FINANCE AND ADMINISTRATION | TFS



ADMINISTRATIVE PROCEDURES40.05 Purchasing Procedures Revised: July 23, ERNING REGULATIONSTFS purchasing procedures are governed by several policies and regulations:1.1System Policy 07.01 Ethics1.2System Policy 25.06 Participation by Historically Underutilized Business (HUB)1.3System Regulation 21.01.12 Purchase of Food and Refreshments1.4System Regulation 25.06.01 Historically Underutilized Business Program1.5System Regulation 25.07.01 Contract Administration, Delegations and Reporting1.6System Regulation 25.07.03 Acquisition of Goods and/or Services1.7Administrative Procedure 30.04 Procurement Cards1.8Administrative Procedure 40.04 Purchasing Delegations and Responsibilities2.DEFINITIONS2.1“Delegated purchasing authority” refers to a department’s permission for and limitations on the purchase of goods or services. In addition to a limit on the dollar amount of purchase transactions, departments are prohibited from directly completing certain types of purchases, which must be processed through the Purchasing Department regardless of amount.2.2“Exempt purchase” is not subject to competitive bidding requirements regardless of amount.2.3“Non-delegated purchase” is outside the authorized departmental purchasing limits and must be submitted as a requisition to the Purchasing Department. 2.4“Purchase document” refers to a requisition or purchase order whether prepared as a manual form or as an electronic document. The FAMIS purchasing module is used to produce four types of purchasing documents: a.An “E-document” is an exempt purchase order issued by a department to a vendor for certain goods or services for which bidding is not required.b.An “L-document” is a limited purchase order issued by a department to a vendor within the department’s delegated purchasing authority.c.An “R-document” is a requisition submitted by a department to the Purchasing Department to obtain assistance with a purchase.d.A “P-document” is a purchase order issued by the Purchasing Department to a vendor, often based on a requisition from a department.3.GENERAL3.1Purchases must comply with System Regulations, the System Procurement Code, and Texas A&M Forest Service (TFS) purchasing procedures and guidelines. Each purchase must be fully documented. All documents must be retained in accordance with the System Records Retention Schedule.3.2TFS may acquire goods and services by the method that provides the best value to the agency through:competitive petitive sealed proposals.group purchasing. alternate methods relevant to specific goods and services purchased.spot purchases.3.3In determining the best value, TFS may consider the following:purchase price.quality of the vendor’s goods or services.extent to which the goods or services meet the agency’s needs.reputation of the vendor and of the vendor’s goods or services.vendor’s past relationship with the agency.impact on the ability of the agency to comply with laws and rules relating to HUBs and to the procurement of goods and services from persons with disabilities.total long-term cost to the agency of acquiring a vendor’s goods or services. any other relevant factor that may be considered in selecting a vendor.3.4TFS is exempt from Texas state sales tax, so each department must ensure that sales taxes are not included (regardless of amount) in any quotes, bids, or any other prices obtained. Department personnel should furnish a completed Texas Sales and Use Tax Exemption Certification form to any vendor requesting certification of tax exemption.4.GUIDELINES APPLICABLE TO ALL PURCHASES4.1Employees making purchases under delegated purchasing authority must adhere to the System Ethics Policy. 4.2Each department must identify and utilize, whenever possible, HUBs for the purchase of goods and services. The HUB Coordinator and the Purchasing Department will assist in identifying HUBs for such purchases. Assistance may also be found at the on-line listing of HUBs. 4.3Preferencesa.Whenever possible, departments will purchase goods and services from persons with disabilities through WorkQuest if the products and services meet state specifications as to quantity, quality, price, delivery and life cycle cost, and cost no more than the fair market price of similar items. If a department purchases products or services that are available from WorkQuest from a non-WorkQuest source, a written justification must be provided documenting the reason WorkQuest products or services were not acceptable. Such reasons may be delivery time, price and failure of products or services to meet specifications, quality issues from previous purchases, or other factors that support best value. The Purchasing Department will assist departments in the use of WorkQuest contracts. b.Recycled, Remanufactured, or Environmentally Sensitive Products – Departments should specify and purchase recycled, remanufactured or environmentally sensitive products whenever possible. A preference should be given to these type products if the products meet state specifications as to quantity, quality and defined best value factors. Examples of these type products include: (1)re-refined oils and lubricants.(2)recycled-content toilet paper, toilet seat covers, paper towels.