THE UNIVERSITY OF TEXAS AT SAN ANTONIO
ISSUE DATE: 12.07.2001
PURCHASING OFFICE OPERATING PROCEDURES
REVISED DATE: 10.21.2008
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2
PROCUREMENT
SUBJECT
2.20 BEST VALUE PROCUREMENT
1. GENERAL INFORMATION
This procedure is issued to establish effective guidelines for the procurement of supplies, equipment and
services consistent with best value principles, applicable laws and regulations, and best industry
practices.
2. AUDIENCE
Official Procurement Staff and designated Satellite Buyers.
3. DEFINITIONS
* “Best Value” means the optimum combination of economy and quality that is the result of fair,
efficient and practical procurement decision-making and which achieves the procurement objectives of
UTSA.
* Buyer: For this section, the term "buyer" relates to those personnel authorized to make purchases on
behalf of UTSA, but does not necessarily carry the connotation of the official Human Resource’s
definition.
* Historically Underutilized Business, (HUB): Those businesses certified by the State of Texas that are
at least 51% owned by either a minority or a woman.
4. GUIDELINES
4.1
General: Personnel authorized to make procurements on behalf of UTSA shall determine in
his/her best judgment the most appropriate and effective method of acquisition for each assigned
requisition or request for purchase. In making this determination, authorized personnel will have
a variety of procurement options, including, but not limited to: GSC Contracts, Group
Purchasing Contracts, Open Market Procurements, DIR Contracts, Catalogue Purchases, and UT
System Contracts. The Buyer’s objective is to acquire the product or service meeting the needs
of the end user while ensuring that the procurement achieves: (1) “best value” as defined above
and authorized in Section 51.9335, Education Code; (2) compliance with the Regents’ Rules and
Regulations; (3) compliance with UTSA's HUB policies; (4) conformance to standards of ethical
conduct; and (5) compliance with all applicable laws, rules and regulations.
In determining best value, the buyer shall consider: (1) purchase price; (2) reputation of the
vendor and of the vendor’s goods or services; (3) quality of the vendor’s goods or services; (4)
extent to which the goods or services meets UTSA's needs; (5) vendor’s past relationship with
UT and/or components of UT System; (6) impact on the ability of UTSA to comply with the laws
and rules relating to the HUB program; (7) impact on the ability of UTSA to comply with the
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laws and rules relating to the procurement of goods and services from persons with disabilities;
(8) long term cost to the institution of acquiring the vendor’s goods or services; and (9) any
relevant factor that a private business entity would consider in selecting a vendor.
If the procurement relates to the repair of real property, UTSA shall, in determining best value,
consider the use of material to repair real property that is not proprietary to a single vendor unless
written justification is provided within the procurement solicitation for use of the unique material
specified.
4.2
Federal Funds: All Purchase Requests for supplies, equipment and services utilizing Federal
Funds (e.g., "26" accounts) and exceeding $1,000.00, shall be routed for approval through the
Office of Grants and Contracts to ensure compliance with all applicable federal rules and
regulations. See also Section 2.80.
4.3
Open Market Procurements: The following procedures outline minimum requirements for those
orders processed on the open market (e.g., via Spot Purchases, RFQ, ITB, RFP, etc.). Such
minimum requirements however, do not negate the Buyer’s obligation to ensure that a
competitive procurement occurs and best value is attained. Thus, it shall be the Buyer’s
responsibility to determine both the appropriate method of procurement and the appropriate
number of competitive suppliers from which to solicit offers with consideration given to
maximizing HUB participation in the solicitation process.
4.4
$0 to $5,000
Spot Market
Non-bid, award to best source. It is highly
recommended that all orders over $1000
have a confirming written quote from
awarded supplier.
$5,001 to $25,000
Informal
Minimum: The Buyer must solicit three (3)
verbal or informal written quotes, two of
which must be HUBS. It is highly
recommended that all informal bids have
confirming written quotes from requested
bidders.
$25,001 or greater
Formal
Minimum: The Buyer must solicit three (3)
written bids/offers, two of which must be
HUBs.
Proprietary Purchases: When the purchase of a product or service exceeds $5000.00, and where
an equivalent product or service specified is not acceptable or available, a written justification
must be provided which includes the following information:
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An explanation of the need for the proprietary specification (part or parts of the stated
specification which restrict the purchase to one product or service).
The reason competing products or services are not satisfactory.
Any other relevant information available to document the proprietary nature of the purchase.
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Prior to committing a Purchase Order for the product or service, the justification must be
reviewed and approved by personnel authorized to approve such justifications and who have
authority at that level of commitment.
