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									   Purchasing 101
Introduction to the Anywhere ISD Purchasing Processes

        Janet Powell, Director of WFISD Support Services
The Foundation and Structure
       Why we do what we do…
The Governmental Requirements

• The Law
  • Texas Education Code 44.031 through 44.047
     • Purchasing Contracts – 44.031
         • All purchases made over $50,000 must follow one of the defined purchasing
         • What criteria can be used to determine an award (“Best Value”)
         • Public advertisement in a local newspaper
         • Definition of and procedure for making an emergency purchase
     • Criminal Penalties – 44.032
     • Construction Services – 44.035 through .041
The Governmental Requirements (cont.)

• District Policy
   • CH (Legal)
      • Based directly on governing statutes
   • CH (Local) – Purchasing Acquisition
      •   Purchasing Authority
      •   Competitive Procurement Requirements
      •   Interlocal Agreements
      •   Vendor’s List
      •   Bids and Proposals under $10,000
      •   Information Technology Purchases under $25,000
      •   Employee Conflict of Interest
The District Requirements

• Financial Information Resource Manual (FIRM)
  •   Purchasing Requirements
  •   Purchasing Organization
  •   How to make a District Purchase
  •   Sole Source Procurements
  •   Personal, Consulting and Professional Services
  •   Purchase Requisition Preparation
  •   Purchase Order Receiving
  •   Purchasing with a Purchasing Card
The District Requirements (cont.)

• Financial Information Resource Manual (FIRM)
  •   Vendor Selection
  •   Purchasing Ethics
  •   Purchasing Contracts
  •   Available at:
Historical Perspective for Round Rock ISD

• In 2007 – 2008:
   • The RRISD spent over $62 million dollars in purchase orders
   • The Purchasing Office issued over 9,400 purchase orders
   • There were a total of 32,351 procurement card transactions
   • The District spent $4 million in procurement card transactions
   • The Purchasing Office awarded 108 contracts worth over $100
   • Distribution received 16,328 warehouse requisitions worth
     $1.7 million
   • Print Services made 50 million impressions, and over 48
     million impressions were made on convenience copiers
   • Text Books managed $15 million of text books
Purchasing Ethics

• Responsibility to the tax payer to use the District
  funds appropriately
• Develop good relationships with suppliers and
  encouraging competition while avoiding an
  appearance of favoritism or misconduct
• Employees are not to circumvent laws, policies, and
  procedures, or make liberal interpretations
• Not make intentional sequential or component
  purchases to circumvent requirements
• Failure to follow State laws and District policy will
  render the purchase non-compliant
Purchasing Ethics (cont.)

• Receipt of gifts, kickbacks or gratuities are not
  acceptable and may lead to disciplinary actions if
• Opened acknowledgement of conflicts of interest
• Failure to follow requirements may have criminal

  Do the Newspaper Test for all purchases
The Organization
   What we look like…
The Purchasing Office’s Role

                 District-wide Perspective
                           Board of Trustees


   Deputy Superintendent
                                               Chief Financial Officer
       of Instruction

                                               Director of Business /
                                                  Budget Services

                                               Purchasing Department
    The Purchasing Office’s Role (cont.)
                                    Purchasing Department
                                                 Director of Business /
                                                    Budget Services

                                                 Director of Purchasing

                        Assistant Director of
Assistant Director of                                     Manager -            Text Book           Manager – Print
     Purchasing                                          Distribution         Coordinator             Services

-Purchasing Process     -Purchasing Programs        -Mail Services        -Text Books            -Print Services
(Buyers, Purchasing     (Pcard Administration,      -Warehouse            -Instructional Media   -Convenience Copiers
 Specialist)             Travel, Fixed Assets,      -Distribution         -Records Retention     -Media Lab
                         Surplus Property)
Authority and Aggregation

