Comptroller of Comptroller of Public AccountsPublic Accounts

Procurement Manual Procurement Manual Updates and RevisionsUpdates and Revisions

Texas Procurement and Support Services (TPASS) Website

http://www.window.state.tx.us/procurement/http://www.window.state.tx.us/procurement/

TopicsTopics Updated/Revised Sections of the Updated/Revised Sections of the

Procurement ManualProcurement Manual

Significance of Revised SectionsSignificance of Revised Sections

Future Plans for Procurement Future Plans for Procurement Manual RevisionsManual Revisions

Completed SectionsCompleted Sections1.1 Training & Certification1.1 Training & Certification1.3 Reports & Notification1.3 Reports & Notification2.1 Acquisition of Surplus Property2.1 Acquisition of Surplus Property2.6 Catalog Purchase Procedures2.6 Catalog Purchase Procedures2.7 Term Contracts2.7 Term Contracts2.8 Open Market Purchases2.8 Open Market Purchases2.12 Automated Information 2.12 Automated Information

Systems/Telecommunications Commodities and Systems/Telecommunications Commodities and Services Services

PurchasesPurchases2.21 Proprietary Purchases2.21 Proprietary Purchases2.21.3 Printing & Copying Services2.21.3 Printing & Copying Services2.28 Historically Underutilized Business (HUB) 2.28 Historically Underutilized Business (HUB)

ProgramProgram2.29 Surety Bonds2.29 Surety Bonds2.33 Centralized Master Bidders List (CMBL)2.33 Centralized Master Bidders List (CMBL)2.36 Bid Receipt2.36 Bid Receipt

Completed SectionsCompleted Sections2.37 Bid Opening & Bid Tabulation2.37 Bid Opening & Bid Tabulation2.41 Awards2.41 Awards2.42 Inspection, Testing & Acceptance2.42 Inspection, Testing & Acceptance2.49 Purchase Order Change Notices2.49 Purchase Order Change Notices2.50 Vendor Performance2.50 Vendor Performance2.52 Prepayment & Advance Payments2.52 Prepayment & Advance Payments2.53 Early Payment Discounts2.53 Early Payment Discounts2.54 Late Payments2.54 Late Payments2.57 Paying for Purchases2.57 Paying for Purchases2.59 The State Payment Card2.59 The State Payment Card2.61 Purchase Category Codes2.61 Purchase Category Codes2.62 Disposal of Property2.62 Disposal of Property4.5 Exemptions4.5 Exemptions

1.1 Training & 1.1 Training & CertificationCertification

Clarified purchaser training Clarified purchaser training requirements.requirements.

Who should attend?Who should attend?- - All state agency purchasing personnel, All state agency purchasing personnel, including exempt agenciesincluding exempt agencies- Participating CO-OP purchasing entities - Participating CO-OP purchasing entities are especially encouraged, but not requiredare especially encouraged, but not required

Provided links to class/course Provided links to class/course schedules, registration, and testing & schedules, registration, and testing & certification applicationscertification applications

1.1 Training & 1.1 Training & CertificationCertification

Additional coursesAdditional courses

- - Contract Manager Training (CMT)Contract Manager Training (CMT)

- State Government Contracting (SGC)- State Government Contracting (SGC)

- Project Management (PM)- Project Management (PM)

- Power Negotiations (PN)- Power Negotiations (PN)

- Supply Chain Optimization (SCO)- Supply Chain Optimization (SCO)

1.3 Reports & 1.3 Reports & NotificationsNotifications

Removed DIR reporting related Removed DIR reporting related informationinformation

Removed Nonresident Bidders Removed Nonresident Bidders Report which was repealed by House Report which was repealed by House Bill 2753, section 10Bill 2753, section 10

2.1 Acquisition of 2.1 Acquisition of Surplus PropertySurplus Property

Updated language to better describe Updated language to better describe Federal and State Surplus PropertyFederal and State Surplus Property

Clearly stated who is eligible for Clearly stated who is eligible for obtaining surplus property and obtaining surplus property and requirements for applyingrequirements for applying

Provided links to:Provided links to:

- - Application for Assistance OrganizationsApplication for Assistance Organizations

- The list of approved Assistance - The list of approved Assistance OrganizationsOrganizations

