CH(LEGAL) - PURCHASING AND ACQUISITION

Note: For additional legal requirements applicable to purchases with federal funds, see CBB. For additional legal requirements applicable to school nutrition procurement, see COA.

Board Authority

Delegation of Authority

Disaster Exception

Purchases Valued at or Above $50,000

  1. Competitive bidding for services other than construction services.
  2. Competitive sealed proposals for services other than construction services.
  3. A request for proposals for services other than construction services.
  4. An interlocal contract.
  5. The reverse auction procedure as defined by Government Code 2155.062(d).
  6. The formation of a political subdivision corporation under Local Government Code 304.001 (purchase of electricity).

Note: Regarding construction of school facilities, see CV generally; CVA for competitive bidding; CVB for competitive sealed proposals; CVC and CVD for contracts using a construction manager; CVE for design/build contracts; and CVF for job order contracts for minor repairs/alterations.

Factors

  1. Purchase price.
  2. The reputation of the vendor and of the vendor's goods or services.
  3. The quality of the vendor's goods or services.
  4. The extent to which the goods or services meet the district's needs.
  5. The vendor's past relationship with the district.
  6. The impact on the ability of the district to comply with laws relating to historically underutilized businesses.
  7. The total long-term cost to the district to acquire the goods or services.
  8. For a contract that is not for goods and services related to telecommunications and information services, building construction and maintenance, or instructional materials, whether the vendor or the vendor's ultimate parent company or majority owner has its principal place of business in this state or employs at least 500 persons in this state.
  9. Any other relevant factor specifically listed in the request for bids or proposals.

Out-of-State Bidders

Required Contract Provisions

No Israel Boycott

  1. Is between a district and a company with ten or more full-time employees; and
  2. Has a value of $100,000 or more that is to be paid wholly or partly from public funds of the district.

Retention of Contracting Information

Application

  1. Has a stated expenditure of at least $1 million in public funds for the purchase of goods or services by the district; or
  2. Results in the expenditure of at least $1 million in public funds for the purchase of goods or services by the district in a fiscal year of the district.

Requirements

  1. Preserve all contracting information related to the contract as provided by the records retention requirements applicable to the district for the duration of the contract;
  2. Promptly provide to the district any contracting information related to the contract that is in the custody or possession of the entity on request of the district; and
  3. On completion of the contract, either:
    1. Provide at no cost to the district all contracting information related to the contract that is in the custody or possession of the entity; or
    2. Preserve the contracting information related to the contract as provided by the records retention requirements applicable to the district.

Bid and Contract Language

Notice of Noncompliance

  1. Be in writing;
  2. State the requirement that the entity has violated; and
  3. Unless the exception described below applies, advise the entity that the board may terminate the contract without further obligation to the entity if the entity does not cure the violation on or before the tenth business day after the date the board provides the notice.

Contract Termination

  1. The board provides the required notice to the entity that is party to the contract;
  2. The contracting entity does not cure the violation in the prescribed period;
  3. The board determines that the contracting entity has intentionally or knowingly failed to comply with a requirement of Government Code Chapter 552, Subchapter J; and
  4. The board determines that the entity has not taken adequate steps to ensure future compliance with the requirements of that subchapter.
  1. The entity produces contracting information requested by the board that is in the custody or possession of the entity not later than the tenth business day after the date the board makes the request; and
  2. The entity establishes a records management program to enable the entity to comply with Government Code Chapter 552, Subchapter J.
Exception

Disclosure of Interested Parties

  1. Requires an action or vote by the board before the contract may be signed;
  2. Has a value of at least $1 million; or
  3. Is for services that would require a person to register as a lobbyist under Government Code Chapter 305.

Exclusions

  1. A publicly traded business entity, including a wholly owned subsidiary of the entity;
  2. An electric utility, as defined by Utilities Code 31.002; or
  3. A gas utility, as defined by Utilities Code 121.001.

Required Form

Deadline

Contract Changes

  1. A disclosure of interested parties form was not filed for the existing contract; and either the changed contract requires an action or vote by the board or the value of the changed contract is at least $1 million; or
  2. The business entity submitted a disclosure of interested parties form to the district that is a party to the existing contract; and either there is a change to the disclosure; or the changed contract requires an action or vote by the board; or the value of the changed contract is at least $1 million greater than the value of the existing contract.

Definitions

  1. An ownership interest or participating interest in a business entity by virtue of units, percentage, shares, stock, or otherwise that exceeds ten percent;
  2. Membership on the board of directors or other governing body of a business entity of which the board or other governing body is composed of not more than ten members; or
  3. Service as an officer of a business entity that has four or fewer officers, or service as one of the four officers most highly compensated by a business entity that has more than four officers. This subsection does not apply to an officer of a publicly held business entity or its wholly owned subsidiaries.