(3)recycled-content printing, computer and copier paper, and business envelopes.(4)remanufactured toner cartridges.4.4Debarred Vendors – Departments must make an effort to ensure that debarred vendors do not participate in TFS contracting. Department personnel will utilize the Debarred Vendor List in determining if a vendor is debarred. No award or purchase order should be made to a vendor appearing on this listing. 4.5Verification of Vendor Hold StatusState agencies are required to verify whether a vendor is on hold with the State Comptroller’s Office prior to making a purchase from the vendor. Credit card payments up to $500 are exempt from this requirement.b.FAMIS provides the vendor’s hold status information from the State Comptroller’s Office (screens 171 and 172). FAMIS blocks an award or payment to a vendor on hold unless specifically allowed by override. A department must check vendor hold status in FAMIS. If a vendor is not listed in FAMIS, the State Comptroller’s TINS – Vendor Hold Search should be used for verification. It is not necessary to print or retain a copy of the verification. 5.DELEGATED PURCHASES5.1The Purchasing Department has delegated the authority to departments to purchase most goods and services for $5,000 or less (including freight, postage, installation, and all other applicable charges). Competitive bidding is not required for purchases of $5,000 or less. There are exceptions to this delegation, including: a.purchases from State, TXMAS and DIR contracts, as well as some TAMU contracts.b.auditing and legal services.c.consultant and professional services.d.purchase of computer hardware and software. e.purchase of telecommunications equipment and services. f.purchase that requires the signing of a written contract or agreement.5.2A requisition is not required for purchases within the delegated purchasing authority. Proper documentation of each purchase must be recorded on an L-document in the purchasing module of FAMIS, on a purchase voucher, or as provided in TFS credit card procedures. An L-document or purchase voucher should cite Legal Descriptive Text code 65, “Purchase made by an institution of higher education, Section 51.9335 Education Code.” Each department should maintain a file copy of documentation for delegated purchases for future reference. 5.3A department may not exceed its delegated purchasing authority. Purchases may not be broken into small purchases in order to stay within the delegated authority. Each department should carefully evaluate and plan its purchases of goods on a monthly basis and services on a yearly basis. Purchases of like commodities in excess of the delegated amount must be requisitioned to the Purchasing Department. Delegation of purchase authority may be withdrawn, in whole or in part, from either a department or individual for continued violation or intentional misuse of authority.5.4Use of TFS Credit Card – Each delegated purchase, which is paid for with a credit card, must comply with all purchasing procedures. A credit card is a payment method only. Cardholders may not use a credit card to circumvent any purchasing regulations or procedures. 5.5Shipping Termsa.A department making a purchase under its delegated purchasing authority should always request vendors to quote prices and deliver goods “FOB Destination, Freight Prepaid and Allowed.” These terms require the vendor to pay the freight charges, own the goods in transit, and file any claims with the carrier.b.If a vendor will not quote prices and furnish goods under these terms, the only other acceptable terms are “FOB Destination, Freight Prepaid and Added to Invoice.” The department must ensure that when the freight charges are added to the invoice the total cost of the purchase does not exceed the delegated purchasing authority.6.EXEMPT PURCHASES 6.1Some goods and services are exempt from competitive bidding requirements. 6.2FAMIS allows an exempt purchase order (E-document) to be created, regardless of the amount, if all object codes on the order appear on screen 306.6.3A department may use an E-document to process the following exempt purchases without contacting the Purchasing Department:a.utilities.b.telephone charges.c.postal services.d.System assessments and related services from TAMU Computing Information Services.e.judgments and settlements for the Risk Pool program.6.4Grant awards, although not considered purchases, should be recorded in FAMIS with an E-document at the time of award, even though a payment might not be made for many months. 6.5A department must contact the Purchasing Department before initiating any other exempt purchase over $5,000. If the Purchasing Department approves use of an E-document, attach the approval letter or e-mail to the payment document. 6.6Each department should maintain a file copy of documentation for exempt purchases for future reference. 7.NON-DELEGATED PURCHASES7.1Non-delegated purchases are purchases in excess of the delegated purchasing limits and are performed by the Purchasing Department. 