of the city limits require a

Department of Public Safety or county sheriff’s department report.

Depending on location, either a city police or a DPS or sheriff’s

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 21

Updated: April, 2014

department report is required for insurance consideration. Within ten

days of the accident, forward to the Purchasing Agent the following

information:

1. Any Police, DPS or Sheriff’s Department Reports

2. Any Departmental incident reports with driver’s statement

3. Photographs of vehicles and video of accident if available

After Hours

Emergency

Purchases

If there is a declaration of a local state of disaster, the County Judge is

the authority to approve purchases. When purchases are necessary

because any other emergency situation exists, the Purchasing Agent

must be contacted to ensure compliance with the Purchasing Act.

Emergency, as used in the Purchasing Act and this chapter, is an

urgent unforeseeable need to make a purchase that does not result

from a local state of disaster.

Departments that deal with emergency situations (e.g., Road and

Bridge, Facilities and Sheriff) must have written internal procedures for

emergency purchases less than $50,000 that occur after regular work

hours. Those procedures must be approved in advance by the

Purchasing Agent. A sample procedure is provided in exhibit #5.

The internal department procedure should require that department

employees contact their financial officer or other designated person for

approval. On the first working day after the purchase, the department

must enter a purchase requisition into the GEMS system and provide

written documentation to the Purchasing Agent. If the Purchasing

Agent has not approved procedures for emergency purchases for a

department, the department must wait until the next working day to

make the purchase.

If the amount exceeds $50,000, the Commissioners Court by order

must grant the exemption from formal competitive bidding even in an

emergency situation. Refer to page 26 for emergency requisitions.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 22

Updated: April, 2014

Exhibit 5:

Sample Departmental After Hour Emergency Purchasing Procedure

(DEPARTMENT NAME)

Departmental Procedure for After Hour Emergency Purchases

The Purchasing Agent must purchase or lease all goods and services, including

maintenance and repair, for all departments. The Purchasing Agent must perform all

purchasing for all officials, County department heads and employees per Texas Local

Government Code, Chapter 262.

Emergency Purchase: An urgent unforeseeable need to make a purchase that does not

result from a local state of disaster.

To qualify as an emergency purchase all of the following criteria must be met:

1) The Purchasing Department is not open to issue a purchase order. The need is

immediate and can not wait for the next business day

2) Does not qualify as a purchasing card purchase or you do not have a county

purchasing card.

3) Department Head approval (optional per department)

Actions to follow the purchase:

During the first four hours of next business day-

1) Enter requisition in Gems or fax a hand written requisition to Purchasing

making a note on the requisition which justifies the emergency and note that

the purchase has already been made.

2) Call the Purchasing Department, 349-4815, to notify of the purchase.

3) Follow up on the Gems approval process to ensure the electronic requisition is

expedited.

4) Send invoice to Purchasing Department with requisition number.

Consequences of non-compliance: Employee may be held personally responsible for

the expense incurred. Employee is responsible to ensure the purchase is tax exempt.

Emergency Policy approved by:

Purchasing Agent: _________________________________ Date: _________________

Department Head/Elected Official: ____________________________ Date: _________

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 23

Updated: April, 2014

Interlocal

Agreements

All interlocal agreements that involve purchase of goods, services,

repair, or maintenance agreements must be approved by the Purchasing

Agent. The Purchasing Agent will submit the agreement to

Commissioners Court for approval. Any purchase from an interlocal

agreement shall be referenced on the Purchase Order.

Bonding

Requiremen

Bonds for construction contracts are dealt with in Chapter 14. For all

other contracts, the Purchasing Agent, with the approval of the

Commissioners Court, determines whether a bond of any sort is

required.

Bid bonds are not required for contracts that are less than $100,000.

Bid bonds are not required from any bidder or proponent whose rates

are subject to regulation by a state agency.

Bid bonds may be requested for the construction of public works, or for

a contract exceeding $100,000. The county may require the bidder to

furnish a good and sufficient bid bond in the amount of 5% of the total

contract price. A surety company authorized to do business in Texas

must execute the bond.

Performance bonds are not usually required for contracts that are less

than $50,000, but may be required at the Purchasing Agent’s discretion,

subject to approval by the Commissioners Court. Performance Bonds

are not required from any bidder or proponent whose rates are subject to

regulation by a state agency. If the Purchasing Agent decides that a

performance bond is required for a particular contract, the solicitation

states a performance bond in the full amount of the contract price is

required and that it must be executed by a surety company authorized to

do business in Texas before the contractor commences work and within

30 days after the notice of contract award is sent to the contractor.

In a contract for the purchase of earth moving, material handling, road

maintenance or construction equipment, the Commissioners Court may

require the contractor to furnish a bond to the County to cover the

repurchase costs of the equipment.

A payment bond shall be required on all public works projects

exceeding $25,000.

Considerati

on of Safety

Records

If the RFB/RFP states that the safety record may be considered in

determining the responsibility of the bidder and includes the Safety

Record Questionnaire in its Appendix, Potter County takes into account

the bidder’s safety record in determining the responsible bidder. The

safety record includes compliance with requirements for the safety of the

environment. In relation to the safety record, “bidder” includes not only

the bidder; but also the firm, corporation partnership or institution

represented by the bidder; or anyone acting for such a firm, corporation,

partnership, or institution.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 24

Updated: April, 2014

The definition and criteria for determining the safety record of a bidder

are as follows:

1. If the bidder reveals more than two (2) cases in which final orders

have been entered by the Occupational Safety and Health Review

Commission (OSHRC) against the bidder for serious violations of

OSHA regulations within the past three (3) years, Potter County

will, at its discretion, determine whether to disqualify the bidder.

2. If the bidder reveals more than one (1) case in which bidder has

received a citation from an environmental protection agency for

violations within the past five (5) years, Potter County will, at its

discretion, determine whether to disqualify the bidder.

Environmental Protection Agencies include the U.S. Army Corps

of Engineer (USACOE), the U.S. Fish and Wildlife Service

(USFWS), the Environmental Protection Agency (EPA), the Texas

Commission on Environmental Quality (TCEQ), and its past

associated agency, the Texas Natural Resource Conservation

Commission (TNRCC), the Texas Department of Health, the

Texas Parks and Wildlife Department (TPWD), the Structural Pest

Control Board (SPCB), agencies of local governments

responsible for enforcing environmental protection laws or

regulations, and similar regulatory agencies of other states of the

United States. Citations include notice of violation, notice of

enforcement, suspension/revocations of state or federal licenses

or registrations, fines assessed pending criminal complaints,

indictments, or convictions, administrative orders, draft orders,

final orders, and judicial final judgments. Notice of Violations and

Notice of Enforcement received from TCEQ shall include those

classified as major violations and moderate violations under

TCEQ’s regulations for documentation of Compliance History, 30

Texas Administrative Code, Chapter 60.2 (c) (1) and (2).

3. If the bidder reveals that the bidder has been convicted of a

criminal offense within the past ten (10) years which resulted in

serious bodily harm or death, Potter County will determine

whether to disqualify the bidder.

Vendor List

The Purchasing Department maintains a list of vendors who have

requested that they be sent notices of advertised solicitations. The

vendor list is categorized by the commodity and sub-commodity codes

for the goods and services that the vendor has indicated it is capable of

providing. The Purchasing Department utilizes a third party vendor for

maintenance of the vendor list and publication of solicitations. Vendors

interested in participating in County solicitations may register with

https://www.publicpurchase.com/gems/register/vendor/register.

As a courtesy to vendors and as a means of encouraging competition,

notification of each solicitation is provided to appropriate vendors.

Notices of solicitations are sent by a variety of methods including email

and facsimile transmission whenever the vendor has provided

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 25

Updated: April, 2014

appropriate contact information. The Purchasing Department also

advertises solicitations on the County Purchasing website at

http://www.co.potter.tx.us/default.aspx?Potter_County/Purchasing.BidOp

portunities.

Prepayment

s and

Advance

Generally, prepayment is not authorized for any purchase of supplies,

materials, equipment or services. Exceptions are:

 Library materials

 Merchandise purchased from federal and state agencies

 Realty rental

 Subscriptions

 Rental fee for meeting rooms

 Annual maintenance agreements

 Tuition to an institution of higher education

 Training and Travel expenses per budget rules

 Other prepayments as authorized by the County Auditor

Purchasing

Card Policy

The Potter County Commissioners Court has approved the use of a

Texas Building and Procurement Commission State approved

Procurement Card program for small dollar purchases to increase

efficiencies and expedite purchases and payment. A copy of the

approved Policy and Procedures Manual is attached in Appendix 1.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 26

Updated: April, 2014

Chapter 7: The Requisitioning Process

Definition

Requisitioning is the formal request for a purchase to be made. It is the

first step after the need for goods or services is recognized.

Purpose

The department's purchase requisition authorizes the Purchasing

Department to enter into a contract with a vendor to purchase goods or

services. This automated form is for internal use and cannot be used by

a department to order materials directly from a vendor.

Policy

Potter County uses an automated requisitioning system, commonly

referred to as the GEMS system. Based on pre-established budget line

items, the user department enters purchase requisitions into the GEMS

system. Adequate budget funds must be available in the departmental

line items before the Purchasing Department can purchase the

requested goods and services. Manual requisitions and purchase orders

are not acceptable, unless the Purchasing Agent has approved the

manual process in writing.

The only exceptions to automated purchase orders are the Requests of

Payment processed directly by the Auditor’s Department for the

following goods or services:

 Utilities

 Attorney’s Voucher

 Court Reporters

 Investigators

 Court Related Expenditures

 Routine Duty Travel

 Long Distance Service

 Telephone Trunk Lines

 Telephone Related

Equipment

 Travel, Meals, and Lodging

 Appropriations to Other

Governments

 Training and Seminars

 Quantum Merit

 Risk Management Claims

 Copier Lease

 Body Transport and

Storage

 Autopsies

 Psychiatric Evaluations

 Juvenile Medical

 Dues

 Subscriptions

 Recording Fees

 Witness Reimbursement

 Grand Jury Related

 License and Registration

 State Inspection

 Purchases not required by

statute to be purchased by

the purchasing

department

Procedure

Purchase requisitions should fully describe what to buy, when it is

required, and where the goods are to be delivered or the services that

are to be performed. For items on annual contract, the description

should include the bid number, item number, price, and exact

description stated on the bid award. Copies of the annual bid awards are

furnished to the user departments. For non-contract or “open market”

requisition, the user department needs to enter a complete description

of the items needed. Exhibit 5 identifies the information needed to

process open market requisitions expeditiously. The information should

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 27

Updated: April, 2014

be researched and obtained before the user department enters a

requisition in the GEMS system.

After the Purchasing Department receives a purchase requisition, it

determines the appropriate purchasing method based on the cost of the

purchase, the goods and services to be purchased, the existing

contracts for goods and services and other relevant factors.

Specific instructions on entering purchase requisitions into the

automated GEMS system are not covered in this manual. The user

department can contact the Purchasing Department for training.

Types of

Purchase

Requisitions

The Purchasing Department classifies purchase requisitions according

to the type of action and the time required for the purchase. There are

five types: contract, office supply, routine, expedited, and emergency.

 Contract Requisitions - Normal purchases of items ordered

from existing contracts. Contract requisitions generally require

one working day to process.

 Office Supply Requisitions - Routine office supplies are

ordered by individual departments using the Simple Order

System on the Intranet page or Office Depot online. These orders

are generally processed same day with next day delivery status.

 Routine – Normal purchases that are not under contract (i.e.

“open market” requisitions) under $50,000. These generally

require 3 to 10 working days to process.

 Expedited – Open market purchases where the goods or

services are needed sooner than the routine cycle time.

Expedited purchases generally do not qualify as emergency

purchases and are subject to all applicable bidding requirements.

Expedited purchase requisitions require 1 to 3 working days to

process. Expedited purchases are not emergency purchases.

They are goods or services needed quickly to prevent costly

delays, and therefore warrant the additional cost and effort

caused by the interruption of the normal work routine. They

should not be used unless absolutely required. There are two

types of expedited purchase requisitions:

o Walk Through – Open market purchases for goods or

services needed within three working days to avoid work

interruption, loss of service or significant added cost of

operations. The user department should hand carry all

paperwork to the Purchasing Department immediately after

entering the purchase requisition into the GEMS system.

o Work Stoppage – Open market purchases for goods or

services needed immediately to prevent work stoppage due to

unanticipated conditions. The user department should

telephone or email the Purchasing Department immediately

upon entering the purchase requisition into the GEMS system

and should also provide written documentation of the

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 28

Updated: April, 2014

existence of a work stoppage for the contract file (written

comments in the requisition or email justification from

Department Head or designee are acceptable

documentation). The Purchasing Department instructs the

user department on what action to take.

 Emergency – Purchase of any goods or services needed because

of an emergency condition that the Commissioners Court has

ordered exempt, in compliance with the Purchasing Act (TEX. LOC.

GOV’T CODE., section 262.024 (a) (1)(2)(3)). All emergency

exemption orders must be processed through the Purchasing

Department. Emergency purchases with a total cost exceeding

$50,000 must be exempted from the requirements of the Purchasing

Act by order of Commissioners Court. The Purchasing Agent submits

the order and agenda request for Commissioners Court approval for

emergency purchases exceeding $50,000. Emergency purchases

with a total cost under $50,000 are handled like an expedited

purchase requisition. The user department should immediately

contact the Purchasing Agent so that proper action can be initiated

immediately. Refer to page 21 for after-hours emergency purchases.

Note: Cycle time to process a requisition refers to the time between

when a purchase requisition is received in the Purchasing Department

and when an actual purchase order is placed with a vendor. Cycle time

does not include the time required for delivery, or the time it takes for the

Purchasing Department or the user department to make corrections to

budget line item accounts and similar actions associated with a

purchase that are not processed by the Purchasing Department.

Reminder: It is the department’s responsibility to follow their requisition

to make sure it is released from the interdepartmental approval queue

and Auditor’s approval queue. Time the requisition may spend in the

approval queue is not included in cycle time.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 29

Updated: April, 2014

Exhibit 6:

Open Market Requisition Checklist

Step

Reference Source:

Find the desired item(s) and obtain the following

information:

 Manufacturer Name (e.g. Dell)

 Model Number (e.g. Pentium series II,

model

 Stock Number (e.g.135867)

 Unit of measure (e.g. each)

 Unit price, quantity, and total price

 Item description (complete description with

as much detail as possible)

Vendor catalog, Internet research

Helpful hint: copy the model description

information from the source and either type it

in the requisition or forward via interoffice

mail or email to purchasing. Also, identify

where you got the information (e.g. General

Office Plus catalog p.22 or online at

www.generalofficeplus.com, item xxx)

Obtain the full description for the item(s) being

purchased

Example of full description (file

cabinet):

File Cabinet, Vertical, 2 Drawer, Letter Size,

Stock Number, Dimensions 27 3/4"H x 17

11/16"W x 25"D, Color: Steel Gray Shipping

Weight: 320 Lb. MFG: FireKing P/N FK25

(seen online at generalofficeplus.com)

Check the vendor name to see if the vendor

exists in the GEMS system and verify the

vendor number. If the vendor does not exist in

the GEMS system, obtain the following to enter

into requisition comments:

 Vendor name

 Vendor address

 Vendor telephone number

 Vendor point of contact (who you talked with

to get product information)

GEMS Purchasing module (requisition

function)

Identify shipping and delivery information

including:

 Date required

 Shipping (determine if it is included in price

or is a separate item)

 Department point of contact to whom item

will be delivered

 The “Ship to” location

 Any specific delivery instructions (location,

time of day etc.)

 Any special options available, but not part of

description (color, fabric, etc.)

GEMS Purchasing module (requisition

function)

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 30

Updated: April, 2014

Chapter 8: Open Market Purchase under $50,000

Policy

For open market purchases of goods and services totaling less than

$50,000, the Purchasing Agent is authorized to select the exact goods or

services to meet the requests of user departments. The Purchasing

Agent is authorized to select the vendor and to perform all actions

necessary to conclude a contract for the purchase of the goods and

services, including execution of the contract without specific approval of

the Commissioners Court. The claim for payment will be subject to audit

by the County Auditor and approval by the Commissioners Court.

Considerations

In selecting the exact goods or services requested by the user

departments, the Purchasing Agent considers the following:

 The stated needs of the user department and whether the selected

goods or services meet those needs;

 Available information about sources and prices of the goods and

services;

 The delivery requirements of the vendor and the user department;

and

 Any other information that a reasonable and prudent purchasing

professional would consider in all the circumstances of the

purchase.

Procedures

The user department submits an open market purchase requisition to the

Purchasing Department with detailed descriptions of the goods or

services required.

Based on the information in the purchase requisition, wherever

reasonable and practical the Purchasing Agent or Purchasing

Department:

 Attempts to obtain at least three quotations;

 Documents in writing the vendors notified and prices offered;

 Selects the vendor who makes the best offer taking into account

not only price but also the urgency of the user departmental need

and the speed of delivery and the quality of the goods and

services offered; and,

 Orders these goods and services from the vendor who provides

the quality, cost, and delivery schedule most consistent with the

best interest of the County.

If quality and delivery terms meet County needs, the vendor who provides

the lowest price is selected. If the vendor offering the lowest price is not

used, a notation is made in the quotation documentation to indicate the

reason another vendor is selected.

