(1) emergency purchases when there is insufficient time to solicit bids;

(2) proprietary purchases or purchases of items for which there is only one source of supply;

(3) purchases by means of competitive sealed proposals;

(4) proposed purchases in circumstances where competitive specifications have been advertised but the Central Procurement Office has received only one acceptable bid, or no acceptable bids; provided, however, such negotiation may not result in a material change to the advertised specifications; and

(5) catalogue purchase procedures.

(1) Uniform standards and specifications--Specifications and standards developed by nationally recognized standards-making associations

(2) Approved products list--The list is also referred to as the "approved brands list" or "qualified products list". It is a specification developed by the evaluation of brands and models of various manufacturers and listing those determined to meet the minimum level of quality. Testing is completed in advance of procurement to determine which products comply with the specifications and standards requirements

(3) Award--The act of accepting a bid, thereby forming a contract between the component and a bidder.

(4) Best Value--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 TAMUS.

(5) Bid--An offer to contract with the component, submitted in response to a bid invitation issued by the Central Procurement Office.

(6) Bid deposit--A deposit required of bidders to protect the component in the event a low bidder attempts to withdraw its bid or otherwise fails to enter into a contract with the component. Acceptable forms of bid deposits are limited to: cashier's check, certified check, or irrevocable letter of credit issued by a financial institution subject to the laws of Texas and entered on the United States Department of the Treasury's listing of approved sureties; a surety or blanket bond from a company chartered or authorized to do business in Texas.

(7) Bid sample--A sample required to be furnished as part of a bid, for evaluating the quality of the product offered.

(8) Bidder--An individual or entity that submits a bid. The term includes anyone acting on behalf of the individual or other entity that submits a bid, such as agents, employees, and representatives.

(9) Blanket bond--A surety bond which provides assurance of a bidder's performance on two or more contracts in lieu of separate bonds for each contract. The amount for a blanket bond shall be established by the component based on the bidder's annual level of participation with the component.

(10) Brand name--A trade name or product name which identifies a product as having been made by a particular manufacturer.

(11) Centralized master bidders list (CMBL)--A list maintained by the Commission containing the names and addresses of prospective bidders and qualified information systems vendors.

(12) Commission--The Texas Building and Procurement Commission (Commission).

(13) Component-- An agency, university or health science center within the Texas A&M University System.

(14) Debarment--An exclusion from contracting or subcontracting with state agencies and TAMUS on the basis of any cause set forth in Texas Administrative Code §113.102 (relating to Vendor Performance and Debarment), commensurate with the seriousness of the offense, performance failure, or inadequacy to perform.

(15) Director--The director of a Central Procurement Office for a component.

(16) Distributor purchase--A purchase of repair parts for a unit of major equipment that are needed immediately or for maintenance contracts on laboratory/medical equipment.

(17) Emergency purchase--A purchase of goods or services so badly needed that the component will suffer financial or operational damage unless the items are secured immediately.

(18) Environmentally sensitive products--Products that protect or enhance the environment, or that damage the environment less than traditionally available products.

(19) Equivalent product--A product that is comparable in performance and quality to the specified product.

(20) Escalation clause--A clause in a bid providing for a price increase under certain specified circumstances.

(21) Formal bid--A written bid submitted in a sealed envelope in accordance with a prescribed format, or an electronic data interchange transmitted to the component in accordance with procedures established by the component.

(22) Group purchasing program--A purchasing program that offers discount prices to two or more state agencies, institutions of higher education or other public entities.

(23) Informal bid--An unsealed, competitive bid submitted by letter, telephone or other means.

(24) Invitation for bids (or IFB)--A written request for submission of a bid; also referred to as a bid invitation.

(25) Late bid--A bid that is received at the place designated in the bid invitation after the time set for bid opening.

(26) Level of quality--The ranking of an item, article, or product in regard to its properties, performance, and purity.

(27) Manufacturer's price list--A price list published in some form by the manufacturer and available to and recognized by the trade. The term does not include a price list prepared especially for a given bid.

(28) Multiple award contract procedure--A purchasing procedure by which the Central Procurement Office establishes one or more levels of quality and performance and makes more than one award at each level.

(29) Non-competitive purchase--A purchase of goods or services that does not exceed the amount stated in the component rule or delegation of authority (relating to Delegated Purchases).

(30) Notice of award--A letter signed by the director or his designee, which awards and creates a contract.

(31) Performance bond--A surety bond which provides assurance of a bidder's performance of a certain contract. The amount for the performance bond shall be based on the bidder's annual level of potential monetary volume with the component. Acceptable forms of bonds are those described in the definition for "bid deposit".

(32) Post-consumer materials--Finished products, packages, or materials generated by a business entity or consumer that have served their intended end uses, and that have been recovered or otherwise diverted from the waste stream for the purpose of recycling.

