(a)
It is the policy of the City of Grand Saline that all purchasing shall be conducted strictly on the basis of economic and business merit. This policy is intended to promote the best interest of the citizens of the City of Grand Saline, Texas.
(b)
It is important to remember that city purchasing operates in full view of the public. In order to assure an open purchasing process and economy in purchasing, the Grand Saline City Council has determined that competitive bidding will be used as much as possible in the purchase of goods and services for the City.
(c)
The City of Grand Saline intends to maintain a cost effective purchasing system conforming to good management practices. To be successful, the system must be backed by proper attitudes and cooperation of not only every department head and official, but also every supervisor and employee of the City of Grand Saline. The establishment and maintenance of a good purchasing system is possible only through cooperative effort.
(d)
The purchasing process is not instantaneous. Time is required to complete the steps required by State law. In order to accomplish timely purchasing of products and services at the least cost to the City of Grand Saline, all departments must cooperate fully. Prior planning and the timely submission of requisitions are essential to expedite the purchasing process and to assure that the process is orderly and lawful.
(Ordinance 2010-113 adopted 12/14/10; Ordinance 2023-111 adopted 7/18/2023)
The primary governing authority for the City of Grand Saline's Procurement Policy shall be Texas Local Government Code Chapter 252, Purchasing and Contracting Authority of Municipalities. All procurement activity shall be governed by the Purchasing Manual, in accordance with applicable state and local government codes. The Mayor and Council shall from time to time review the Procurement Policy and the City's resolution shall record any changes made to the policy.
(Ordinance 2010-113, sec. 1, adopted 12/14/10; Ordinance 2023-111 adopted 7/18/2023)
The Procurement Policy applies to the procurement activities of the City of Grand Saline. All procurement activities for the City shall be administered in accordance with the provisions of this policy, with the express intent to promote open and fair conduct in all aspects of the procurement process.
(Ordinance 2010-113, sec. 2, adopted 12/14/10; Ordinance 2023-111 adopted 7/18/2023)
By participating in the procurement process, employees of the City of Grand Saline agree to:
(1)
Avoid the intent and appearance of unethical or compromising practice in relationships, actions, and communications.
(2)
Demonstrate loyalty to the City of Grand Saline by diligently following the lawful instructions of the employer, using reasonable care, and only authority granted.
(3)
Refrain from any private business or professional activity that would create a conflict between personal interests and the interest of the City of Grand Saline.
(4)
Refrain from soliciting or accepting money, loans, credits, or prejudicial discounts, and the acceptance of gifts, entertainment, favors, or services from present or potential suppliers that might influence, or appear to influence purchasing decisions.
(5)
Never discriminate unfairly by the dispensing of special favors or privileges to anyone, whether as payment for services or not; and never accept for himself or herself or for family members, favors or benefits under circumstance which might be construed by reasonable persons as influencing the performance of Governmental duties.
(6)
Engage in no business with the City of Grand Saline, directly or indirectly, which is inconsistent with the conscientious performance of Governmental duties.
(7)
Handle confidential or proprietary information belonging to employer or suppliers with due care and proper consideration of ethical and legal ramifications and governmental regulations.
(8)
Never use any information gained confidentially in the performance of Governmental duties as a means of making private profit.
(9)
Promote positive supplier relationships through courtesy and impartiality in all phases of the purchasing cycle.
(10)
Know and obey the letter and spirit of laws governing the purchasing function and remain alert to the legal ramifications of purchasing decisions.
(11)
Expose corruption and fraud wherever discovered.
(12)
Uphold these principles, ever conscious that public office is a public trust.
(Ordinance 2010-113, sec. 3, adopted 12/14/10; Ordinance 2023-111 adopted 7/18/2023)
(a)
Avoiding requirements.
Under no circumstances shall multiple requisitions be used in combination to avoid otherwise applicable bidding requirements or City Council approval.
(b)
Quotes.
(1)
Purchases of non-contract goods or services totaling $3,000 or less require no quotation. Except where otherwise exempted by applicable State law, purchases totaling $3,000 to $4,999 require a minimum of two quotes. All quotations received must be in writing from the vendor. Purchases totaling $5,000 but less than $50,000 will require three or more competitive written quotes. Two no quotes returned equal one quote. The department shall contact the City Administrator for purchases over $10,000 to discuss the best method or purchases for goods and services.
(2)
Texas local government code section 252.0215, competitive bidding in relation to Historically Underutilized Business vendors, states that municipality, in making an expenditure of more than $3,000 but less than $50,000, shall contact at least two HUBs on a rotating basis. To search for a HUB vendor, go to www.window.state.tx.us; click on State Purchasing, then on Search CMBL. If the list fails to identify a disadvantaged business in the county in which the City is situated, the City is exempt from this section. Print the pages that states "No HUB Vendors Found" and attach with the other quotes.