7.2A department initiates a non-delegated purchase by completing a purchase requisition and submitting it to the Purchasing Department. The purchase requisition includes detailed specifications and conditions of purchase. Departments should utilize the FAMIS requisitioning process to prepare, electronically route for approval, and submit a requisition to the Purchasing Department. Requisitions should be submitted to the Purchasing Department far enough in advance to allow sufficient time for preparing bids, receiving and evaluating bid responses, awarding contracts, and permitting a normal delivery schedule. An incorrect, inadequate, or incomplete requisition may be returned to the department with an explanation for the return and the requirements for acceptable resubmission.7.3Specifications and conditions of purchase submitted by a department should be complete and include sufficient detail to fully describe the product or service required, including quantity, unit of measure, ship to and invoice to addresses, and any special conditions and requirements. The Purchasing Department will review specifications and conditions of purchase and request clarification if needed. The Purchasing Department will not make significant changes to specifications or conditions of purchase without written approval from the department. If the department’s specifications unreasonably limit competition or are proprietary to one vendor, the Purchasing Department will require additional written justification. 7.4Upon receipt of a properly completed and approved purchase requisition, including specifications and conditions of purchase, the Purchasing Department will determine the appropriate method of procurement and process accordingly. The Purchasing Department will solicit bids or requests for proposals, evaluate responses, make an award, and issue a purchase order. Copies of the purchase order will be sent to the awarded vendor, the department and the Budgets and Accounting Department. 8.PROCUREMENT CLASSIFICATIONS 8.1 State ContractsThe State of Texas, through the Comptroller's Statewide Procurement Division (SPD), awards contracts that are available for use by all state agencies and institutions of higher education. These state contracts are either automated or non-automated contracts. Information regarding types of goods and services available on state contract is accessible at the SPD web-site. TFS may utilize these contracts for purchasing goods and services.(1)Automated Contracts (firm, fixed price) – If the items on the requisition are on an automated state contract, the Purchasing Department verifies the class, item number, commodity number and other information and submits a state requisition to SPD. SPD issues a state purchase order and forwards a copy to the vendor and the Purchasing Department. The Purchasing Department issues an agency purchase order against the state purchase order and forwards a copy of the agency purchase order with a copy of the state purchase order to the requesting department.(2)Non-Automated Contracts (discount from list) – If the items on the requisition are on a non-automated contract, the Purchasing Department verifies the class, item number, the price, the name and address of the vendor, and other information and forwards an agency purchase order to the vendor and a copy to the requesting department.Departments are encouraged to review and utilize the state contracts whenever possible. This is a non-delegated purchase. Due to the requisitioning/ordering process required by SPD, departments must submit requisitions to the Purchasing Department for items on state contracts, regardless of the dollar amount.8.2Texas Multiple Award Schedule (TXMAS) Contractsa. SPD has established TXMAS contracts that have been developed from contracts that have been competitively bid and awarded by the federal government or any other governmental entity of any state. b.This is a non-delegated purchase. Due to TXMAS procedures, departments must submit requisitions to the Purchasing Department for items on TXMAS contracts, regardless of the dollar amount. 8.3Department of Information Resources (DIR) ContractsDIR has awarded information resources and telecommunications contracts through the Catalogue Purchasing Program. These contracts are available for use by state agencies and institutions of higher education. Information regarding these contracts is available on the DIR website. TFS may utilize these contracts for purchasing information resources and telecommunications goods and services.This is a non-delegated purchase. Due to the ordering process required by DIR, departments must submit requisitions to the Purchasing Department for items on DIR contracts, regardless of the dollar amount. 