2.6 Catalog 2.6 Catalog Purchase Purchase

ProceduresProcedures The entire section has been removed The entire section has been removed from the Procurement Manualfrom the Procurement Manual

HB 2918 repealed the Catalog Information HB 2918 repealed the Catalog Information Systems Vendor (CISV) program and Systems Vendor (CISV) program and

transferred TXMAS Schedule 70 Information transferred TXMAS Schedule 70 Information Technology Contracts to the Department of Technology Contracts to the Department of

Information Resources (DIR) effective Information Resources (DIR) effective September 1, 2007. TXMAS Schedule 70 September 1, 2007. TXMAS Schedule 70

Contracts will be available on the DIR website Contracts will be available on the DIR website September 1, 2007. For more information September 1, 2007. For more information

regarding the repealed CISV program, please regarding the repealed CISV program, please visit our visit our websitewebsite..

2.7 Term Contracts2.7 Term Contracts Updated the Automated Term Updated the Automated Term

Contract ordersContract orders - - Online access to Impala/Telnet for direct Online access to Impala/Telnet for direct

entry or through completion of a Contract entry or through completion of a Contract Purchase Requisition FormPurchase Requisition Form

Clarified P.O. and POCN noticesClarified P.O. and POCN notices- - Ordering entity reviews PO upon receipt Ordering entity reviews PO upon receipt for completeness and accuracy, not CPAfor completeness and accuracy, not CPA

2.7 Term Contracts2.7 Term Contracts- - Errors should be corrected via POCNErrors should be corrected via POCN

- POCN is mailed to the vendor and a copy - POCN is mailed to the vendor and a copy sent to sent to

CPACPA

Updated links to view Non-Updated links to view Non-Automated Term ContractsAutomated Term Contracts

2.8 Open Market 2.8 Open Market PurchasesPurchases

CPA Administered Open Market PurchaseCPA Administered Open Market Purchase

- - #3#3 The averageThe average CPA processing time for an CPA processing time for an open market requisition is approximately open market requisition is approximately 45 45 calendar dayscalendar days

- #4 The appropriate CPA Purchaser reviews the - #4 The appropriate CPA Purchaser reviews the requisition and communicates any suggested requisition and communicates any suggested changes to your agency within approximately changes to your agency within approximately 14 14 daysdays of receipt of the requisition of receipt of the requisition

2.12 Automated Information 2.12 Automated Information Systems/Telecommunications Systems/Telecommunications

Commodities and Services Commodities and Services PurchasesPurchases

Added new section to reflect the Added new section to reflect the provisions of HB 2918 provisions of HB 2918

Included the Request for Offers (RFO) Included the Request for Offers (RFO) processprocess - RFP purchasing method- RFP purchasing method

- RFO procedures- RFO procedures

Section 2.12 Section 2.12 can be found in the Procurement can be found in the Procurement Manual on our websiteManual on our website

2.21 Proprietary 2.21 Proprietary PurchasesPurchases

Wording change in the last paragraphWording change in the last paragraph

- “These specifications are being advertised - “These specifications are being advertised under TX. Gov’t. Code, Section under TX. Gov’t. Code, Section 2155.0672155.067. . Only Only responsesresponses to solicitations for items to solicitations for items conforming exactly to these specifications conforming exactly to these specifications will be considered in determining an award. will be considered in determining an award. ‘Conforming exactly to these specifications ‘Conforming exactly to these specifications includes bidding only the brand name(s) includes bidding only the brand name(s) make and model number(s) specified in this make and model number(s) specified in this solicitation.”solicitation.”

2.21.3 Printing & 2.21.3 Printing & Copying ServicesCopying Services

Added link for contacting Added link for contacting Purchasing Operations and Purchasing Operations and Customer Service (POCS)Customer Service (POCS)-- To obtain certification for the purchase of print To obtain certification for the purchase of print services from anyone other than TCI, contact services from anyone other than TCI, contact http://www.window.state.tx.us/procurement/contactshttp://www.window.state.tx.us/procurement/contacts//

Clearly defined procedures for Clearly defined procedures for procuring printing and copyingprocuring printing and copying

