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Best Value Procurement (C-7)

Original Implementation: January, 1988
Last Revision: July 21, 2009

PROCUREMENT PROCESSES

Stephen F. Austin State University makes purchases, not otherwise delegated through Policy C-10, Delegated Purchasing Authority, on a best value basis through any of the following processes. All procurement processes require Board of Regents approval as per Policy D-20.5, Items Requiring Board of Regents Approval. HUB Subcontracting Plan requirements apply in accordance with university Policy C-16.5, Historically Underutilized Businesses and state law.

  1. All purchases completed with state appropriated funds must first consider making the purchase from Texas Industries for the Blind and Handicapped (TIBH) as mandated by Education Code 51.9335 to promote the purchase of goods or services from persons with disabilities.
  2. Purchases $0 - $5,000 are to be negotiated to achieve the best value for the university.
  3. The university may purchase goods or services through competitive bid procedures with the following minimum bidder requirements. A justification must be included in the order file if these minimums are not met.
    1. $5,000.01 - $25,000.00 – Minimum three informal bids required; minimum 50% HUB vendors including one woman-owned and one minority-owned
    2. Greater than $25,000.00 – Minimum five formal bids required; minimum 50% HUB vendors including one woman-owned and one minority-owned; Electronic State Business Daily posting required unless Procurement Services determines that no value is added by the posting.
    In determining best value for Competitive Sealed Bids, the university shall consider best value factors identified in Education Code 51.9335.
  4. The university may purchase goods or services through the competitive sealed proposal process outlined in the Procurement Department RFP Manual. All competitive sealed proposals shall include an appropriate number of solicitations to be determined by the Procurement Department, including HUB vendors of any gender and ethnicity when identified as providing the good or service sought. Electronic State Business Daily posting required, unless Procurement determines that no value is added by the posting.
  5. The university may purchase goods or services through the Request For Offer process established in 34 Texas Administrative Code Section 20.391 for the acquisition of automated information systems goods and services.
  6. The university may purchase goods or services through group/cooperative purchasing programs without a solicitation process, when such purchase is deemed to represent the best value to the university.
  7. The university may purchase goods or services through State of Texas Term Contracts, State of Texas Multiple Award Schedules, and DIR/Tex-An Contracts without a solicitation process, when such purchase is deemed to represent the best value to the university.
  8. The university may purchase goods or services through reverse auctions.
  9. The university may purchase goods or services through contracts awarded by other state agencies or institutions of higher education without a solicitation process when such contracts are available and have followed approved purchasing processes, and such purchase is deemed to represent the best value to the university.
  10. The university may purchase goods or services through contracts awarded by the Council on Competitive Government in accordance with Government Code 2162 without a solicitation process, when such contracts are available, and such purchase is deemed to represent the best value to the university.
  11. The university may purchase goods or services on an EMERGENCY basis. An emergency purchase is defined as a situation requiring that a procurement be made more quickly to prevent a hazard to life, health, safety, welfare, or property or to avoid undue additional cost to the university. A procurement may be declared an emergency at the purchaser’s discretion in consultation with the end user and upon approval by the director of procurement. Declaration of an emergency supersedes all other best value procurement rules. The university will attempt to obtain bids, price comparisons or proposals when sufficient time exists by utilizing the most effective procurement process, including the Electronic State Business Daily, when value is added by using such processes.

EXEMPT PURCHASES

The following purchases are exempt from best value procurement processes. Submission of a purchase requisition and other rules may apply. Statements included below in quotes are considered to be a part of any purchase order issued for the good or service when the purchase order is identified as an exempt purchase.