8.4Texas A&M University (TAMU) Contractsa.The TAMU Department of Procurement Services administers several TAMU and System-wide blanket pricing contacts. The contracts are based on the best value concept and streamline the procurement process for System members. Information regarding the types of goods and services available on these contracts is located at TAMU Contract Listing website. TFS may utilize these contracts for purchasing goods and services. b.Some of these contracts and vendors may allow a department to make purchases directly from the vendor instead of requisitioning to the Purchasing Department. In these situations, a department may purchase contracted items within the delegated purchasing authority. The department must ensure the contracted vendor is quoting items and prices as awarded under the contract. The department should include the contract number on the purchase document and purchase voucher.c.A department must submit requisitions to the Purchasing Department if the contract or vendor does not permit purchases directly by departments.d.A department must submit requisitions to the Purchasing Department for purchases over $5,000.8.5ServicesPurchase of services is defined as the furnishing of skilled or unskilled labor or professional work, but does not include: (1)professional service subject to Subchapter A, Chapter 2254 of the Texas Government Code. (See section 8.6.)accounting architecture landscape architecture optometry medicine real estate appraising land surveying professional engineering professional nursing (2)consulting service as defined by Subchapter B, Chapter 2254 of the Texas Government Code. (See section 8.6.)(3)service of a state agency employee.(4)service of a public utility. b.Rental of machines and equipment, with or without an operator provided by the supplier, is considered a service. c.Auditing and legal services require advanced approval from other state agencies regardless of cost. This is a non-delegated purchase. Contact the Purchasing Department if these services are needed.d.A department may obtain services costing $5,000 or less per fiscal year under its delegated purchasing authority.e.Services costing in excess of $5,000 per fiscal year must be requisitioned to the Purchasing Department for competitive bidding and award. A requisition must be submitted and the purchase order issued before the service can begin. If the service can be performed by only a sole source provider, a completed Proprietary Purchase Justification must be submitted with the requisition.8.6Private Consultant and Professional Servicesa.Consulting services and professional services are governed by System Regulation 25.07.01 Contract Administration Procedures and Delegations.b.This is a non-delegated purchase. Consulting services and professional services, regardless of cost, must be requisitioned to the Purchasing Department for processing. 8.7Printing Services a.Printing is defined as “reproduction by impressing paper against an inked printed surface” (plate, blanket, type, etc.), as opposed to copying, which is reproduction of a printed page by photographic techniques. b.Where available, State agency print shops can be utilized. If a State agency print shop is not used, then the following competitive bidding requirements apply:(1)If the printing services cost is $5,000 or less, the department may procure under the delegated purchasing authority.(2)If the printing services cost is in excess of $5,000, the department must submit a requisition (including complete specifications) to the Purchasing Department for bidding and award. The department should allow sufficient lead-time for each printing job requisitioned. 8.8Computer Hardware and Software Many purchases of computer hardware, software, peripherals and accessories must be processed through the Information Resources Department (IR) to ensure compliance with three TFS objectives:(1)Maintain a safe computer network. Hardware that is connected to the network and software that operates on any TFS computer or on the network must be acquired through IR. (2)Control the inventory of computers. IR ensures that an old computer is disposed of for each new computer purchased unless an exception has been approved. (See Administrative Procedure 30.02 Equipment Management.)(3)Manage software licenses. Appropriate software licenses are acquired, tracked and released by IR as needed. To initiate the purchase of a computer or software, contact IR (by phone or e-mail) to communicate specific needs. After obtaining a price quotation from an appropriate vendor, IR will create a purchase document in FAMIS and route for approval. The order will be placed by either IR or the Purchasing Department.Contact IR to purchase any of the following peripherals: (1)monitor. (2)LaserJet printer, multi-function printer, or any printer capable of direct connection to a network. (3)flat-bed scanner. (4)personal digital assistant (PDA). (5)other computing equipment that can be connected to a network. These are non-delegated purchase items regardless of cost.A department may purchase any of the following peripherals under the delegated purchasing authority, if the total cost does not exceed $5,000. A department may contact IR for assistance with the procurement of these items as needed.(1)power cord or power strip. (2)cable. (3)speakers. (4)keyboard. (5)mouse. (6)external hard disk drive. (7)inkjet printer. (8)flash drive. (9)global positioning system (GPS) equipment. (10)digital camera. (11)other electronic equipment that cannot be connected to a network. puter hardware, software or a peripheral with a cost of $5,000 or more is classified as capital property and must be inventoried.8.9Telecommunications Services and Equipment Telecommunications services and equipment include local telephone service, long distance service, cellular service and equipment, pager and paging service, Internet service, and other miscellaneous voice and data services. b.This is a non-delegated purchase. Telecommunications services and equipment are procured by the Purchasing Department, regardless of the dollar amount. A department must submit a request for telecommunications services and equipment to the Purchasing Department for processing. The Purchasing Department will purchase these services and equipment through the Division of Information Technology or through DIR TEX-AN 2000 contracts. 