2.28 HUB Program2.28 HUB Program Changed formattingChanged formatting Updated total value of HUB’s receiving Updated total value of HUB’s receiving

portion of contracts that the agency portion of contracts that the agency expects to award in a fiscal yearexpects to award in a fiscal year

Clarified language regarding HUB Clarified language regarding HUB Subcontracting Plan (HSP) and Subcontracting Plan (HSP) and provisionsprovisions

Added more references to Texas Added more references to Texas Administrative Code (TAC) Administrative Code (TAC) 20.1420.14 for for notifying subcontractors after the notifying subcontractors after the primary contractor was awardedprimary contractor was awarded

2.29 Surety Bonds2.29 Surety Bonds Changed title from “Performance Bonds” to Changed title from “Performance Bonds” to

“Surety Bonds”“Surety Bonds”-- this covers Blanket Bonds and Performance Bondsthis covers Blanket Bonds and Performance Bonds

Referenced TGC Referenced TGC 2156.0112156.011- explains statutory requirement regarding the use - explains statutory requirement regarding the use of Performance Bondsof Performance Bonds

Deleted portion on the Texas Insurance Deleted portion on the Texas Insurance Code regarding the definition of “Bid Code regarding the definition of “Bid Deposit” as it is no longer validDeposit” as it is no longer valid

Replaced with TGC Replaced with TGC 2156.0042156.004- CPA requirements for a Bid Deposit- CPA requirements for a Bid Deposit

2.29 Surety Bonds2.29 Surety Bonds

Added link to the State Contract Added link to the State Contract Management GuideManagement Guide

- - bonding requirements associated with bonding requirements associated with major contracts over $1 million in valuemajor contracts over $1 million in value

2.33 CMBL2.33 CMBL Changed formattingChanged formatting A clear explanation of CMBL programA clear explanation of CMBL program Removed CISV contentRemoved CISV content Added internet sources and provided new Added internet sources and provided new

linkslinks Clearly defined the dollar amount in the Clearly defined the dollar amount in the

“Required Use” portion“Required Use” portion A clear explanation for supplementing the A clear explanation for supplementing the

CMBLCMBL

- - TAC 20.34TAC 20.34

2.36 Bid Receipt2.36 Bid Receipt Expanded and clarified language on Expanded and clarified language on

“Withdrawing Bids”“Withdrawing Bids”- - Agencies are responsible forAgencies are responsible for their own their own internal procedures for receipt and control internal procedures for receipt and control of bidsof bids

Expanded on information regarding Expanded on information regarding “Log for Bids Received”“Log for Bids Received”- - Which is optionalWhich is optional

Better explanation on the process for Better explanation on the process for “Bids Inadvertently Opened”“Bids Inadvertently Opened”

2.37 Bid Opening & 2.37 Bid Opening & Bid TabulationBid Tabulation

Changed formattingChanged formatting Expanded on “Bid Opening” by Expanded on “Bid Opening” by

adding rules & requirementsadding rules & requirements ““Late Bids” and “Unsigned Bids” Late Bids” and “Unsigned Bids”

basically remained the samebasically remained the same

- Added additional language - Added additional language regarding CPA’s liability for regarding CPA’s liability for equipment failure or operator error equipment failure or operator error when bids are received via faxwhen bids are received via fax

2.41 Awards2.41 Awards Removed language about “lowest and best Removed language about “lowest and best

bid” and replaced with “best value” contentbid” and replaced with “best value” content Added links to reference TGC Added links to reference TGC 2155.0742155.074 and and

2155.0752155.075

- - Best value criteria must be specifically addressed Best value criteria must be specifically addressed in the solicitationin the solicitation

Provided a link to the Contract Provided a link to the Contract Management Guide (CMG)Management Guide (CMG)- For more complex solicitations..... - For more complex solicitations..... http://www.window.state.tx.us/procurement/pub/chttp://www.window.state.tx.us/procurement/pub/contractguide/ontractguide/

2.41 Awards2.41 Awards Added content to “Aids to Evaluation” Added content to “Aids to Evaluation”

regarding the Written Data Ruleregarding the Written Data Rule- Changed wording in - Changed wording in #2 #2 from “will” to “may”from “will” to “may”- Added #3 which explains the significance- Added #3 which explains the significance

(Caution should be exercised when using this (Caution should be exercised when using this mandatory requirement as its use will mandatory requirement as its use will prohibit the acceptance of an otherwise best prohibit the acceptance of an otherwise best value bid. The use of the word “may” as value bid. The use of the word “may” as opposed to “will” is considered more opposed to “will” is considered more appropriate because it gives the State the appropriate because it gives the State the option of requesting the required option of requesting the required information.) information.)