(33) Pre-consumer materials--Materials or by-products that have not reached a business entity or consumer for an intended end use, including industrial scrap material, and overstock or obsolete inventories from distributors, wholesalers, and other companies. The term does not include materials and by-products generated from, and commonly reused within, an original manufacturing process or separate operation within the same or a parent company.

(34) Proprietary--Products or services manufactured or offered under exclusive rights of ownership, including rights under patent, copyright, or trade secret law. A product or service is proprietary if it has a distinctive feature or characteristic which is not shared or provided by competing or similar products or services.

(35) Public bid opening--The opening of bids at the time and place advertised in the bid invitation, in the presence of anyone who wishes to attend. On request of any bidder or department in attendance, bids will be read to the assembled group.

(36) Purchase orders--A document detailing the specifications, terms and conditions of goods or services being offered to purchase to a supplier.

(37) Purchasing functions--The development of specifications, receipt and processing of requisitions, review of specifications, advertising for bids, bid evaluation, award of contracts, and inspection of merchandise received. The term does not include invoice, audit, or contract administration functions.

(38) Qualified information systems vendor catalogue proposal--A request for offers or quotations of prices from catalogue vendors (QISV).

(39) Recycled material content--The portion of a product made with recycled materials consisting of pre-consumer materials (waste), post-consumer materials (waste), or both.

(40) Recycled materials--Materials, goods, or products that contain recyclable material, industrial waste, or hazardous waste that may be used in place of raw or virgin materials in manufacturing a new product.

(41) Recycled product--A product that meets the requirements for recycled material content as prescribed by the rules established by the Texas Natural Resource Conservation Commission in consultation with the Commission.

(42) Remanufactured product--A product that has been repaired, rebuilt, or otherwise restored to meet or exceed the original equipment manufacturer's (OEM) performance specifications; provided, however, the warranty period for a remanufactured product may differ from the OEM warranty period.

(43) Request for proposal--A written request for offers concerning goods or services the component intends to acquire by means of the competitive sealed proposal procedure.

(44) Purchase requisition--An initiating request from a department describing needs and requesting the Central Procurement Office to purchase goods or services to satisfy those needs.

(45) Responsible vendor--A vendor who has the capability to perform all contract requirements in full compliance with applicable state law, ethical standards, and applicable component rules.

(46) Reverse auction--A bidding process that allows bidders to view previously submitted bid prices and allows for the re-submittal of bid pricing for a specified period of time.

(47) Sealed bid--A formal written bid which is opened in accordance with the bid/ proposal instructions.

(48) Solicitation--An invitation for bids or a request for proposals.

(49) Specification--A concise statement of a set of requirements to be satisfied by a product, material or service, indicating whenever appropriate the procedures to determine whether the requirements are satisfied.

(50) Standard specification--A description of what the purchaser requires and what a bidder or proposer must offer.

(51) Successor-in-interest--Any business entity that has ownership similar to a business entity. For purposes of the Procurement Code (relating to Vendor Performance and Debarment), it shall be presumed that a business entity that employs, or is associated with, any partner, member, officer, director, responsible managing officer, or responsible managing employee, of a business entity that was previously debarred is a successor-in-interest.

(52) Tabulation of bids--The recording of bids and bidding data for purposes of bid evaluation and record keeping.

(53) Testing--An element of inspection involving the determination, by technical means, of the properties or elements of item(s) or component(s), including function operation.

(54) Texas uniform standards and specification--Standards and specifications prepared and published by the standards and specifications program of the Commission.

(55) Total expenditures on products with recycled material content, remanufactured products, and environmentally sensitive products--The total direct acquisition costs (vendor selling price plus delivery costs) of all such products.

(56) Unit price--The price of a selected unit of a good or service, e.g., price per ton, per labor hour, or per foot.

(57) Vendor--A supplier of goods or services to the state.

(1) When the Central Procurement Office finds that a department has submitted a requisition containing specifications or conditions of purchase which are proprietary to one vendor and do not permit an equivalent product to be supplied, it shall require written justification before processing the requisition.

(2) A written justification for the use of proprietary specifications or conditions must:

(1) A department may acquire capital equipment by lease or lease-purchase if it is cost effective.

(2) If a proposed lease or lease-purchase is for information technologies resources, as defined in Texas Government Code, Chapter 2054, the requisition must include written evidence that the Department of Information Resources has approved the component's biennial operating plan. The Central Procurement Office will determine the cost effectiveness of a lease or lease-purchase. To establish cost effectiveness, the requisitioning department should submit the following information:

(3) Any lease, lease-purchase or installment payment purchase utilizing any state-appropriated funds that is either in excess of $250,000 or has a term in excess of 5 years must be submitted to the Texas Bond Review Board for approval.

