Restrictions on Contracting with and Paying Certain Vendors (D-48)
Original Implementation: January 25, 2000
Last Revision: July 17, 2012
The university is required by Tex. Gov’t Code § 2252.903 and the United States President’s Exec. Order No. 13,224, 66 Fed. Reg. 49079 (Sept. 23, 2001) to make a determination as to the eligibility of vendors to receive contracts and/or payments from SFA. The university may contract with any vendor on state warrant hold and follow established procedures for notifying the vendor and holding payment. The university is strictly prohibited from contracting with any vendor listed on the federal government specially designated nationals list (SDN).
Warrant Hold – status identifying vendors who are delinquent in payments to the state of Texas and prohibiting the state comptroller and state agencies from issuing payment to the vendor. Warrant hold information is maintained in the state comptroller’s TINS (Texas Identification Number System).
SDN – federal government specially designated nationals list identifying vendors with whom the United States President’s Executive Order 13224 prohibits any government entity from doing business.
RESPONSIBILITY FOR DETERMINATION
It will be the responsibility of the department placing the order to ensure that the selected vendor is NOT on warrant hold or the SDN up to 7 days before the contract date, but no later than the contract start date. It is the responsibility of the SFA controller’s accounts payable office to ensure that the selected vendor is NOT on warrant hold prior to processing a payment. Refer to Delegated Purchasing Authority (C-10) to determine responsibility.
HOW TO MAKE A DETERMINATION
State Comptroller Warrant Hold Status Determination
The university’s financial system will terminate and prevent the use of any vendor in the financial system that is on warrant hold. For vendors not in the university’s financial system, vendor warrant hold status must be searched on the state comptroller’s Vendor Hold Search website. Contact accounts payable or the procurement office for assistance. If a vendor is found to be on warrant hold:
- Purchases under delegated purchasing authority – the contract may be issued but must include a clause on the purchase order relating to the warrant hold status.
- P-Card – expenditures over $500 are not allowed from a vendor on warrant hold.
- Accounts Payable – accounts payable may make a payment to an entity on warrant hold using local funds if the hold source agency or agencies consent to the payment. Such payment can only be made after securing documentation of the consent. Otherwise payment must be made to the hold source agency or agencies.
Federal Government Specially Designated Nationals List (SDN) Determination
The verification process involves searching for the vendor by vendor name at the federal government’s Office of Foreign Assets Control (OFAC) SDN website created specifically for this determination. Contact the procurement office for assistance. If a match is found, contact the director of procurement. Contracts may not be issued to a vendor on the SDN list.
Cross Reference: Tex. Gov’t Code § 2107.008; Tex. Gov’t Code § 2252.903; Exec. Order No. 13,224, 66 Fed. Reg. 49079 (Sept. 23, 2001); State Comptroller Fiscal Policies & Procedures FPP E.016, FPP E.020, FPP K.012; Delegated Purchasing Authority (C-10)
Responsible for Implementation: Vice President for Finance and Administration
Contact for Revision: Director of Procurement and Property Services/HUB Coordinator
Board Committee Assignment: Finance and Audit