2.41 Awards2.41 Awards Changed the “Franchise Tax” portion to read “Tax Changed the “Franchise Tax” portion to read “Tax

Status”, as we no longer check Franchise TaxStatus”, as we no longer check Franchise Tax

Clarified/Added language regarding making an Clarified/Added language regarding making an award to a vendor that is on tax hold and not in award to a vendor that is on tax hold and not in good standing and the options that should be good standing and the options that should be exercisedexercised

Added “Added “NoteNote:” statement to explain the rationale :” statement to explain the rationale for making an award to an otherwise qualified for making an award to an otherwise qualified bidderbidder

2.41 Awards2.41 Awards Deleted “Texas Family Code Clause”Deleted “Texas Family Code Clause”

Fixed broken links to the Fixed broken links to the Comptroller’s Tax StatusComptroller’s Tax Status

- - http://ecpa.cpa.state.tx.us/coa/coainst.htmhttp://ecpa.cpa.state.tx.us/coa/coainst.htmll

2.42 Inspection, 2.42 Inspection, Testing & Testing &

AcceptanceAcceptance Basically straight from TGC Basically straight from TGC 2155.0692155.069 and and 2155.0702155.070

Quality Assurance Inspection (QAI) Quality Assurance Inspection (QAI) Program has developed an Program has developed an automated P.O. selection process automated P.O. selection process that will identify high risk/high that will identify high risk/high dollar commodities for inspectiondollar commodities for inspection

2.42 Inspection, 2.42 Inspection, Testing & Testing &

AcceptanceAcceptance Phase 1 completePhase 1 complete- - automated P.O. selection for high risk/high automated P.O. selection for high risk/high dollar commoditiesdollar commodities

Phase 2 in the worksPhase 2 in the works- - use the Vendor Performance Tracking System use the Vendor Performance Tracking System (VPTS) to determine delinquent vendors, product (VPTS) to determine delinquent vendors, product substitution, non-delivery, etc. to further identify substitution, non-delivery, etc. to further identify high risk vendors and commoditieshigh risk vendors and commodities

Manual updates will follow the Manual updates will follow the completion of the QAI enhancementscompletion of the QAI enhancements

Contract Contract AdministrationAdministration

Covers sections Covers sections 2.43 – 2.502.43 – 2.50- - Currently under review to coincide with Currently under review to coincide with 2.42 Testing, Inspection & Acceptance2.42 Testing, Inspection & Acceptance

For additional information regarding For additional information regarding contract administrationcontract administration

**See Contract Management Guide****See Contract Management Guide**

http://www.window.state.tx.us/procurhttp://www.window.state.tx.us/procurement/pub/contractguide/ement/pub/contractguide/

2.49 Purchase Order 2.49 Purchase Order Change NoticesChange Notices

Basically remained the sameBasically remained the same

Added information regarding the use of Added information regarding the use of a POCNa POCN- - The POCN form shall be used to:The POCN form shall be used to:

#3.……“For scheduled purchases, the #3.……“For scheduled purchases, the purchasing entity is to seek approval and purchasing entity is to seek approval and coordinate changes in quantities with the coordinate changes in quantities with the CPA unless variations are specifically CPA unless variations are specifically addressed in the terms and conditions of addressed in the terms and conditions of the schedule.”the schedule.”

2.49 Purchase Order 2.49 Purchase Order Change NoticesChange Notices

Deleted #4 regarding the Deleted #4 regarding the misuse of a POCNmisuse of a POCN

- A POCN form shall not be used to:- A POCN form shall not be used to:Change a scheduled purchase orderChange a scheduled purchase order

2.50 Vendor 2.50 Vendor PerformancePerformance

Added link to TAC 20.108Added link to TAC 20.108- - State agencies shall report a vendor's State agencies shall report a vendor's performance on any purchase of $25,000 or more performance on any purchase of $25,000 or more from contracts administered by the commission or from contracts administered by the commission or any other purchase made through an agency's any other purchase made through an agency's delegated authority…..delegated authority…..

