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Section 1301 – General Information, Board Policy and Legal Requirements

 

The Procurement Services Department is a service organization responsible for the acquisition of goods/services requisitioned by the district.

The Procurement Services Department consists of three functional elements:

• Procurement Services
• PROCARD
• Travel

The mission of Houston ISD's Procurement Services Department is to ensure the uninterrupted flow of goods and services needed to efficiently operate the district cost-effectively. In other words, the right products and services, at the right price, to the right location, at the right time, every time.

Our clients are considered customers, and our suppliers are considered strategic-alliance partners. Our highest priority is to deliver total customer satisfaction. As a customer, our clients should expect the same extraordinary service and reliability as HISD Procurement Services Department expects from its suppliers. It is the job of Procurement Services to ensure this is done every single day by every single supplier.

The Procurement Services Department monitors purchasing procedures which assure purchasing and contracting compliance with all applicable statutory and legal requirements, Board of Education policy, good purchasing practice, and adherence to the ethical standards advocated by the National Association of Purchasing Management and National Institute of Governmental Purchasing.

Purchasing actions concerning requests for proposal, the evaluation of proposals and the suppliers, and the awards of the purchase contracts / agreements shall be subject to the following legal requirements:

• Special act by the Texas Legislature creating the Houston Independent School District;
• Texas Education Code, in general, and specifically Chapter 44, Section 44.031, Purchasing Contracts

Each company supplying goods and services on an advertised proposal must complete the Equal Opportunity Employer Statement form certifying that the company and its suppliers or subcontractors agree to refrain from discrimination in terms and conditions of employment on the basis of race, color, religion, sex, or national origin, and agree to take affirmative action as required by federal statutes and rules and regulations issued pursuant thereto in order to maintain and insure non-discriminatory employment practices.

The Procurement Services Department reserves the right to group items by commodities and in categories in order to obtain the best competitive price and overall value to the district.

 

Section 1302 - Purchase Methods

To ensure business best practices and a healthy competitive environment, any anticipated expenditure valued at $10,000 or more in the aggregate for each 12-month period must be competitively solicited by the Procurement Services Department. Texas Education Code 44.031 Subchapter B. Purchases; Contracts enumerates several options for competitive procurement that are available to school districts. These options include:

• Competitive Bidding;

• Competitive Sealed Proposals;

• Request for Proposals, for services other than construction services;

• Inter-local Contracts;

• Design-Build Contracts;

• Contract to Construct, Rehabilitate, Alter, or Repair Facilities that involves using a Construction Manager; or

• Job Order Contract for the Minor Construction, Repair, Rehabilitation, or Alternation of a Facility

• Reverse auction procedure as defined by Texas Education Code Section 2155.062(d), Government Code: or

• Formation of a political subdivision corporation under Section 304.001, Local Government Code.

When facilitating a purchase utilizing one of the methods specified by Section 44.031(a), Procurement Services shall determine which method provides the best value for the district.

 

Section 1303 – Purchasing Guidelines

The appropriate method for procuring goods and services is governed by the dollar amount of the purchase:

• Goods, Services valued less than $500 can be obtained through the use of the District’s PROCARD program.

• Goods, Services valued less than $2,500 require an information verbal quote

• Goods, Services valued between $2,500 and $9,999 require a minimum of two (2) informal written quotes

• Goods, Services valued greater than $10,000 require a formal, written, competitive solicitation method as outlined in Texas Education Code 44.031 Subchapter B. Purchases; Contracts

As with goods, services, the appropriate method for procuring Construction and Professional Services is governed by the dollar amount of the purchase:

• Construction, Professional Services valued greater than $25,000 require a formal, written, competitive solicitation method as outlined in Texas Education Code 44.031 Subchapter B. Purchases; Contracts

 

a. Warehouse Purchases
All items that can be procured through the Warehouse should be acquired in that manner first before other avenues are explored. Warehouse items are readily stocked and delivered promptly. Refer to the Warehouse Catalog or to the menu Path MMO3 in SAP for product information.