Contract with Person Indebted to District

Notice Publication

Electronic Bids or Proposals

Professional Services

Professional Services Procurement Act

Selection

Definition

  1. Within the scope of the practice, as defined by state law, of accounting, architecture, landscape architecture, land surveying, medicine, optometry, professional engineering, real estate appraising, or professional nursing;
  2. Provided in connection with the professional employment or practice of a person who is licensed or registered as a certified public accountant, architect, landscape architect, land surveyor, physician, optometrist, professional engineer, state-certified or state-licensed real estate appraiser, or registered nurse; or
  3. Provided by a person lawfully engaged in interior design, regardless of whether the person is registered as an interior designer under Occupations Code 1053.

Contingent Fee Contract for Legal Services

Emergency Damage or Destruction

Computers

Automated Information System

Automated External Defibrillators

Sole Source

  1. An item for which competition is precluded because of a patent, copyright, secret process, or monopoly.
  2. A film, manuscript, or book.
  3. A utility service, including electricity, gas, or water.
  4. A captive replacement part or component for equipment.

Insurance

Multiyear Contracts

Competitive Bidding

Opening Bids

Safety Record

  1. The board has adopted a written definition and criteria for accurately determining the safety record of the bidder.
  2. The board has given notice in the bid specifications that the safety record of a bidder may be considered in determining the bidder's responsibility.
  3. The determinations are not arbitrary and capricious.

Identical Bids

Competitive Sealed Proposals

Request for Proposals

Opening Proposals

Selection

Best Value Determination

Interlocal Agreements

  1. The project for which the construction-related goods or services are being procured does not require the preparation of plans and specifications under Chapter 1001 or 1051, Occupations Code; or
  2. The plans and specifications required under Chapters 1001 and 1051, Occupations Code, have been prepared.

State Purchasing Program

  1. The extension of state contract prices to a district when the comptroller considers it feasible.
  2. Solicitation of bids on items desired by a district if the solicitation is considered feasible by the comptroller and is desired by the district.
  3. Provision of information and technical assistance to a district about the purchasing program.

District Requirements

  1. Designate an official to act for the district in all matters relating to the program, including the purchase of items from the vendor under any contract.
  2. Direct the decisions of its representative.
  3. Be responsible for:
    1. Submitting requisitions to the commission under contract(s) and for payment directly to the vendor; and
    2. Electronically sending purchase orders directly to vendors, or complying with procedures governing a reverse auction purchase, and electronically sending the comptroller reports on actual purchases.
  4. Be responsible for the vendor's compliance with all conditions of delivery and quality of the purchased item.

Multiple Award Contract Schedule

Cooperative Purchasing Program

  1. Designate a person to act on behalf of the district in all matters relating to the program.
  2. Make payments to another participating local government or local cooperative organization or directly under a contract, as provided in the agreement.
  3. Be responsible for the vendor's compliance.

Contract-Related Fee

Reverse Auction

  1. A real-time bidding process usually lasting less than one hour and taking place at a previously scheduled time and internet location, in which multiple suppliers, anonymous to each other, submit bids to provide the designated goods or services; or
  2. A bidding process usually lasting less than two weeks and taking place during a previously scheduled period and at a previously scheduled internet location, in which multiple suppliers, anonymous to each other, submit bids to provide the designated goods or services.

Commitment of Current Revenue

  1. Retains to the board the continuing right to terminate the contract at the expiration of each budget period during the term of the contract.
  2. Is conditioned on a best efforts attempt by the board to obtain and appropriate funds for payment of the contract.

Change Orders

Energy or Water Conservation Measures

Recycled Products

  1. Eliminate procedures and specifications that explicitly discriminate against products made of recycled materials.
  2. Encourage the use of products made of recycled materials.
  3. Ensure to the maximum extent economically feasible that the district purchases products that may be recycled when they have served their intended use.

Agricultural Products

Vegetation for Landscaping

Bus Purchase or Lease

Right to Work

  1. May not consider whether a vendor is a member of or has another relationship with any organization; and
  2. Shall ensure that its bid specifications and any subsequent contract or other agreement do not deny or diminish the right of a person to work because of the person's membership or other relationship status with respect to any organization.

Lobbying Restriction—Tobacco Education Grant Funds

  1. Lobbying expenses incurred by the district;
  2. A person or entity that is required under Government Code Chapter 305 to register as a lobbyist with the Texas Ethics Commission;
  3. Any partner, employee, employer, relative, contractor, consultant, or related entity of a person or entity of a registered lobbyist (as described in item 2); or
  4. A person or entity who has been hired to represent associations or other entities for the purpose of affecting the outcome of legislation, agency rules, ordinances, or other government policies.

Criminal History

Impermissible Practices

Injunction

Prohibitions

Entertainment Event Contracts

Taxpayer Resource Transactions

  1. Common ownership, management, or control between the parties to the relationship;
  2. A franchise granted by the person or entity to the affiliate; or
  3. The granting or extension of a license or other agreement authorizing the affiliate to use the other person's or entity's brand name, trademark, service mark, or other registered identification mark.

Prohibited Contracts

City View ISD

CH(LEGAL)-P

UPDATE 114

DATE ISSUED: 10/25/2019