Fixed broken link to access instructions Fixed broken link to access instructions for completing a Vendor Performance for completing a Vendor Performance Form (VPF)Form (VPF)

http://www.window.state.tx.us/procurementhttp://www.window.state.tx.us/procurement/prog/vendor_performance/performancefor/prog/vendor_performance/performanceform/m/

2.50 Vendor 2.50 Vendor PerformancePerformance

Updated the “Purpose” portion to Updated the “Purpose” portion to specifically address what the VPTS is forspecifically address what the VPTS is for

Provided detailed information relating to Provided detailed information relating to the operations for maintaining contract the operations for maintaining contract records for tracking vendor performancerecords for tracking vendor performance

Clarified that agencies shall report not Clarified that agencies shall report not only poor performance, but satisfactory only poor performance, but satisfactory and exemplary performance via Vendor and exemplary performance via Vendor Performance Form (VPF)Performance Form (VPF)

2.50 Vendor 2.50 Vendor PerformancePerformance

Updated the number of days a vendor is Updated the number of days a vendor is required to respondrequired to respond

Better explained process for reporting VPBetter explained process for reporting VP

- - 14 days, not 10 like previously stated14 days, not 10 like previously stated Reformatted Vendor Performance Codes Reformatted Vendor Performance Codes

to simplify searchingto simplify searching New enhancements to the VPTSNew enhancements to the VPTS

- manual updates will follow the - manual updates will follow the enhancementsenhancements

2.52 Prepayment & 2.52 Prepayment & Advance PaymentsAdvance Payments

New language added regarding the contents New language added regarding the contents of a hard copy purchase voucherof a hard copy purchase voucher- - http://www.window.state.tx.us/procurement/pub/http://www.window.state.tx.us/procurement/pub/manual/2-52.pdfmanual/2-52.pdf

Added language to the exceptions for Added language to the exceptions for entering prepayment information into the entering prepayment information into the Uniform Statewide Accounting System Uniform Statewide Accounting System (USAS)(USAS)- A state agency may pay an annual maintenance - A state agency may pay an annual maintenance agreement in advance, agreement in advance, regardless of whether it regardless of whether it covers more than one appropriation yearcovers more than one appropriation year. .

2.52 Prepayment & 2.52 Prepayment & Advance PaymentsAdvance Payments

-- AA state agency may pay tuition to an state agency may pay tuition to an institution of higher education no earlier than institution of higher education no earlier than thethe 42nd day42nd day before the class beginsbefore the class begins

-- as opposed to….”no earlier than six -- as opposed to….”no earlier than six weeks….”weeks….”

- A state agency that needs to make an - A state agency that needs to make an advance payment for a reason not listed above advance payment for a reason not listed above may do so only if the agency determines may do so only if the agency determines before making the payment that making the before making the payment that making the payment in advance is necessary and would payment in advance is necessary and would serve a proper public purpose serve a proper public purpose

2.53 Early Payment 2.53 Early Payment DiscountsDiscounts

Updated language using TAC 20.36 Updated language using TAC 20.36 which stateswhich states

- “Cash discounts are acceptable but - “Cash discounts are acceptable but not considered in making an award. not considered in making an award. All cash discounts will be taken if All cash discounts will be taken if they are earned by the agency". they are earned by the agency".

2.54 Late Payments2.54 Late Payments Deleted portion regarding “Invoices” as it doesn’t Deleted portion regarding “Invoices” as it doesn’t

flow with Late Payment contentflow with Late Payment content Updated “How to Calculate Interest”Updated “How to Calculate Interest”

Example of How to Calculate InterestExample of How to Calculate Interest - In this example, - In this example, the following assumptions apply: the following assumptions apply:

a state agency executed a contract with a vendor to a state agency executed a contract with a vendor to purchase goods on September 10th; purchase goods on September 10th;

the goods were received September 24th; the goods were received September 24th; the agency received the vendor's invoice on October 6th; the agency received the vendor's invoice on October 6th; the agency's payment was postmarked December 9th; and the agency's payment was postmarked December 9th; and the amount of the agency's payment was $500.00. the amount of the agency's payment was $500.00. annual percentage rate of 7.25% to calculate late payment annual percentage rate of 7.25% to calculate late payment

interest interest

2.54 Late Payments2.54 Late Payments Determine the due date for the payment. Count Determine the due date for the payment. Count

30 days beginning on the day after the agency 30 days beginning on the day after the agency received the invoice. In this example, the due received the invoice. In this example, the due date was November 5th. date was November 5th.

