Handbook of Business Procedures

7.5.2. USE OF EXISTING CONTRACTS

There are a variety of contracts that are available to faculty and staff for the purchase of goods and services. These contracts have already been competitively solicited and are in compliance with terms and conditions that are acceptable to The University of Texas at Austin.

A. Local Contracts

Local contracts are contracts that have been competitively bid by the university for certain goods and services that are useful to multiple colleges, schools, and units (CSUs). Commonly used local contracts can be found on the Existing Contracts Web page, and users can review the contracts listed to determine if the products or services meet their needs.

B. The University of Texas System Contracts

The University of Texas System has a list of competitively bid System-Wide Contracts that are available for use by all University of Texas Institutions. Note: Use of the System-Wide Contracts website requires a UT EID and password.

C. State Contracts

There are a variety of contracts available for use by State of Texas agencies. These contracts are accessed through the use of a purchase order which references a specific contract number.

1. Contracting Authorities
   • Texas Multiple Award Schedule (TXMAS)
     
     Furniture, chemicals, scientific equipment, audio/visual equipment, various services (office moves, event planning, consulting, training, etc.), apparel, boats/carts/vehicles, etc.
   • Department of Information Resources (DIR)
     
     Computers, hardware, software, telecommunications, networking, training, IT services, etc.
   • Term Contracts
     • TxSmartBuy Term Contract Index
       
       Art supplies, service awards, bookbinding, laboratory equipment and supplies, computer accessories, rubber stamps, janitorial supplies, furniture, business cards, etc.
     • Managed Term Contract Index  
       
       Lab equipment and supplies, animal feed, laundry services, document destruction, print shop, mail services, etc.
     • “Green” Items on TxSmartBuy Term Contracts
       
       Recycled, remanufactured, and environmentally sensitive products
2. Processing Guidelines

   A minimum of three quotes/proposals are required to make an award for all commodities and services with an expected value that will exceed $15,000 from suppliers in the same category, e.g., web design, furniture, data migration, audio/visual equipment, implementation services, etc.

   • A minimum of three quotes/proposals are required from suppliers in the same category. Note:  This can include obtaining quotes from three resellers on a specific DIR contract.
   • If there are only two suppliers in a category, obtain quotes from both.
   • If only one supplier has a contract, this must be documented in the purchasing file, and the purchase can be made without further justification.
   • For purchases that will exceed $5 million, review by the UT System Office of Business Affairs (OBA) is required prior to issuance of a purchase order or contract. The UT System Board of Regents (BOR) approval is dependent on OBA review.
     
      
   1. Commodities
      • For purchases with an expected value between $15,000 and $50,000, the CSU may obtain quotes that must be valid for a minimum of 20 days from the date they are sent to the Purchasing Office.
      • For purchases with an expected value over $50,000, CSUs must provide specifications to the Purchasing Office.  The Purchasing Office will request quotes from suppliers.
   2. Services
      • For all purchases with an expected value greater than $15,000, the Purchasing Office is required to obtain proposals from suppliers.  The CSUs must work with the Purchasing Office to develop a detailed scope of work. Proposals may be evaluated utilizing best value criteria and be scored by an evaluation team.

D. Group Purchasing Organizations

The university belongs to several group purchasing organizations (GPOs) for the purpose of aggregating spend volume with other purchasers to achieve contracts with advantageous prices and services. These contracts are accessed through the use of a purchase order that references the specific GPO contract being used.

Sales representatives whose companies have contracts with GPOs can provide information to faculty and staff regarding the specifics of those contracts. The contract type and number must be included on all sales quotes. In addition, Purchasing Office staff members are familiar with GPO contracts and can provide assistance to faculty and staff in procuring goods and services.

The University of Texas System currently allows UT institutions to use the following:

1. Group Purchasing Organizations Approved for Use by UT Austin
   • Educational & Institutional Cooperative Services (E&I)
   • BuyBoard
   • Purchasing Solutions Alliance (PSA)
   • Education Service Center – Region 19 Allied States Cooperative
   • National Joint Powers Alliance (NJPA)
   • UT System Supply Chain Alliance
   • Vizient
   • Texas Multiple Award Schedule (TXMAS)
   • Department of Information Resources (DIR)
      
2. Processing Guidelines:
   1. UT System Supply Chain Alliance
      • Only one quote or proposal is required regardless of the amount of the purchase.
      • Alliance contracts have already been submitted to OBA and/or BOR for review and approval.
   2. Vizient
      • For amounts between $15,000 and $5 million only one quote or proposal is required.
      • For amounts greater than $5 million, a minimum of three quotes or proposals are required from suppliers in the same category
        • If there are only two suppliers in a category, obtain quotes or proposals from both.
        • If only one supplier has a contract, this must be documented in the purchasing file, and the purchase can be made without further justification.
      • For purchases that will exceed $5 million, review by OBA or BOR is required prior to issuance of a purchase order or contract. BOR approval is dependent on OBA review..
   3. Other Group Purchasing Organizations
      • A minimum of three quotes or proposals are required from suppliers in the same category.
        • If there are only two suppliers in a category, obtain quote or proposals from both.
        • If only one supplier has a contract, this must be documented in the purchasing file, and the purchase can be made without further justification.
      • For purchases of commodities with an expected value between $15,000 and $50,000, the CSU must obtain the quotes. These quotes must be valid for 20 days from the date they are sent to the Purchasing Office.
      • For purchases of commodities with an expected value greater than $50,000, CSUs must provide specifications to the Purchasing Office. Purchasing will request quotes from suppliers.
        • For purchase of services with an expected value greater than $15,000:
        • The CSU must work with the Purchasing Office to develop a detailed scope of work. The Purchasing Office is required to obtain proposals from suppliers. Proposals may be evaluated utilizing best value criteria and be scored by an evaluation team.
      • For purchases that will exceed $5 million, review by OBA is required prior to issuance of a purchase order or contract. BOR approval is dependent on OBA review.

Part 7. Purchasing - Table of Contents