b. Annual Contracts (Items on Bid)
By state law, items on a current annual contract must be purchased from the supplier approved by the Board of Education. The purchasing tool (SAP Requisition/Purchase Order process, Direct Pay form, PROCARD) does not govern where the items are purchased. In addition, items on a contract must be purchased from the project supplier, regardless of the funding source, i.e., GF1 or Activity Funds. Second quotes are not necessary on orders of $2,500 or more when the approved items are acquired from a contracted supplier.

c. Board Approval
All annual contract awards greater than $10,000 must be approved by the HISD Board of Education. Pursuant to Board of Education Policy, contract awards valued greater than $100,000 require the HISD Board of Education’s approval prior to issuance of a purchase order. However, requisitions for contract awards valued less than $100,000 can be assigned a purchase order prior to Board of Education approval and then ratified at a subsequent Board meeting.

d. Purchases with a Value less than $2,500.00 and not on an Existing Annual Contract:
These items may be purchased from the most expedient source available. This applies only to items not on an annual contract with an approved supplier.

e. Purchases with a Value between $2,500 and $9,999 and not on an Existing Annual Contract:
The requesting school/department is required to provide a minimum of two written quotes to the appropriate buyer in the Procurement Services Department for the purchase of goods or services with a value between $2,500 and $9,999. Upon receipt of the quotes, the buyer will process the request and maintain a file copy of the purchase order along with the quote information.

f. Purchases with a Value greater than $10,000 not on an Existing Annual Contract:

1. Purchases with a value greater than $10,000 in the aggregate for each 12-month period must be procured utilizing a competitive procurement method administered by the Procurement Services Department.

2. Formal awards valued less than $100,000 will be submitted to the HISD Board of Education for ratification.

3. Formal awards valued at or above $100,000 require the HISD Board of Education’s approval prior to issuance of a purchase order. However, in cases where an urgent need for the item(s) exists, up to $100,000 can be expensed pending Board approval. The remaining amount of the award cannot be expensed and issuance of a purchase order cannot be processed until Board approval is finalized. This procedure allows Procurement Services to expedite the acquisition of supplies, equipment, and project request for the operation of the District.

4. Contracts in excess of $50,000 must include signature approval from the Legal Department and either the Controller, CFO or Superintendent.

Waiver of Competitive Bidding: Included in this process are purchases which are copyrighted or only source purchases. The District may purchase items that are available from only one source without following the competitive process. The following are some examples of sole-source purchases:


• An item for which competition is precluded because of the existence of a patent, copyright, secret process, or monopoly. However, if more than one supplier sells a patented or copyrighted item, the competitive process shall apply;

• Films, manuscripts, or books available from only one source;

• Utility services; and

• A captive re-procurement part or component for equipment already owned or lease by the District.


The department/school must complete and submit to Procurement a sole-source request form and a letter from the supplier, which provide reasonable justification. The Competitive Process Waiver Form must be signed by the department head or the principal.

Inter-local/Agreement Purchases: HISD has entered into several cooperative purchasing contract agreements with other public agencies, such as Region IV, Harris County or the General Service Commission for the State of Texas. Items may be procured from these agencies without bidding.

Emergency Purchases: An emergency purchase is a purchase made without following the competitive process in order to obtain goods and services to meet an urgent and unexpected requirement where health and public safety or the conservation of public resources is at risk.
Schools/departments must adhere to HISD emergency purchasing procedures as outlined in Board Policy CH Legal/Local. An Emergency Purchase Request Form must be completed and submitted to Procurement Services. This procedure is not to be used for administrative convenience or as a means to circumvent the competitive process.

Section 1304 – Purchase Requisitions

A requisition is an internal document by which a school or department of the District request the Procurement Services Department to initiate a purchase order. It is a request generated electronically through the SAP system for the purchase of supplies, services, equipment, etc.

