Purchasing Open House

Transcription

1 Purchasing Open House Fiscal Year 2019

2 The Foundation and Structure Why we do what we do

3 The Governmental Requirements The Law Texas Education Code Purchasing Contracts All purchases made over $50,000 must follow one of the defined purchasing methods What criteria can be used to determine an award ( Best Value ) Public advertisement in a local newspaper Definition of and procedure for making an emergency purchase Criminal Penalties Construction Services TEC , TGC 2267

4 The Governmental Requirements (cont.) District Policy CH (Legal) Based directly on governing statutes CH (Local) Purchasing Acquisition Purchasing Authority Competitive Procurement Requirements Interlocal Agreements Employee Conflict of Interest

5 Expenditure Perspective In Fiscal Yr 2017 The District processed over $71 million dollars in purchase orders The Purchasing Office processed 17,911 requisitions Approximately 79 per day The Purchasing Office issued over 19,601 purchase orders Approximately 86 per day

6 The Organization What we look like

7 Purchasing Department Purchasing Coordinator Senior Buyer Purchasing Process For Schools Feeding to Mission High Senior Buyer Purchasing Process For Schools Feeding to Veterans Memorial High School Purchasing Clerk Contract Management Purchasing Specialist Purchasing Solicitations

8 Purchasing Authority MCISD Board President Superintendent Asst. Supt. For Finance Coordinator for Purchasing

9 Purchase Commitment Purchase Order All purchase commitments shall be made by the Superintendent or designee on a properly drawn and issued purchase order, in accordance with administrative procedures. Do Not Order Goods or Services Without a Purchase Order or Authorization From Purchasing Dept. Contracts / Agreements can only be signed by individuals having delegated authority Signature from any other non-delegated District employee will render the agreement void By signing an agreement on behalf of the District may create on obligation on the individual to pay

10 Unauthorized Purchases Budget Authority Does Not Equal Purchasing Authority Board Policy CH(Local) states Persons making unauthorized purchases shall assume full responsibility for all such debts. District Employees Shall Not Make or Authorize Separate, Sequential, or Component Purchases to Avoid the Purchasing Requirements Violation of this provision is a Class B misdemeanor and an offense involving moral turpitude Conviction shall result in dismissal from employment. District Employees Shall Not Be Permitted to Purchase Supplies or Equipment for Personal Use Through the District's Business Office.

11 Centralized Purchasing The Purchasing Office has been tasked with overseeing all purchasing activity in the District that has been delegated down to the individual campuses and departments The District is recognized as a whole, not as individual entities Purchases by all campuses and departments are aggregated together for a particular category to determine the annual expenditure The annual expenditure will determine which purchasing method is to be used

12 Aggregation Example Aggregation of all purchases 14 Elementary Schools 4 Middle Schools Administration 3 High Schools Alternative and Options Campuses Example: If each campus (23) purchases 100 of the same widget worth $75, the District as a whole has spent $172,500.

13 Ethics Responsibility to the tax payer to use the District funds appropriately Develop relationships with suppliers and encouraging competition while avoiding an appearance of favoritism or misconduct No restrictive specifications that inhibit competition Do not disclose a competitor s price If a vendor is allowed to re-price then all vendors should have a chance to re-price through a best and final offer Employees are not to circumvent laws, policies, and procedures, or make intentional sequential or component purchases to circumvent requirements

14 Conflict of Interest Disclose to your immediate supervisor a personal financial interest, a business interest, or any other obligation or relationship that in any way creates a potential conflict of interest Relatives working for a vendor that you deal with regularly Buying from a company you have a financial interest in

15 Gifts District Employees Shall Not Accept or Solicit Any Gift, Favor, Service, or Other Benefit That Could Reasonably Be Construed to Influence the Employee s Discharge of Assigned Duties and Responsibilities.

16 Fraud Recognize & Prevent What is Fraud? Steps to Prevent it?

17 Fraud Fraud. A false representation of a matter of fact whether by words or by conduct, by false or misleading allegations, or by concealment of what should have been disclosed that deceives and is intended to deceive another so that the individual will act upon it to her or his legal injury. BusinessDictionary.com

18 Is there a problem? Numbers say there is? Is it hard to admit?

19 Prevention Policy and Procedures Oversite of personnel Audits Ethics Training

20 Consequences Best Interest of the District Vendor Relations Public Trust is Lost

21 Purchasing Process Informal - Purchase of Goods or Services Where the Annual District Aggregate Does Not Exceed $50,000 No Board Approval Board Approved Awarded Contracts Formal - Purchase of Goods or Services Where the Annual District Aggregate Exceeds $50,000 Board Approval Required Purchasing Dept. Monitors Expenditure Levels to Determine Proper Process District Totals Are For Yearly Goods and Services Category Aggregates Not necessarily a total for vendor

22 Informal Purchase Process Contracted Sources Awarded Line Item Contracts o Itemized o Fixed Price Purchases up to $50,000 Purchase Documentation Required o Requisition referencing bid # Items Stocked at District Warehouse o Paper o Office Supplies o Janitorial Supplies