The Purchasing Agent may deviate from the policy for purchases under

$50,000 if it is in Potter County’s best interest and if it facilitates specific

County operations. A purchase of this type will be communicated to the

department head or his designee.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 31

Updated: April, 2014

Commodity

Purchase

Limits

Important: If cumulative purchases from a single commodity code

are anticipated to exceed $50,000 in a fiscal year, then formal

competitive bidding is required and an annual term contract is

established. Cumulative purchases include countywide purchases, and

are not limited to departmental requirements.

(e.g. fuel, tires, office supplies)

Violations and

Penalties

Intentionally separating purchases or invoices to avoid the $50,000

formal competitive bidding limit is a violation of the Purchasing Act.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 32

Updated: April, 2014

Chapter 9: Specifications

Definition

A specification is a concise description of goods or services that user

departments seek to buy, and the requirements the vendor must

meet to be considered for the award. A specification may include

requirements for testing, inspection, or preparing any goods or

services for delivery, or preparing or installing them for use. The

specification is the total description of the goods and services to be

purchased.

Purpose

The primary purposes of any specification is to provide vendors with

firm criteria about a minimum standard acceptable for goods or

services by providing reasonable tests and inspections to determine

their acceptability and to provide purchasing personnel with clear

guidelines from which to purchase. As a result, the specification also:

 Promotes competitive bidding, and

 Provides a means to make an equitable award to the lowest

and best bid from a responsible bidder.

Preparation

In writing specifications, user departments are encouraged to obtain

an existing specification before starting to write a new one. The

existing specification can provide ideas and examples that can be

customized for Potter County purposes. The user department should

contact the Purchasing Department for assistance in obtaining

existing specifications to facilitate the specification development

process.

There are numerous sources for specifications. These include other

governments, professional trade associations, professional

purchasing associations and user knowledge. Some specification

libraries that are available include:

 Texas Specification Library located at the Texas Building and

Procurement Commission website:

http://www.tbpc.state.tx.us/spec_lib/index.html

 General Services Administration, Federal Supply Service –

Specifications Section found at www.gsa.gov

 Texas Department of Transportation Standard Specification

Index located at

http://www.dot.state.tx.us/gsd/purchasing/tssi_alpha.htm

 Texas County Purchasing Association. Contact Purchasing for

assistance because this is available to members only.

The user department, occupant department, or an outside agency

may propose specifications. To ensure compliance with legal

purchasing requirements, the Purchasing Department has final

acceptance of the specifications, except those for construction

projects. This ensures proper quality control and avoids the

proliferation of conflicting specifications in the different County

departments. The Purchasing Department may submit any purchases

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 33

Updated: April, 2014

that were not approved in the budget process to Commissioners

Court before specifications are prepared and advertised so the

Commissioners Court may determine whether to transfer funds or

amend the budget to make the purchase.

To facilitate specification development and avoid duplication of their

efforts, user departments should submit their specifications in

electronic format to the Purchasing Department.

Characteristics

An effective specification has the following characteristics:

 Simple: Avoids unnecessary detail, but is complete enough to

ensure that purchased goods and services satisfy their

intended purpose.

 Clear:

o Uses terminology that is understandable to the user

department and vendors.

o Eliminates confusion by using correct spelling and

appropriate sentence structure.

o Avoids the use of jargon and “legalese”.

 Accurate: Uses units of measure that are compatible with

industry standards, identifies all quantities, and describes packing

requirements.

 Competitive: Identifies at least two commercially available

brands, makes, or models (whenever possible) that satisfy the

intended purpose. Avoids unneeded “extras” that could reduce or

eliminate competition and increase costs.

 Flexible:

o Avoids situations that prevent the acceptance of a

response that could offer greater performance for fewer

dollars.

o Uses approximate values that are within a 10% range for

the dimensions, weight, speed, etc. (whenever possible) if

these values can satisfy the intended purpose.

Types

The Purchasing Department uses a number of specification types:

 Design - Details description of a good or service, including

details of construction or production, dimensions, chemical

composition, physical properties, materials, ingredients and all

other details needed to produce an item of minimum

acceptability. Design specifications are usually required for

construction projects, custom produced items and many

services.

 Performance - Details required performance parameters such

as required power, strength of material, test methods,

standards of acceptability, and recommended practices.

Performance specifications are usually used for capital

equipment purchases.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 34

Updated: April, 2014

 Brand Name or Equal - Lists goods or services by brand

name, model, and other identifying specifics, except that

products with performance equivalent to the characteristics of

the named brand are specified as acceptable. Other

manufacturers may provide a nearly identical product under

another brand name. The Purchasing Department uses this

method only if there is sound justification. The burden of

justification rests with the user department.

 Industry Standard - States an industry standard that is

identical, regardless of manufacturer that results in acquisition

of goods of uniform quality. The UL standard for electrical

products is an example of an industry standard.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 35

Updated: April, 2014

Chapter 10: Competitively Solicited Purchases Exceeding $50,000

Definition and

Use

There are two types of solicited purchases: 1.) competitive bidding

and 2.) competitive proposals. Competitive bidding means letting

available vendors compete with each other to provide goods or

services (Exhibit 6). Texas courts define this concept as follows:

"Competitive bidding requires due advertisement, giving

opportunity to bid, and contemplates a bidding on the same

undertaking upon each of the same material items and

services covered by the contract; upon the same thing. It

requires that all bidders be placed upon the same plane of

equality and that they each bid upon the same terms and

conditions involved in all the items and services and parts of

the contract, and that the proposal specify as to all bids the

same, or substantially similar specifications.” Sterrett v. Bell,

240 S.W. 2d 516 (Tex. Civ. App.—Dallas 1951, no writ).

Purpose of

Competitive

Bidding

Texas courts also state:

”The purpose of competitive bidding is to stimulate competition,

prevent favoritism, and secure the best work and materials at

the lowest practicable price for the best interest of the taxpayers

and property owners." Sterrett v. Bell, 240 S.W. 2d 516 (Tex.

Civ. App.—Dallas 1951, no writ).

The first purpose of competitive bidding is to ensure the best possible

value is received. Competitive biddings also increase the likelihood

that public monies are spent properly, legally, and for public projects

only.

The second purpose is to give those qualified and responsible

vendors who desire to do business with the County a fair and

equitable opportunity to do so.

Competitive Bidding: The term “Formal Competitive Bidding” used

in this manual is generally used in public purchasing when the

bidding process complies with Texas Local Government Code,

section 262.023, which requires approval by the Commissioners

Court.

“Sealed” bids are solicited through a Request for Bid (RFB) for

contracts expecting to exceed $50,000. The RFB is the document

used to solicit bids from vendors in response to the County’s

specifications and contractual terms and conditions. The Purchasing

Department along with the Official or Department Head suggest

award recommendations to the Commissioners Court. The awarded

RFB with the Notice of Contract Award letter signed by the

Purchasing Agent forms the contract between Potter County and the

vendor. Competitive bids are not negotiated. With few exceptions,

price is the sole determinant factor if the vendor’s product or services

meet the requirements of the specification.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 36

Updated: April, 2014

The RFB method is the most preferred method of procuring goods

and supplies and non-personal services such as pest-control

services. It is used when the requirement can be definitively

described, is readily available, and is an off-the-shelf kind of

requirement.

Competitive proposals: The term “Formal Competitive Proposal”

used in this manual is generally used in public purchasing when the

solicitation process complies with Texas Local Government Code,

section 262.030, which requires approval by the Commissioners

Court.

Competitive proposals are solicited through a sealed Request for

Proposals (RFP) process. Vendors submit responses to the RFP for

consideration. The RFP solicits proposals from vendors in response

to the County's requirements and contractual terms and conditions. A

formal contract, reviewed by the County Attorney's Office, must be

approved by the Commissioners Court.

Formal "sealed" proposals can only be used to procure insurance,

high technology goods and services, landscape maintenance,

travel management, recycling or in the case the purchasing

agent determines that it is in the best interest of the County to

make a request for proposals for any service or good.

"High technology" goods or services mean goods or services of a

highly technical nature, including:

 Data processing equipment and software and firmware used in

conjunction with data processing equipment;

 Telecommunications, radio, and microwave systems;

 Electronic distributed control systems, including building

energy management systems; and

 Technical services related to those goods and services.

While the competitive proposal (RFP) process is similar to the

competitive bidding (RFB) process, there are notable differences.

The primary difference is that the RFP results in a negotiated

procurement. Cost is not the only determining evaluation factor;

however, its relative importance to other evaluation factors must be

specified in the RFP and considered in recommending award. Also,

the proposals are received, but are not opened publicly. Proposal

contents are not disclosed until after the contract is awarded.

Proposal contents that are trademarked or proprietary may remain

confidential pursuant to the Texas Public Information Act (Chapter

552, Texas Government Code).

Procedures

In Potter County, competitive solicited procurements which call for

approval by Commissioners Court due to an expenditure in excess of

$50,000 is required to comply with the requirements of Subchapter C

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 37

Updated: April, 2014

of the Purchasing Act and, with few exceptions, are accomplished by

the following process. Throughout this chapter, “bids” are vendor

responses in the RFB process and “proposals” are vendor responses

in the RFP process. Unless specifically noted, the procedures apply

to both the RFB and RFP.

Defining the

Need

RFB: When the need for a good or service costing more than

$50,000 is identified, the user department should immediately contact

the Purchasing Department for assistance in developing the

specifications. The specification should be comprehensive and

broadly defined to allow for maximum competition.

RFP: When the need for the goods or services (greater than

$50,000) is identified, the user department should immediately

contact the Purchasing Department for assistance in defining the

requirements to be used for the solicitation. The user department is

responsible for submitting a Statement of Work (SOW) or Technical

Requirements, which functionally defines its needs and requirements.

Purchasing Department staff ensure that the SOW or Technical

Requirement is quantified and structured to:

 Secure the best economic advantage utilizing best value;

 State the needs clearly;

 Be contractually sound;

 Be unbiased toward vendors;

 Encourage innovative solutions to the requirement described;

and

 Permit free and open competition to the maximum extent

reasonably possible.

Notice

Once the Purchasing Department has finalized the specification or

requirements with the user department, the Purchasing Department

prepares the solicitation for issuance and publishes a notice of the

proposed purchase that complies with the requirements in Texas

Local Government Code, section 262.025.

According to section 262.025, 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

day before the date of the solicitation opening. To ensure

vendors sufficient time to complete and return the solicitation,

Purchasing generally advertises for 17 days. If necessary, advertising

time can be extended. The notice must include:

 The name and telephone number of the purchasing agent;

 The county website address, if any;

 The specifications (requirements) describing the goods and

services to be purchased, or a statement of where the

specifications (requirements) may be obtained;

 The time and place for receiving and opening solicitations and

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 38

Updated: April, 2014

the name and position of the employee to whom the

solicitations are sent;

 Whether the vendor should use lump-sum or unit pricing;

 The type of bond required of the vendor; and

 The method of payment by the County.

Special

Considerations

RFB: If unit pricing is required, the County must specify approximate

quantities estimated on the best available information. The

Purchasing Agent explains how the lowest price is calculated in the

RFB.

RFP:

 The Purchasing Department publishes a notice of the

proposed purchase unless Commissioners Court approval of

the RFP is required.

 The Commissioners Court must approve advertising for any

RFP for which there is not adequate funding approved in the

budget and for which Auditor has not verified that the goods

and services sought have been approved by the

Commissioners Court in the budget process.

 If the RFP is for high technology goods and services,

Information Technology must review it before it is advertised.

 Record Management may also review any technology

purchases related to records management.

 For all other purchases, the Commissioners Court delegates

its authority to approve the requirements to the Purchasing

Agent.

Amendment of

Solicitation

The Commissioners Court authorizes the Purchasing Agent to extend

the proposal opening date on the notice of a solicitation if an error is

discovered, or the nature of the goods or services requires an

extension. The Purchasing Agent may amend a solicitation:

 If inquiries about the meaning indicate the need for an

amendment to clarify its original intent or to correct clerical

errors;

 If the changes are so insignificant that they are not likely to

matter to the vendor in determining ability to respond; and

 If the amendment does not change the general scope.

There should be at least three days between the date of the

amendment and the opening date in the notice. If there are less than

three days, the opening date is extended to allow for a minimum of

three days between the date of the amendment and the opening date

in the amendment.

Pre-Bid

(Proposal)

Conference

Texas Local Government Code, section 262.0256 allows counties to

require potential vendors to attend a mandatory pre-bid (pre-

proposal) conference to discuss contract requirements and answer

vendor questions. The Purchasing Agent works with the user

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 39

Updated: April, 2014

department to determine if a pre-bid (pre-proposal) conference is

necessary and whether attendance is mandatory or optional.

Purchasing staff manages any pre-bid (pre-proposal) conference and

requests that the user department makes staff available to answer

questions at the conference.

Receipt of

Competitive

Solicitations

To ensure the identification, security, and confidentiality of responses

to solicitations, the following procedures are adhered to:

 The Purchasing Agent receives all responses as specified by

the solicitation document.

 Solicitations are not received after the opening time on

the day of response opening. Should a response arrive

by mail prior to the specified time delivery will be refused.

All responses received and not refused after the opening time

are returned unopened to the vendor with a letter from the

Purchasing Agent notifying the vendor that the submitted

response was received after the due date and time.

 The Purchasing Department records the time and date the

response was submitted.

 After a response is received, the Purchasing Department

provides a secure place to hold it until the opening date. The

responses are only received sealed and remain sealed until

the Purchasing Department opens them in a public forum on

the advertised date and time.

On occasion, responses that are received in the mail or by other

independent carrier may be inadvertently opened. If this situation

occurs, another employee of the Purchasing Department is

immediately called to act as a witness that the details of the response

(especially the price for a bid) were not reviewed and the response is

re-sealed by that employee of the Purchasing Department, and the

incident is documented.

The above process is undertaken to preclude any perception of

favoritism, revealing prices or response information. Publicly

receiving sealed responses and recording the submission of

requested responses is intended to inhibit any perception that the

Purchasing Department is manipulating the receipt of solicitations.

Public

Opening of

Solicitations

RFB: The Purchasing Agent publicly opens and documents the bids

on the date, time, and place specified in the notice. Preliminary

tabulations are provided to the public upon request.

RFP: The Purchasing Agent publicly opens and documents sealed

proposals on the date, time, and place specified in the notice. Only

the names of vendors submitting proposals are announced.

Proposals are opened to avoid disclosure of contents to competing

proposers and are kept secret during the process of negotiation. All

proposals that have been submitted are available and open for public

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 40

Updated: April, 2014

inspection after the contract is awarded, except for trade secrets and

confidential proprietary information contained in them. Disclosure of

all information obtained from a vendor is subject to the provisions of

the Texas Public Information Act.

Confidentiality

Memorandum

RFP: As fully described in Chapter 3 of this manual, the Purchasing

Department uses a confidentiality memorandum to ensure

compliance with the ethics policy for keeping proprietary information

confidential. Before the evaluation of confidential proposals, the

Purchasing Department sends a memorandum to evaluation

committee members for signature and certification. The

memorandum contains requirements to which the evaluation

committee member is expected to adhere during the competitive

process to keep information confidential until the Commissioners

Court approves an award. These requirements also include

disclosure of any potential conflict of interest, or any attempted

communication by the proponent to evaluation committee members

during evaluation.

Evaluation

RFB: The Purchasing Department evaluates all bids with assistance

from the user department and recommends the lowest responsible

bid to the Commissioners Court for award. The Purchasing

Department evaluates bids based on:

 The relative price, including the cost of repair and

maintenance if heavy equipment is the subject of the bid or the

cost of delivery and hauling if road construction is involved;

 The compliance of goods and services with specifications; and

 The vendor’s past performance, the responsibility of the

vendor, including the vendor's financial and practical ability to

perform the contract, and the vendor's safety record if the IFB

states that it is to be considered.

The Purchasing Department forwards copies of the bids and the Bid

Tabulation Package to the Official or Department Head for

completion and signature. The user department recommendation and

other appropriate documentation from the user department are

submitted with the agenda request to justify the recommended

award.

When the lowest priced bid is not the best bid, clear justification for

not selecting the lowest bid must be documented. Commissioners

Court either approves the recommendation or rejects all bids and

authorizes the Purchasing Agent to re-bid the goods or services.

RFP: The Purchasing Department supervises the evaluation process

performed by the user department or committee to ensure that the

evaluation is conducted fairly and consistently and that the integrity of

the process is maintained. Depending on the procurement, there may

be additional technical evaluation assistance provided by the County

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 41

Updated: April, 2014

Attorney, Auditor, Information Technology, or Maintenance, if

applicable.

The RFP must specify the relative importance of price and other

evaluation factors including the relative weight of each factor.

Evaluators only use these specified factors in evaluating the

proposals. Purchasing staff leads the evaluation team and is

responsible for:

 Tabulating scores;

 Calculating values; and

 either

o Coordinating follow-up meetings for Best and Final

Offer negotiations and recommending an award; or

o Discontinuing the process.

After the evaluation is completed, Purchasing forwards an evaluation

summary to the Official or Department Head for concurrence with the

selection and requests that the Official or Department Head submit a

memo to the Purchasing Agent signifying their concurrence.

Purchasing makes the recommendation to Commissioners Court.

Note: For high visibility or high dollar value procurements, the

Purchasing Agent may take the recommendations to Commissioners

Court and request its approval to negotiate with top ranked firm(s)

before requesting best and final offers.

Negotiations

(RFP)

The Purchasing Agent supervises all negotiations. Any conversations

with proposers must be coordinated with the Purchasing Agent. A

member of the Purchasing Department should be present for all

discussions with proposers. Departments that contact proposers

without coordinating with the Purchasing Agent risk jeopardizing the

integrity of the County procurement process.