8.10Lease Purchase or Installment Payment Purchase The Director is authorized to approve a lease-purchase not to exceed $250,000 and with a term of five years or less. The Texas Bond Review Board is required to approve a lease purchase or installment payment purchase in excess of $250,000 or having a term of more than five years.A request for lease-purchase or installment payment purchase will be submitted to the Purchasing Department, which will assist the department in developing lease-purchase specifications, in evaluating lease-purchase options available, and in obtaining the required approvals. This type of purchase must be approved by the Associate Director for Finance and Administration. Upon receipt of the proper approvals, the Purchasing Department will bid and /or negotiate a contract. 8.11Lease of Spacea.An individuals or department with a requirement for space should submit a written memorandum through the appropriate administrative channels to the Contracts Officer in the Purchasing Department.b.In filling the request for space, TFS is subject to the following statutory direction:(1)Space may be leased either from another state agency through an interagency agreement or from the federal government or a political subdivision of the state through a negotiated agreement.(2)Space may be leased from a private source through competitive bidding or through a negotiated contract when lease is best value to the agency and within market value. Justification is required for non-bid contracts and proof of market value is required when contracting with a private source.(3)The lease contract may provide for an original term not to exceed 5 years and/or $300,000 for total term.(4)The lease contract must comply with state law governing elimination of barrier to handicapped persons:(a)The Americans with Disabilities Act of 1990 (42 U.S.C. § 12101 et seq., or as may be amended). (b)Texas Architectural Barriers Act (Texas Revised Civil Statutes, article 9102, or as may be amended).8.12Food PurchasesExpenditures for food and/or refreshments from non-appropriated funds (account numbers starting with 2 or 4), unless otherwise restricted, are authorized to the extent such expenditures enable TFS to carry out an agency function, promote forestry in the State of Texas, or perform public service.b.Expenditures for food and/or refreshments must fulfill one or more of the following purposes, which must be cited on the payment document:The recognition or promotion of service to TFS or the State.(2)The promotion of the communication of forestry issues/ideas among staff and/or representatives of the public.(3)The support of events and activities that are sponsored by TFS.(4)The recruitment of staff.(5)The promotion of the exchange of ideas with community leaders regarding the role of TFS in the community.(6)The assistance of the Regents, officials from other agencies and/or public officials in inspecting/reviewing TFS facilities and programs.(7)The support of a continuing education program sponsored by TFS.(8)The recognition of employees (staff conferences, receptions or other events).c.The purchase of food for employees while on fire suppression activities that do not involve an overnight stay is deemed to satisfy the above requirements (sections 8.12.a. and 8.12.b. (3)) and is permitted if the following conditions are met:(1)The employees are deployed to a fire prior to the normal meal time, have no advance notice to allow them to bring a meal with them and remain on the line through the meal period.(2)The meal must be delivered to the employees on the fire line because the remote location or the fire suppression operation requirements make it unfeasible to allow the employees to leave the fire line.(3)The meal may include bottled water or supplement drink.The decision to purchase meals for employees during the above conditions is made by the respective Assistant Chief Regional Fire Coordinator or Regional Forester. The purchase of bottled water or supplement drinks for hydration purposes have additional requirements and are subject to the provisions of section 8.13 below.e.Purchases of food costing in excess of $5,000 must be requisitioned to the Purchasing Department for processing.8.13Bottled Water, Supplement Drinks and Ice Purchases Bottled water, supplement drinks and ice are deemed to be food items, therefore subject to all limitations and conditions imposed on food purchases, including limitations on funding sources and the requirement of a use/justification statement. TFS allows the purchase of bottled water, supplement drinks and ice in the following circumstances.CircumstanceBottled WaterSupplement DrinkIceHydration purposes in the performance of emergency response and forestry activities in the field.YesYesYesConsumption by personnel and visitors in the Merkel and Palestine officesYesNoNoTraining classes, landowner meetings and conferences.YesNoYesFor a declared emergency