THE UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON
ISSUED DATE: 09/17/00
LOGISTICS/ACQUISITION OPERATING PROCEDURES
REVISED DATE: 08/27/07
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PROCUREMENT
SUBJECT
2.60
ESTABLISHMENT OF COMMITTED CONTRACTS
GENERAL INFORMATION
This procedure is issued to establish a uniform method for entering into Committed Contracts/Agreements, which include
Institutional and Committed Group Purchasing Organization (GPO) Contracts/Agreements. A Committed Contract is defined
as a Contract that requires UTMB to meet certain performance obligations (e.g., annual spend, percentage obligation, etc.).
AUDIENCE
Applicable to all Procurement Staff and designated Satellite Buyers.
GUIDELINES
1.
Institutional Contracts/Agreements
Institutional Contracts/Agreements must be established in accordance with Logistics/Acquisition Procedure 2.10
(Best-Value Procurement).
2.
Committed Group Purchasing Organization (GPO) Contracts/Agreements
A.
Once a product or service offer under a GPO Contract/Agreement has been identified, the Supply
Coordinator shall conduct a “Cost Analysis”. Factors used in the “Cost Analysis” include, but are not
limited to, the following:




B.
If the “Cost Analysis” determines that UTMB will realize savings over the current utilized product or
service, if applicable, evaluation and testing of the product or service will be conducted by the Value
Analysis Coordinating Committee (VACC). Factors used in the evaluation include, but are not limited to,
the following:




C.
Procurement Costs
Inventory Carrying Costs
Standardization and Uniformity Benefits
Level of Commitment (e.g., 90% of a product must be procured through the GPO Contract/Agreement)
Positively Affect Patient Outcomes
Decrease Patient Length of Stay
Decrease Cost per Patient Case
Expedite the Patient Care Process
If the product or service is approved by the VACC, then the “Commitment Letter”, the “Group Purchasing
Award Recommendation Form” (ref. attachment A), and all relevant documentation is forwarded to the
Chief Purchasing Agent for approval and signature.
Note: The terms, conditions and requirements of a GPO Contract/Agreement may by negotiated between
all three parties (i.e., UTMB, GPO and Vendor).
D.
If the “Commitment Letter” is approved and signed by the Chief Purchasing Agent, then an original copy
of the Commitment Letter is forwarded to the GPO, Vendor and the individual responsible for
administration of the Contract. Orders may then be placed against UTMB’ commitment to the GPO
Contract/Agreement with the Vendor.
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3.
Procurement Review of Commitments
Prior to solicitation, evaluation and award, all Commitments that meet the requirements established under
Logistics/Acquisition Procedure 2.33, “Procurement Review Process”, shall be reviewed by the responsible
Purchasing Supervisor/Manager and the HUB Program Coordinator.
4.
Placement of Orders Utilizing a Committed Contract/Agreement
Placement of orders utilizing a Committed Contract/Agreement shall be processed in accordance with
Logistics/Acquisition Procedure 2.65 (Procurements from Committed Contracts).
EXCEPTIONS
There will be no exceptions unless by formal addendum to this procedure or other formal written exception by the Chief
Purchasing Agent.
REFERENCES
Logistics/Acquisition Procedure 2.10 (Best-Value Procurement)
Logistics/Acquisition Procedure 2.33 (Procurement Review Process)
Logistics/Acquisition Procedure 2.65 (Procurements from Committed Contracts)
2.60
Establishment of Committed Contracts
Approved: Jeffery Bonnardel, C.P.M.
Chief Purchasing Agent
Attachments:
A – Group Purchasing Award Recommendation Form
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