All proposers must be accorded fair and equitable treatment with

respect to any opportunity for discussion and revision of proposals

and submittal of a "Best and Final Offer” (BAFO).

After the negotiations are complete, the Purchasing staff requests

qualified proposers to submit a BAFO to a specified location by a

specified date. Based on the negotiations, the BAFO must allow the

proponent to:

 Modify the initial offer;

 Update pricing based on any changes the user department or

County has made; and

 Include any added inducements to improve the overall score in

accordance with the evaluation plan of the RFP.

Contract

Award

RFB: The Purchasing Agent recommends contract award to

Commissioners Court. The Commissioners Court either:

 Awards the contract to the responsible bidder who submits the

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 42

Updated: April, 2014

lowest and best bid; or

 Rejects all bids and directs publication of a new notice if the

goods or services are still needed.

If two or more responsible bidders submit the lowest and best bid, the

Commissioners Court decides between the two by drawing lots in a

manner prescribed by the County Judge.

A contract may not be awarded to a bidder who is not the lowest

priced 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 about its responsibility.

After Commissioners Court approves the contract, the Purchasing

Agent issues a Notice of Contract Award. This notice and the original

contract form the complete contract. A complete original contract is

maintained in the Purchasing Department. The other original is

furnished to the Contractor. Copies of these are furnished to the user

department, the Auditor’s Department, County Clerk, and the County

Attorney.

RFP: The BAFO is the basis of a recommendation of contract award.

The award of the contract is made by Commissioners Court to the

responsible proposer, whose proposal is determined to be the lowest

evaluated offer resulting from negotiation, taking into consideration

the relative importance of price and other evaluation factors in the

RFP.

Re-solicitation

of Annual

Contracts

The Purchasing Department monitors the expiration dates of all

contracts. Purchasing notifies user departments by memo at least

three months before contract expiration and verifies whether the

goods or services need to be re-bid or extended, if extensions are

available. Purchasing also sends the existing specification or

requirements to the user department and requests any changes

before the solicitation is reissued. The user department returns the

specifications or requirements with any additions, deletions, or

corrections. It is very important that renewable contracts be reviewed

carefully, since the Texas Constitution requires all contracts involving

the expenditure of public money be subject to termination if current

funds are unavailable to pay the contractual costs, so the County

does not incur unauthorized debt.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 43

Updated: April, 2014

Exhibit 7:

Procurement Methods

Procurement

Method

Use When

Advantages

Disadvantages

Competitive

Bids

(Request for

Bids)

 Adequate

competition exists.

 The product or

service is available

from more than one

source.

 Award process is

simpler.

 Award is made to the

lowest responsive,

responsible bidder

providing the best value

to the County.

 Defined specifications

may be difficult to

develop.

 Does not encourage

innovative solutions.

Competitive

Proposals

(Request for

Proposals,

Request for

Offer)

 When factors other

than price are

evaluated.

 When negotiations

are desired.

 Vendor is expected

to provide innovative

ideas.

 Allow factors other than

price to be considered.

 Allows for customized

proposals suggesting

different approaches to

the same business need.

 Allows for negotiations in

order to obtain the best

value for the County.

 RFPs can only be used

for high technology

goods and services,

landscape

maintenance, travel

management and

recycling. Lead times

for procurement may

be greater.

 Evaluations are more

complex and

subjective.

Request for

Information

 There is insufficient

information to write

specifications for any

procurement method.

 Provides information to

prepare a complete bid

or proposal document.

 Allows the business

community to have input

into the solicitation

document based on

current industry practices

and market factors.

 Informs County of any

potential problems early

in the procurement.

 Lengthens the

procurement process.

Request for

Qualification

[This method is

required by

statute (e.g.

Professional

Services)

 Selection is made

solely on the skills

and qualifications of

the contractor. Price

is not a factor until

after a vendor is

elected.

 Emphasizes the

competency of the

proposed contractors.

 Contractor is selected

before price is

negotiated.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 44

Updated: April, 2014

Chapter 11: State Purchasing Programs

Background

and Statutory

Authority

There are three types of purchasing programs that allow local

governments to purchase goods and services using contracts

previously entered into by the State of Texas or other governments.

The Texas Building and Procurement Commission (TBPC) manages

three of them. The fourth program allows local governments to

purchase computer technology directly from the state’s Department of

Information Resources (DIR).

 State Term Contracts (authorized by sections 271.081

through 271.083 of the Texas Local Government Code). The

County may purchase from vendors on the same terms and

conditions as the State. The State has entered into term

contracts after using competitive bidding procedures. The

TBPC manages this program for the State.

 Texas Multiple Award Schedule (TXMAS) (authorized by

section 2155.502 of the Texas Government Code). The County

may purchase goods and services from a schedule of multiple

award contracts developed by the TBPC. The schedule is

adapted from General Services Administration (GSA) Federal

Supply Service contracts. TXMAS contracts take advantage of

the most favored customer (MFC) pricing and under certain

circumstances; the County may negotiate a lower price for the

goods or services offered on a scheduled contract.

 DIR (authorized by the Interlocal Cooperation Act, Chapter 791

of the Texas Government Code). The County may purchase

computer related equipment through the DIR and its

contracted vendors.

Official

Representative

The Purchasing Agent acts for Potter County in all matters related to

purchase of goods and services from a vendor under any contract

based on any State Purchasing program. Potter County is

responsible for making payments directly to these vendors.

Contract

Award

The award of any purchase order contract from state term, TXMAS or

DIR contracts must be in writing, approved and signed by the

Purchasing Agent before any goods are delivered or services are

rendered. The Commissioners Court authorizes the Purchasing Agent

to execute all contracts for state contract purchases that are procured

in compliance with this chapter, including purchases in excess of

$50,000, if funding for the purchase was approved by the

Commissioners Court.

Policy

State Term Contract Purchases

Potter County participates in the purchasing program.

Procedure

The Purchasing Agent either purchases directly through the State’s

web portal, Texas Smartbuy, or electronically sends purchase orders

directly to vendors. The Purchasing Agent monitors vendor's

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 45

Updated: April, 2014

compliance with all the conditions of delivery and quality of the

purchased goods and services. The Purchasing Agent may sign and

deliver all necessary documents for all purchases under this program

made for the County.

To initiate this process, the user department submits a purchase

requisition. The Purchasing Department determines whether or not

the requested goods or services are available from the State

contracts.

Policy

Texas Multiple Award Schedules (TXMAS)

Potter County participates in the purchasing program of the TBPC

using TXMAS contracts developed from contracts that have been

competitively awarded by the federal government or any other

governmental entity of any state.

Procedure

The Purchasing Agent monitors the vendor's compliance with all the

conditions of delivery and quality of the purchased goods and

services. The Purchasing Agent may sign and deliver all necessary

documents for purchases under this program for Potter County.

To initiate this process, the user department may research goods and

services on the Texas Comptroller website to determine if the goods

or services are available from TXMAS. Based on its research, the

user department submits a purchase requisition and identifies in the

requisition comments that the good or service may be available

through TXMAS. The Purchasing Department determines whether or

not the requested goods or services are available from TXMAS and

compares prices among TXMAS vendors to obtain the best value.

The Purchasing Department works with the user department to

determine best value and then issues a purchase order with the

selected vendor providing the best value.

Policy

Computer Purchases (DIR)

The County purchases computer-related equipment from the state’s

Department of Information Resources (DIR) and its contracted

vendors. The County contracts with DIR and uses its Go DIRect

program.

Procedure

The Purchasing Agent sends purchase orders directly to DIRect

vendors. The Purchasing Agent monitors vendor's compliance with all

the conditions of delivery and quality of the purchased goods and

services. The Purchasing Agent may sign and deliver all necessary

documents for purchases under this program made on behalf of the

County.

To initiate this process, the user department may research goods and

services on the DIR website to determine if the goods or services are

available from DIR or its contracts. Based on its research, the user

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 46

Updated: April, 2014

department submits a purchase requisition and identifies in the

requisition comments that the good or service is available from DIR.

The Purchasing Department determines whether or not the requested

goods or services are available from DIR, and if available, the

Purchasing Department compares prices among DIR vendors to

obtain the best value. The Purchasing Department works with user

department to determine best value and issues a purchase order with

the selected vendor providing the best value.

If the purchase is from a vendor who is part of the Go DIRect

program, the County issues the purchase order directly to the vendor

and pays the vendor directly. If the purchase is to a vendor that is not

part of the Go DIRect program, the County issues the purchase order

to DIR, which authorizes a separate purchase order to the vendor.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 47

Updated: April, 2014

Chapter 12: Cooperative Purchasing Agreements

Background

and Statutory

Authority

The Interlocal Cooperation Act, Chapter 791 of the Texas

Government Code, authorizes local governments to contract directly

with other governments to increase their efficiency and effectiveness.

Texas Government Code, Section 791.025(c) states that a local

government that purchases goods and services under the Interlocal

Cooperation Act satisfies the requirement of the local government to

seek competitive bids for the purchase of goods and services. The

County must have independent authority to purchase a particular

good or service before utilizing an interlocal agreement, since the

Interlocal Cooperation Act does not expand the County’s purchasing

authority. The County has a variety of interlocal agreements.

Policy

The County participates in the purchasing programs of various local,

state, and national cooperatives such as Houston Area Council of

Governments (HGAC), Texas Association of School Boards

(BuyBoard), The Cooperative Purchasing Network (TCPN) and U.S.

Communities. Before using any cooperative, the Purchasing Agent

researches and recommends cooperatives to the Commissioners

Court. The Commissioners Court approves an interlocal agreement

acknowledging the terms and conditions for using each cooperative,

including any fee schedules, and authorizes the Purchasing Agent to

make purchases under the terms of the interlocal agreement.

Official

Representative

The Purchasing Agent acts for Potter County at the direction of

Commissioners Court in all matters relating to all cooperative

purchasing programs, including the purchase of goods and services

from the vendor under any contract.

Procedure

The Purchasing Agent must approve all interlocal agreements

involving the purchase of goods, repair, or maintenance agreements

before the agreement is submitted to Commissioners Court for

approval.

The Purchasing Department determines whether or not the requested

goods or services are available from a specific cooperative. If

available, the Purchasing Department compares prices among

cooperative and local vendors to obtain the best value. The

Purchasing Department works with the user department to determine

best value and issues a purchase order with the selected vendor

using the purchasing method that provides the best value.

The Purchasing Agent either submits requisitions to the applicable

cooperative or electronically sends purchase orders directly to

vendors using the processes defined by the specific cooperative. The

Purchasing Agent monitors vendor compliance with all the conditions

of delivery and the quality of the purchased goods and services. The

Purchasing Agent may sign and deliver all necessary documents for

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 48

Updated: April, 2014

purchases under cooperative purchasing programs made on behalf of

the County.

Contract

Award

The Purchasing Agent may execute all contracts for interlocal

contract purchases that are procured in compliance with this chapter,

including purchases in excess of $50.000, provided funding for the

purchase has been approved by the Commissioners Court and the

interlocal agreement was approved by the Commissioners Court.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 49

Updated: April, 2014

Chapter 13: Procurement of Professional Services

Background and

Statutory

Authority

In procuring professional services, the County must comply with

two statutes: the Professional Services Procurement Act (Chapter

2254 of the Texas Government Code) and the County Purchasing

Act (Chapter 262 of the Texas Local Government Code). There are

two kinds of professional services:

 Those professional services specifically listed in the

Professional Services Procurement Act; and,

 Those "other" professional services that are not specifically

listed which must be obtained in compliance with the County

Purchasing Act. The Purchasing Agent relies on court cases

and attorney general opinions to determine what services are

included in these "other" professional services.

“Professional services” is defined in Chapter 2254 of the Texas

Government Code as:

 Those within the scope of the practice of accounting,

architecture, landscape architecture, optometry, medicine, land

surveying, professional engineering, real estate appraising or

professional nursing, or

 Provided in connection with the professional employment or

practice of a person who is licensed or registered as an

architect, optometrist, physician, surgeon, certified public

accountant, land surveyor, landscape architect or professional

engineer, state certified or state licensed real estate appraiser,

or registered nurse.

Contracts for the procurement of these professional services may

not be awarded on the basis of bids. Instead, services must be

awarded on the basis of demonstrated competence and

qualifications.

Request for

Qualifications

(RFQ)

To ensure professional vendors a fair and equal opportunity to do

business with the County, and to ensure that the services of the

most qualified professional are obtained, professional services are

procured using the Request for Qualifications (RFQ) process.

Procedures

Departments forward a recommendation memo to the Purchasing

Agent when professional services are required. The memo

identifies the following:

 Scope of work

 Qualification and experience requirements

 Project description and deliverables

 Time frames

 Budgeted amount and budget line items

 Suggested professionals

Based on the information provided in the memo, applicable state

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 50

Updated: April, 2014

laws, and all relevant facts, the Purchasing Agent makes a

determination about implementing a formal RFQ or an informal

procurement process.

Unless specifically exempted by the Commissioners Court, all

professional services anticipated to cost more than $50,000 are

procured using the formal RFQ process. The Purchasing Agent

submits all exemption orders to the Commissioners Court. The

Purchasing Agent requests a formal exemption from the

Commissioners Court for approval before selecting and negotiating

with any vendors. The Purchasing Agent submits the exemption

request to the Commissioners Court for approval before selecting

and negotiating with any vendors.

Purchase

Requisition

Either the memo submitted to the Purchasing Agent, signed by the

Official or Department Head or a direct email from the Official or

Department Head serves as the initial requisition. The memo must

include the budget line items from which the purchase is funded or

an explanation that is acceptable to the Purchasing Department

about how funding is obtained before the Purchasing Department

proceeds with the preparation of the RFQ. Requirements (scope of

work) should be attached to the memo and also forwarded

electronically to the Purchasing Department. If requirements are

not attached, Purchasing and the user department jointly develop

them.

Notice

The user department follows up the memo request with entry of a

requisition into the GEMS system.

After development of requirements and preparation of the RFQ, a

notice of the proposed purchase is published by the Purchasing

Department unless Commissioners Court approval of the RFQ is

required. The Commissioners Court must approve advertising for

any RFQ for which there is not adequate funding in the budget or

for which the auditor has not verified that the goods and services

sought have been approved by the Commissioners Court in the

budget process.

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 14

day before the date

of the solicitation opening. To ensure vendors sufficient time to

complete and return their solicitation, Purchasing generally

advertises for 17 days. If necessary, advertising time can be

extended or decreased, but must be at least 15 days.

Amendment of

RFQ

The Purchasing Agent may extend the response opening date on

the notice of an RFQ if an error is discovered, or the nature of the

services requires an extension. The Purchasing Agent may amend

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 51

Updated: April, 2014

an RFQ to clarify its original intent or to correct clerical errors if:

 Inquiries about the meaning of the RFQ indicate the need for

an amendment;

 Changes are so insignificant that they are not likely to matter to

the vendor in determining ability to respond; and

 The amendment does not change the general scope of the

RFQ.

There must be at least three days between the date of the

amendment and the opening date specified in the notice. If less

than three days exist, the opening date should be extended to

allow for a minimum of three days between the date of the

amendment and the opening date specified in the amendment.

Pre-Proposal

Conference

The Purchasing Agent works with the user department to

determine if a pre-proposal conference is necessary. Purchasing

staff manages any pre-proposal conference and requests that the

user department makes staff available to answer questions at the

conference.

Receipt of

Responses

To ensure confidentiality, the following procedures are adhered to

when receiving vendor responses:

 The Purchasing Agent receives all responses as specified by

the RFQ.

 All responses are stamped with the time and date received.

The "Date Stamp Clock" in the Purchasing Department serves

as the official time clock for identifying the date and time a

response is received in the Purchasing Department.

 Responses are not received after the opening time on the

day of opening. All responses received after the opening time

are returned unopened to the vendor with a letter from the

Purchasing Agent notifying the vendor that the submitted

response was received after the due date and time.

 After responses are received, the Purchasing Department

keeps them secured until the opening date. The responses are

to be received sealed and remain sealed until they are opened

by the Purchasing Department on the advertised date and time.

 On occasion, responses that are received in the mail, or by

some other independent carrier, may be inadvertently opened.

If this situation occurs, another employee of the Purchasing

Department is immediately called to act as a witness that the

details of the response were not reviewed and the response

was sealed again by an employee, and the event is

documented.

The above process is undertaken to preclude any perception of

favoritism, and avoid revealing response information. Publicly

receiving sealed responses and recording the submission of

requested responses inhibits any perception that the Purchasing

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 52

Updated: April, 2014

Department is manipulating the receipt of responses.

Opening of

Responses

Sealed responses are opened and documented by the Purchasing

Department. Only the names of vendors submitting responses are

announced. The Purchasing Agent opens the responses on the

date specified in the notice.

Proposals are opened to avoid disclosure of contents to competing

proposers and are kept secret during the process of negotiation.

All proposals that have been submitted are available and open for

public inspection after the contract is awarded, except for trade

secrets and confidential proprietary information. Disclosure of all

information obtained from a vendor is subject to the provisions of

the Texas Public Information Act.

Confidentiality

Memorandum

As described in Chapter 3 of this manual, the Potter County

Purchasing Department uses a confidentiality memorandum to

ensure that proprietary information is kept confidential. Before the

evaluation of confidential proposals begins, the Purchasing

Department sends a memorandum to evaluation committee

members for signature and certification. The memorandum

contains requirements to which the evaluation committee member

is expected to adhere during the evaluation process to keep

information confidential until the Commissioners Court

approves an award. This memorandum includes disclosure of any

potential conflict of interest, or any attempted communication by

the vendor to evaluation committee members.