There is a $100 minimum order per supplier for a Purchase Requisition. For small purchases, under $500, schools/departments are strongly encouraged to use the HISD PROCARD to expedite the purchase. If a supplier does not accept a PROCARD or the commodity is restricted with the use of the PROCARD, schools/departments must enter an SAP purchase requisition.

For assistance in creating requisitions, please contact the Help Desk at 713-892-SERV or 713-556-6515.

To create requisitions using SAP, the end-user must have a Network ID, completed SAP Basic End User Training and obtained an SAP password.

Section 1305 – Requisition Flow Chart

Section 1306 – Quotes

Purchases equal to or in excess of $2,500 but less than $10,000 in the aggregate, require a minimum of two written quotes.

Procurement Services will issue and manage all quotes.

The Procurement Services Department will create a Purchase Order 9PO), will fax and/or mail the purchase order to the supplier, and will maintain a file of audit quality.

Section 1307 – Freight

When ordering non-bid items, schools/departments must consider freight charges, where applicable. If payment for freight is required, please add an additional line item to the requisition for freight. When a supplier sends in an invoice, which includes freight charges and freight is not covered in the purchase order the supplier's total invoice is not processed.

Do not add freight charges to requisition lines when ordering bid items. The freight charges are already included in the bid price.

Section 1308 – Special Events/Banquet

The rental and cost of facilities and related services such as food service by employees for special events such as banquets, in-services, and meetings must comply with the regulations identified in Section 1302. This includes hotels and conference/convention centers.

Individuals planning events are asked to use sound business judgment when determining the cost of an event. It is recognized that each event will have unique requirements and objectives, however, taxpayers funds are being expended. Employees should exercise a conservative and reasonable approach to planning the event. Food limitations are identified in Section 905 of the Finance Procedures Manual.

State Law requires that all said purchases must be considered in the aggregate for each 12-month period. Due to the number of special events held by the district in a 12-month period, the Procurement Services Department has initiated one of the formal methods of procurement to establish a list of approved locations authorized to service special events. All events shall take place within the HISD geographical boundaries. District personnel must select from the approved list of locations for such events.

Procedures for Requesting an Event
The requesting school/department prepares specifications for the event that should include, but not be limited to, the following:


• Date, time, and length of event;
• Approximate number of attendees;
• Purpose of event;
• Special services required such as AV equipment, special security, parking, decorations, etc.;
• Type of food service required such as breakfast, lunch, dinner, snacks; and
• Two quotes and a contract from the list of approved locations

 

Section 1309 - GF1 Construction Contracts Procedures Construction Contracts for $25,000 or Less


 1. GF1 construction contract requisitions involving non-capital funds will be sent to Accounting for processing. These requisitions must have attached a contract, scope of service letter, or a proposal which must have proper written approvals.


2. Accounting will determine if the requisition has appropriate signature authority. Requisitions with school funding will be designated with a project E1 or S1 and must have the approval of the principal.


Requisitions with an FMO budget must be approved by a person having proper signature authority. Requisitions with any other budget must be approved by the appropriate signature. Accounting will indicate the approval signature is correct by initialing the Construction Services ("CS") purchase order checklist which Accounting will attach to the requisition.


3. After checking the requisition's budget(s) for available funds, Accounting will indicate that the necessary funds are available by initialing the checklist. If funds are not available, Accounting will coordinate the budget transfer.


4. All suppliers must have a Certificate of Workers' Compensation on file with Accounting before a CS purchase order is issued. Accounting will maintain an Excel file on the wide area network. This file will contain information on companies with Workers' Compensation certificates on file and will be titled "WORKCOMP." If one is not on file, it will be the using department's or school's responsibility to contact the supplier and obtain the certificate. New certificates will be attached to the requisition sent to Accounting who will maintain the certificates in supplier sequence.


5. Another file will be maintained on the wide area network titled "POLIST." This file contains a list of all CS purchase orders issued.