• Centralized Buying Authority
   • The Purchasing Office has been tasked with overseeing all
     purchasing activity in the District and has been delegated
     down to the individual campuses and departments
• The District is recognized as a whole, not as individual
   • Purchases by all campuses and departments are aggregated
     together for a particular category to determine the annual
   • The annual expenditure will determine which purchasing
     method is to be used
Aggregation Example

          Aggregation of all purchases
      30 Elementary                     9 Middle
         Schools                         Schools

      4 High Schools                 Administration

    Example: If each campus purchases 10 of the same
     book worth $25, the District as a whole has spent
Contracts, Agreements and Funds

• Contracts / agreements can only be signed by the
  Superintendent or Chief Financial Officer
   • Signature from any other non-delegated District employee will
     render the agreement void
   • By signing an agreement on behalf of the District may create
     on obligation on the individual to pay
• Types of Funds that must follow Purchasing
   • General Fund
   • All Activity Funds
   • Federal Funds (must be more restrictive than federal
District’s Electronic Procurement System

• eROC
  •   Online registration for suppliers
  •   Electronic (email) notification of bid opportunities
  •   Electronic bidding
  •   Electronic tabulation of bid responses
  •   Information and Login at:
 Purchasing Flow
From start to finish – and what to do…
RRISD Purchasing Process Flow
Established Resources
     No bidding necessary…
                                             Process 1
Process 1: Warehouse                                 Is the item /
                                                   available through
                                                       the RRISD
• Overview
  • Many items are available through the Warehouse:
     •   Bond Paper
     •   Industrial Papers
     •   Furniture
     •   Fixtures
     •   Maintenance Supplies
     •   Housekeeping Supplies
  • Review inventory choices through District Software
  • Warehouse inventory is considered an asset of the District
    and should be used first
                                             Process 2
Process 2: District Contracts                        Is the item /
                                                   service available
                                                   through a RRISD
• Overview
  • The Purchasing Office administers approximately
    150 contracts
  • Both goods and services contracted
  • Majority are term contracts with multiple extension years
  • The end user locates the contract information, showing
    items or service to be procured, the awarded vendor, and
    the contract price
                                               Process 3
Process 3: Interlocal Contracts                         Is the item /
                                                      service available
                                                     through Interlocal
• Overview
  • All interlocal contracts and purchases are handled through
    the District Purchasing Office
  • Purchasing Office will determine if the interlocal will be in
    the best interest of the District
  • An attempt should be made to get best pricing available
                                                    Process 4
Process 4: Sole Source                                       Is the item /
                                                             service only
                                                           available through
                                                             sole source?
• Overview
  • Defined by TEC 44.03(d), District Policies CH(Legal)
  • For a product or service to be considered sole source, it must
    be available from only one source, and meet one of the
    following descriptions:
     • an item for which competition is precluded due to the existence of a
       patent, copyright, secret process, or monopoly
     • a film, manuscript, or book
     • a utility service, including electricity, gas, or water, or
     • a captive replacement part or component for equipment
  • Only goods/services that meet the definition are acceptable
  • If over $10,000, letter of justification from department head
                                           Process 5
Process 5: Purchases under
                                                      Is the item /
$1,000                                              service less than

• Overview
  • Normally includes “spot” or one time purchase
• Procedure
  • Check the cumulating list of vendors based on dollar
    amount for current year to determine level of process
    (available in the future)
  • No attempt at competition is required
  • The end user is encouraged to secure competition through
                                            Process 6
Process 6: Purchases Over                            Is the item /
                                                     service more
$1,000 to $5,000                                   than $1,000 but
                                                       less than
• Overview
  • For larger, one time purchases
• Procedure
  • The end user is encouraged to secure competition
    through quotes from a minimum of three (3)
    vendors, with a preferable inclusion of eROC suppliers
  • If quotes are secured, all documentation concerning choice
    of vendor is to be retained by the end user
The Quotation Level
    Competition necessary…
                                           Process 7
Process 7: Purchases Over                           Is the item /
                                                    service more
$5,000 to $10,000                                 than $5,000 but
                                                      less than
• Overview
  • Larger purchases that may include numerous
    purchases over time
  • Limited Term Contracts
• Procedure
  • A minimum of 3 suppliers must be contacted – additional may
    be added if necessary
  • All quote documents (e.g. quotes, supporting spec sheets,
    etc.) concerning award to be retained by the end user and
    provided to their assigned buyer for the Purchasing file
  • End user must request a quote number from the Purchasing
    Office for inclusion with the purchaser requisition
                                                    Process 7
 Process 7: Purchases Over                                   Is the item /
                                                             service more
 $5,000 to $10,000 (cont.)                                 than $5,000 but
                                                               less than