response incident, the payment document must identify the assigned incident number and be paid from a corresponding incident account.For all other activity, the payment must be charged to a non-appropriated fund account.Purchase of bottled water or supplement drink for any other purpose must have advanced written approval from the Director or the Associate Director for Finance and Administration. The payment document must cite this administrative procedure, and the expenditure must be paid from non-appropriated funds. A copy of the written approval must be included with the payment document.While the agency has determined the above purchases to be allowable, each department head is responsible for determining the needs of their respective department and managing the amount of purchases. Departments are also responsible for conserving funds by purchasing bottled water or supplement drinks in bulk, when possible. To fulfill these responsibilities, department heads should provide appropriate instructions to their staff related to these purchases.b.For leased offices or workstations where water is not available within the leased space, departments are authorized to purchase a water dispenser and bottled water service. These purchases must be paid with non-appropriated funds (i.e. an account beginning with a 2 or 4).8.14Flowers, Floral Arrangements and Plantsa.A state agency may not use appropriated funds to purchase flowers, floral arrangements, or decorative plants for a state officer or employee or for the friends or family of a state officer or employee. Generally, the agency limits purchases of flowers or decorative plants to special agency events. The purchase of flower arrangements for funerals of employees or former employees is generally limited to gift fund accounts. Requests for exceptions must be approved by the Associate Director for Finance and Administration. b.Purchases from appropriated funds are limited to vegetation dirt, potting soil, fertilizer, seeds, and plants needed for erosion prevention, research, or agriculture. Appropriated funds may not be used for the purchase, rental, or maintenance of live or artificial indoor plants used purely for aesthetic purposes.8.15Proprietary Purchasesa.A proprietary purchase is the purchase of a product or service for which there is only one manufacturer or vendor. Such a purchase does not permit a similar product or service to be supplied. The price of a proprietary purchase may or may not be determined through the competitive bidding process.When the Purchasing Department finds that a department has submitted a requisition containing specifications or conditions of a purchase that are proprietary to one vendor, the department will be required to provide written justification before the requisition is processed. The Purchasing Department will then make the determination if the purchase can be made from a sole source or if the competitive bidding process will prevail.c.A written justification for the use of proprietary specifications or conditions should contain:(1)An explanation of the need for the specifications or conditions.(2)Statement of the reasons any competing or equivalent products are not satisfactory.(3) Other information requested by the Purchasing Department.(4) Signature of the department head or designee.d.The Proprietary Purchase Justification form will be used by a department when requisitioning a proprietary purchase.8.16Emergency Purchases (See section 9 for Emergency Response purchases.)An emergency purchase is defined as a purchase of goods or services so urgently needed that the agency will suffer financial or operational damage unless the goods or services are secured immediately. In the case of an emergency, the affected department must notify the Purchasing Department immediately. If the emergency happens outside normal business hours and Purchasing Department personnel cannot be contacted immediately, the department must notify the Purchasing Department as soon as possible on the next regular workday. b.An Emergency Purchase Justification is required for this type of purchase. Whenever possible, at least three informal bids should be obtained on an emergency purchase over $5,000.c.The Purchasing Department will issue a confirming purchase order upon receipt and approval of the purchase documentation. 8.17Federal Funds Purchase RequirementsUpon award of a purchase order or contract exceeding $10,000, vendors must comply with Executive Order 11246 (Equal Employment Opportunity). A written copy of the vendor’s affirmative action plan is required for all orders exceeding $50,000. Additionally, the vendor’s written assurance of compliance with the Clean Air Act of 1970 and the Federal Water Pollution Act must be obtained on all orders exceeding $100,000.8.18Written Contract/Agreement RequirementSome purchases of goods or services costing less than $5,000 may require the signing of a written contract or agreement. In these situations, a formal awarding and/or contracting process must be executed. If a particular purchase requires the signing of any type of written agreement or contract, it must be processed by the Purchasing Department even if the cost is less than $5,000. Departments are not delegated the authority to sign