6. These two files are accessed in the network by doing the following:


A. In Program Manager, access the "MAIN" icon;


B. Once in "MAIN," double click "FILE MANAGER";


C. In "FILE MANAGER," double click the SmartIcon for " CONNECT NETWORK DRIVE";


D. Then, click on "PATH" and move down to "\\PAYROLL 29\CSPO". Clicking once will put this shared directory in your "PATH" field;


E. Clicking "OK" moves you to the screen titled "ENTER NETWORK PASSWORD". The password for "Read only" access is "RS52". After entering the password and hitting " OK", you are able to access the two Excel files. No changes can be made to these files. To open these EXCEL files you will need to use the same drive that has "\\PAYROLL 29\CSPO". It is not necessary to "Disconnect Network Drive".

7. After certifying proper signature authority and funding, Accounting will forward the requisition to the Purchasing Department. The Purchasing Department will determine the appropriate purchasing method based on Board Policy and state law.

8. For requisitions which Purchasing has determined are non-quote, non-bid items, a CS purchase order, starting with purchase order number CS97001 will be issued by Purchasing and the funds will be encumbered. After doing so, Purchasing will send a copy of the CS purchase order to the ordering department, the supplier, and to Accounting informing them that funds are encumbered.

9. Accounting will process the payment requests via receiving reports for all CS purchase orders.
Requisitions Requiring Bids or Quotes


For requisitions which the Purchasing Department has determined (in step 7) that a quote or bid is needed, the Purchasing Department will determine:


1. If goods or services are on an existing bid project; or
2. If goods or services can be obtained via a price quote; or
3. If goods or services must be obtained through an advertised competitive bid or Request For Proposal ("RFP").


It should be noted that the Purchasing Department will include HUB MWBE documentation on all requisitions exceeding $25,000.


The Purchasing Department will utilize the following steps in securing quotes/bids/RFPs:


1. Check for complete specifications;
2. Assign E-order number, check funds, and encumber;
3. Advertise;
4. Conduct a pre-bid conference for bids/RFP projects;
5. Open quotes/bids/RFPs;
6. Tabulate quotes/bids/RFPs;
7. Review affirmative action and obtain recommendation from the Office of Business Development and Assistance;
8. Forward to using department for review and quotes/bids/RFPs recommendation;
9. Final review by Purchasing;
10. Preparation of board agenda; and
11. Award by board.


After completion of the quotation/bid/RFP process, the Purchasing Department will cancel the E-order, issue a CS purchase order and distribute copies as noted in step 8.

Professional Services Contracts
Professional Services contracts are those types of contracts that do not involve any construction. In almost all cases, a Professional Services contract is a precursor to a Construction Services contract. All procedures for Construction Services contracts also apply to Professional Services contracts with one exception. Professional Service Contracts do not require second quotes, bids, or a Certificate of Workers’ Compensation.

 

Section 1310 – Purchase Orders


 All purchase requisitions are reviewed and approved by buyers within the Procurement Services Department. After the Buyer has obtained a source of supply, with price and delivery, a purchase order will be issued. A purchase order is a document that serves as a formal order for goods, materials and/or services from the supplier. Acceptance of the purchase order by the supplier produces a legally binding contractual relationship to pay the supplier which gives the supplier authority to ship the required goods and obligates the District to pay the supplier for these goods/services.
A purchase order is also an important accounting document. It contains information on the expenditure to be made and the account code to be charged. Once issued, the purchase order encumbers funds and serves as an expenditure control mechanism. Finally, the purchase order is utilized in the accounts payable process as it documents that an order has been received and accepted by the user and payment can be made to the supplier.
A valid HISD purchase order number typically is a ten-digit number starting with 45XXXXXXXX.

Section 1311 – PROCARD

The HISD PROCARD is a professional credit card issued to HISD employees. The PROCARD allows authorized district employees to procure goods and services that cost less than $500 with a maximum spending limit of $5,000 per month. The PROCARD is accepted by any merchant/supplier who accepts MasterCard.

Purchases made with the PROCARD are electronically processed and limitations are established for spending amounts per transaction and the types of suppliers from whom purchases can be made. All PROCARD transactions must be allocated and approved within the SAP system.

