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Best Value Procurement (C-7)

Original Implementation: January, 1988
Last Revision: January 31, 2012

PROCUREMENT PROCESSES

Stephen F. Austin State University makes purchases, not otherwise delegated through Delegated Purchasing Authority (C-10), in accordance with Education Code 51.9335 and university policy on a best value basis and following the procedures outlined in the procurement procedure manual.
The university may purchase goods or services:

  1. through programs associated with the purchase of goods or services from persons with disabilities as required under applicable state law;
  2. through direct negotiation if the aggregate total is $5000 or less;
  3. through group/cooperative purchasing programs;
  4. through contracts available through the state comptroller, Department of Information Resources, Council on Competitive Government, or State Office of Risk Management;
  5. through any contract issued and awarded by other state of Texas agencies or institutions of higher education;
  6. from other state agencies or political subdivisions in accordance with Interagency and Interlocal Contracts (C-18);
  7. on a proprietary basis in accordance with Proprietary Purchases (C-28);
  8. through a professional or consultant services contract in accordance with Professional and Consultant Services (C-45);
  9. from state or federal surplus warehouses in accordance with Purchase of Surplus Property (C-28);
  10. from university employees in accordance with Purchases From Employees (C-27);
  11. through a solicitation process including, but not limited to, informal bid, competitive sealed bid, competitive sealed proposal, or request for qualifications;
  12. on an emergency basis as long as the procurement is necessary to prevent a hazard to life, health, safety, welfare or property, or to avoid undue additional cost to the university;
  13. on a best value basis without using one of the above processes as long as the supporting justification is approved by the director of procurement and is in compliance with best value considerations outlined in Education Code 51.9335.


ADDITIONAL PROCUREMENT CONSIDERATIONS

The university may not accept a bid or award a contract that includes proposed financial participation by a person who received compensation from the university to participate in preparing the specifications or request for proposals on which the bid or contract is based. This does not prohibit a bidder or contract participant from providing free technical assistance to the university.

In accordance with Gov’t Code 2252, Subchapter A, the university will apply reciprocity when evaluating informal bids and competitive sealed bids.

Contracting with a former employee or retiree for services is prohibited on state funds within 12 months of the employee’s separation date from the university. The use of local funds is allowed within 12 months of the employee’s separation date with approval of the university president.

Contracting with the executive head of a state agency, or with a person who at any time during the four years before the date of the contract was the executive head of a state agency, or with a person who employs a current or former executive head of a state agency is prohibited unless the Board of Regents votes in open meeting to approve the contract, and the Legislative Budget Board is notified no later than the fifth day before the date of the vote, of the terms of the proposed contract.

Contracts that generate revenue may be processed through any of the above procurement processes, through direct negotiation, or through any other process that is determined to represent the best value to the university.

All procurements, regardless of the source of funds, shall comply with laws and rules relating to historically underutilized businesses. Reference Historically Underutilized Businesses (C-16.5).

Some procurements may require Board of Regents approval prior to purchasing. Reference Items Requiring Board of Regents Approval (D-20.5).

Some procurements have additional restrictions based on the source of funding. Contact the procurement office for detailed information on the general interpretation of fund restrictions

EXEMPT PURCHASES

The following purchases are exempt from best value procurement processes outlined herein. Submission of a purchase requisition and other rules may apply.

  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 Moving Expenses (C-21)
  5. Student travel – expenses related to student travel
  6. Library materials and services for Stephen F. Austin State University libraries when such exemption represents the best value to the university
  7. Membership dues and associated fees
  8. Direct publications only available from a single source as defined in the procurement procedure manual
  9. Freight, including shipping, handling, fuel surcharge, hazardous material fee, postage, and other surcharges
  10. Intra-agency payments
  11. Rental of exhibit space
  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
  14. Purchases from federal agencies
  15. Utilities, other than regulated electricity
  16. Organized activity purchases – goods and services for the Early Childhood Lab, Cole Audiology Lab, Beef Farm, Poultry Farm, Equestrian Program, Broiler Houses, and Swine Farm when the purchase directly affects operations and such exemption represents the best value to the university
  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
  27. Guest lecturers, speakers, artists, entertainers, performers, musicians, etc.
  28. Educational/training services for university employees
  29. Veterinary services
  30. Other professional services as defined by the state comptroller’s expenditure codes



Cross References: Items Requiring Board of Regents Approval (D-20.5); Historically Underutilized Businesses (C-16.5); Delegated Purchasing Authority (C-10); Interagency and Interlocal Contracts (C-18); Proprietary Purchases (C-28); Professional and Consultant Services (C-45); Purchase of Surplus Property (C-28); Purchases From Employees (C-27); Moving Expenses (C-21); Purchase Requisition (C-30); Tex. Educ. Code § 51.9335; Tex. Gov’t Code § 669.003; Tex. Gov’t Code §§ 2252.001-.004, .901

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

Board Committee Assignment: Finance and Audit