                                                      RRISD Quote
Formal Solicitation Thresholds
      Sealed Competition necessary…
                                               Process 8
Process 8: Purchases Over                               Is the item /
                                                       service more
$10,000 to $25,000                                     than $10,000
                                                       but less than
• Overview
  • Used for term contracts or large one time delivery
  • Requires competitive sealed bid process
  • May use best value if determine necessary
  • Can be done quickly (within a day or two) or over a longer
    period of time (e.g. week)
• Procedure
  • Campus / Department determines need and provides
    required information (specifications, scope, quantity, etc.)
  • Purchasing Office to release, open and award
                                               Process 9
Process 9: Purchases Over
                                                       Is the item /
$25,000                                                service more
                                                      than $25,000?

• Overview
  • Includes term contracts, large one time delivery,
    highly complex purchases, construction contracts, etc.
  • Requires competitive sealed bid / proposal process
  • Use of best value required
  • Average 60 to 90 days (longer for complex procurements)
• Procedure
  • Campus / Department determines need and provides
    required information (specifications, scope, quantity, etc.)
  • Purchasing Office to release, open and award
Purchasing Methods
   The Choices of Solicitations…
Purchasing Methods

• Request for Quotes – “RFQ”
   • Can be used in Processes 3, 5, 6, and 7
   • Informal process – does not require sealed bids
• Request for Bids – “RFB”
   • Can be used in Processes 8 and 9 – restricted to the
     Purchasing Office only
   • Formal solicitation process (sealed bids)
• Request for Proposals – “RFP”
  • Only Process 9 – restricted to the Purchasing Office only
  • Usually an elaborate eval. process with use of scoring criteria
  • Allows for negotiations as to final terms, pricing, etc.
Purchasing Methods (cont.)

• Request for Competitive Sealed Proposals – “RFCSP”
  • Only for Process 9 – restricted to the Purchasing Office only
  • Usually an elaborate eval process with use of scoring criteria
  • Allows for negotiations as to final terms, pricing, etc.
• Request for Qualifications – “RFQ”
   • Only for Process 9 – restricted to the Purchasing Office only
   • Used for professional services only
• Request for Information – “RFI”
   • No associated process since no purchase is made
   • Used for investigation or research
   • Helps in the development of specs or requirements
Formal Solicitation Flow
A partnership with the End User and Purchasing…
Competitive Bidding Process - Formal
                                           Purchasing Process   Contract Period
                      Approx. 60-90 days

                                            Publish in Local
 Need is Determined                                             Contract Begins

Develop Supplier List
      (eROC)                          Pre-bid Conference if
                                                                 Contract Ends
Develop Specifications
                                           Opening / Closing
  Determine Award
       Criteria                                                 Restart process if
Solicitation Document                      Evaluation Process

    Release of the
                                           Award of Contract
Specifications /
Scope of Service
The backbone of the solicitation…
Writing a Specification / Scope of Service

• Specifications for Goods
   • Rely on the experts – good chance it’s not Purchasing – it’s you
   • Rely on available resources – do research
   • Be specific in what it is you need, not necessarily what you
     want – minimum requirements are the best place to start
   • Be cognizant of competition – don’t be exclusive
   • Write specs so that you can verify what you received is what
     you need
   • Specs left out of a solicitation cannot be used as a disqualifier
     for others
   • Don’t over / under do the spec
Writing a Specification / Scope of Service