contracts or agreements with vendors, regardless of the dollar amount.8.19Acknowledgement of Employee’s Death or Loss of Family MemberAn acknowledgement card for the family of an employee who has passed away or for an employee who has lost an immediate family member may be purchased. a.The expenditure must be paid from an account that is NOT funded by state appropriations, contracts, grants or donor-restricted gifts. Immediate family member includes only the employee’s spouse or the employee or spouse’s child, parent, brother, sister, grandparent or grandchild.8.20International PurchasesEmployees making international purchases with procurement cards or spot purchases will be responsible for ensuring such transactions comply with export control laws and regulations. Employees or departments must contact the Purchasing Department to resolve any export control issues prior to the purchase. 8.21Unmanned Aircraft Systems (UAS) PurchasesAll UAS purchases must be classified as EAR99; classification must be verified prior to purchase. Exceptions must be coordinated with the Policy and Review Coordinator for export control purposes. 9.PURCHASES FOR EMERGENCY RESPONSE INCIDENTS9.1AuthorityDuring an emergency response incident, the Director may delegate temporary procurement authority to certain TFS personnel assigned to the incident and responsible for acquiring goods and services needed to support the incident.9.2ResponsibilityTFS incident procurement personnel are responsible for ensuring that emergency response purchases are procured in accordance with this procedure. 9.3GeneralTFS will promote competition to the maximum extent possible by requesting bids from as many potential sources as is practical under the circumstances of the incident.9.4Coordination with TFS Purchasing DepartmentIncident procurement personnel will work closely with the Purchasing Department in order to coordinate all incident-purchasing activities for the agency.When incident circumstances allow, the Purchasing Department should be the first source to contact for assistance in procuring goods or services that will cost more than $5,000. The Purchasing Department will, when possible, make the purchase or provide information to assist with the purchase, including:a.Vendors listed on the State’s Centralized Master Bidder List (CMBL).b.HUB vendors c.Vendors awarded existing state or agency contracts (term, DIR, TXMAS, etc.)rmation on vendors located in the area of the incident.e.General purchasing assistance or information.9.5Tax ExemptionTFS is exempt from Texas sales tax as an agency of the State of Texas. Incident procurement personnel must insure that sales taxes are not included (regardless of amount) in any quotes, bids, or any other prices obtained. Incident procurement personnel will furnish a completed Texas Sales and Use Tax Exemption Certification form to any vendor requesting certification of tax exemption.9.6Delegated Purchases – Up to $5,000a.These purchases do not require bids.b.These purchases can be processed with a FAMIS purchasing document or a hard-copy voucher.c.These purchases can be paid with a procurement card.d.Incident account number, incident name, and resource order number should be recorded on invoices and any other purchase file documents.9.7Emergency Response Purchases – $5,000.01-$25,000.00a.When possible, obtain at least three informal bids (two from HUBs).b.An Emergency Purchase Justification must be completed. Contact the Purchasing Department for assistance in developing the justification statement for the incident. Once developed, the justification statement will be faxed to TFS procurement personnel at the incident. c.If the Purchasing Department is handling the purchase, incident procurement personnel should provide the incident account number, incident name, copy of authorized resource order or TFS requisition, and specification requirements.d.A purchase order should be issued by the Purchasing Department for any emergency response purchase for which the total dollar amount, including any delivery/freight cost, exceeds $5,000.9.8Emergency Response Purchases – Over $25,000a.Incident procurement personnel are not authorized to make these purchases.b.Contact the Purchasing Department for processing.c.Provide the incident account number, incident name, copy of resource order or TFS requisition, and specification requirements.9.9Emergency Response Purchase – Rental of Equipment and MachineryEmergency response purchasing requirements, for the emergency rental of equipment and machinery are the same (per dollar amount category) as the requirements previously stated for services.Insurance coverage for rented equipment and machinery is required and is to be provided by vendor with cost for such insurance included in the vendor’s bid.All emergency rental equipment and machinery furnished by vendors must conform to any applicable federal, state, or local laws and regulations. These include but are not limited to: a.Federal and State departments of transportationb.Federal Motor Carrier Safety Regulationsc.OSHA RegulationsA TFS purchase order will serve as the emergency rental agreement. Incident Command System emergency equipment forms may be utilized to track and record inspection, usage, fuel and oils, release, etc.9.10State