The component may consider the following factor(s) in determining best value:

(a) Any installation costs;

(b) The delivery terms;

(c) The quality and reliability of the vendor's goods or services;

(d) The extent to which the goods or services meet the agency's needs;

(e) Indicators of probable vendor performance under the contract such as past vendor performance, the vendor's financial resources and ability to perform, the vendor's experience and responsibility, and the vendor's ability to provide reliable maintenance agreements;

(f) The impact on the ability of the component to comply with laws and rules relating to historically underutilized businesses or relating to the procurement of goods and services from persons with disabilities;

(g) The total long-term cost to the component of acquiring the vendor's goods or services;

(h) The cost of any employee training associated with the acquisition;

(i) The effect of an acquisition on component productivity;

(j) The acquisition price; and

(k) Any other factor relevant to determining the best value for the component in the context of a particular acquisition that is sufficiently described in a solicitation instrument.

(a) In any procurement conducted under the requirements of Section 6, the component must identify the specific factors to be analyzed in determining best value. The selection of best value criteria must be tailored to the specific needs of the component and must not unnecessarily limit competition or discourage the achievement of component procurement objectives.

(b) Every purchase of goods or services conducted in accordance with the requirements of Section 6 must include consideration of price as a factor.

(c) The component must publish notice of the specific criteria to be employed by the component in determining best value. The notice may be published in the solicitation instrument, public notice, or public announcement of a proposed procurement of goods or services.

(A) A Texas resident bidder shall be given preference over a nonresident bidder when the cost, and quality of the goods or services are equal.

(B) The component may award a contract to a nonresident bidder only if its bid is lower than the lowest bid submitted by a responsible Texas resident bidder by the same amount that a Texas resident bidder would be required to underbid the nonresident bidder to obtain a comparable contract in the state where the nonresident's principal place of business is located. In evaluating a bid of a nonresident bidder, an amount will be added equal to the amount a Texas resident bidder would be required to underbid a nonresident bidder to obtain a comparable contract in the state where the nonresident bidder's principal place of business is located, otherwise known as reciprocal preference. After the amount is added, an award may be made to the nonresident bidder if it is determined to have the lowest price and best bid. The amount added is for evaluation purposes only; in no event shall an amount be awarded in excess of the amount actually bid.

(A) Supplies, materials, or equipment produced in Texas shall be given preference over comparable goods produced outside Texas when the cost and quality of the goods are equal. Supplies, materials, and equipment are considered to be produced in Texas if they are manufactured in Texas; "manufactured" does not include the work of packaging or repackaging.

(B) Agricultural products grown in Texas shall be given preference over comparable products grown outside Texas when the cost and quality of the goods are equal. Agricultural products are considered grown in Texas if they contain any amount grown in Texas. In case of tie bids between agricultural products claiming the preference, the bidder whose product contains the greatest percentage of the product grown in Texas will prevail. For purposes of this preference, agricultural products include, among other things, textiles and fiber products, processed and unprocessed foods, feed, lumber and forestry products, live animals, plants, flowers, and nursery stock.

(C) Supplies, materials, equipment, or agricultural products produced or grown in the United States shall be given preference over foreign products when the cost and quality are equal. Supplies, materials, equipment, or agricultural products produced or grown in Texas shall be given preference over United States products when the cost and quality are equal.

(1) commodity purchases of goods that do not exceed $5,000;

(2) emergency purchases

(3) purchases of services the estimated cost of which does not exceed $5,000 per year per contract;

(1) Competitive bidding is not required for purchases of $5,000 or less except for printing services.

(1) Commodity purchases. Commodity purchases may be made in accordance with the following provisions:

(2) Emergency purchases. The Central Procurement Office will approve an emergency purchase in accordance with the following provisions:

(1) procurement audit standards set forth in Section 13 of the TAMUS Procurement Code(relating to Reviewing of Purchase Documents and Payment Vouchers);

(2) minimum training standards established;

(3) processes and procedures for the specific type of delegation being requested. All processes and procedures are subject to the prior review, revision and approval of the director.

(a) Based on the review of the documents, the CPO may revoke any delegation as deemed necessary.

(b) All delegated departmental purchases are subject to an audit by the internal auditor.

(a) Upon registration on the commission's Centralized Master Bidders List (CMBL), a vendor wishing to sell or lease automated information systems to governmental entities in accordance with Texas Administrative Code Rule 113.19 shall apply to the commission for designation as a qualified information systems vendor (QISV) by completing and submitting an application and catalogue.

(b) The component shall, whenever possible, attempt to contract with QISV suppliers

(a) Component may purchase materials, supplies, or equipment through group purchasing programs.