• Services
   • All solicitations that include a service need to have some
     level of scope of work included in the specifications
   • A scope is normally a performance based procedure
   • The scope develops the focus of the objective and should
     include all necessary points of work to be performed
   • If the scope does not include a specific step, you may not be
     able to require the vendor to perform the step
   • If a schedule or certain limitations to access of the area to be
     worked in, the solicitation needs to address these thoroughly
   • If the scope is large in scale, it may require performance
     based measures
District Contracts
   Established Resources…

• Active Contracts Listing
   • A list of all the current contracts maintained by the Purchasing
     Office can be found at:
• Once an item or service is under contract with a specific
  vendor, the District is to use the contracted vendor only
• Only the items or services awarded to a particular
  supplier can be purchased through a contract
• Line Item Awards
   • This describes a contract that was awarded on a line by line
     basis with a set price to a specific vendor
Contracts (cont.)

• Catalog Contracts
   • This describes a contract that may include multiple awarded
   • Vendor may provide a discount for purchases from a published
   • Usually will include all items within the vendor’s catalog with
     some exceptions
   • Prices subject to be changed based on changes / updates in
     the catalog
Contracts (cont.)

• “M” Contracts
  • “M” stands for multiple
  • Unique contracts that do not “close” until later in the fiscal
    year so that suppliers can submit a response when ready
  • Awards made upon completion of an evaluation
  • Examples of “M” Contracts
     •   Classroom Instructional Materials
     •   Retail General Merchandise
     •   Retail Food Service Providers and Catering
     •   Fundraisers
     •   Extracurricular / Enrichment Programs
     •   Special Events Services and Products
Vendor Relations
 Developing the Partnership…
Vendor Relations


      End User     Buyer      Vendor
              • Solicitations
          • Major Contract Issues
Vendor Relations

• The District is in a partnership with the vendor
  community and both should perform their duties
  with professionalism and integrity and should
  maintain and perform based on any contractual
  agreement between both parties
• All performance related issues – good or bad -
  should be documented for future reference at

• Vendors deserve a right to know how they are doing
  - convey performance issues as they arise and
  communicate approperately
Tools to Purchase With
       How to get it…
Procurement Cards – “Pcard”

• Not considered a purchasing process - only a payment
  method for convenience
• Dollar limits are established based on position controls
  and will not be increased
• All purchases made with a Pcard must follow all
  applicable purchasing procedures
• For contract purchases, the card holder is to notate
  within the Pcard purchase sign-off in a comment box the
  contract number for future reference
• Complete information on the use of the Pcard:
Purchase Requisitions

• The submission of a purchase requisition is not the
  start of the purchasing process, but the completion
  of it – it should not be created after the item or
  service has been received
• Quote / Contract Number must be included in
  Comment Line
• Documentation to support quotes over $5,000 must
  be provided to the Purchasing Office before req can
  be approved
• Reqs must be submitted by deadlines indicated in
  the FIRM to be considered
  Purchase Requisitions (cont.)

  Quote / Contract Number in Comment Line

Enter contract
Follow-up to Purchase
    Finishing off the Process…
Receiving Purchased Items

• Always notate on the shipping receipt if any external
  damage is found on the outside of the container
• Verify that what was called for in the purchase order is
  what was received
• Check specifications within the PO / contract to ensure
  what was received meets the requirements
• Notify the supplier immediately if any damage is found
• Review the invoice for contract price, discounts if
  applicable, freight if allowed, etc., before sign off
Receiving when Services are being
• Be familiar with what the scope of service requires
  the vendor to perform
• Verify that all aspects of the scope are performed
  before signing off on the work
• When an invoice is received, review all aspects
  (contract price, discounts if applicable, freight if
  allowed, etc.) before sign off
• Update software or paperwork upon completion of
  the order for payment processing

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