4.5
Sole Source Purchases: If a product or service exceeds $5000.00, and the purchase is limited to
only one (1) manufacturer or service provider, a written justification must be provided which
includes the following information:
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All required information from the above section four, (Proprietary Purchases).
An explanation as to why competing vendors cannot satisfy the requirement for the product
or service.
Prior to committing a Purchase Order for the product or service, the justification must be
reviewed and approved by personnel authorized to approve such justifications and who have
authority at that level of commitment.
4.6
Emergency Purchases: An emergency purchase is defined as "a purchase of goods or services so
badly needed that the University will suffer financial or operational damage unless they are
secured immediately. An emergency purchase does not necessarily negate the use of
competition, but dictates rather, that normal purchasing procedures cannot be followed. Use of
competition is in fact, encouraged when possible. When the purchase of a product or service
needs to be processed on an emergency basis, a written justification must be provided and
include the following information:
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The reason for the emergency purchase by explaining what the emergency is and/or what
caused the emergency situation.
The financial or operational damage/risk that the University will accrue if the needs are not
satisfied immediately.
Why the needs were not or could not be anticipated so that products/services could not have
been purchased following standard procedures.
The reason and process used for selecting the vendor.
Prior to committing a Purchase Order for the product or service, the justification must be
reviewed and approved by personnel authorized to approve such justifications and who have
authority at that level of commitment
4.7
Employees as Independent Contractors: Reference policy on “Purchases from Employees”.
4.8
Exempt Products and Services: Some purchases of products or services may not require a
competitive procurement because either (i) these products or services are covered by agreements
issued outside the authority of the Purchasing Office, (ii) best value is obtained by procuring such
products or services by other means; or (iii) competitive procurement methods are not practical
or do not add value in obtaining these products and services. For a complete listing of these
exempt products and services, reference the specific “Exempt Purchases” policy.
4.9
Recycled/Remanufactured Products: Whenever possible, Procurement Staff will specify
recycled/remanufactured products, or their use.
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4.10
Texas Institute for the Blind and Handicapped (TIBH): As a State institution, UTSA is required
to comply with State laws derived from The Texas Council on Purchasing from People with
Disabilities. In complying with this law, all State procurements for all products or services must
be secured from TIBH when available unless a written justification is provided documenting the
reason why TIBH products or services were unacceptable. Such reasons may be delivery time,
price, failure to meet specifications, or other factors which do not support best value.
TIBH
products
and
services
http://www.purchaseplus.com/index.htm.
can
be
accessed
via
their
website,
Prior to committing a Purchase Order for the product or service, the justification must be
reviewed and approved by personnel authorized to approve such justifications and who have
authority at that level of commitment.
4.11
Preferences: As an agency of the State of Texas and as a public institution of higher education
we have a responsibility to support matters of public policy. Accordingly, when possible, buyers
should give consideration in their award decisions to products that are: (i) produced by persons
with mental retardation or physical disabilities; (ii) energy efficient; and/or (iii) made from
recycled materials (e.g., rubberized asphalt paving).
5. RELEASE AUTHORITY & DOCUMENTATION
No individual may release 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 personnel who have authority at
that level of commitment. Each order submitted for review must be accompanied, at minimum, by the
following documentation:
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Copy of Purchase Order
Change Order(s), if applicable
Appropriate Requisition or request/authorization memorandum (if non-electronic)
Award Recommendation (e.g. RFP recommendation), if applicable
Bid Tabulation/RFP Matrix
Appropriate Justification (e.g., emergency, sole-source), if applicable
Department (User) Review/Approval Letter or Evaluation Forms, if applicable
Bid log
Bidders list, if applicable
Confirming Quotation or Written Bid/RFP (including clarifications & revised proposals)
Copy of all other Submitted Quotations or Written Bids/RFPs, if applicable
HUB Good Faith & Effort Documentation (Orders  $100,000)
TIBH Justification, if applicable
Miscellaneous correspondence
Original solicitation
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6. EXCEPTIONS
6.1
The following purchase types shall be processed in accordance with applicable policies and
procedures:
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6.2
Orders Over $100,000
Request for Proposals
Information Technology procurements
Consulting Services
Professional Services
Construction Services
Group Purchasing Program, (GPO), contracts
Procurements from Foreign Suppliers
Printing, Stationary, and Fuels (ref. Article XVI, Section 21, Texas Constitution)
Purchases from employees
Vehicle purchases
Any other exceptions to this procedure must be in writing by formal addendum or by other formal
written exception issued by the Purchasing Manager.
VII. REFERENCES
The University of Texas System Policy UTS 156.
The University of Texas System Policy UTS 159.
Institutional Handbook of Operating Procedures; Section 8.
Texas Education Code, Section 51.9335.
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