For detailed information regarding the HISD PROCARD Program, refer to the Procurement Services website.

Section 1312 – Warehouse Requisitions

The Central Warehouse stocks standard supply items that schools and departments use. Materials stocked by the Warehouse are listed in the Central Warehouse Catalogue or can be accessed in SAP by using transaction code MMO3.

Principals or department heads with budgetary authority must release the requisition.

For assistance in creating a warehouse requisition, contact the HISD Helpdesk at 713-892-SERV.

Section 1313 – Repairs

For equipment that does not have a maintenance contract and is not maintained by the Facilities, Management and Operations Department, schools/departments must submit to Procurement Services a SAP requisition for the specific repairs required. Be specific by including in the requisition the make, type, model and serial number of the equipment with a brief description of the problem. If the school/department has not recommended a supplier, the Procurement Services Department will locate one.

Repair requisitions should not be sent to Procurement Services for equipment that has a maintenance contract. Simply call the supplier and verify that your maintenance contract is active and request service.

Schools may request repairs to personal property through the Direct Pay Process or by use of the PROCARD. All repairs to real property must be processed through the Procurement Services Department.

Departments such as Vocational Education which have monies designated for repairs of personal property, may process school repairs through the Direct Pay Process

Section 1314 – Commemorative Items

The Procurement Services Department provides details regarding qualified suppliers for obtaining graduation commemorative items such as announcements, caps and gowns, class rings, yearbooks, and school pictures. School principals should refer to the Procurement Services website for more information.

Section 1315 – Annual Contracts

The Procurement Services Department prepares annual proposals for an assortment of items based on specifications provided by the using department/school.
Annual contracts require approval by the Board of Education. Schools/departments are required to order from the supplier(s) approved by the Board.


The following list of commodities, are available through annual contracts:


• Fencing Materials and Services
• Health and Medical Equipment and Supplies
• Paving and Striping
• Pest control
• Scrap metal Sales
• Radio Services and Supplies
• Uniforms – Band
• Auction / Auctioneer
• Environmental Supplies and Services
• Graduation Decorations
• Moving Services
• Office Services
• Athletic – Uniforms, Equipment and Supplies
• Lumber
• Printing Services
• Copiers and Office Equipment
• Window Blinds, Drapes, and Curtains
• Athletic and Grounds Maintenance
• Environmental Supplies and Services
• Office Supplies
• Petroleum Products and Services
• Promotional and Specialty Items
• Appliances
• Building Maintenance Services
• Paint and Supplies
• Environmental Supplies and Services
• Food Services – Management Services
• HVAC Equipment and Supplies
• Vehicle Parts and Supplies
• Waste Collection and Recycling
• Electrical Contracting Services
• Fire Suppression
• Flooring and Carpeting – Products and Services
• Food Services – Catering and Uniforms
• Food Services – Equipment and Supplies
• Food Services – Food
• Food Services – Student ID Cards
• Food Services – Supplies
• HVAC Maintenance and Service
• Music Equipment, Supplies, and Repairs
• Audio Visual Equipment and Services
• Uniforms – Students / Migrant
• Vehicle – Engines and Transmission
• Vehicle – Painting & Body Shop Repairs
• Instructional Software and Hardware
• Scanning Equipment, Forms, and Software
• Awards and Trophies
• Books – Textbooks
• Furniture
• Instructional Supplies and Materials
• Marquee Signs and Services
• Moving Services
• Uniforms – Athletic Outerwear
• Waste Treatment Services
• Flight Instruction for Students
• Food Services – Athletic Concessions
• Food Services – Beverage
• Food Services – Equipment and Supplies
• Janitorial and chemical Supplies
• Swimming Pool Maintenance and Services
• Technology – Anti-Theft Devices
• Technology Disaster Recovery
• Temporary Services
• Construction and Materials (less than $25,000)
• Electrical Parts and Lighting Supplies
• HVAC – Emergency Repairs
• Internet Connectivity
• Network Cabling
• Network Development, Servers, Computers, and Peripheral Devices
• Network Maintenance
• Vehicle Rentals – Commercial
• Video Taping Services
• Elevator and lift Services
• Vehicle Maintenance and Repairs
• Vehicle – Tires
• Vending Services
• Books – Paperback
• Books – Library
• Courier Services
• Floor Mats and Rugs
• Roofing and Waterproofing Services
• Testing Services and Supplies