Evaluation

The Purchasing Department supervises the evaluation process

performed by the user department or committee to ensure that it is

conducted fairly and consistently and that the integrity of the

process is maintained. Depending on the procurement, there may

be additional technical evaluation assistance provided by the

Auditor or IT if applicable.

The RFQ must specify the evaluation factors to be used to

determine minimum qualifications. Price is not a factor in this type

of solicitation. Evaluators may use only the specified evaluation

factors in evaluating the responses. Purchasing staff leads the

evaluation team and is responsible for:

 Tabulating scores;

 Calculating values; and

 Either

o Coordinating follow-up meetings for Best and Final Offer

(BAFO) negotiations and recommending an award; or

o Discontinuing the process.

After the evaluation has been completed, Purchasing forwards an

evaluation summary to the Official or Department Head for

concurrence with the selection and requests that the Official or

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 53

Updated: April, 2014

Department Head submit a memo to the Purchasing Agent with

their recommendation. Purchasing makes the recommendation to

Commissioners Court.

Note: For high visibility or high dollar value procurements, the

Purchasing Agent may take the recommendations to

Commissioners Court and request its approval to negotiate with

top ranked firm(s) before requesting best and final offers.

Negotiations and

Best Final Offer

(BAFO)

The Purchasing Agent supervises all negotiations. All

conversations with proposers must be coordinated with the

Purchasing Agent. A member of the Purchasing Department

should be present for all discussions with proposers. Departments

that contact proposers without coordinating with the Purchasing

Agent risk jeopardizing the integrity of the County procurement

process.

All vendors must be accorded fair and equitable treatment with

respect to any opportunity for discussion and revision of responses

and submittal of a BAFO.

After the negotiations are complete, the Purchasing staff requests

qualified vendors to submit a BAFO by a specified date and to a

specified location. Based on the negotiations, the BAFO must

allow the proponent to:

 Modify the initial offer;

 Update the response based on any changes the user

department or the County has made; and

 Include any added inducements that may improve the overall

score based on the evaluation plan of the RFQ.

Recommendation

for Award

The Purchasing Agent works with the Official or Department Head

to develop the recommendation for award and present it for

approval to the Commissioners Court.

Professional

Services “Pools”

If, as a result of an RFQ, County enters into contracts with more

than one qualified professional vendor a pool of these

professionals is created to provide services as needed. The user

department must ensure that an RFQ is distributed at least once

every 4 years so that newly qualified professionals may be added

to the pool.

Architectural and

Engineering

Services

When procuring architectural or engineering services, the County

follows the RFQ process described above and adds a second step.

First, vendors responding to the RFQ are evaluated. The

Purchasing Department works with the evaluation committee to

develop a rank ordering of vendors. Based on the committee’s

evaluation of responses, they identify the “most highly qualified”

vendors with whom the County wishes to negotiate. The

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 54

Updated: April, 2014

Purchasing Agent recommends to Commissioners Court the most

highly qualified vendors and requests authorization to negotiate on

the basis of demonstrated competence and qualifications. The

Purchasing Agent and Official or Department Head enter into

negotiations with the most highly qualified vendor for a contract at

a fair and reasonable price.

If the County is unable to negotiate a satisfactory contract with the

most highly qualified vendor, negotiations formally end with that

vendor. The next most highly qualified vendor is then asked to

negotiate. Negotiations are continued in this sequence until a

contract is finalized.

Any contract with professional vendors based on a competitive bid

is void because it is contrary to state law.

Written Contract

Before any services are rendered, a contract for professional

services, in writing, is approved and signed by either the

Purchasing Agent if less than $50,000 or Commissioners Court if

more than $50,000. The Purchasing Agent may execute any

contracts for professional services that are procured in compliance

with the Professional Services Procurement Act and in which the

cost of services does not exceed $50,000 if the Auditor’s

Department verifies that the services sought have been approved

by the Commissioners Court and adequate funds are budgeted for

it and the County Attorney has reviewed the contract.

“Other” Services

Defined

As defined in this manual "other" personal or professional services

are those services usually referred to as a professional service, but

not specifically listed in the Professional Services Procurement

Act. Various court opinions have stated that these "other"

professional services are services requiring technical skill and

expertise; labor and skill which is predominantly mental or

intellectual, rather than physical or manual; or, a special skill and

experience. "Other" personal services have been defined as

services that must be performed by a particular person and, by the

terms of the contract, no substitutions are allowed. Examples

include computer programmers, lawyers, and facilitators.

Request for

Services (RFS)

To ensure vendors a fair and equal opportunity to do business with

County, and to ensure the services of the most qualified person or

professional, "other" personal or professional services must be

procured using the Request for Services (RFS) process unless the

contract is for less than $50,000 or the Commissioners Court

approves another procedure.

Exceptions

The Sheriff is authorized to negotiate and execute contracts with

independent contractors for the following services if the vendors

are selected on the basis of qualifications, the contracts are within

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 55

Updated: April, 2014

budget and the County Attorney and the Purchasing Agent review

the contract.

 Nursing in the corrections facilities,

 Instructors for the sheriff's academy,

 Chaplains for the corrections facilities, and

 Prisoner detention services.

Procedures

User departments forward a memo to the Purchasing Agent when

"other" personal or professional services are required. The memo

identifies the following:

 Scope of work

 Qualification and experience requirements

 Project description and deliverables

 Time frames

 Budgeted amount and budget line items

 Suggested persons or professionals

 Selection criteria

Based on the anticipated costs, information provided in the memo,

applicable state laws and all relevant facts, the Purchasing Agent

determines whether a formal RFS or an informal procurement

process are implemented or recommended to the Commissioners

Court.

Unless specifically exempted by the Commissioners Court, all

personal or professional services anticipated to cost over $50,000

are procured using the formal RFS process. The Purchasing Agent

submits all exemption orders to the Commissioners Court. Unless

there is an urgent need for the services, the request is submitted to

the Commissioners Court for approval before selecting and

negotiating with any vendors.

Purchase

Requisition

Either a memo signed by the Official or Department Head and

submitted to the Purchasing Agent or a direct email from the

Official or Department Head serves as the initial requisition. The

memo must include the budget line items from which the purchase

is funded or an explanation about how funding is obtained that is

acceptable to the Purchasing Department before the Purchasing

Department prepares the RFS. Requirements (scope of work)

should be attached to the memo and also forwarded electronically

to the Purchasing Department. If requirements are not attached,

Purchasing and the user department jointly develop the

requirements.

The user department follows up the memo request with entry of a

requisition into the GEMS system.

Notice

After development of requirements and RFS preparation, the

Purchasing Department usually publishes a notice of the proposed

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 56

Updated: April, 2014

purchase unless Commissioners Court approval of the RFS is

required.

The Commissioners Court must approve advertising for any RFS if

the Auditor has not verified that the services sought have been

approved by the Commissioners Court and the Court has placed

adequate funding in the budget.

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 14

day before the date

of the response opening. To ensure vendors sufficient time to

complete and return responses, Purchasing generally advertises

for 17 days. If necessary, advertising time can be extended or

decreased, but must be at least 15 days.

Amendment of

RFS

The Purchasing Agent may extend the response opening date on

an RFS notice if an error is discovered, or the nature of the

services requires an extension. The Purchasing Agent may amend

an RFS to clarify its original intent or to correct clerical errors:

 If inquiries about the meaning of the RFS indicate the need for

an amendment;

 If the changes are so insignificant that they are not likely to

matter to the vendor in determining ability to respond; and

 If the amendment does not change the general scope of the

RFS.

There must be at least three days between the date of the

amendment and the opening date specified in the notice. If less

than three days exist, the opening date should be extended to

allow for three days between the date of the amendment and the

opening date specified in the amendment.

Pre-Proposal

Conference

The Purchasing Agent works with the user department to

determine if a pre-proposal conference is necessary. Purchasing

staff manages any pre-proposal conference that is held and

requests that the user department make staff available to answer

questions at the conference.

Receipt of

Proposals

To ensure confidentiality, the following procedures are adhered to

when receiving vendor responses:

 The Purchasing Agent receives all proposals as specified by

the RFS.

 All responses are stamped with the time and date received.

The "Date Stamp Clock" in the Purchasing Department serves

as the official time clock for the purpose of identifying the date

and time responses was received in the Purchasing

Department.

 Responses are not received after the opening time on the

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 57

Updated: April, 2014

day of opening. All responses received after the opening time

are returned unopened to the vendor with a letter from the

Purchasing Agent notifying the vendor that the submitted

response are received after the due date and time.

 After responses are received, the Purchasing Department

keeps them secure until the opening date. The responses are

to be received sealed and remain sealed until the Purchasing

Department opens them on the advertised date and time.

 On occasion, responses that are received in the mail or by

some other independent carrier may be inadvertently opened. If

this situation occurs, another employee of the Purchasing

Department is immediately called to act as a witness that the

details of the response were not reviewed and the response is

sealed again by that employee, and the incident is

documented.

The above process is undertaken to preclude any perception of

favoritism and avoid revealing response information. Publicly

receiving sealed responses and recording the submission of

requested responses should inhibit any perception that the

Purchasing Department is manipulating the receipt of proposals.

Opening of

Responses

Sealed proposals are opened and documented by the Purchasing

Department. Only the names of vendors submitting proposals are

announced. The Purchasing Agent opens the proposals on the

date specified in the notice. The Purchasing Agent may extend the

date specified in the notice if the original RFS needs to be

amended.

Responses are opened to avoid disclosing the contents to

competing vendors and are kept secret during the process of

negotiation. All responses that have been submitted are available

and open for public inspection after the contract is awarded, except

for trade secrets and confidential proprietary information.

Disclosure of all information obtained from a vendor is subject to

the provisions of the Texas Public Information Act.

Confidentiality

Memorandum

As fully described in Chapter 3 of this manual, the Purchasing

Department uses a confidentiality memorandum to ensure

compliance with the ethics policy for keeping proprietary

information confidential. Before the evaluation of confidential

proposals, the Purchasing Department sends a memorandum to

the evaluation committee members for signature and certification.

The memorandum contains requirements to which the evaluation

committee member is expected to adhere during the course of the

evaluation process to keep information confidential until the

Commissioners Court approves an award. The memorandum

includes disclosure of any potential conflict of interest, or any

attempted communication by the vendor to evaluation committee

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 58

Updated: April, 2014

members during evaluation.

Evaluation

The Purchasing Department supervises the evaluation process

performed by the user department or committee to ensure that it is

conducted fairly and consistently and that the integrity of the

process is maintained. Depending on the procurement, there may

be additional technical evaluation assistance provided by the

Auditor or Information Technology if applicable.

In selecting vendors to provide other personal or professional

services, a department must base its choice on demonstrated

competence, knowledge, and qualifications and on the

reasonableness of the proposed fee for the services, as specified

in the RFS.

Evaluators use only the specified evaluation factors in evaluating

the proposals. Purchasing staff leads the evaluation team and is

responsible for:

 Tabulating scores;

 Calculating values; and either

o Coordinating follow-up meetings for Best and Final Offer

negotiations and recommending an award; or

o Discontinuing the process.

Once the evaluation is completed, Purchasing forwards an

evaluation summary to the Elected Official/Department Head for

concurrence with the selection and requests that the Official or

Department Head submit a memo back to the Purchasing Agent

with their recommendation. Purchasing makes the

recommendation to Commissioners Court.

Note: For high visibility or high dollar value procurements, the

Purchasing Agent may take the recommendations to

Commissioners Court and request its approval to negotiate with

top ranked firm(s) before requesting best and final offers.

Negotiations and

Best and Final

Offer (BAFO)

The Purchasing Agent supervises all negotiations. All

conversations with proposers must be coordinated with the

Purchasing Agent. A member of the Purchasing Department

should be present for all discussions with vendors. Departments

that contact vendors without coordinating with the Purchasing

Agent risk jeopardizing the integrity of the County procurement

process.

All vendors must be accorded fair and equitable treatment with

respect to any opportunity for discussion and revision of responses

and submittal of a BAFO.

After the negotiations are complete, the Purchasing staff may

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 59

Updated: April, 2014

request that qualified vendors submit a BAFO by a specified date

and to a specified location. Based on the negotiations, the BAFO

must allow the vendor to:

 Modify the initial offer;

 Update the response based on any changes the user

department or County has made; and

 Include any added inducements that may improve the overall

score based on the evaluation plan of the RFS.

Recommendation

for Award

The Purchasing Agent works with the Elected Official or

Department Head to develop the recommendation for award and

present it for approval by Commissioners Court.

Vendor “Pools”

If, as a result of an RFS, the County enters into contracts with

more than one qualified professional to create a pool of these

professionals to provide services as needed, the user department

must ensure that an RFS is distributed at least once every 4 years

so that newly qualified professionals may be added to the pool.

Disclosure of

Former

Employees

To be considered responsive, a person who offers to provide

personal or professional services to a user department who has

been employed by the County at any time during the two years

before making the response must disclose in the response:

 The nature of the previous employment with the department;

 The date the employment was terminated; and

 The annual rate of compensation at the time of termination.

Written Contract

Before any services are rendered, a contract for "other" personal

or professional services shall be in writing, approved, and signed

by either the Purchasing Agent if less than $50,000 or the

Commissioners Court if more than $50,000. If less than $50,000,

the Purchasing Agent determines which person or professional is

selected based on the recommendation of the user department.

The Purchasing Agent may execute any contracts for "other"

personal or professional services that are procured in compliance

with the Purchasing Act and in which the cost of services does not

exceed $50,000.

The Purchasing Agent may execute contracts for legal

representation based on the attorney selected by the client on the

recommendation of the County Attorney if the cost does not

exceed $50,000.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 60

Updated: April, 2014

Chapter 14: Construction Procurement

Purchasing

Statutes

Subsection 262.011 (e) of the Texas Local Government Code states

that "The County Purchasing Agent shall supervise all purchases

made on competitive bid...” Chapter 271 Subchapter C is used only

for public works projects funded by Certificates of Obligation. Chapter

2267 provisions are used when an alternative project delivery method

(other than traditional competitive bidding) is used for public works

projects.

Construction procurement is consistent with other procurement

procedures in this manual and with pertinent statutes. The Purchasing

Agent supervises all construction procurements. All competitive bids

are accomplished by the following process:

Purchasing

Requisition

A memo submitted to the Purchasing Agent, signed by the Elected

Official/Department Head or as directed by the Commissioners Court

serves as the initial notification that a competitive bid is needed. An

electronic copy of the notification may be submitted to assist in the

development of the formal bid. Before the formal bid is released, the

Purchasing Agent and County Attorney review and approve the

Bidding and General Requirements. The Purchasing Agent reviews

the bid specifications for compliance with the Purchasing Act and the

County Attorney reviews them for legal considerations.

NOTE: Purchasing prints the document when there is only a project

manual and no plans. The user department is responsible for printing

when there are both plans and a project manual.

The user department must provide the Purchasing Department at

least thirty (30) workdays to develop the RFB, and circulate it for the

appropriate reviews. During this time, Purchasing develops a

Procurement Schedule detailing the milestones of the solicitation,

including dates and times for the pre-bid conference, bid opening, and

preconstruction conference. The Purchasing Department assigns an

RFB number to the project at this time if it has not already been

assigned.

GEMS Use

The Purchasing Department enters all construction contracts into the

GEMS system. The County uses the GEMS system to process and

track payments to the prime contractor.

Bidding Notice

The Purchasing Department publishes the advertisement for bid,

which must include the following:

 Description of Work;

 Location at which the bidding documents, plans, specifications, or

other data may be examined. The location at which plans and

specifications may be obtained and the amount of the deposit

required;

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Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 61

Updated: April, 2014

 Time and place for submitting bids and time and place of bid

opening;

 The method of payment. If payment is by certificate of obligation,

the advertisement must state either :

o That the bidder must accept certificates, or

o That the bidder must elect to accept certificates or assign

them to a financial institution with which county has made

an arrangement.

If the contract is to be awarded on a unit price basis, the notice must

also include the approximate quantities of the goods and services

needed that are to be bid on and the quantities must be based on the

best available information.

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 14

day before the date of the

bid opening. To ensure bidders (proposers) sufficient time to complete

and return RFB’s, Purchasing generally advertises for 17 days. If

necessary, advertising time can be extended or decreased, but must

be at least 15 days.

Consideration

of Safety

Records

If the RFB states that the safety record may be considered in

determining the responsibility of the bidder and includes the Safety

Record Questionnaire in the RFB, County takes into account the

bidder’s safety record in determining the responsible bidder. The

safety record includes compliance with requirements for the safety of

the environment. In relation to the safety record, bidder includes not

only the bidder; but also the firm, corporation, partnership or institution

represented by the bidder; or anyone acting for such a firm

corporation, partnership or institution.

The definition and criteria for determining the safety record of a

bidder:

1. If the bidder reveals more than two (2) cases in which final

orders have been entered by the Occupational Safety and

Health Review Commission (OSHRC) against the bidder for

serious violations of OSHA regulations within the past three (3)

years, County will, at its discretion, determine whether to

disqualify the bidder.

2. If the bidder reveals more than one (1) case in which bidder

has received a citation from an environmental protection

agency for violations within the past five (5) years, County will,

at its discretion, determine whether to disqualify the bidder.