  1. Advertising
  2. Hotels and meeting rooms for conferences
  3. Conference expenses; expenses related to conference room services such as audio/visual/network and food services. (does not include goods purchased for attendees or transportation services)
  4. Moving expenses (employee) — See Policy C-21, Moving Expenses
  5. Student travel; expenses related to student travel
  6. Library materials and services for Stephen F. Austin State University libraries, as defined by Government Code 2155.139(a)(2), when such exemption represents the best value to the university. “Exempt library purchase in accordance with university policy”
  7. Membership dues and associated fees
  8. Direct publications only available from a single source as defined by Texas Procurement and Support Services (TPASS) in the TPASS Procurement Manual; i.e., hard-copy or electronic subscriptions, books, videos, software and software maintenance direct from the publisher. “Not available from any other source”
  9. Freight, including shipping, handling, fuel surcharge, hazardous material fee, postage, and other surcharges
  10. Intra-agency payments
  11. Rental of exhibit space; i.e., booths for display purposes
  12. Items for resale
  13. Internal repairs – repairs for which the extent and cost of such cannot be determined until the commodity is disassembled and evaluated. An internal repair must contain labor and may also include parts. “Accurate repair costs cannot be determined until equipment is disassembled.”
  14. Purchases from federal agencies
  15. Utilities, other than electricity for which SFA chose to opt into deregulation
  16. Organized activity purchases – Goods and services for the Early Childhood Lab, SFA Charter School, Cole Audiology Lab, Beef Farm, Poultry Farm, Broiler Houses, and Swine Farm when the purchase directly affects operations and such exemption represents the best value to the university. “Exempt purchase for an organized activity related to an instructional department in accordance with university policy”
  17. Group travel; expenses related to group travel when such group travel includes non-university persons and is funded by payment from individual travelers; i.e., Art Tour
  18. Gifts, prizes and awards for students, employees and non-university individuals
  19. Accreditation Fees
  20. Tournament Fees or Game Guarantees
  21. Licensing Fees or Permits
  22. Employee Registration or Tuition
  23. Sponsorships
  24. Non-travel-related meals
  25. Fees, not otherwise identified herein
  26. Notary bonds

COMPETITIVE SEALED BID SUBMISSION, BID OPENING, AND TABULATION

Bid Submission  

  1. Prospective bidders may request specific bid invitations from the Procurement Department at any time prior to the bid opening;
  2. A bidder may withdraw its bid by written request at any time prior to the bid opening date and hour;
  3. A bid received after the time and date established by the bid invitation is a late bid and will not be considered;
  4. A bid received which does not contain adequate bid identification information on the outside of the envelope will be opened to obtain such information and will then be processed as any other bid. If the incorrect information on the envelope causes the bid not to be considered in making an award, the bid will be considered invalid and rejected;
  5. Bids may be submitted by facsimile (fax). The telephone number for fax bid submission will be identified in the solicitation; no other number may be used for bid submission. Bids submitted by fax need not be confirmed in writing, but must comply with all legal requirements applicable to formal bids. If all or any portion of a bid submitted by fax is received late, is illegible, or is otherwise rendered non-responsive due to equipment failure or operator error, the bid or the applicable portion of the bid will not be considered. The university shall not be liable for equipment failure or operator error, nor will such failure or error require other bids to be rejected or the bid invitation to be re-advertised.
  6. Bids may be submitted by email when specific instructions regarding email submission are included in the solicitation, or if approved by the purchaser. Bids submitted by email need not be confirmed in writing, but must comply with all legal requirements applicable to formal bids. If all or any portion of a bid submitted by email is received late, is illegible, or is otherwise rendered non-responsive due to equipment failure, operator error or email quarantine, the bid or applicable portion of the bid will not be considered. The university shall not be liable for equipment failure, operator error, or emails directed to email quarantine, nor will such require other bids to be rejected or the bid invitation to be re-advertised. When email submission is allowed, all required signatures must appear on the emailed document via scan or image attachment.
  7. An unsigned bid is not valid and will be disqualified;
  8. A bidder or department may request, in person at the bid opening, that bids be read aloud. No bid shall be required to be read aloud at any time other than during regular working hours and days;
  9. When formal bids are required, bids may not be taken or accepted by telephone;
  10. If an error is discovered in a bid invitation, or agency departmental requirements change prior to the opening of a bid, the Procurement Department will transmit an addendum correcting or changing the specifications to all bidders originally listed on the transmission list for that bid invitation. Bids will not be rejected for failure to return the addendum with the bid, unless otherwise noted, if the receipt of the addendum is acknowledged on the face of the bid.

Bid opening and tabulation.

  1. All bid openings conducted by the Procurement Department shall be open to the public.
  2. Bid opening dates may be changed and bid openings rescheduled if bidders are properly notified in advance of the opening date.
  3. If a bid opening is canceled, all bids which are being held for opening will be returned to the bidders.
  4. All bid tabulation files are available for public inspection. Bid tabulations may be reviewed by any interested person during regular working hours at the offices of the Procurement Department, or a copy may be provided. Employees of the university are not required to give bid tabulation information by telephone.

 

Cross References: Items Requiring Board of Regents Approval (D-20.5); Historically Underutilized Businesses (C-16.5); Delegated Purchasing Authority (C-10); Tex. Educ. Code § 51.9335; 34 Tex. Admin. Code § 20.391; Tex. Gov’t Code § 2162; Tex. Gov’t Code § 2155.139(a)(2)

Responsible for Implementation: Vice President for Finance and Administration

Contact for Revision: Director of Procurement and Property Services/HUB Coordinator

Forms: Purchase Requisition, Purchase Voucher