(3)
HUB-certified businesses that are at least 51% owned, operated, and controlled by the qualifying groups which include Asian Pacific Americans, Black Americans, Hispanic Americans, Native Americans and American Women. The City also accepts equivalent certification, as approved by City Management
(c)
Sealed competitive procurements (goods and services).
(1)
Except as otherwise exempted by applicable state law, requisitions for item(s) whose aggregate total cost is more than $50,000 must be processed as competitive solicitations (e.g., sealed bids, request for proposals, and request for offers). Texas Local Government Code, section 252.021 defines the requirements for competitive bids.
(A)
The solicitation for sealed bids must be posted in the "official newspaper" for two consecutive weeks, at least fifteen days prior to bid opening and being read out loud. Texas Local Government Code section 252.041 defines notice requirements, Texas Government Code Section 2051.44 defines requirements for "official newspaper."
(2)
Texas Local Government Code, section 252.062, states:
(A)
A municipal 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 Texas Local Government Code section 252.021. An offense under this subsection is a class B misdemeanor.
(3)
Conviction for any of these offenses may result in immediate removal from office or employment.
(d)
Reciprocity.
The State of Texas Reciprocity Law provides that the State or political subdivision cannot award contracts or purchases to non-resident bidders having local preference laws in their resident states unless their bid is lower than the lowest bid submitted by a responsible Texas resident bidder by the amount that a Texas resident bidder would be required to underbid a nonresident bidder to obtain a comparable contract in the state in which the nonresident's principal place of business is located.
(e)
Award of contract.
(1)
The City of Grand Saline shall award contracts based on criteria deemed in the best interest of the City.
(2)
Texas Local Government Code, Section 252.043, states, in part:
(A)
If the competitive sealed bidding requirement applies to the contract for goods or services, the contract must be awarded to the lowest responsible bidder or to the bidder who provides goods or services at the best value for the municipality.
(B)
Before awarding a contract under this section, a municipality must indicate in the bid specifications and requirements that the contract may be awarded either to the lowest responsible bidder or to the bidder who provides goods or services at the best value for the municipality.
(f)
Disclosure of information.
(1)
Access to bidder-declared trade secrets or confidential information shall be in accordance with the Texas Government Code Chapter 552, the Public Information Act, and applicable City policies implementing this chapter.
(2)
Texas Local Government Code Section 252.049(b) states, in part: If provided in a RFP, proposals shall be opened in a manner that avoids disclosure of the contents to competing offerers and keeps the proposals secret during negotiations. All proposals are open for public inspection after the contract is awarded, but trade secrets and confidential information in the proposals are not open for public inspection.
(g)
Professional services.
Personal and professional services are exempted from the competitive bidding process and are procured through the use of Request for Qualification (RFQ) documents. The City Administrator is available to consult with departments regarding the preparation of information; however, the presentation of technical and qualifications aspects of personal and/or professional services included in the RFQ documents is the sole responsibility of the requesting department.
(1)
Texas Government Code, Chapter 2254, Subchapter A, Professional Services, states that contracts for the procurement of defined professional services may not be awarded on the basis of competitive bids. Instead, they must be awarded on the basis:
(A)
Of demonstrated competence and qualifications to perform the services;
(B)
For a fair and reasonable price;
(C)
Fees are allowed;
(D)
Must be consistent with and not higher than the recommended practices and fees published by the applicable professional associations; and
(E)
May not exceed any maximum provided by law.
(2)
Professional Services for the purposes of Texas Government Code Chapter 2254 are defined as those "services 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, or provided in connection with the professional employment or practice of a person who is licensed or registered as a certified public accountant, an architect, a landscape architect, a land surveyor, a physician, including a surgeon, an optometrist, a professional engineer, a state certified or state licensed real estate appraiser, or a registered nurse."
(h)
Cooperative purchases.
(1)
Cooperative purchasing occurs when two or more governmental entities coordinate some or all purchasing efforts to reduce administrative costs, take advantage of quantity discounts, share specifications, and create a heightened awareness of legal requirements. Cooperative purchasing can occur through interlocal agreements, state contracts, piggybacking, and joint purchases.
(i)
Emergency purchases.
(1)
Valid emergencies are those that occur as a result of the breakdown of equipment which must be kept in operation to maintain the public's safety or health, or whose breakdown would result in the disruption of City operations. When this situation occurs, the department shall contact the City Administrator and conduct the procurement of supplies and services in accordance with the Purchasing Manual.
(2)
The Legislature exempted certain items from sealed bidding in the Texas Local Government Code Section 252.022(a), including, but not limited to:
(A)
A procurement made because of a public calamity that requires the immediate appropriation of money to relieve the necessity of the municipality's residents or to preserve the properly of the municipality;
(B)
A procurement necessary to preserve or protect the public health or safety of the municipality's residents;
(C)
A procurement necessary because of unforeseen damage to public machinery, equipment or other property.
(j)
Sole source purchases.
