PURCHASING AND CONTRACT ADMINISTRATION
This chapter of the report reviews the purchasing and central receiving operations of the Austin Community College (ACC) in the following areas:
Effective purchasing processes ensure that high-quality supplies, equipment and services are purchased at the best price, in the right quantity, from the right source and in accordance with local and state purchasing guidelines. These criteria must be met without sacrificing quality, timeliness, and policies and procedures.
BACKGROUND
Various local, federal and state laws guide purchasing requirements. The ongoing challenge for purchasers involves balancing the needs of customers with legal requirements, while exercising sound stewardship with limited resources. Since locally elected boards govern both school districts and community colleges, many of the governance provisions of the Texas Education Code (TEC) are applicable to both entities. However, as institutions of higher education, community colleges are also subject to laws related to public universities. In addition, as agencies of local government, community colleges are subject to certain provisions of the Local Government Code. The provisions of the TEC prevail, as stipulated by Texas Legislature's passage of H.B. 1542, to the extent of any conflict with any other law, except one relating to contracting with historically underutilized businesses.
Community colleges can select from among nine methods outlined by the TEC for competitively purchasing goods and services for purchases valued at $25,000 or more in the aggregate for each 12-month period, except for contracts for the purchase of vehicle fuel and produce. These methods are presented in Exhibit 7-1.
Exhibit 7-1 Source: TEC, Section 44.031.
Competitive Procurement Methods
Purchasing Methods Description Competitive bidding Requires bids be evaluated and awarded based solely upon bid specifications, terms and conditions contained in the request for bids, and according to the bid prices offered by suppliers and pertinent factors affecting contract performance. Forbids negotiation of prices of goods and services after proposal opening. Competitive sealed proposals Requires same terms and conditions as competitive bidding, but allows changes in the nature of a proposal and prices after proposal opening. Request for proposals Generates competitive sealed proposals and involves key elements:
- Newspaper advertisement
- Notice to proposers
- Standard terms and conditions
- Special terms and conditions
- Scope-of-work statement
- Acknowledgment form/response sheet
- Felon conviction notice
- Contract clause
Catalog purchases Provides an alternative to other procurement methods for acquiring computer equipment, software and services only. Interlocal contract Provides a mechanism for agreements with other local governments, the state or a state agency to perform governmental services. Design/build contact Outlines method of project delivery in which the community college contracts with a single entity to both design and construct a project. Job order contracts Provides for use of a particular type of contract for jobs (manual labor work) for minor repairs and alterations. Construction management contracts Outlines use of a contract to construct, rehabilitate, alter or repair facilities using a professional construction manager. Reverse auction procedure Outlines a bidding process that involves submission of bids by multiple suppliers, unknown to each other, in a manner that allows the suppliers to bid against each other. ACC's purchasing policies authorize the Board of Trustees to delegate responsibility for procurement to the Purchasing Department, and no employee may legally bind the college to any contractual obligation without the board's approval. Specific responsibilities of the Purchasing Department include:
- Processing requisitions;
- Issuing purchase orders;
- Obtaining quotes for the acquisition of goods and services;
- Assisting in preparation of bid specifications;
- Preparing bid packages and overseeing the bid process;
- Receiving, tabulating and analyzing bids;
- Resolving problems with vendors, orders and deliveries; and
- Maintaining the vendor database.