of Texas Procurement Card This credit card is authorized as a payment method only and is not to be used to circumvent any emergency response purchasing requirements for purchases over $5,000. The credit card is designed as a payment method to be used for the delegated purchases of goods and services that do not require bidding. Credit card receipts must be submitted with the following information: incident name, incident account number, and resource number (if applicable) regardless of receipt dollar amount. The cardholder must submit all original receipts. It is the responsibility of the cardholder to ensure that no taxes are charged to credit card purchases.10.HISTORICALLY UNDERUTILIZED BUSINESS PROGRAM10.1TFS will involve qualified HUBs to the greatest extent allowed by law in the agency’s construction contracting and professional services. HUBs will also be utilized in the purchase, lease, or rental of supplies, materials, services and equipment. 10.2Departments will identify and utilize HUBs whenever possible for the purchase of goods and services. Departments can identify HUBs from an on-line listing maintained by SPD and FAMIS screens 173 and 174. The TFS HUB Coordinator and the Purchasing Department staff will assist departments in identifying HUBs for such purchases.11.OBTAINING PRICE QUOTATIONSWhen obtaining price quotations from vendors, departments should ensure that the following are clearly communicated with the vendor:11.1Price quoted is firm.11.2No taxes are included in price. TFS is exempt from most taxes as a state agency.11.3Price quoted includes all cost associated with the purchase (postage or shipping, installation, warranty, etc.). 11.4Always require shipping to be quoted, “FOB destination, freight prepaid and allowed.”11.5Confirm quantity being ordered11.6Obtain a quotation number or name and phone number of person quoting price.11.7Obtain estimated date of or time required for delivery.11.8TFS standard payment terms are “Net 30 days.”12.DEPARTMENTAL RESPONSIBILITY WHEN RECEIVING FREIGHTMost problems with incoming freight occur because the merchandise is not received properly. Be sure to follow these basic steps so that TFS will not be held responsible for any damage claim.12.1When Delivery Is Madea.DO NOT SIGN – Never sign the freight bill until the incoming boxes or cartons have been inspected. Remember that the driver cannot leave until damage is checked and noted in writing all copies of the freight bill (bill of lading) and the freight bill is signed.b.Verify Count – Always look at the carton quantities listed on the freight bill. You should receive exactly the number of cartons as is shown to have been shipped. NOTE: At this point you are not concerned with the contents of each box, only the number of them as compared to the freight bill.c.Examine Each Carton – Each carton should be in good condition when it arrives. If it is not, describe completely what is wrong with each carton on your copy of the freight bill. Have the driver indicate the same on his copy and have driver sign your copy as well. If a carton appears to be damaged insist that it be opened before the driver leaves, and both you and the driver make a joint inspection of the contents. Any concealed damage should be noted as you did above on the bill of lading. NOTE: Always retain your copy of the Bill of Lading.12.2When Visible or Concealed Damage Is Discovereda.Retain All Damaged Cartons – Damaged cartons should never be removed from your assigned receiving area.b.Call Carrier – Report all damage to the local office of the freight carrier making the delivery and request that an inspector be sent to look over the freight. This should be done immediately after the driver leaves or the damage is discovered. Never allow more than 15 days to go by before you make this call, as the freight carrier will almost certainly deny the claim.c.Document All Contacts – Record the date and name of the person to whom you spoke at the carrier’s office on your freight bill.12.3When Damage Is Being Inspected By a Carrier Representativea.Get Departmental Copy of Purchase Order – Observe on this document whether the shipment was sent FOB destination or FOB shipping point.b.Read Before You Sign – The inspector will fill out a report of the damage and ask you to sign it. Do not sign if you do not agree with the conclusion. Attempt to get the inspector to request replacement of the items whenever possible.c.Call Purchasing Department – If you have problems at this point the Purchasing Department will be able to advise you.d.Forward All Copies – In all cases forward copies of the Inspection Report, Freight Bill and Invoice if available to the Purchasing Department. The Purchasing Department will negotiate with the seller of the merchandise to get new merchandise to replace that, which was damaged.12.4After the Inspection Report Is Senta.Do Not Destroy the Damaged Merchandise – The freight company will eventually pick it up if they haven't already. When they do, they will issue a Salvage Receipt.b.The Purchasing Department will notify you as soon as the details of securing the new merchandise are made.CONTACT: Purchasing Department Head, 979/458-7380 ................
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