THE UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON
ISSUED DATE: 09/17/00
PURCHASING OPERATING PROCEDURES
REVISED DATE: 05/12/16
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2
PROCUREMENT
SUBJECT
2.10
BEST VALUE PROCUREMENT
GENERAL INFORMATION
This procedure is issued to establish effective guidelines for the purchase of supplies, equipment and services consistent with
best value principles, applicable laws and regulations, and best industry practices.
AUDIENCE
Applicable to all Procurement Staff and designated Satellite Buyers
GUIDELINES
1.
General: Personnel authorized to make purchases on behalf of UTMB shall determine in his/her best judgment the
most appropriate and effective method of acquisition for each assigned requisition or request for purchase The
objective and outcome of the determination is to acquire the product or service meeting the needs of the end user
while ensuring that the method selected for acquisition achieves: (1) “best value” as defined in Section 74.008,
Education Code; (2) conformance to standards of ethical conduct; and (3) compliance with all applicable laws, rules
and regulations in effect. For POs or signed bi-lateral contracts over $5,000, Purchasing can only use the following
sourcing methods: a) Group Purchasing Contracts (GPO), b) Exclusive Acquisition Justification (EAJ) or c)
Competitive bidding, reference Attachments A Sourcing Justification Flowchart and B Best Value Matrix below. In
addition, Purchasing must attach the Purchasing checklist (Satellite Buyers use PO notes) or contract checklist if the
transaction is over $5,000.
2.
Competitive Bids: The following outlines minimum requirements for those orders processed on the open market,
however, such minimum requirements do not negate the obligation to ensure that a competitive procurement occurs
and best value is attained.
3.
$0 to $5,000
Spot Market
Non-bid, award to best source.
$5,001 to $50,000
Informal
Minimum: Three (3) written quotes (i.e., e-mail,
fax); suggested source and two (2) HUBs.
$50,001 or greater
Formal Bid
Minimum: Three (3) written bids; suggested source
and all HUBs in the “Vendor Database”.
Exclusive Acquisition Justification Purchases: When the purchase of a product or service exceeds $5,000, and
where an equivalent product or service specified is not available or limited to one manufacture, product or service
provider, a Justification must be provided. The Justification must, at a minimum, include the following key
elements:
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Categorization of request
Definition of Scope
Recommended Supplier
Type of Justification
Unique features or specifications that will allow to meet the definition of Scope (Sole Source)
List of competitors used and why they were excluded (Sole Source)
Describe the conditions requiring exact compatibility or standardization (Best Value)
Urgency and impact to institution for not placing the purchase through the competitive bid process
(Emergency).
Selection Criteria (Professional Services)
Department Approvals
Purchasing Approval
Ref Attachment C. Exclusive Acquisition Justification Form
The Justification must be approved by the Departmental/Entity personnel authorized at an expenditure level equal to
or less than the total amount of the requisition.
Prior to committing a Purchase Order for the product or service, the Justification must be reviewed by Purchasing
personnel authorized to review such Justifications and who have authority at that level of commitment
Once processed, the Purchase Order must be correctly coded in UTMB’s automated procurement system and the
Justification must be attached to the electronic Purchasing File.
Once processed, the Purchase Order Type must be correctly coded in UTMB’s automated procurement system and
the Justification must be attached to the electronic Purchasing File.
4.
Items Requiring Special Approval/Process: The following items require special approval prior to placing an order,
or a different process to complete a Purchase Order.
A.
Orders for Animals
All order for animals must be processed through the Animal Resource Center (ARC). The ARC has been
designated to process all Purchase Orders for animals, and requisitions for animals will automatically route
to the ARC if set-up properly (i.e., the correct commodity code is selected). Therefore, no Purchase Orders
for animals shall be placed by a Purchasing Specialist.
B.
Radiological Items
All requests for Radiological Items must be approved by Environmental Health & Safety (EH&S). If
properly set-up (i.e., the correct commodity code is selected), the requisition will automatically route to
EH&S where, if approved, they will assign the order a RMC Number and update the requisition with this
number. The requisition (if over $5,000) will then route to Purchasing for processing. When placing an
order for a Radiological Item, the Buyer must ensure it has been approved by EH&S (i.e., it has a RMC
number) and reference the RMC number on the Purchase Order.
