Financial Services Bulletin No. 99/00 - 03
September 1, 1999
MEMORANDUM
TO:
Executive Committee, Department Chairpersons, Directors, and
Administrative Heads
FROM: Wayne
E. Reed
Director of Purchasing
SUBJECT: Change of Purchase Bid Thresholds
and Implementation of New
Contractual Clause per House Bill 826, 76th Texas Legislature
In order to enhance operational efficiencies of The University of Texas Health Science Center at San Antonio purchasing processes, and on the basis of benchmarking among other peer medical components within U.T. System, effective September 1, 1999, the following guidelines will be implemented:
When a purchase request has an aggregate total cost of *$5,000 or less, the purchase may be made without competitive bids. However, if sufficient time is available and competition is practicable, informal competitive bids may still be utilized, subject to the discretion of the buyer. When the purchase request has an aggregate total cost exceeding *$5,000, but less than *$25,000, informal competitive bids (which may include best value bidding) are required. An average of one to seven working days are necessary to process these requests. Formal bids (which also may include best value bidding) are required when the aggregate total cost of the purchase request reaches or exceeds *$25,000. An estimated 14-21 days are necessary to complete the formal bidding process. However, the time may be abbreviated at the discretion of the Purchasing Office.
Services with an aggregate total cost of *$5,000 or less and not involving parts or supplies, are to be contracted by the department requiring the services, with related charges to be forwarded to the Accounting Department on a voucher for payment. Requests for services that involve parts or supplies and maintenance agreements must be submitted to the Purchasing Department on a LYNX requisition, subject to the bid thresholds as outlined in the preceding paragraph. Departments should not break requisitions or vouchers into multiple documents, with lower estimated costs, to avoid informal or formal bidding thresholds.
For all purchasing thresholds, UTHSCSA is committed to the exercise
of good faith effort in providing business opportunities to Historically
Underutilized Businesses (HUBs), in accordance with established HUB Program
good faith effort goals.
The table included below summarizes the bidding thresholds:
|
|
|
| $5,000 or less | *Competitive bids not required; However, with sufficient time, subject to buyer discretion, competitive, informal bids may still be utilized |
| Exceeding $5,000 but less than $25,000 | *Informal competitive bids are required from at
least 3 sources. |
| $25,000 and above | *Formal bids are required from at least 3 sources |
*Exceptions may be authorized for approved sole source/proprietary purchases.
All printing requires competitive bidding, regardless of aggragate total,
per the Texas Constitution.
Updates to the Handbook of Operating Procedures reflecting these changes have been submitted and will be distributed upon completion of the updates.
As a result of actions of the 76th Texas Legislature, effective August 30, 1999, all contracts entered into by a state agency (including UTHSCSA) for goods, services, or projects will be required to include a provision/clause stating that the parties to the contract will use the dispute resolution process provided in Chapter 2260, Government Code. The term project is defined by Section 2166.001, Government Code, as "building construction projects financed wholly or partly by a specific appropriation, a bond issue, or federal money, to include the construction of: (i) a building, structure, or appurtenant facility or utility, including the acquisition and installation of original equipment and original furnishings; and (ii) an addition to, or alteration, rehabilitation, or repair of, an existing building, structure, or appurtenant facility or utility."
Effective immediately, the Office of General Counsel, for The University of Texas System, has advised that all contracts and purchase orders entered into by UTHSCSA for goods, services, or projects should include the following clause:
"By its execution of this contract, contracting party acknowledges and knowingly and voluntarily agrees that neither the execution of this contract by The University of Texas Health Science Center at San Antonio (UTHSCSA), nor the conduct, act, or inaction by any person in the execution, administration, or performance of this contract constitutes or is intended to constitute a waiver of UTHSCSA’s or the state’s immunity from suit. The dispute resolution process provided for in Chapter 2260 of the Texas Government Code must be used by UTHSCSA and contracting party to attempt to resolve all disputes arising under this contract. The contracting party must give written notice to UTHSCSA of a claim for breach of contract no later than the 180th day after the date of the event giving rise to the claim."
Although the Purchasing Office is working to assure that contracts and purchase orders administered through the Purchasing Office will include the new above listed clause, individuals or departments utilizing contracts which are not administered through the Purchasing Office will be responsible for assuring that such contracts include the above listed clause.
Thank you for your cooperation and assistance with these matters.
WER:lcc
c: Purchasing Staff
Departmental Administrative Staff