 

Section 1316 – Supplier Performance

A system for the evaluation of suppliers and their performance is important to support an effective purchasing effort. Texas Education Code, Section 44.031, states that in determining contract awards to suppliers, the district may consider:


• the purchase price;
• the reputation of the supplier’s goods or services;
• the extent to which the goods or services meet the district’s needs;
• the supplier’s past relationship with the district;
• the impact on the ability of the district to comply with laws and rules relating to historically underutilized businesses;
• the long-term cost to the District to acquire the supplier’s goods and services; and
• any other relevant factor that a private business entity would consider in selecting a supplier.

Procedures for Reporting Supplier Performance

The Procurement Services Department considers the schools/departmental personnel our clients and vendors are considered strategic alliance suppliers. One of the highest priorities of Procurement Services is to deliver total customer satisfaction. In an effort to provide total customer satisfaction, a tool has been developed to evaluate the performance of our suppliers. The Supplier Score Card allows the district to obtain data that can be utilized to give feedback to both suppliers and customers. This tool can be accessed through the Procurement Services website.

Questions and answers on the Supplier Performance Evaluation Report.


• When should the Supplier Score Card be completed?
This form should be completed any time a school/department has an experience with a supplier that they feel the Procurement Services Department should be aware of or action should be taken by the Procurement Services Department.

• Who should complete the score card?
Anyone in the district who wishes to forward supplier performance information to the Procurement Services Department.

• Why is it important to complete the score card?
The score card provides written proof of supplier performance and can be used in the decision related to supplier award of contracts.

• Why must I include comments or support documentation when I mark the supplier “unsatisfactory” or “questionable”?
Without this information, the Procurement Services Department can not work with the supplier to improve their performance.

Section 1318 – Miscellaneous

1. Modifications, Revisions, or Change Orders: Any change that exceeds 10% of the purchase order or $10,000, whichever is greater, will require a formal contract revision and subsequent purchase requisition approval in the SAP financial system. For example, if the Board has approved an item for $10,000 and additional quantities are needed, Procurement Services has the authority to make modifications, revisions, or change orders up to 10% or $10,000. If greater than $1,000 then the fund approver must approve through SAP. The competitive process allows Procurement Services 50% or more of the original request as long as the same terms and conditions apply.

2. Waiver: Anyone wishing to bypass the competitive solicitation process, may submit a “Waiver to the Competitive Process” form clearly providing a legal rationale and fact-based business reason why the waiver should be granted. The Superintendent of Schools must sign the form.

3. Renewals: Annual contracts are generally awarded for a one (1) year term with the option to renew for two (2) additional one year terms. Procurement Services will contact the using department and the supplier to seek agreement for renewal of projects. If the using department and supplier both agree to renew the project under the original terms and conditions, Procurement Services will request approval from the HISD Board of Education. If the using department and/or the supplier do not agree to renew the project for an additional one (1) year term, Procurement Services will facilitate a new proposal, if warranted.

4. Supplier Solicitations: Suppliers are not authorized to enter HISD premises without Procurement Services’ authorization. All suppliers should be directed to contact the Manager of Procurement Services to acquire a solicitation permit. Authorized suppliers will possess a letter from the Manager of Procurement Services authorizing the visit onto HISD premises.

Section 1319 – Travel


 The Procurement Services Department and the Accounts Payable Department work in conjunction to facilitate all Out of District travel requests for district personnel. All Out of District travel requests must be submitted through the SAP Travel Management System.

For additional information regarding policies, procedures and guidelines, refer to the Accounts Payable – Out of District Travel Section in the Finance Procedure Manual.