Determine how many days the payment was late. Determine how many days the payment was late. Start counting on the day after the due date and Start counting on the day after the due date and stop counting on the date the payment was stop counting on the date the payment was postmarked. In this example, the payment was postmarked. In this example, the payment was late by 34 days. late by 34 days.

Use the following formula to determine the Use the following formula to determine the amount of interest due: (# of days late/365) x amount of interest due: (# of days late/365) x (.0725) x (amount of payment) = (interest due) (.0725) x (amount of payment) = (interest due)

In this example, the formula becomes: (34/365) In this example, the formula becomes: (34/365) x (.0725) x ($500.00) =x (.0725) x ($500.00) = $3.38$3.38

2.57 Paying for 2.57 Paying for PurchasesPurchases

Added “Invoicing” to this section Added “Invoicing” to this section because it lists the necessary because it lists the necessary information required on the invoice to information required on the invoice to the agency in order to expedite the agency in order to expedite paymentpayment

This addition flows better with the This addition flows better with the content about the payment processcontent about the payment process

2.59 The State 2.59 The State Payment CardPayment Card

Changed title to read as “The State Changed title to read as “The State Payment Card” as opposed to “The Payment Card” as opposed to “The State Procurement Card”State Procurement Card”

- - the idea comes from the viewpoint that the idea comes from the viewpoint that this card is used for payment and is not this card is used for payment and is not another method for procuring another method for procuring commodities/servicescommodities/services

Corrected link to reference to TAC Corrected link to reference to TAC 5.575.57

2.61 Purchase 2.61 Purchase Category CodesCategory Codes

Added category “I”Added category “I”

- - Purchases of items from DIR Contracts. See Purchases of items from DIR Contracts. See Texas Government Code, Chapter 2157 - Texas Government Code, Chapter 2157 - Purchase of Automated Information SystemsPurchase of Automated Information Systems

Updated dollar limits for codes E, F, and Updated dollar limits for codes E, F, and QQ

Added category “X”Added category “X”

- - Purchases of items from TXMAS Contracts. Purchases of items from TXMAS Contracts. See CPA Rule 34TAC 20.47 – Multiple Award See CPA Rule 34TAC 20.47 – Multiple Award ScheduleSchedule

2.61 Purchase 2.61 Purchase Category CodesCategory Codes

Removed language regarding Removed language regarding CISVCISV

Reformatted chart for easier useReformatted chart for easier use

2.62 Disposal of 2.62 Disposal of PropertyProperty

Updated the link that refers to section 2.1 Updated the link that refers to section 2.1 regarding Surplus Propertyregarding Surplus Property

Referenced TGC Section 2175Referenced TGC Section 2175

Updated the State of Texas Surplus Updated the State of Texas Surplus Storefront locationsStorefront locations

Updated contact information for the Updated contact information for the Surplus Property ProgramSurplus Property Program

4.5 Exemptions4.5 Exemptions

Removed list of exempt Removed list of exempt agencies as CPA does not agencies as CPA does not maintain this listmaintain this list

Future PlansFuture Plans

CPA is currently reviewing CPA is currently reviewing additional sections of the additional sections of the Procurement Manual to ensure all Procurement Manual to ensure all new legislative changes are reflected new legislative changes are reflected in the contentin the content

Contact InformationContact InformationPurchasing Operations and Purchasing Operations and

Customer Service (POCS) Customer Service (POCS) SupervisorSupervisor

Cody HaysCody HaysOffice: (512) 463-3392Office: (512) 463-3392Fax: (512) 475-0851Fax: (512) 475-0851

Email: cody.hays@cpa.state.tx.usEmail: cody.hays@cpa.state.tx.usCustomer Service Line: (512) 463-3034Customer Service Line: (512) 463-3034