10 Tex. Admin. Code § 1.404 - Purchase and Procurement Standards
(a) The procurement
of all goods and services shall be conducted, to the maximum extent practical,
in a manner providing full and open competition consistent with the standards
of 2 CFR Part 200, UGMS, and TxGMS, as applicable.
(b) Subrecipients shall establish, and
require its subrecipients/Subcontractors (as applicable by program regulations)
to establish, written procurement procedures that when followed, result in
procurements that comply with federal, state and local standards, and grant
award contracts. Procedures must:
(1) include
a cost or price analysis that provides for a review of proposed procurements to
avoid purchase of unnecessary or duplicative items. Where appropriate,
analyzing lease versus purchase alternatives, performing the proposed service
in-house, and performing any other appropriate analysis to determine the most
economical approach.
(2) require
that solicitations for goods and services provide for a clear and accurate
description of the technical requirements for the material, product or service
to be procured. In competitive procurements, such a description shall not
contain features which unduly restrict competition, but must contain
requirements that the bidder/offeror must fulfill and all other factors to be
used in evaluating bids or proposals. A description, whenever practicable, of
technical requirements in terms of functions to be performed or performance
required, including the range of acceptable characteristics or minimum
acceptable standards. The specific features of "brand name or equal value" that
bidders are required to meet must be listed in the solicitation.
(3) include a method for conducting technical
evaluations of the proposals received and for selecting awardees.
(c) Documentation of procurement
processes, to include but not be limited to the items in paragraphs (1) to (9)
of this subsection, must be maintained by the Subrecipient in accordance with
the record retention requirements of the applicable program:
(1) rationale for the type of
procurement,
(2) cost or price
analysis,
(3) procurement
package,
(4) advertising,
(5) responses,
(6) selection process,
(7) contractor selection or
rejection,
(8) certification of
conflict of interest requirements being satisfied, and
(9) evidence that the awardee is not an
excluded entity in the System for Award Management (SAM).
(d) In accordance with 34 Texas
Administrative Code, Part 1, Chapter 20, Subchapter D, Division 1, each
Subrecipient shall make a good faith effort to utilize the state's Historically
Underutilized Business Program in contracts for construction, services
(including consulting and Professional Services) and commodities
purchases.
(e) The State of Texas
conducts procurement for many materials, goods, and appliances. Use of the
State of Texas Co-Op Purchasing Program does not satisfy the requirements of 2
CFR Part 200 . For more detail about how to purchase from the state contract,
please contact: State of Texas Co-Op Purchasing Program, Texas Comptroller of
Public Accounts. If Subrecipients choose to use the Cooperative Purchasing
Program, documentation of annual fee payment is required.
(f) All vehicles considered for purchase with
state or federal funds must be pre-approved by the Department. Subrecipient
must present written justification for the needed vehicle. If approved such
approval will be provided via written correspondence from the Department.
Procurement procedures must include provisions for full and open competition
and a comparison of the costs associated with leasing versus buying a vehicle.
Any vehicle purchased without approval may result in disallowed
costs.
(g) For procurement
transactions not subject to UGMS or TxGMS, the Department has adopted a $10,000
micropurchase and $250,000 simplified acquisition threshold. If the federal
simplified acquisition threshold changes, as a result of 2 CFR §200.88, or
if it is temporarily raised because of a federal disaster declaration, the
Department will publish the new amount on its website. For procurement
transactions subject to TxGMS 2.0, but not 2 CFR Part 200 Subrecipient must
follow a $10,000 micropurchase threshold and a $500,000 Texas Acquisition
Threshold. For procurement transactions subject to UGMS or TXGMS prior to
version 2.0, Subrecipient must follow a $3,000 micropurchase threshold and a
$250,000 Texas Acquisition Threshold. Certain political subdivisions (such as
cities and counties) are required under state law to follow a $50,000 sealed
bid threshold.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
(a) The procurement of all goods and services shall be conducted, to the maximum extent practical, in a manner providing full and open competition consistent with the standards of 2 CFR Part 200, UGMS, and TxGMS, as applicable.
(b) Subrecipients shall establish, and require its subrecipients/Subcontractors (as applicable by program regulations) to establish, written procurement procedures that when followed, result in procurements that comply with federal, state and local standards, and grant award contracts. Procedures must:
(1) include a cost or price analysis that provides for a review of proposed procurements to avoid purchase of unnecessary or duplicative items. Where appropriate, analyzing lease versus purchase alternatives, performing the proposed service in-house, and performing any other appropriate analysis to determine the most economical approach.
(2) require that solicitations for goods and services provide for a clear and accurate description of the technical requirements for the material, product or service to be procured. In competitive procurements, such a description shall not contain features which unduly restrict competition, but must contain requirements that the bidder/offeror must fulfill and all other factors to be used in evaluating bids or proposals. A description, whenever practicable, of technical requirements in terms of functions to be performed or performance required, including the range of acceptable characteristics or minimum acceptable standards. The specific features of "brand name or equal value" that bidders are required to meet must be listed in the solicitation.
(3) include a method for conducting technical evaluations of the proposals received and for selecting awardees.
(c) Documentation of procurement processes, to include but not be limited to the items in paragraphs (1) - (9) of this subsection, must be maintained by the Subrecipient in accordance with the record retention requirements of the applicable program:
(1) rationale for the type of procurement,
(2) cost or price analysis,
(3) procurement package,
(4) advertising,
(5) responses,
(6) selection process,
(7) contractor selection or rejection,
(8) certification of conflict of interest requirements being satisfied, and
(9) evidence that the awardee is not an excluded entity in the System for Award Management (SAM).
(d) In accordance with 34 Texas Administrative Code, Part 1, Chapter 20, Subchapter D, Division 1, each Subrecipient shall make a good faith effort to utilize the state's Historically Underutilized Business Program in contracts for construction, services (including consulting and Professional Services ) and commodities purchases.
(e) The State of Texas conducts procurement for many materials, goods, and appliances. Use of the State of Texas Co-Op Purchasing Program does not satisfy the requirements of 2 CFR Part 200 . For more detail about how to purchase from the state contract, please contact: State of Texas Co-Op Purchasing Program, Texas Comptroller of Public Accounts. If Subrecipients choose to use the Cooperative Purchasing Program, documentation of annual fee payment is required.
(f) All vehicles considered for purchase with state or federal funds must be pre-approved by the Department . Subrecipient must present written justification for the needed vehicle. If approved such approval will be provided via written correspondence from the Department . Procurement procedures must include provisions for full and open competition and a comparison of the costs associated with leasing versus buying a vehicle. Any vehicle purchased without approval may result in disallowed costs.
(g) For procurement transactions not subject to UGMS or TxGMS, the Department has adopted a $10,000 micropurchase and $250,000 simplified acquisition threshold. For procurement transactions subject to UGMS or TxGMS, Subrecipient must follow a $3,000 micropurchase threshold and a $250,000 Texas Acquisition Threshold (which is currently tied to the federal simplified acquisition threshold). If the federal simplified acquisition threshold changes, as a result of 2 CFR §200.88, or if it is temporarily raised because of a federal disaster declaration, the Department will publish the new amount on its website.