Environmental Protection Agencies include the U.S. Army Corps

of Engineer (USACOE), the U.S. Fish and Wildlife Service

(USFWS), the Environmental Protection Agency (EPA), the Texas

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 62

Updated: April, 2014

Commission on Environmental Quality (TCEQ), and its past

associated agency: the Texas Natural Resource Conservation

Commission (TNRCC), the Texas Department of Health, the

Texas Parks and Wildlife Department (TPWD), the Structural Pest

Control Board (SPCB), agencies of local governments responsible

for enforcing environmental protection laws or regulations, and

similar regulatory agencies of other states of the United States.

Citations include notice of violation, notice of enforcement,

suspension/revocations of state or federal licenses or

registrations, fines assessed pending criminal complaints,

indictments, or convictions, administrative orders, draft orders,

final orders, and judicial final judgments.

Notice of Violations and Notice of Enforcement received from

TCEQ shall include those classified as major violations and

moderate violations under TCEQ’s regulations for documentation

of Compliance History, 30TAC, Chapter 60.2 (c) (1) and (2).

3. If the bidder reveals that the bidder has been convicted of a

criminal offense within the past ten (10) years which resulted in

serious bodily harm or death, County will determine whether to

disqualify the bidder.

Bonding

Bonds are not required for construction contracts that are less than

$25,000.

Bid Bonds

Bid bonds are not required from any bidder whose rates are subject to

regulation by a state agency. If the Purchasing Agent decides that a

bid bond is required for a particular contract, the RFB states that a bid

bond in the amount of 5% of the contract price is required and that it

must be executed by a surety company authorized to do business in

Texas.

Letters of Credit may not be substituted for any bid bonds related to a

public works project, if the cost of the project exceeds $25,000.

For all contracts in excess of $100,000 for the construction, repair, or

alteration of a public work or the prosecution or completion of any

public work, before commencing work, the vendor must execute a

performance bond that is:

 Payable to Potter County, Texas,

 In the full amount of the contract,

 Conditioned on faithful performance of the work in accordance

with the plans, specifications, and contract documents,

 Solely for the protection of the County,

 Executed by a corporate surety or sureties in accordance with the

Insurance Code, and

 In a form approved by the Commissioners Court.

Any performance bond that is furnished by a contractor in attempted

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 63

Updated: April, 2014

compliance with the requirements of Texas Government Code,

chapter 2253 is construed as if it conforms to that chapter in relation

to rights created, limitations on the bonds and remedies provided.

Letters of Credit may not be substituted for any performance bonds

related to a public works project if the cost of the project exceeds

$25,000.

Payment

Bonds

For all contracts in excess of $25,000 for the construction, repair, or

alteration of a public work or the prosecution or completion of any

public work, the vendor, before commencing work, must execute a

payment bond that is:

 Solely for the protection and use of payment bond beneficiaries

who have a direct contractual relationship with the prime

contractor or a subcontractor to supply labor or material for a

public work,

 Payable to Potter County, Texas, In the amount of the contract,

 Executed by a corporate surety or sureties in accordance with the

Insurance Code, and

 In a form approved by the Commissioners Court.

Payment bonds must be effective from commencement of

performance until the end of the fourth month after all work for the

project is completed, unless releases are obtained from all

subcontractors and materialmen. Any payment bond that is furnished

by a contractor in attempted compliance with the requirements of

chapter 2253 of the Texas Government Code are construed as if it

conforms with that chapter in relation to rights created, limitations on

the bond, and remedies provided.

A bond required under this section must clearly and prominently

display on the bond or on an attachment to the bond: (1) the name,

mailing address, physical address, and telephone number, including

the area code, of the surety company to which any notice of claim

should be sent; or (2) the toll-free telephone number maintained by

the Texas Department of Insurance under subchapter B, chapter 521,

Insurance Code, and a statement that the address of the surety

company to which any notice of claim should be sent may be obtained

from the Texas Department of Insurance by calling the toll-free

telephone number.

The County may not require a contractor for any public building or

other construction contract to obtain a surety bond from any specific

insurance or surety company, agent, or broker.

Letters of Credit may not be substituted for any payment bonds

related to a public works project if the cost of the project exceeds

$25,000.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 64

Updated: April, 2014

Pre-Bid

Conference

The Purchasing Department provides detailed information on the

bidding requirements of the RFB to ensure that purchasing

procedures are complied with and the user department provides

technical information and ensures that technical standards are

complied with. Purchasing schedules the pre-bid conference and

assists in conducting the conference as follows:

 Ensuring all attendees sign the attendance roster and provide a

detailed Agenda which:

o Provides a brief introduction of the project title, magnitude, and

performance period.

o Indicates whether there has been any addendum issued, and if

so, all attendees and project document holders must receive a

copy.

o Discusses the Purchasing Department role in the procurement

and administration process.

o Establishes a “cutoff” date for questions and request for

clarifications, as well as a final date for issuance of addendum

 Determining whether the project Engineer, Architect or Project

Manager have discussed the specifics of the project, including

review of the plans and specifications, and facilitating a question

and answer session.

 Determining any issues discussed during the conference that

requires issuance of an addendum. The Purchasing Agent may

extend the date specified in the notice if needed. The Purchasing

Department issues the amendment only if there are at least five

(5) days between the date of the addendum and the date specified

for bid opening. If less than five days exist, the opening date

should be extended to allow for a minimum of five days between

the date of the addendum and the opening date specified in the

addendum.

 Assuring that the user department provided Purchasing with the

technical documents (i.e. changes or additions to the plans and or

specifications). Purchasing prepares an addendum using the

standard form and distributes the addendum to all applicable

vendors.

 Recording the minutes of the meeting and distributing them to all

attendees.

Receipt of

Competitive

Bids

The following procedures are adhered to when receiving bids:

 The Purchasing Department receives all bids as specified by the

IFB.

 Bids are not received after the opening time on the day of bid

opening. All bids received after the opening time are returned

unopened to the bidder with a letter from the Purchasing Agent

notifying the bidder that the submitted bid was received after the

due date and time.

 The Purchasing Department records the date the bid was

submitted.

 After bids are received, the Purchasing Department provides a

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 65

Updated: April, 2014

secure place to hold the bids until the opening date. The bids are

to be received sealed and remain sealed until the Purchasing

Department opens them in a public forum on the advertised date

and time.

 On occasion, bids that are received in the mail or by some other

independent carrier may be inadvertently opened. If this situation

occurs, another employee of the Purchasing Department is

immediately called to act as a witness that the details of the bid,

especially the price, were not reviewed, then the bid is sealed

again by that employee, and the incident is documented.

The above process shall be undertaken in a manner that precludes

any perception of favoritism and avoids revealing bid prices or any bid

information. Publicly receiving sealed bids and recording the

submission of requested bids inhibits the perception that the

Purchasing Department is manipulating the receipt of bids.

Public

Opening of

Bids

The Purchasing Department publicly opens and documents sealed

bids on the date, time and place specified in the notice. Preliminary

bid tabulations are provided to the public upon request. The

Purchasing Department is responsible for creating the bid tabulation

for distribution to the user department and the general public. For

those bids that contain numerous line items, a tabulation that includes

the total bid amount, excluding individual line item amounts per

bidder, can be provided immediately after bid opening. Requests for

all-inclusive bid tabulation are honored after it is completed and may

require at least four (4) workdays.

A bid that has been opened may not be changed for the purpose of

correcting an error in the bid price. The Purchasing Agent provides a

bid tabulation to the Commissioners Court.

Evaluation of

Bids

The Purchasing Department evaluates all bids with assistance from

the user department and they jointly develop a recommendation for

award to Commissioners Court. The evaluation of bids is based on

the following factors:

 The relative prices of the bids, including the cost of repair and

maintenance of heavy equipment if that is subject of the bid, or the

cost of delivery and hauling if road construction equipment is the

subject of the bids;

 The compliance of goods and services offered with specifications;

and

 The responsibility of the vendor, including the vendor’s past

performance, the vendor's financial and practical ability to perform

the contract, and the vendor’s safety record if Commissioners

Court has adopted a definition of safety that is stated in the RFB.

Purchasing forwards a complete bid tabulation and award

recommendation to the Official or Department Head for review and

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 66

Updated: April, 2014

signature. The bid tabulation and award recommendation is submitted

with the agenda request to justify the award. Purchasing is

responsible for placing the item on the agenda of the Commissioners

Court.

When the lowest priced bid is not the best bid, clear justification for

not selecting the lowest bidder must be documented to the

Commissioners Court. This recommendation may be supported by

clear and concise documentation from the user department that

determines the rationale for awarding to a bidder other than the

lowest bidder. A joint review of the bid by the user department and the

Purchasing Department is required.

Contract

Award

The Purchasing Agent and the Elected Official or Department Head

recommend contract award to Commissioners Court in session. The

Court shall:

 Award the contract to the responsive and responsible bidder who

submits the lowest and best bid; or

 Reject all bids and publish a new notice if the goods and services

are still needed.

Single Responses: In the event only one response is received, the

RFB/RFP will not be opened by the Purchasing Department as

specified. The single response will be presented to the next regular

meeting of the Commissioners Court for permission to open or

direction to re-bid. If the Commissioners Court elects to open the

RRB/RFP it may or may not be awarded during that court session.

If two or more responsive and 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.

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 about its responsibility. After award, the County Judge signs

the contract for the County and the Purchasing Agent returns the bid

bonds of any vendor that was not awarded a contract.

A Notice-of-Award ("NOA") letter, issued by the Purchasing

Department, accompanies the contractor's copy of the contract. The

NOA letter includes the requirements for the contractor to submit

various documents, and the time period within which they must be

submitted. For example, Payment Bonds, Performance Bonds and an

Insurance Certificate must be submitted within ten (10) workdays after

contractor receipt of the NOA letter. Unless otherwise indicated, the

NOA also states that Notice-to-Proceed is not issued unless the

contractor submits the required documents within the specified time

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 67

Updated: April, 2014

period. An original contract is maintained in the Purchasing

Department. Copies are furnished to the County Clerk, Auditor,

County Attorney, and user department.

Pre-

Construction

Conference

Purchasing schedules the Pre-Construction Conference (also known

as the Pre-Performance Conference). The user department is

responsible for all technical presentations and the Purchasing

Department ensures that all applicable purchasing procedures are

followed. Purchasing assists in conducting the Conference by:

 Having all attendees sign the attendance roster, introduce

themselves, and briefly explain their involvement in the project;

 Discussing briefly the contract requirements, amount, and any

other pertinent information about the project. The user department

representative (technical representative) is responsible for

providing a thorough synopsis of contract requirements and any

County policies to which contractor must adhere;

 Establishing dates for Submissions of all required documents such

as material submittals, progress reports, payrolls, (when

applicable), etc.

 Receiving required documents from the contractor, i.e.,

Performance Bond, Payment Bond, Insurance Certificate;

 Ensuring a complete understanding by all participants on all issues

before adjourning.

 Preparing minutes of the Conference, including all technical

discussions and distributing them.

 Working with the user department on the timing of the issuance of

the Notice-To-Proceed (NTP). After Purchasing receives all of the

required documents, the user department determines when the

NTP is issued. If all is in order, Purchasing issues the NTP.

Note: The NTP is not issued until all required bonds and

insurance have been received, reviewed and verified with the

appropriate agency (i.e. surety or insurance agency).

Contract

Administration

The user department is responsible for monitoring and documenting

contractor performance and compliance and provides Purchasing with

copies of this documentation, which keeps the Purchasing

Department informed about all performance and compliance issues.

Discussions that merely explain the interpretation of the specifications

may be dealt with orally by the user department.

If poor performance or noncompliance with the contract is evidenced,

the user department initiates written corrective action with the

contractor and provides Purchasing with an advance copy of any

written correspondence directing correction of a discrepancy. The

user department solicits Purchasing to initiate corrective action when

the user department cannot resolve conflict through correspondence

in consultation with the occupant department.

The user department must not provide any instructions or requests for

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 68

Updated: April, 2014

changes directly to the contractor. The user department must provide

all information necessary for the contractor to meet its needs either

through the user department that is responsible for constructing the

facility or the Purchasing Department. Only the user department's

project manager or the Purchasing Agent has the authority to give any

directions directly to the contractor.

The Purchasing Agent takes all steps related to correcting non-

compliance with the contract but must consult with the County

Attorney before taking any steps toward suspension or termination of

the contract unless emergency, life safety, or property damage issues

require immediate temporary work stoppage. Before any letters,

notices or other communication related to termination or suspension

are sent to the contractor, the contents of these must be reviewed by

the County Attorney as the initial steps toward potential litigation.

Documentation of contractor performance is often overlooked and is

most important if suspension or termination is sought. To enforce

contractual terms, documentation of specific noncompliance must be

available. Specific dates, locations, examples, etc. must be

documented.

Contract administration duties are basic daily, weekly, and monthly

activities of the Purchasing staff and must take place to ensure

successful completion of the project and to ensure the County

receives the goods and services for which it has contracted. Unless

otherwise noted, the following are responsibilities of the Purchasing

Department:

 Schedule and assist in conducting the preconstruction conference.

 Maintain a comprehensive, neat, and orderly contract file that

includes all documentation related to the procurement process

including the pre-solicitation, solicitation, contract award, post

award, and administration phases of the project.

 Monitor the continued insurance coverage and obtain updated

certificates on a timely basis

 If project is federally funded, receive and review copies of

contractor payrolls to ensure payments made to contractor’s

employees comply with the prevailing wage rate classifications by

trade included in the contract.

 Perform periodic visits to the construction site to perform spot

labor interviews to ensure contractor compliance with prevailing

labor laws.

 Receive and review copies of contractor invoices for accuracy.

Discrepancies are reported to the contractor and user department

for resolution. The user department provides Purchasing with a

copy of the invoice immediately upon receipt from the contractor.

The Purchasing Agent verifies in writing that the invoice is

appropriate for payment before submitting it to the County Auditor

for payment.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 69

Updated: April, 2014

 Maintain and monitor correspondence: The user department may

hold oral discussions with the contractor that merely explain or

interpret the specifications. All correspondence, concerning major

issues involving noncompliance, between the contractor and the

County are directed through the Purchasing Department. This

ensures that Purchasing is aware of any directives being issued to

the contractor or any potential problems that may occur in the

performance of the contract.

In emergency situations, or those regarding minor issues,

correspondence may be issued directly to the contractor through the

user department. However, Purchasing must be provided a copy

immediately. The professional judgment of the user department

representative determines what constitutes an emergency, and what

is considered to be a minor issue. If it appears that the level of

noncompliance may result in a suspension or termination of the

contract, the Purchasing Agent must seek the advice of the County

Attorney before sending a notice to show cause not to terminate or

placing the contract on the agenda for the Commissioners Court to

authorize termination.

Purchasing maintains all insurance and bond certificates. Bid bonds

may be required with all bids over $25,000 and are maintained in the

Purchasing Department. The contractor provides payment and

performance bonds within ten (10) workdays after receipt of the

Notice-of-Award letter. They are reviewed by both the user

department representative and Purchasing. Originals are maintained

in the Purchasing Department. Copies are provided to the user

department upon request. Insurance certificates are provided by the

contractor during the pre-construction conference. The certificate is

maintained in the main contract file in the Purchasing Department.

Change

Orders

The Purchasing Agent on the recommendation of the Elected Official

or Department Head responsible for the project may approve change

orders to construction contracts.

The Purchasing Agent may modify contracts at any time, in writing, if

the changes are within the general scope of the contract including

changes to any of the following:

1. Drawings, designs, or specifications;

2. Correction of errors of a general administrative nature or other

mistakes;

3. Increases or decreases in the quantity of items purchased and;

4. Time extensions allowed by the contract terms and conditions.

The Commissioners Court must approve increases or decreases in

cost of $50,000 or less; 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

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 70

Updated: April, 2014

judicial decision enacted, adopted, or rendered after the contract was

made and the original contract price may not be decreased by 18

percent or more without the consent of the contractor.

Negotiations of change orders, particularly those which result in an

increase in contract price or performance period, or change the scope

of the project, require that the Purchasing Department be notified on a

timely basis so that the Purchasing Agent can seek Commissioners

Court approval. Purchasing shall be provided a copy of the proposed

change order, with available supporting documentation.

A change order shall not be issued until it is determined that the

necessary funds are budgeted and available. A statement to that

effect should be included with the back up documentation.

Close Out

Procedures

The Purchasing Agent ensures that all applicable warranty certificates

are received and safe-guarded throughout the term of the warranty.

The Purchasing Department provides copies of the warranty

certificates to the user department and the occupant department.

The Purchasing Agent supervises return of bonds in cooperation with

the user department to ensure that the contract is complete in all

respects before these are returned. The release must state that the

subcontractor or materialman releases Potter County from all claims

arising from labor or materials provided for the project.

Alternative

Project

Delivery

Methods

Chapter 2267 of the Texas Local Government Code applies if an

alternative project delivery method (that is, not “traditional”

competitive bidding) is being utilized. Specific procedures and

requirements are developed for each specific project using an

alternative delivery method. If an alternative project delivery method is

not being used, the provisions of Chapter 262 of the Texas Local

Government Code apply.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 71

Updated: April, 2014

Chapter 15: Exemptions to the Competitive Procurement Process

Purchasing

Act

Some goods and services can be exempted from the competitive

procurement process if the Commissioners Court orders the purchase

exempt. Section 262.024 of the Texas Local Government Code lists all

the circumstances when exemptions are available for purchases made

out of current funds, bond funds, or through time warrants. The following

is a list of these circumstances:

 Goods and services 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;

 Goods and services necessary to preserve or protect the public health

or safety of the residents of the County;

 Goods and services necessary because of unforeseen damage to

public property;

 Personal or professional services;

 Work performed and paid for by the day, as the work progresses to a

maximum of 20 days within any three-month period;

 Any land or right of way;

 Food goods;

 Personal property sold at auction by a state licensed auctioneer, in a

going out of business sale held in compliance with the Business and

Commerce Code, or by a political subdivision, state agency or federal

government entity;

 Work performed under a community and economic development

contract under section 381.004 of the Texas Local Government Code;

and

 Renewal of a lease or equipment maintenance agreement if the lease

was competitively bid within the last year and the extension does not

exceed one year.

