County Procurement How to Do Business Legally as a Member of County Government

County Procurement

How to Do Business Legally as a Member of County

Government

Let’s Work Together

Procure—To obtain: acquire

Procurement is an essential government business function.Procurement (expenditures to the private sector for goods & services) makes up the 2nd largest expenditure of taxpayers’ dollars.

IntegrityIntegrity is the most crucial component of the county’s procurement process.Credibility. More public officials have been criticized for real or perceived conflicts of interest in spending of public funds than any other financial activity.

A unique relationship…The Purchasing Agent is a resource of Commissioner’s Court, which must ensure all county offices have the goods & services needed to serve the taxpayers at a fair cost.The Purchasing Agent is also responsible for ensuring that the county is doing business in a fair manner as detailed by State Statutes.

Local Government Code §262.011 (D)

(d) The county purchasing agent shall purchase all supplies, materials, and equipment required or used, and contract for all repairs to property used, by the county or a subdivision, officer, or employee of the county, except purchases and contracts required by law to be made on competitive bid. A person other than the county purchasing agent may not make the purchase of the supplies, materials, or equipment or make the contract for repairs.

Local Government Code §262.011 (E)

(e) The county purchasing agent shall supervise all purchases made on competitive bid and shall see that all purchased supplies, materials, and equipment are delivered to the proper county officer or department in accordance with the purchase contract.

Only 2 Entities Have Authority

Commissioner’s court as a voting body approve all expenditures exceeding the statutory limit.The purchasing agent must approve all expenditures under the statutory limit.

The Procurement Process

Planning & budgetingSpecificationsSource selection (purchasing)Contract Administration

Planning & Budgeting

Commissioners Court:

By law, is the governing and administrativebody in county government. Among the manyduties of Commissioners Court is the powerto determine the county budget and make appropriations of funds to meet the budget.

Have you ever felt like this?

County Auditor’s OfficeWhy have a County Auditor?

Main reason: To maintain the integrity of the financial administration of the County.

Texas Local Govt. Code Chapter 112

Auditor has oversight of all financial books andrecords of all officers of the County and is charged with administering the budget.

County Auditors Duties:

Forecast financial data for budgetary formulation purposes.Audits records and accounts of the various county departments.Administers the county budget as approved by Comm. Court.Prepares and administers accounting records for all county funds

Both the County Auditor and Commissioners Courtare required by law, TLGC §115.021,to approve or reject claims for disbursement of county funds. Simply put thefinancial integrity of county financial administration isentrusted to a dual control system of “checks andbalances.”

This systems works, not just because there is a CountyAuditor and not just because there is a CommissionersCourt; it works because neither has creative or authoritative control over the other.

This process is accomplished through teamwork.

Department needsAuditors interactionPurchasing price and procureDepartment receivesAuditor Pays

How can we better serve you?

Budget PlanningGrant AdministrationPay the BillsStrengthen Internal Controls

Performance Measure Development Projection of RevenuesPayroll ServicesTreasury Services

How you can help us

Process requests in correct accountsProcess paperwork in timely fashionBe familiar with grant requirementsPlan budget accordinglySafeguard you assetsTimely deposit and reportingIf unsure about any of these please don’t hesitate to ask

What’s Ahead?

Web Site Development (FAQ’s, on-line training)

Financial Application Development(FAMIS,ADPICS,FAACS,BPREP)

Continued emphasis on Performance Measures

County Grant Guidelines (handbook)

Specifications

There’s gotta be an easier way

to figure out what they

want!

Specifications (cont’d.)

The purpose of any specification is to provide purchasing personnel w/clear guides from which to purchase, and to provide vendors w/firm criteria of a minimum standard acceptable for goods or services.

Specifications (Cont’d.)Establish the minimum acceptability of the goods or services.Promotes competitive bidding.Contains provisions to test/inspect for acceptability.Provides for equitable award to lowest responsible bidder.

Specifications (Cont’d.)

Final acceptance of specifications will rest with the purchasing department for compliance with legal purchasing requirements.

Source Selection (Bidding)

The Methods to the Madness

Formal BidsRequest for ProposalsRequest for QualificationsRequest for InformationInformal or Telephone Bids

To Formal Bid or Not to Formal Bid?

Competitive Bidding the Statutory Limit

The statutory limit for formal competitive bidding is $25,000. Texas local Gov’t. Code §262.023.All purchases under $25,000 require informal quotes and shall be made by the purchasing agent

Texas Supreme Court

“Competitive bidding requires that all bidders be placed upon the same plane of equality & that they each bid upon the same terms & conditions involved in all the item & services & parts of the contract, & that the proposal specify as to all bids the same, or substantially similar specifications. Its purpose is to stimulate competition, prevent favoritism, & secure the best work & materials at the lowest practicable price for the best interest of the taxpayers & property owners.”

Bid or Proposal?

It’s all in the spec’sExact spec’s, & know exactly what you want, a formal bid.More general spec’s, room for vendor creativity and options, a proposal.

Formal BidMust advertise in local newspaper of general circulation twice 14 days prior to the bid opening.Specifications describing the goods & services to be purchased.How the bid is being awarded--lump sum or unit pricing.Any bonding requirements.Method of payment.

And the Winner is...Purchasing and user department evaluate bids.Evaluate price, quality, delivery, repair history, vendor history. Commissioner’s Court shall reject or award bid.Ties broken by casting lots.Contract may not be awarded to a bidder who is not the low bidder meeting spec’s unless, each low bidder is notified & given an opportunity to appear before Commissioner’s Court to dispute any claims

Much More

Professional services, technology purchases, state contractsConsult with purchasing staff

Don’t Be Afraid to Ask

Tx Loc Gov’t code 271-Public property financeTx Gov’t code 791-Interlocal cooperation agreementTx Gov’t code 2251-Prompt paymentTx Gov’t code 2252-Bidders from other statesTx Gov’t code 2253-Public works bondsMuch more

Don’t Do the Crime If…

§ 262.034. Criminal Penalties

(a) A county officer or employee commits an offense if the officer or employee intentionally or knowingly makes or authorizes separate, sequential, or component purchases to avoid the competitive bidding requirements of Section 262.023. An offense under this subsection is a Class B misdemeanor.

You can’t do the time

(b) A county officer or employee commits an offense if the officer or employee intentionally or knowingly violates Section 262.023, other than by conduct described by Subsection (a). An offense under this subsection is a Class B misdemeanor.

(c) A county officer or employee commits an offense if the officer or employee intentionally or knowingly violates this subchapter, other than by conduct described by Subsection (a) or (b). An offense under this subsection is a Class C misdemeanor.

Contract Management