C.
Information Technology Items (e.g., PCs and Software)
All requests for Information Technology Items over $1,000 must be approved by the Department of
Information Service (IS). If properly set-up (i.e., the correct commodity code is selected), the requisition
will automatically route to IS for approval. When placing an order for a Information Technology Item(s)
over $1,000, the Buyer shall ensure that IS has approved the order.
D.
Locksmiths
All requests for Locksmith services, or any type of lock or key related request, must be approved by BOF
and should be processed by the BOF Buying Team.
5.
Products and Services not requiring a Purchase Order or Contract/Agreement: The following items do not require a
Purchase Order or Contract/Agreement issued by Purchasing Staff or designated Satellite Buyers:
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Subscriptions
Memberships
Booth Fees
Accreditation Fees
Professional License Renewals
Exam Fees
Postage
Hotel Bills
Affiliation Agreements
Inter-Agency Agreements
Collaboration Agreements
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6.
Sponsored Research Agreements
Purchase from People with Disabilities (TIBH): UTMB is required to purchase products available from TIBH,
unless we can document reasons why they are unacceptable. Such reasons may be delivery time, price, doesn’t meet
specifications, etc. TIBH products can be accessed via their website, http://www.tibh.org/. TIBH’s products have
been broken down into several categories. The only categories we are required to buy from, at this time, are listed
below. All other categories have been exempted due to our current institutional contracts with other vendors.
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Automotive
Outdoor Clothing and Supplies
Miscellaneous
Awards
Janitorial Supplies
Before placing any order for these types of products, you should check TIBH’s website and see if they carry that
product. If so, you should place the order with TIBH without any further competition. TIBH will accept UTMB’s
purchase order and should be processed just like any other purchase to a vendor
7.
Purchasing and HUB Review: Prior to solicitation, evaluation and award, all procurement requests that meet the
requirements established under L/A Procedure 2.33, “Procurement Review Process”, shall be reviewed by the
responsible Purchasing Supervisor/Manager and the HUB Program Coordinator.
RELEASE AUTHORITY
1.
No Procurement Staff member or designated Satellite Buyer may commit a Purchase Order to a Vendor either
verbally or in writing which exceeds his/her release authority until such order is reviewed and approved by
Purchasing personnel who have authority at that level of commitment. Each order submitted for review must be
accompanied by the following documentation:
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Copy of Purchase Order
Change Order(s), if applicable
Copy of Requisition or request/authorization memorandum
Confirming Quotation or Written Bid/RFP (including clarifications & revised bids/proposals)
Award Recommendation, if applicable
Bid Tabulation and Justification for Method of Purchase
Appropriate Justification (e.g., emergency, sole-source), if applicable
Department (User) Review/Approval Letter or Evaluation Forms, if applicable
Other Than Low Bid Justification - Approval Memo, if applicable
Bidders list, if applicable
Copy of all Submitted Quotations or Written Bids/RFPs, if applicable
HUB Good Faith & Effort Documentation (Orders  $100,000)
Miscellaneous correspondence
Contract Administration Audits/Documentation, if applicable
EXCEPTIONS
1.
The following purchase types shall be processed in accordance with applicable policies and procedures:
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Orders Over $100,000
Bilateral Agreements
Request for Proposal
Information Technology
Consultant Services
Professional Services
Construction Services
Establishment of Committed Contracts
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Procurements from Committed Contracts
Procurements from Non-Committed Contracts
Procurements from Foreign Suppliers
2.
Any other exceptions must be in writing by formal addendum to this procedure or other formal written
exception by the Purchasing Agent.
2.10
Best Value Procurement
Approved: Eric Williams. Director of Purchasing
Attachments:
A – Sourcing Justification Flowchart
B – Best Value Matrix
C – Exclusive Acquisition Justification Form
D – UTMB Procurement Guidelines
References:
Historically Underutilized Businesses 5.10
HUB Subcontracting 5.20