Public

Finance

Act

In addition, section 271.056 of the Texas Local Government Code lists all

the circumstances when exemptions are available for purchases made

from funds obtained from certificates of obligation. The following is a list

of these circumstances:

 Goods and services 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;

 Goods and services necessary to preserve or protect the public

health or safety of the residents of the County;

 Goods and services necessary because of unforeseen damage to

public property;

 Personal or professional services;

 Work performed by the County's employees and paid for as the work

progresses;

 The purchase of any land, building, existing utility system, or right of

way for authorized needs and purposes authorized under the

certificate of obligation;

 A contract paid entirely from current funds or bond funds or a contract

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 72

Updated: April, 2014

for which advertising was done in compliance with Chapter 271 of the

Texas Local Government Code and certificates of obligation are

issued to provide for a deficiency in current funds or bond funds;

 The sale of a public security as defined in section 1204.001 of the

Texas Government Code;

 A contract that is not required to be made in accordance with

competitive bidding procedures under the County Purchasing Act.

Policy

Exemption orders must be processed through the Purchasing Agent. For

purchases exceeding $50,000, the Purchasing Agent requests the

exemption order from Commissioners Court in all cases except the

acquisition of interests in land for county purposes.

Procedure

The Elected Official or Department Head submits a memo to the

Purchasing Agent requesting an exemption to the competitive

procurement process and identifying the basis for the exemption (e.g.

emergency, sole source). The memo must state specific details and

explain why an exemption from the competitive procurement process

should be requested and granted. When possible, it should also contain

the name of the vendor, goods or services covered by the order and the

expected maximum cost and other relevant programmatic information

justifying the exemption.

Emergency

Emergency means circumstances where an immediate response is

required to provide for the safety of persons or property, but does not

include any situation which results in the County Judge declaring a local

state of disaster. Emergency purchases exceeding $50,000 require

an exemption order granted by the Commissioners Court before a

purchase order can be issued.

Sole-

source

Goods and

Services

Sole-source goods and services require a signed statement from the

Purchasing Agent about the existence of only one source, and specifically

noting which type of listed sole source good or service is being

purchased. For purchases over $50,000, the statement is submitted for

acceptance by Commissioners Court, and must be reflected in the

minutes of the meeting of the Commissioners Court. Sole-source items

include:

 Goods and services for which competition is precluded from bidding

because of the existence of patents, copyrights, secret processes, or

monopolies;

 Films, manuscripts, or books;

 Electric power, gas, water, and other utility services; and

Original equipment manufactured (OEM) replacement parts for

equipment.

Real

Property

The Commissioners Court may purchase Real Property with or without

the assistance of the Purchasing Agent. The Commissioners Court and

the County Attorney supervise the lease of Real Property.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 73

Updated: April, 2014

Chapter 16: Renewal of Equipment Leases and Maintenance Contracts

Statute

The first renewal or extension of a lease or of an equipment maintenance

contract can be exempted from formal competitive bidding, if the

Commissioners Court orders the exemption and if:

 The lease or contract has gone through formal competitive bidding

within the preceding year; and

 The renewal or extension does not exceed one year.

Policy

The Purchasing Department processes the procurement of all equipment

leases and maintenance contracts and exemption orders for all renewals

or extensions. The Purchasing Agent supervises all negotiations with

vendors. Purchasing maintains the document originals and sends the

user department a copy. Purchasing monitors maintenance contracts for

expiration dates and treats their renewal as annual term contracts.

The Purchasing Agent may execute any contracts for equipment leases

and maintenance contracts that are procured in compliance with the

Purchasing Act and in which the cost does not exceed $50,000.

Commissioners Court must approve all other contracts.

Procedure

The user department enters a requisition into the GEMS system

identifying the budget line item account. The requisition identifies the

purchase as either a lease or maintenance contract. The requisition

should include the serial number, model number and physical location of

equipment. The beginning and end dates of coverage should be

specified.

If the user department is processing a renewal, the original contract

number should also be identified in the requisition (either the County

contract number or the State term contract number).

If the request is for a sole source lease or maintenance contract, the user

department must follow up the requisition with a memo justifying why it is

a sole source purchase.

Note: If the lease or maintenance contract is from an authorized State

contract vendor, the user department must include the Vendor ID

number, part number, class and item number, and contact person on the

requisition.

Technical

Department

Approvals

Information Technology (IT) may be involved in the analysis of whether a

maintenance contract or in-house repairs are more appropriate.

Departments should coordinate with IT on these analyses and provide a

statement from the appropriate department that the maintenance contract

sought is appropriate.

Note: An often-overlooked cost of equipment or software is on going

maintenance. All ongoing maintenance issues should be considered,

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 74

Updated: April, 2014

evaluated, and priced in the initial procurement process.

Information Technology must be contacted on all software and hardware

procurements and ongoing maintenance contracts. An IT Assessment

should be submitted along with each agenda item for Commissioners

Court action for these services.

Facilities Maintenance Department must be contacted before any new

equipment is acquired so that it can determine whether there is adequate

space and other facilities resources for the proper operation of the

equipment.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 75

Updated: April, 2014

Chapter 17: Receipt of Goods

Policy

Departments must notify the Purchasing Department if goods are not

received by the due date or if damaged freight is delivered.

Verify Order

Department employees receiving shipments must pay particular

attention to the delivery ticket, and whether it matches the County's

purchase order. The person receiving the goods must verify that all

goods were shipped as stated on the delivery ticket, and sign in his or

her own name (a full signature in ink) on all of the appropriate

receiving documentation, particularly the County copy.

The user department must forward the invoice or delivery ticket to

Purchasing upon receipt of goods. Timely receipt of paperwork is

critical to the processing of payments to vendors in compliance with

Texas Government Code, section 2251.021, commonly known as the

Prompt Payment Act. According to this section, payment for goods or

services received is overdue on the 31

day after the later of:

 The date the County receives the good under the contract.

 The date the performance of the service under the contract is

complete, or

 The date the County receives an invoice for the goods or service.

The Purchasing Department will post the receipt of goods/services in

the GEMS system making necessary adjustments to the purchase

order. Invoices are then forwarded to the Auditor for payment

processing.

Damaged

Freight

When a shipment arrives, the user department must inspect the

condition of all cartons. If freight is undamaged, the department

receiving the shipment should sign the freight bill. If freight is visibly

damaged, the receiving department must instruct the freight line driver

to:

1. Note the damage on the freight bill, and;

2. Sign the freight bill.

If there is concealed damage, save the shipping cartons so that the

Purchasing Department can notify the freight line and request an

"inspection and report of concealed damage." A receiving report noting

the damage should be completed and attached to the freight bill and

packing slip.

All boxes and packing materials should be kept in the event of visibly

damaged and concealed damage freight shipments.

Damaged freight must be reported to the freight line within 15 days

after delivery. After 15 days the freight line is no longer liable for the

damage.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 76

Updated: April, 2014

All goods not received properly or not in compliance with the contract

should be documented and reported to the Purchasing Department as

soon as possible so that the vendor can be notified and instructed

about corrective action. To comply with the Prompt Payment Act, the

Purchasing Department notifies the vendor within 21 days of any

damaged goods received to avoid interest being paid to the vendor.

Damaged goods should not be returned to the freight line or the

vendor, unless specifically requested to do so and then only if a claim

has been filed or if authorization has been given by the vendor or the

Purchasing Department.

Documentation

All original receiving documentation must be sent to Purchasing. User

department must make copies in order to maintain their own records.

The department should provide documentation to the Purchasing

Department regarding any disputes in receipts of goods.

Any warranty information must be copied to the Purchasing

Department. Warranty information can be tracked through the Fixed

Assets system.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 77

Updated: April, 2014

Chapter 18: Contract Modifications

Policy

During the term of a contract, it may be necessary to make changes to the

contract. These changes can be minor, administrative changes such as a

change of address or they can be substantial changes that affect the price

and delivery.

There are basically two ways to change a contract. One way is a bilateral

modification, in which both parties to the contract agree that a modification

is necessary. Both parties must sign to indicate their agreement. The

second way is a unilateral modification. In this case, terms and conditions

in the original contract set forth the situations under which the County may

exercise a right to modify the contract without the contractor’s consent.

Unilateral

Charges

The Purchasing Agent may modify contracts, in writing, if the changes are

within the general scope of the contract including changes to any of the

following:

1. Drawings, designs, or specifications when the goods to be furnished

are to be specially manufactured for the County in accordance with the

drawings, designs, or specifications;

2. Method of shipment or packing;

3. Place or time of delivery;

4. Correction of errors of a general administrative nature or other

mistakes;

5. Increases or decreases in the quantity of items purchased;

6. Increases or decreases in cost of $25,000 or less; 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 or decreased by 18 percent or more without the

consent of the contractor; and

7. Time extensions allowed by the contract terms and conditions.

Note: The total contract price may not be increased unless the cost of the

change can be paid from current and available funds.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 78

Updated: April, 2014

Chapter 19: Contract Administration

Policy

Contract administration and oversight includes four general

processes:

· Planning

· Monitoring Contractor Performance

· Payment Approval

· Change Management

This aspect of the procurement process is important. Written

documentation of specific noncompliance must be available to

enforce contractual terms. Documentation includes a description of

specific dates, locations, examples, etc. of nonperformance and any

contact or communication with the contractor about noncompliance.

Unilateral

Changes

The user department has primary responsibility for monitoring and

documenting contractor performance and compliance. The user

department must provide copies of all documentation of

noncompliance to the Purchasing Department. Copies may be sent by

email to the Purchasing Agent. The Purchasing Department maintains

all documents about events during the term of the contract including

contract performance including documentation related to clarification

of expected performance. The user department does not need to

provide copies of documentation about clarification of expected

performance standards with which the contract complied after

clarification. The user department should contact the Purchasing

Department if there is any question about what should or should not

be documented.

If the user department observes poor performance or noncompliance

with the contract, Purchasing communicates with the contractor and

initiates any corrective action. The Purchasing Agent takes all steps

related to obtaining contract compliance, but consults with the County

Attorney before taking any steps toward contract suspension or

termination. Before any letters, notices and other communication

related to termination or suspension are sent to the contractor, they

are reviewed by the County Attorney as the initial steps toward

potential litigation.

Contract

Administration

The primary objectives of contract administration are to:

 Ensure the contract requirements are satisfactorily performed,

 Properly discharge the responsibilities of both parties,

 Verify contractor performance before payment,

 Identify any material breach of contract by assessing the

difference between contract performance and material

nonperformance; and

 Determine if corrective action is necessary and take that action if

required.

A written statement of work is the guide for contract administration.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 79

Updated: April, 2014

Therefore, planning for contract administration occurs before issuance

of the solicitation. Effective contract administration minimizes or

eliminates problems and potential claims and disputes.

Proper contract management ensures that the contract requirements

are satisfied, that the good(s) and services are delivered in a timely

manner, and that the financial interests of the County are protected.

The contractor must perform and meet the requirements of the

contract. To do so, contractors sometimes need technical direction

and approval from County personnel. County personnel must provide

this technical direction and approval in a timely and effective manner.

All guidance provided to a contractor must be within the scope of the

contract.

Contract

Management

The primary responsibilities of the contract manager are:

 Participating, as necessary, in developing the solicitation and

writing the draft documents,

 Monitoring the contractor’s progress and performance to ensure

goods and services conform to the contract requirements,

 Managing any county property used in contract performance,

 Authorizing payments consistent with the contract documents,

 Exercising remedies, as appropriate, where a contractor’s

performance is deficient,

 Resolving disputes in a timely manner,

 Documenting significant events, and

 Maintaining appropriate records.

The contract manager ensures that the contract requirements are

satisfied, that the goods and services are delivered in a timely

manner, and that the financial interests of the County are protected.

Post Award

Conference

A post award conference is a meeting with the contractor and

includes the principals responsible for administering the contract. The

conference is typically held soon after the contract is awarded. It is an

orientation for the contractor to ensure a clear and mutual

understanding of all contract terms and conditions, and the

responsibilities of all parties. The conference also serves as a tool to

clarify and resolve any potential misunderstandings early. Although

both the contractor and County personnel should be fully aware of the

contract requirements, the post award conference ensures that those

involved directly in the contract administration process understand all

requirements of contract performance. Post award conferences are

dependent upon the nature of the contract.



Monitoring

Performance

Monitoring the performance of a contractor is a key function of proper

contract administration. The purpose is to ensure that the contractor is

performing all duties in accordance with the contract and for the user

department to be aware of and address any developing problems or

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 80

Updated: April, 2014

issues.

Monitoring by

Third Parties

In some instances the obligation to monitor the progress of a contract

is assigned to another contractor. This is known as independent

oversight. For example, in a construction contract, the architectural

firm that provided the construction plans may perform the task of

ensuring progress in accordance with the contract.

Dispute

Resolution

Dispute resolution is covered by statute under Texas Government

Code Chapter 2260. The goal of the resolution process is to resolve

all problems before they escalate to the next level. To avoid

escalation of problems to the next level and ensure the County has

not exacerbated potential problems, County personnel must respond

promptly to all contractor inquiries. Initial steps to be taken are:

 Identify the problem – what may appear to be a problem can

sometimes be resolved by providing the contractor with

information or clarification

 Research facts – Purchasing should obtain all the information

about the potential problem from all relevant sources, including the

project manager and the contractor.

Evaluation – Purchasing should review all of the facts in conjunction

with the requirements and terms and conditions of the contract.

Purchasing determines the appropriate course of action.

Proper dispute resolution is a core skill of successful contract

management. Identifying problems early in the performance period,

effectively communicating, and formalizing the process in writing

through a cure note procedure or less formal written procedure is

essential. A contract termination is a failure by BOTH parties to a

contract. Termination is the last resort.

Termination

for

Convenience

A termination for convenience, also known as a no-fault termination,

allows the County to terminate any contract, in whole or in part, at any

time in its sole discretion, if it is determined that the termination is in

the best interest of the County.

Purchasing provides the contractor a written notice specifying the

extent of termination and the effective date, providing as much notice

as possible.

The Contractor is generally paid for allowable costs incurred up to the

termination. The County is not liable for payment to the contractor

related to the terminated portion of the work or any work performed or

costs incurred after the effective date of the termination.

Termination

for Default

A contract may be terminated for default when the County concludes

that the contractor fails to perform, make progress, or in any way

breaches the contract.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 81

Updated: April, 2014

Termination for default should be used as the last resort and not as

punishment. The County should do everything within reason to assist

the contractor in curing any default. Factors to consider before making

a termination for default decision include:

 The provisions of the contract and applicable regulations,

 The specific contractual failure(s) and the explanation provided for

the failures,

 The urgency of the need for the contracted supplies or services,

 The availability of the supplies or services from other sources and

the time required to obtain them, and

 Availability of funds or resources to repurchase if the costs cannot

be recovered from the delinquent contractor. Under a termination

for default, the County may demand re-procurement costs from

the defaulting contractor.

Contract File

Keeping one complete master contract administration file is critical.

The file provides a basis for settling claims and disputes if they arise

in administrative or court actions. Throughout the life of the contract,

the Purchasing Department contract administration file should contain

such documentation as:

 An original copy of the current contract and all modifications,

 A copy of all specifications, drawings or manuals incorporated into

the contract by reference,

 The solicitation document, the contractor’s response, evaluation

determination, and the notice of award document,

 A list of contractor submittal requirements,

 A list of County furnished property or services,

 A copy of the pre-award conference summary, if applicable,

 A copy of all general correspondence related to the contact,

 The originals of all contractor data or report submittals,

 A copy of all notices to proceed, to stop work, to correct

deficiencies and change orders,

 The records or minutes of all meetings, both internal and external,

including sign-in sheets and agendas,

 A copy of the original bidders list, and

Any other information required by the standard contract file checklist

Purchasing Policy and Procedures Manual Professional Development

and Certification.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 82

Updated: April, 2014

Chapter 20:Professional Development and Certification

Policy

The policy of the Potter County Purchasing Department is to develop and

maintain a professional procurement staff that achieves these broad

purposes:

 To provide the best service possible to all county departments in a fair

and equitable manner;

 To ensure an atmosphere of equality to all vendors without regard to

undue influence or political pressures; and

 To protect the interest of county taxpayers in all expenditures.

 Acquire goods and services of the right quality, in the right quantity, at

the right price, at the right time and from the correct source.

Key

Objectives

Within the stated purposes, the Purchasing Department strives to meet

the following key objectives:

 The actions of the office must be legal, ethical, and defensible.

 The office contributes to the attainment of Potter County’s

organizational goals.

 The office effectively communicates with all county employees and

vendors.

 The office consistently provides sound management data.

 The professional staff obtains the skills and training necessary to

perform their duties effectively and efficiently.

 The professional staff attempts to obtain purchasing certification.