23 Informal Purchase Process Contracted Sources Awarded Catalog (Benchmark) Contracts o o o Discount Off A Catalog or Price List May Have Multiple Vendors Awarded Interlocal Awards (Source for Catalog Contracts) Purchases up to $3,000 One Documented Quote Purchases $3,001 Up To $10,000 o Three Documented Quotes o Quote Tabulation Documentation o Prefer Use of Written Request for Quotes

24 Informal Purchase Process Contracted Sources Interlocal Agreements (Purchasing Cooperatives) Buy-Board (Texas Local Government Statewide Purchasing Cooperative) CENTRAL TEXAS PURCHASING ALLIANCE DIR (Dept. of Information Resources) HGAC (Houston-Galveston Area Council of Governments) Region One ESC TBPC (Texas Building and Procurement Commission) TCI (Texas Correctional Industries) TCPN (The Cooperative Purchasing Network) TIBH (Texas Institute for the Blind and Handicapped) TXMAS (Texas Multiple Award Schedule) U.S. Communities Purchases up to $3,000 One Documented Quote Purchases $3,001 Up To $10,000 o Three Documented Quotes o Quote Tabulation Documentation o Prefer Use of Written Request for Quotes

25 Informal Purchase Process Open Market (Miscellaneous) Purchases up to $10,000 Request For Competitive Quotes o Prefer Use of Written Request for Quotes o Three Documented Quotes o Prefer inclusion of Awarded Vendors o Documentation o Quotes o Quote Tabulation

26 Obtaining Quotes Contact Sufficient Vendors Provide Specification and Quantities Specifications Brand & Model When Needed Use or equal Provide a Deadline

27 Quote Tabulation Transfer Quote Information to Quotation Tabulation Form Use for Recommendation of Lowest Price Award Provide Justification If Awarding as per Best Value (Other Than Low Quote) Attach Quote Documentation From Vendors

28 Best Value Principles The lowest total price at the highest quality. Best Value analysis is used to promote continuous improvement in the procurement of goods or services. Provide Justification If Awarding as per Best Value (Other Than Low Quote) Purchase Price Reputation of Vendor and or Products Documented by reference checks or documented vendor evaluations The Extent Goods and/or Services Meet Needs As per pertinent documented needs Vendors Past Relationship With District Documented by vendor evaluations

29

30 Solicitation Process Quote Requests $10,000 to $50,000 Purchases Over $50,000

31 Informal Purchase Process Quote Requests $10,000 to $50,000 Coordinated by Purchasing o When Goods/Services Needed o Specifications o Written Request for Quote

32 Formal Purchase Process Purchases Over $50,000 Coordinated By Purchasing Office State Approved Purchasing Method Texas Education Code Sec Interlocal Agreements Coordinated by Purchasing Dept Only

33 Formal Purchase Process Timeline Purchase Request to Purchase Order Min 60 days Identifying Need Specifications Deadlines Solicitation Advertisement Vendor Infoirmation Award Evaluation Board Approval

34 Specifications / Scope of Service The backbone of the solicitation

35 Writing a Specification / Scope of Service Specifications for Goods Rely on the experts good chance it s not Purchasing it s you Rely on available resources do research Be specific in what it is you need, not necessarily what you want minimum requirements are the best place to start Be cognizant of competition don t be exclusive Write specs so that you can verify what you received is what you need Specs left out of a solicitation cannot be used as a disqualifier for others Don t over / under do the specifications

36 Writing a Specification / Scope of Service Services All solicitations that include a service need to have some level of scope of work included in the specifications A scope is normally a performance based procedure The scope develops the focus of the objective and should include all necessary points of work to be performed If the scope does not include a specific step, you may not be able to require the vendor to perform the step If a schedule or certain limitations to access of the area to be worked in, the solicitation needs to address these thoroughly If the scope is large in scale, it may require performance based measures

37 Sole Source Purchases Sole Source Purchases Affidavit From Vendor Justification From Requestor

38 Contracts and Agreements Content Agreement Special Performance Conditions or Requirements Risk Mitigation Certificate of Vendor s Insurance Coverage Purchase Order Unauthorized Purchase Vendor Criminal Record Search

39 Criminal Background Check Criminal Background Check is Required: Is There a Direct Contractual Relationship? Subcontractors Are Exempt Will The Contractor Have or Have The Potential To Have Direct Contact With Students?

40 Contracts and Agreements Independent Contractor Services Form Requirements Set Fee and Total Complete Description of Service Audience / Participants Title of Workshop / Activity Service Dates Time Period Details of Workshop or Activity

41 Vendor Relations The District is in a partnership with the vendor community and both should perform their duties with professionalism and integrity and should maintain and perform based on any contractual agreement between both parties All performance related issues good or bad - should be documented for future reference with the Purchasing Department Vendors deserve a right to know how they are doing - convey performance issues as they arise and communicate appropriately