(1)
Sole-source purchases are items that are available from only one source because of patents, copyrights, secret processes, or natural monopolies as defined by local government code. When a department has identified a specific item with unique features or characteristics essential and necessary to the requesting department and no alternate products are available, a detailed written justification must be provided to the Purchasing Division in advance for review and approval.
(2)
Legal definition.
The legislature exempted certain items from sealed bidding in the Vernon's Texas Codes Annotated - Texas Local Government Code Section 252.022(a)7, in part: Procurement of items available from only one source, including:
(A)
Items that are available from only one source because of patents, copyrights, secret processes, or natural monopolies;
(B)
Films, manuscripts, or books;
(C)
Gas, water and other utility services;
(D)
Captive replacement parts or components for equipment;
(E)
Books, papers, and other library materials for a public library that are available only from the person holding exclusive distribution rights to the materials; and
(F)
Management services provided by a nonprofit organization to a municipal museum, park, zoo, or other facility to which the organization has provided significant financial or other benefits.
(Ordinance 2010-113, sec. 4, adopted 12/14/10; Ordinance 2021-102 adopted 2/9/21; Ordinance 2023-111 adopted 7/18/2023)
Purchasing Card is a procurement card unique to the City of Grand Saline. The P-card is used for one time purchases and on occasions where creating an account when time is of the essence, maintenance, repair and operational expense items and one-time purchases. The intent of the P-card is to enhance the capabilities of field personnel to perform operational tasks without administrative delay and to reduce paperwork. The P-card is governed by all City of Grand Saline policies, procedures, and directives currently in place. The P-card may be used for hotel and travel expenses.
1.
Cardholder responsibilities.
Inappropriate procurement card use can result in significant losses for an organization, so the designation of their use is a serious matter. Users are expected to use these cards with the highest sense of ethics. The following rules apply to users of city purchasing cards:
(A)
Do not use procurement cards for personal transactions.
(B)
Do not share the card with any other person.
(C)
Only use a procurement card to purchase items for which your department is responsible for payment.
(D)
Do not receive cash back for procurement card credit transactions; all credits must be processed through the purchasing card.
(E)
Employees utilizing a city purchasing card should make every effort to obtain a sales tax exemption form prior to making a purchase to avoid paying sales tax.
(F)
Do not split charges into smaller amounts in order to stay within the purchasing restrictions of your purchasing card.
(G)
When using the procurement card to pay for business related meals, you must provide documentation detailing the purpose of the meeting and the names of all individuals participating.
(H)
Promptly forward monthly account statements with attached detailed receipts to the City Secretary.
(I)
Promptly report transaction discrepancies or a lost procurement card to the City Secretary and also the City Administrator.
(J)
Improper use of purchasing cards will result in revocation of one's card and possible additional disciplinary action up to and including termination and or criminal prosecution.
2.
Procurement card usage while traveling.
(A)
The procurement card should not be used for meals if a per diem has been or will be paid as part of any travel or training advance or reimbursement. Nor shall any other expenses be duplicated in conjunction with any other type of city disbursement.
(B)
If meals are paid for with a procurement card, a per diem will not be allowed for that event.
3.
Monthly statement reconciliation.
This procedure must be used by City employees to reconcile the monthly procurement card statement.
(A)
A procurement card account memo statement will be received each month (for each individual card) according to the billing cycle assigned by the bank card supplier. Receipt may be via U.S. postal service or email.
(B)
The memo statements will be directed to the City Secretary who will date stamp the statements.
(C)
The City Secretary will compare the line items on the statement to departmental detailed receipts.
(D)
If any receipts are missing, contact the supplier and attempt to obtain a replacement receipt.
(E)
If any receipts are still missing, the City Secretary will list them individually on the credit card statement, including an explanation of the expense. The cardholder will sign the statement to certify that the expenditures with missing receipts were legitimate business expenses, and also obtain the signature of the City Administrator.
(F)
Repetitive loss of receipts by a cardholder will result in loss of procurement card privileges.
(G)
Once the statement has been reconciled, a payment will be initiated following standard purchasing/accounting procedures.
(Ordinance 2010-113, sec. 5, adopted 12/14/10; Ordinance 2023-111 adopted 7/18/2023)
THE City Administrator and the user department make final recommendations to the Mayor and City Council for awarding of contracts, in accordance with approval thresholds, for all solicitations in the stated areas of responsibility.
(Ordinance 2010-113, sec. 6, adopted 12/14/10; Ordinance 2023-111 adopted 7/18/2023)
The procurement Policy contains expanded explanation and process for accomplishing the procurement of goods and services in accordance with this policy. The City Administrator maintains responsibility for updating the Procurement Policy in accordance with applicable State and Local Government Codes, as approved by City Council.
(Ordinance 2010-113, sec. 7, adopted 12/14/10; Ordinance 2023-111 adopted 7/18/2023)