Training

To support these purposes and objectives, the training policy of the

Purchasing Office is:

 All staff must maintain an extensive knowledge of software programs

to perform effectively within each related job. They must be current on

all software applications used by the office. Training courses are

assigned depending on knowledge and position requirements of the

individual. Staff takes advantage of computer training offered by the

County before pursuing external sources.

 Professional staff is required, as funding is available, to attend the

following standard seminars:

o Basic Public Purchasing

o Public Purchasing Law

o Advanced Public Purchasing

o Specification Writing

 Depending on availability, these courses may be substituted for other

approved courses. The professional staff may continue their

professional education to remain current on purchasing issues through

applicable seminars as available.

 All professional staff members are encouraged to participate in

relevant training to enhance their efficiency and effectiveness in

performing their duties.

 Professional staff is encouraged to pursue professional certification

through the National Institute of Governmental Purchasing or the

Institute of Supply Management.



_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 83

Updated: April, 2014

Chapter 21: Definitions

As used in this manual, the terms below are defined as follows:

Advertisement – A public notice put in a newspaper of general circulation containing

information about a solicitation in compliance with legal requirements

Alternate Delivery Method – A method of procuring construction services other than

“traditional” competitive bidding. Methods may include design-build, construction

manager (either at risk or as agent), and job order.

Amendment/Addendum – A document used to change the provisions of a Solicitation.

Addendum is the preferred term in the Construction Industry.

Annual Term Contract – A recurring contract for goods or services, usually in effect on

a 12-month basis.

Auditor – Potter County Auditor and his/her designated representatives.

Best Value – The best available offer, in the county’s best interest. It is based on all

factors including software cost, hardware costs, overall life cycle cost of equipment, the

estimated cost or increased cost of employee training, employee productivity,

installation and maintenance costs.

Bid Deposit – A deposit required of bidders to protect the county if a low bidder

withdraws its bid or fails to enter into a contract. Acceptable forms of bid deposits are

limited to: cashier’s check, certified check, or irrevocable letter of credit issued by a

financial institution subject to the laws of Texas and entered on a US Department of the

Treasury listing of approved sureties; a surety or blanket bond from a company

chartered or authorized to do business in Texas.

Bidder – A vendor that submits a bid including anyone acting on behalf of the vendor

that submits a bid, such as agents, employees, and representatives.

Bidders List – An automated list of vendors who stated in writing an interest in

submitting bids for particular categories of goods and services.

Centralized Master Bidders List (CMBL) – A list maintained by the Texas Building

and Procurement Commission containing the names and addresses of prospective

bidders.

Change Order – A document used in construction contracts to change the contract by

modifying the specifications, increasing or decreasing the cost, adjusting the time for

performance or changes the goods or services to be delivered.

Commissioners Court – Potter County Commissioners Court.

Commodity Code – The accounting system classification of goods and services with a

unique number assigned to each description.

Competitive Bidding – Process that allows available vendors to compete with each

other to provide goods or services.

Competitive Proposal Process – Process that allows available vendors to compete

with each other to provide goods and services that permits flexibility in product

solicitation and negotiation in compliance with TEX. LOC. GOV'T CODE

262.030.

Component Purchases – A series of purchases of component parts of goods that are

normally purchased as a whole.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 84

Updated: April, 2014

Consultant – A person who provides or proposes to provide advice and counsel in a

specialized area.

Contract – A formal, written agreement executed by the county and a vendor

containing the terms and conditions under which goods or services are furnished to the

County which commits the County's funds.

Contractor – A vendor who has been awarded a contract by Potter County.

County – Potter County.

County Attorney – Potter County Attorney or his/her designated representatives.

County Clerk – Potter County Clerk or his/her designated representatives.

Customers – The county's departments and officers

Cycle Time – The time between when a purchase requisition is received in the

Purchasing Office and placement of a purchase order with a vendor. Cycle time does

not include the time required for delivery or the time it takes for the Purchasing Office to

obtain corrections to line item accounts, commodity codes, and other necessary

information.

Department Head – Any Department Head and any person authorized to act on his or

her behalf.

Design-Build Contract – A single contract with a vendor for the design and

construction of a facility that includes an engineer or architect and builder qualified to

engage in building construction in Texas.

Design Criteria Package – A set of documents that provides sufficient information to

permit a vendor to prepare a response to County request for qualifications and any

additional information requested, including criteria for selection.

Department – All county and precinct offices as well as district offices when the

purchases are funded even partially with county funds.

Emergency Purchase – A 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

the preserve the property of the county

Employee – Any county or precinct elected official, appointed official, or employee and

any district elected official, appointed official or employee involved in a county purchase

when the purchase is funded even partially with county funds, or anyone who acts on

behalf of any of them.

Formal Competitive Bidding – The bidding process in compliance with the County

Purchasing Act which requires approval by the Commissioners Court.

GEMS – Potter County Financial Management System which includes modules for

purchasing and fixed asset management.

Goods – Any personal property purchased by the County, including equipment,

supplies, material, and component or repair parts.

IT – Information Technology Department.

Items Less Than $50,000 – Purchases of goods and services that are accounted for in

the same commodity code in the County Chart of Accounts, and purchases of goods

and services from a single vendor in a single purchase as defined in the County

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 85

Updated: April, 2014

Purchasing Act, involving an expenditure of less than $50,000 if some or all of the costs

is to be paid from county funds.

Lease – A contract for the use of personal property for a period of time in return for a

specified compensation.

Lowest Responsible Bid – The offer from a bidder who submits the lowest and best

bid meeting all requirements of the specifications, terms, and conditions of the invitation

for bid and includes any related costs to the county in a total cost concept and who has

the financial and practical ability to perform the contract and whose past performance

indicates likely compliance with all material terms of the contract.

Modification – A document used to change the provisions of a contract.

Negotiations – A consensual bargaining process in which the County and vendors

attempt to reach agreement on differences in desired contract provisions or a potentially

disputed matter for the purpose of reaching a mutually-acceptable arrangement.

Occupant Department – The department that ultimately uses the finished goods or

services when the purchase or construction is completed, which may be different from

the user department.

Official – Any elected or appointed official and any person authorized to act on his or

her behalf.

Payment Bond – A surety bond executed in connection with a contract that secures the

payment requirement of the contractor.

Performance Bond – A surety bond that provides assurance of a bidder’s performance

of a certain contract.

Pre-Bid/ Proposal Conference – A conference conducted by the Purchasing Office for

the benefit of those wishing to submit a response for services or supplies required by

the County which is held in order to allow vendors to ask questions about the proposed

contract and particularly about the contract specifications.

Professional Services – Services directly related to professional practices as defined

by the Professional Services Procurement Act, including those services within the scope

of the practice of accounting; architecture; optometry; medicine; land surveying; and

professional engineering.

Proprietary Information – Information provided in responses to solicitations to which a

vendor claims ownership or exclusive rights and which is protected from disclosure

under the Texas Public Information Act (TEX. GOV’T CODE ANN., chapter 551).

Public Works – Constructing, altering, or repairing a public building or carrying out or

completing any public work.

Purchase Order – An order by the Purchasing Office for the purchase of goods and

services written on the county's standard Purchase Order form and which, when

accepted by the vendor without qualification within the specified time limit, becomes a

contract or an amendment to an existing contract which operates as the vendor's

authority to deliver and invoice for goods or services specified, and is the County's

commitment to accept the specified goods or services for an agreed upon price.

Purchase Requisition – An automated request from a user department submitted to

the Purchasing Office that authorizes the Purchasing Office to enter into a contract with

a vendor to purchase goods or services for the County and authorizes the Auditor to

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 86

Updated: April, 2014

charge the appropriate department budget and which is for internal use and cannot be

used by a department to order materials directly from a vendor.

Purchasing – The acquisition of goods and services including construction and

professional services.

Purchasing Act – Chapter 262, subchapter C of the Texas Local Government Code,

which governs the conduct of purchasing activity for counties.

Purchasing Agent - A person appointed by the Purchasing Board of County to make

contracts 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.

Purchasing Board – A board composed of the judges of the district courts in the

county and the county judge, who are responsible for appointing the Purchasing Agent

and approving the office's budget.

Purchasing Laws – The laws that govern county purchasing including the following

laws:

 Purchasing Act, (TEX. LOC. GOV’T CODE, ch. 262, subch. C)

 Public Property Finance Act, (TEX. LOC. GOV’T CODE, ch. 271, subch. B)

 State Contract, (TEX. LOC. GOV’T CODE, sec. 262.002, 271.0813)

 State Catalog, (TEX. GOV’T CODE, ch. 2157 in coordination with TEX. LOC. GOV’T

CODE, sections 271.101 through 271.103

 Services and Products of Severely Disabled, (TEX. HUM. RES. CODE, chapter

122.)

 Interlocal Cooperation Agreement, (TEX .GOV’T CODE, ch. 791)

 Prompt Payment Act, (TEX. GOV’T CODE, ch. 2251)

 Bidders from other States and 5% Retainage, (TEX. GOV’T CODE, ch. 2252)

 Public Works Performance and Payment Bonds, (TEX. GOV’T CODE, ch. 2253)

 Professional Services Procurement Act, (TEX GOV’T CODE, ch. 2254, subch. A)

 Wage Rate for Construction Projects, (TEX GOV’T CODE, ch. 2258)

 Sales tax exemption for governmental entities (TEX. TAX CODE, 151.309)

 Worker's Compensation Compliance (Workers Compensation Rule 110.110)

 Uniform Electronic Transaction Act (TEX. BUS. & COM.CODE, Chapter 43

Purchasing Office – Potter County Purchasing Office and its staff.

Purchasing Liaisons – designated purchasing contact within each department.

Real Property – Land or buildings, improvements to land or buildings, or infrastructure.

Request For Bid (RFB) – Specifications and formal bidding documents requesting

pricing for a specified good or service which has been advertised for bid in a

newspaper.

Request for Information (RFI) – A general request to contractors for information for a

potential future solicitation which is used as a research and information gathering tool

for preparation of specifications and requirements.

Request for Proposal (RFP) – A document requesting an offer from vendors, which

allows for negotiations after a proposal has been received and before award of the

contract for goods and services procured in compliance with TEX. LOC. GOV’T CODE,

sections 262.0295 and 262.030.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 87

Updated: April, 2014

Request for Qualifications (RFQ) – A document that requests details about the

qualifications of professionals whose services must be obtained in compliance with the

Professional Services Procurement Act.

Request for Services (RFS) – A document that requests information about

qualifications and details of services to be provided and costs for other professional

services that are not covered by in the Professional Services Procurement Act, but may

be exempted from competitive solicitation under the County Purchasing Act.

Responsive – A vendor who has complied with all material aspects of the solicitation

document, including submission of all required documents.

Responsible – A vendor who has the capability to perform fully and deliver in

accordance with the contract requirements based on consideration of past performance,

financial capabilities, and business management.

Sealed Bids – Offers in response to an Invitation for Bids that is advertised in a

newspaper and submitted to the Purchasing Office in a manner that conceals the price.

Separate Purchases – Acquisitions made in a series of different orders for goods and

services that in normal purchasing practices that would be purchased in a single order.

Sequential Purchases – Acquisitions made over a period of time that in normal

purchasing practices would be made at one time.

Services – The furnishing of labor by a contractor that does not include the delivery of a

tangible end product and includes all work or labor performed for the County on an

independent contractor basis, including maintenance, construction, manual, clerical,

personal or professional services.

Sole Source Good or Service – A good or service that can be obtained from only one

source that is purchased in compliance with TEX. LOC. GOV’T CODE, section 262.024.

Solicitation – A document, such as an invitation for bid, request for proposal, request

for offers or request for qualifications, issued by the Purchasing Office that contains

terms and conditions for a contract and that solicits a response from vendors to provide

goods or services needed by the County in accordance with those terms and conditions.

Solicitation Conference – A meeting chaired by purchasing staff, designed to help

potential vendors understand the requirements of a solicitation. Also known as a pre-bid

or pre-proposal conference.

Specifications – A total description of a good or service to be purchased by the

County, and the requirements the vendor must meet to be considered for the contract

which may include requirements for testing, inspection, or preparing any good or service

for delivery, or preparing or installing it for use.

User Department – The department from whose budget line item the contract is paid.

Vendor – A business entity or individual that seeks to have or has a contract to provide

goods or services to the County.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 88

Updated: April, 2014

Appendix

1 - Purchasing Card Policy

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 89

Updated: April, 2014

PURCHASING CARD POLICY

AND PROCEDURES

Date Approved: February 28, 2011

Effective Date: February 28, 2011

1. PURPOSE

To establish policies and procedures for procuring goods and/or services using a

Purchasing Card. The purchasing card program is designed to streamline the purchasing

and accounts payable process by reducing the paperwork generated by small dollar, high

volume transactions, eliminating the need for purchase orders, providing immediate

access to goods and/or services, and facilitating quick payment to vendors.

This policy includes procedures for the following:

 Establishing Purchasing Limits

 Establishing Allowable/Prohibited Purchases

 Security

 Charge Transaction Declines

 Merchandise Returns

 Monthly Statements and Reports

 Reconciliation

 Payment Processing

 Records Management

2. SCOPE

This policy applies to all Potter County departments and individual, permanent

employees. All Purchasing Cards shall be governed by this policy and used in a manner

that complies with State Law and Potter County policy regulating the procurement of

goods and services.

3. POLICY

Employees who use the Purchasing Card to perform official County business will use the

Card as provided in this policy

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 90

Updated: April, 2014

4. DEFINITIONS

4.1 Purchasing Card – The Purchasing Card is a commercial credit card for small dollar

purchases of goods and/or services necessary for official county business. The

Purchasing Card may be issued to an individual, permanent employee for purchases

by the designated employee only.

4.2 Purchasing Card Program Administrator – The County Purchasing Agent will

assign a designee in the Purchasing Department to serve as a single point of contact

between Potter County and the Bank for general oversight of the Purchasing Card

Program.

4.3 Departmental Purchasing Card Coordinator – An individual or backup approved by

the Elected Official or Department Head who is responsible for administration and

control of the departmental implementation of the Purchasing Card Policies and

Procedures.

4.4 Purchasing Cardholders – Full-time, permanent employees that have been

designated by the Elected Official or Department Head to be issued a Purchasing

Card in their name for use under these policies and procedures.

4.5 Bank – The bank selected by the County to provide the Purchasing Card program.

5. RESPONSIBILITIES

5.1 It shall be the responsibility of the Purchasing Department to:

5.1.1 Develop policy and procedures for the use of Purchasing Cards that comply

with State Law.

5.1.2 Administer the Purchasing Card Program, to include the following

responsibilities:

 Serve as primary contact with the Bank for Purchasing Cards.

 Serve as primary contact with the Departmental Purchasing Card

Coordinators.

 Approve/process applications for the issuance of Purchasing Cards for

users in compliance with the requirements as stated in the policy.

 Establish guidelines and criteria for transactions and cumulative dollar

limits for Purchasing Cards.

 Approve/process changes to Cardholder limits and restrictions as

authorized by Elected Officials, Department Heads or the Departmental

Purchasing Card Coordinators.

 Keep a current list of Cardholders, card numbers and card limits.

 Coordinate training on Purchasing Card usage and small purchase

policies and procedures. Potential cardholders must receive training

prior to receiving a Purchasing Card.

 Review departmental compliance/submission of approved Monthly

Statement reconciliations.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 91

 Cancel and suspend cards as requested by Elected Officials, Department

Heads, Departmental Purchasing Card Coordinators.

 Coordinate any system updates needed to interface with the County’s

accounting system.

 Review transactions for verification of small dollar purchases and price

agreement opportunities.

 Cardholders are considered assistants of the Purchasing Agent for

purposes of Purchasing Card use. Therefore, final authority for usage

and control resides with the Purchasing Agent. The Purchasing Agent

may cancel a Purchasing Card at any time without cause.

 Spending limits may be adjusted at the Purchasing Agent’s discretion to

accommodate emergency purchases.

 Maintains and updates Purchasing Card Guidelines.

5.1.3. Provide direction for vendor enrollment.

5.2 It shall be the responsibility of the Auditor’s Department to:

5.2.1 Establish General Ledger hierarchy for Purchasing Card purchases in

conjunction with current financial software program.

5.2.2 Review Monthly Billing Statement from the Bank and supporting

documentation from the Departments ensuring timely payment of monthly

indebtedness.

5.2.3 Process General Ledger interface for monthly County Purchasing Card

purchases.

5.2.4 Review or perform necessary accounting transactions to process all

departmental charges and ensure the reconciliation account zeros out

monthly.

5.2.5 Conduct random audits of Purchasing Card transactions to act as a check on

departments carrying out their responsibility for audit and compliance with

State Law and County policies.

5.2.6 Administer all Travel transactions approving in advance transactions in

excess of $500.00.

5.3 It shall be the responsibility of all Elected Officials or Department Heads to:

5.3.1 Designate which employees will receive a Purchasing Card and set limits for

each Cardholder’s account. Cardholder limits will include monthly spending

limits, number of transactions per day, number of transactions per billing

cycle, and merchant category restrictions. These limits will be based on the

Cardholder’s purchasing requirements and will not exceed the limits

established by Purchasing Card Program Administrator.

5.3.2 Approve all departmental transactions for processing by Auditor’s Office.

5.3.3 Recommend suspension or cancellation of a card to Purchasing Card

Program Administrator.

5.3.4 Notify Purchasing Card Administrator to cancel card privileges, if employee

is terminated or changes positions; collection of card from employees.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 92

5.3.5 Designate Departmental Purchasing Card Coordinator (and alternate) for

each Department who will be responsible for the following:

 Verify that information on Requests for Purchasing Cards is correct and

that Purchasing Cards are issued within the guidelines established by

Purchasing Card Program Administrator. (Exhibit #1)

 Monitor purchases made by Cardholders.

