Essential Elements for Procurement Planning

The goal is to obtain best value for the University.

• Section 2155.074 Texas Government Code requires a best value determination.
• Purchase price and meeting requirement specifications
• Other factors: life-cycle costs/total cost, quality and reliability, installation cost

Department Conduct Needs Assessment

• Market Research
• Historical Spend Analysis
• Benchmarking
• Request for Information (RFI)

Department Conducts Cost Estimate

• Informal (Nonbinding) Budget Quotes (Not a formal solicitation)
• Determination of Funding Source
• Contract Value is the initial value of the contract, including anticipated extensions and renewals for the contract’s full existence.

Vendor Communications

• Fact gathering: allowed
• Drafting the solicitation: must cease

Overview of Procurement Types (Talk to purchasing early)

• State and Federal Surplus
• Set Aside Programs: TCI and WorkQuest
• Texas Smart Buy Contract for Non Technology
  • Term, Managed Term, and TXMAS
• Texas Department of Information Resources (DIR) for Technology
• Cooperatives, Group Purchasing Organizations, and Consortiums
• Spot Purchase $0-14.99k
• Informal Bids >$15k - <$25k
  • At least three vendors on CMBL with at least 2 HUBs.
  • Negotiations are not allowed.
  • Requirements are clearly defined in the P.O.
  • Must be within NIGP/class commodity code and by geographic region.
• Formal Bids >$25k RFP/RFQ/RFO/ITB
  • HUB’s involvement: $100,000 and over; $80,000 facility contracts; $150,000 and over-federal
  • Proprietary Acquisitions/Sole Source