 Enforce timely compliance of submission requirements; review receipts

and Monthly Statement reconciliations for submission to the Auditor

 Review Monthly Expense Report before submission for payables

process.

 Review Purchasing Card applications or changes to card controls prior

to submission.

 Designate a system to maintain receipts and reconcile to the Monthly

Statement for each Cardholder reporting to him/her.

5.3.6 Designated Cardholders will be responsible for the following:

 Read and sign a Purchasing Card Cardholder Agreement (Exhibit #2)

prior to being issued a Purchasing Card.

 Keep the Purchasing Card in their possession, not allow anyone else to

use the Purchasing Card issued in their name.

 Assume responsibility for all purchases made with the Purchasing Card,

adhering to this policy insuring that no unauthorized purchases are

made. Unauthorized purchases could be considered misappropriation of

County funds. Validate that the merchandise is received.

 Maintain the Purchasing Card data in a secure location at all times.

 Purchase from term contracts any items that are available on contract.

 Inform merchant of tax exempt status; cardholder will be responsible for

reimbursing the tax amount to the County.

 Keep receipts and post online item description and account information

upon receipt of statement. Cardholder will be held personally

responsible for items purchased without the supporting documentation.

 Monthly reconciliation and printing of expense report for current month

expenditures.

 Immediately report lost or stolen cards to the Bank toll-free number and

the Purchasing Card Program Administrator by phone and then notify

the Department Purchasing Card Coordinator on Lost/Stolen Form

(Exhibit #3) to be forwarded to the Purchasing Card Program

Administrator.

 Make every reasonable effort to resolve disputed purchases with the

vendor.

 Immediately report all unresolved disputed purchases to the

Departmental Purchasing Card Coordinator using the Purchasing Card

Dispute Form (Exhibit #4).

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 93

6. PROCEDURES

6.1 Purchasing Limits:

6.1.1 Each Department will establish limits for individual Purchasing Cards

and aggregate limits for combined card totals. The maximum amount of

a single item purchase of supplies or materials will not exceed $500. In

all cases, a monthly maximum per card will be established by the

Elected Official or Department Head.

6.1.2 Any purchases over the established dollar limit must be approved by the

Purchasing Card Administrator. For Purchases of this nature and

purchases that cannot be obtained any other way, the Purchasing

Department will have an unlimited purchasing card.

6.1.3 Travel related purchases for airline, hotel and registrations are

acceptable. Transactions in excess of $500.00 will require 48 hour prior

approval by the Auditor.

6.1.4 The Auditor’s Department may use a designated card for the use of

paying recurring monthly expenses. These expenses are not normally

processed through the Purchasing Department.

6.2 Purchases Allowed with the Purchasing Card – Purchasing Cards may be used to

purchase any item and/or service for immediate use not prohibited by law, this

policy, or other policies approved by the Commissioners Court. The total purchase

with the Purchasing Card will not exceed the limits established for that Card. All

other purchasing policies remain in effect and Purchasing Cards should not be used

to circumvent them.

6.3 Purchases Prohibited with the Purchasing Card:

 Personal expenditures

 Cash Advances, refunds or gift cards.

 Sales tax except in cases where State law does not exempt local governments.

 Purchases that exceed the County’s policy for purchases of equipment of any

type.

 Entertainment of any kind, including the purchase of alcohol or patronage of

drinking establishments.

 Purchases of items /services under contract, unless purchasing from the

contracted vendor or an emergency exception is granted.

 Printing

 Internet purchases without prior written approval from Purchasing Department

 Separate, sequential, and component purchases or transactions made with the

intent to circumvent State Law or County policy.

 Purchases that are split to stay within card transaction limits.

 Transaction amounts greater than Cardholder’s transaction limit.

 Telephone calls/monthly service

 Gasoline

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 94

 Weapons, Firearms, Ammunition

 Animals

 Consulting services.

 Inventoried assets

 Prescription drugs or over the county medications/drugs.

 Decorations

 Hazardous chemicals or materials

 Organization Memberships, Charitable and Social Services, Associations, Civic,

Social, and Fraternal.

 Purchases involving equipment trade-in.

 Other purchases specifically excluded in other County policies or by law.

The items shown above are intended to guide you in which form to use for

processing payments and orders. These are not representative of all restrictions,

and may change without notice. It is recommended that you contact the Purchasing

Card Administrator to ensure the proper expenditure of funds.

6.4 Security – The Cardholder is responsible for the security of the card. This card should

be treated with the same level of care as the Cardholder would use with his/her own

personal charge cards.

6.5 Supporting Documentation for Card Purchases – All transactions must be supported

by receipts or credit slips. In instances where the receipt is lost, Cardholder must

obtain a copy at their own expense from the Bank or vendor. For purchases made

over the phone or on the Internet, a logging system with unique transaction

identifiers should be maintained and a faxed copy or e-mail confirmation of the

order retained as the receipt. Written authorization from Purchasing Department for

internet purchase must be attached.

6.6 Declined Transactions – If a Vendor receives a “Decline” response from the Bank

after attempting to put through a Purchasing Card transaction, Cardholders may

contact the Bank’s customer service toll free number to determine the cause for

decline. It may be necessary to contact the Purchasing Card Department

Coordinator with the following information for resolution:

 Account number

 Business where decline occurred

 Total transaction amount of the decline

 Date the decline occurred

After determining the reason for the “Decline” it may be necessary for the

Purchasing Card Department Coordinator to contact the Purchasing Card

Administrator for temporary or permanent changes to the Cardholder’s control

limits to process the transaction.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 95

6.7 Using the Card – A need for an item and/or service is established when it is not

readily available through a County contract. In making a purchase, the Cardholder

must abide by the following rules:

6.7.1 The Cardholder must ensure that the item or service purchases is not

restricted under paragraph 6.3

6.7.2 In purchasing an item or service the Cardholder must ensure that sales tax is

not included in the purchase price before issuing payment with the

Purchasing Card.

6.7.3 If a supplier does not accept the Purchasing Card, the Cardholder should

forward a completed Dispute Form (Exhibit #4) to the Purchasing Card

Program Administrator marking “Non-Acceptance” as the reason for the

dispute (Exhibit #4.)

6.7.4 The Cardholder must retain the purchase receipt and attach it to the Monthly

Expense Report (Exhibit #5). After being signed by the appropriate Elected

Official or Department Head, the Monthly Expense Report, will then be

attached to the monthly bank statement and submitted to the Purchasing

Department.

6.8 Purchasing Return – The Cardholder is responsible for obtaining a credit memo from

the Vendor when merchandise purchased with the Card is later returned to the

Vendor for any reason. The credit memo will be attached to the monthly log along

with the sales receipt.

6.9 Monthly Bank Statements and Reports – Each department will obtain monthly

Cardholder detailed statements. When the reconciliation process is complete, the

expense report will be certified, signed by the Elected Official or Department Head

and returned to the Purchasing Department no later than the 10

day after the end

of the billing cycle. Failure to meet timely submission requirements from

Cardholders may cause suspension or cancellation of Purchasing Cards as

authorized by Commissioners Court. The Auditor’s office will reconcile all expense

reports against the monthly payment made by Automated Clearing House. The

Purchasing Card Program Administrator will review purchases to assure proper

purchasing procedures are adhered to.

6.10 Reconciliation of Card Purchases –

6.10.1 Upon receipt of the Monthly Statement, the Department Purchasing Card

Coordinator is responsible for ensuring that the Monthly Statement is

reconciled with the purchase receipts within 3 days of receiving the

Monthly Statement.

6.10.2 The Elected Official or Department Head is responsible for reviewing

receipts and Monthly Statement reconciliations and sending them along with

a computer generated Expense Report to the Purchasing Department no

later than the 10

day after the end of the billing cycle.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 96

6.11 Records Management – The Departmental Purchasing Card Program Coordinators

must maintain all original receipts in a secure location until they are reconciled to

the Monthly Statement. Departmental Purchasing Card Coordinators must maintain

the logs of Purchasing Card transactions, receipts and records of reconciliations.

Records from each billing cycle should be kept together.

6.12 Lost or Stolen Purchasing Cards – When it is determined that a Purchasing Card has

been lost or stolen, IT IS IMPERATIVE TO FIRST CANCEL THE CARD

WITH THE BANK BY CALLING THE BANK’S TOLL-FREE NUMBER. In

addition, the Cardholder must also notify the Purchasing Card Program

Administrator of the loss by phone and then complete a Purchasing Card

Lost/Stolen Card Form (Exhibit #3) and forward it to the Cardholder’s Elected

Official or Department Head, the Departmental Coordinator and the Purchasing

Card Program Administrator.

Once a Purchasing Card is discovered lost or stolen, it is imperative to cancel the

card immediately. The County is liable for all charges until the card is reported lost

or stolen. Thus, the Cardholder may be responsible for all charges made

against the Purchasing Card from the time it is lost or stolen until the time the

Bank is notified, if the Cardholder fails to immediately notify the Bank upon

discovering the loss or fails to discover the loss within a reasonable amount of

time.

6.13 Request for Issue of a Purchasing Card or Making Changes to Existing Accounts –

To request a new Purchasing Card or to make changes to an existing Purchasing

Card account, a Purchasing Card Request/Change Form (Exhibit #1) should be

completed by the requesting employee and submitted to the appropriate Elected

Official or Department Head for approval. Following approval, the form should be

forwarded to the Purchasing Card Program Administrator.

6.14 Unauthorized Use of the Purchasing Card – Any purchases that the Purchasing Card

Program Administrator deems prohibited as defined in paragraph 6.3 will be sent

back to the Cardholder for justification and/or explanation. If any prohibited

charges appear in the Cardholder’s Monthly Transaction Log or Statement Report,

the following may occur:

 The Purchasing Card Program Administrator will investigate all circumstances

surrounding alleged misuse of the Purchasing Card and in cases where there is

evidence of a procedure or policy violation; refer that information to the

appropriate authority for investigations and/or disciplinary action.

 Termination of employment and forfeiture of the Purchasing Card are potential

disciplinary actions for improper use of the card.

 In those cases where there is evidence of negligent use of the Purchasing Card,

but no fraudulent acts have been committed, the Cardholder will be required to

surrender the Purchasing Card with all further privileges revoked.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 97

Any employee having knowledge of violations to this procedure or any other

procedure or policy governing the use of the Purchasing Card must immediately

report such activity to the Purchasing Card Program Administrator.

The Purchasing Card may be suspended or terminated if a Purchasing Cardholder is

suspected of fraud, theft, or illegal drug use. Should the suspicion prove founded,

appropriate action shall be taken in accordance with existing County policies and

procedures, including but not limited to referral to the appropriate law enforcement

agency for investigation and, if warranted, prosecution.

6.15 Disputed Items – Disputes, if possible, should be resolved promptly between the

Cardholder and the Vendor. Cardholders should raise disputes immediately. As

failure to do so will result in an authorized purchase that the department is

responsible for paying even though the charge is incorrect. If the dispute cannot be

resolved within 10 days, the Cardholder should submit a Dispute Form (Exhibit #4)

to the Purchasing Card Program Administrator. A charge should not be disputed on

the current statement if it was returned for credit after the billing cycle is closed.

The credit should be reported on the next statement with a notation being made on

the current statement that there is a disputed charge and expected credit.

6.16 Termination Clause – The Purchasing Card is issued to an employee for the

County’s convenience and may be terminated at any time by the County Purchasing

Agent. Purchasing Card privileges may be cancelled for non-compliance with

County policies and procedures. Transfer, resignation, or terminations of

employment are grounds for cancellation of the Purchasing Card.

It is important to cancel a card immediately upon an employee’s separation from

employment. The Bank or the Credit Card Recovery Program will not cover any

charges incurred between the employee’s termination date and the date the card is

cancelled. The department will be responsible for payment of charges incurred by

an employee no longer working in that department; if a delay in canceling

privileges resulted from the department’s actions.

7. LEGAL REFERENCES

7.1 This policy statement of the Purchasing Agent is pursuant to Texas Local

Government Code section 262.011(l) & (o).

7.2 County Purchasing Act, Texas Local Government Code, Chapter 262, Subchapter C.

By this policy, the Potter County Commissioners Court authorizes the use of County provided

purchasing cards. The purpose of the purchasing cards is to provide the County with an efficient

and controllable method of making small dollar, high volume commodity and service purchases.

The purchasing card will be primarily used in place of small purchase orders that are issued on a

routine basis. This card policy is not intended to replace, but rather supplement existing

purchasing and other County policies.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 98

The County Purchasing Agent will be the Purchasing Card Program Administrator and is

responsible for all activities related to the County Purchasing Card Program.

The Purchasing Card Policy and Procedures was adopted by the Potter County Commissioners

Court.

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 99

REQUEST FOR PURCHASING CARD

EXHIBIT #1

TO: David Harder, Purchasing Card Program Administrator

FROM:

(Department)

SUBJECT: Request for Purchasing Card

I request the following employee be issued a County Purchasing Card for the purpose of making

small-dollar purchases in the normal course of authorized Potter County business.

Full Name of Employee (print):

Employee Signature:

Employee Title:

Single Item Purchase-Supplies or Material (Not to exceed $500):

Daily Transaction Limit: # of Transactions

30-Day Limit

Restrictions:

The card will not be used for travel related items. (i.e. airline tickets, rental cars, hotels, etc.)

REQUESTED BY:

Signature of Elected Official/Department Head

APPROVED BY:

Signature of Purchasing Card Administrator

Copy: Designated Cardholder

Elected Official/Department Head

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 100

PURCHASING CARD CARDHOLDER AGREEMENT

EXHIBIT #2

I, hereby agree to comply with the purchasing card policy and

procedures and the following terms and conditions regarding my use of the card. As a cardholder, I have read and understand the

Potter County Purchasing Card Policy and Procedures.

1. I understand that I am being entrusted with a valuable tool, the purchasing card. I will be making financial commitments on

behalf of Potter County. I will obtain the best value for Potter County by using the card wisely and with discretion.

2. I agree to use this card for official approved purchases only. I fully understand that misuse or abuse of the card will result in

revocation of the card and appropriate disciplinary action which may include termination of my employment. I

UNDERSTAND THAT IMPROPER USE OF THE CARD OR LACK OF RECEIPTS MAY RESULT IN FUNDS BEING

WITHHELD FROM MY PAYCHECK. I also agree to attend training on the use of this card as prescribed by Purchasing

Card Program Administrator.

3. Policy violations include, but are not limited to:

 Expenditures for personal purposes;

 Cash advances or refunds;

 Expenditures for entertainment, including but not limited to the purchase of alcoholic beverages;

 Purchases under contracts, unless an emergency exception is granted;

 Separate, sequential, and component purchases or transactions made with intent to circumvent State Law or County

policy;

 Transaction amounts greater than cardholder’s limits;

 Expenditures of meals or other travel related expenses while traveling on County business;

 Failure to submit proper documentation with each monthly statement, and;

 Allowing the card to be used by someone else

4. I agree to return the card immediately upon request or upon termination of employment (including retirement and

resignation). Should I be transferred, qualify for extended leave or undergo an organizational change which causes my

duties to no longer necessitate the use of the card, I agree to return it immediately and arrange for issuance of a new card as

may be appropriate.

5. If the card is lost or stolen, I agree to immediately notify the Purchasing Card Program Administrator both verbally and in

writing.

I understand and agree that my use of the purchasing card is subject to the following specific purposes or restrictions:

Employee Signature Date SS No. Department

Elected Official/ Date Purchasing Card Date

Department Head Program Administrator

Transaction Limit: $ Monthly Limit: $

Submit to Purchasing Card Program Administrator for Authorization

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 101

PURCHASING CARD LOST/STOLEN REPORT

EXHIBIT #3

TO: David Harder; Purchasing Card Program Administrator

FROM:

(Department)

Card Number

Full Name of Employee (print):

Employee Social Security Number

Employee Signature:

Employee Title:

Date of Loss

Date Stolen

Details:

Copy: Designated Cardholder

Elected Official/Department Head

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 102

CARDHOLDER STATEMENT OF DISPUTED ITEM(S)

EXHIBIT #4

RE:

CARDHOLDER NAME: CARD NUMBER:

MERCHANT NAME: DISPUTED AMOUNT: $

I dispute the charge(s) described herein as follows: [Check Appropriate Box(es)]

 I certify that the charge listed above was not made by me nor were the goods or services represented by the above

transaction received by me or by a person authorized by me.

 I do not recognize the transaction as listed above. Please inform me of merchant name and description of merchandise

purchases.

 Although I did engage in the above transaction, I dispute all or part of the charge in the amount of $ .

 I have contacted the merchant and requested a credit adjustment that I did not receive or was not satisfactory.

 I have been charged twice for the same transaction. Posting dates: _______________ and _______________

 A credit slip was listed as a sale on my statement.

 The amount of the sales slip was increased from $ to $ . Enclosed is my

copy of the sales slip prior to alteration.

 I received a price adjustment (credit slip) on the above transaction, and it has not appeared on my statement. Enclosed is a

copy of the credit memorandum.

 Non-Acceptance

 Other, please explain completely.

I am disputing the charge because:

Designated Cardholder Signature:

Daytime Phone:

Date:

Fax Dispute Form to: David Harder

349-4825

_____________________________________________________________________________________________

Potter County Purchasing Department

Adopted: April, 2007 Policy and Procedures Manual pg 103

Exhibit 5