MAKING A SUCCESSFUL PURCHASE Prepared by the Contracts

MAKING A SUCCESSFUL PURCHASE Prepared by the Contracts and Procurement Department of the Texas Juvenile Justice Department 2/24/2016

Let the Professionals help • Without training, purchasing can be mysterious, intimidating and just plain scary. • So many rules, so many do’s and don’ts. • This training provides an basic understanding of: o o o How the purchasing process should work? Basic purchasing rules. Decisions that must be made for each purchase. How to request a purchase? ; How to select vendors? How to prevent an unauthorized purchased from occurring? 2/24/2016

Do it Right to Get it Right • Our Job is to get you: o o o The right product or service; From the right vendor; With the right quality; For the right price; At the right time. 2/24/2016

WE DO IT WITH YOUR HELP You control your own destiny. Partner with us to help make a successful purchase. The following training is designed to make the purchasing process less intimidating by providing a better understanding of the process and the information required to make your purchase successful. All purchases must begin by submitting a requisition into CAPPS. No exceptions. 2/24/2016

SELECTING THE RIGHT VENDOR Myth: I have to name a vendor on my CAPPS requisition before I submit it to purchasing. Answer: No While you are required to provide a cost estimate on the CAPPS requisition, you are not required to provide a vendor name. If you do obtain a quote from a vendor then you should provide vendor’s name, contact information on the requisition. Attach a copy of the quote to the CAPPS requisition. If you don’t have a vendor in mind, provide us with your best estimate of the cost that is within your budget. This will become our target cost. The purchaser will find the best vendor with the best price, often below your estimate. If the actual cost is higher than your estimate, additional approvals will be required. Purchasers must follow the state purchasing rules when selecting vendors. 2/24/2016

Who’s Responsible? Purchasers: • Are responsible, once the CAPPS requisition has been properly budget checked and approved, for the purchasing process, including selecting vendors, determining best price/best value, following up on delivery, and ensuring products or services are properly received and paid for; • Must follow state procurement laws and procedures; • Try to accommodate suggested vendors if purchasing rules allow; • Inform you when we cannot use the vendor you've selected; • Must check Smart. Buy, TIBH, TCI, DIR, CMBL, CCG, dollar thresholds, and more; and • Select HUB vendors whenever possible. 2/24/2016

What is a HUB? HUB stands for: Historically Underutilized Business • All Agencies are required to provide opportunities to minority businesses in various categories. • Goals are set for each Agency. • Agencies are measured on Good Faith Effort to meet those goals. • Good faith effort includes providing bidding opportunities to HUB vendors whenever possible. • We need your help in meeting HUB goals by selecting HUB’s whenever possible. 2/24/2016

What is Smartbuy, DIR, CMBL, Set-Asides? • Smart. Buyo o • System all Agencies must use to make purchases if available on Smart. Buy, regardless of dollar value. Comptroller is the Purchasing Authority for the State. No state agency has authority to purchase unless it is delegated by the CPA or exempt by law. Anyone can access Smart. Buy. You can use it to get price quotes: Go to http: //www. txsmartbuy. com/ Set-Asides, TIBH and TCIo o o • Programs established by law to purchase certain items from specific groups. TCI is Texas Correctional Industries; manufactures furniture, award plaques, etc. TIBH is Texas Institute for Blind and Handicapped; supply a wide variety of goods and services. CCG is the Council on Competitive Government; offer certain services. Agencies are required by law to use these programs or receive an exemption. TCI and TIBH are a part of Smart. Buy system. DIR- Department of Information Resources o o • State Agency established by law for managing all IT related purchases. IT related products and services must be purchased from their contracts or receive an exemption. All DIR contracts have HUB resellers. Gives Agency full HUB credit. New Rules in affect for purchasing through DIR. Let you purchaser assist you. CMBL-Central Master Bidder’s List o o List of vendors registered to do business with the State; managed by the Comptroller. State agencies required to use vendors from CMBL list. Register by NIGP commodity codes; easy to find vendors to supply what you need. Search for vendors by going to: https: //mycpa. state. tx. us/tpasscmblsearch/index. jsp 2/24/2016

Why are dollar threshold important? Used to determine procurement method and how vendors are selected. • < $5, 000. 00 o o o • $5, 001. 00 -$25, 000. 00 o o • Requires multiple quotes from DIR Vendors May require review and approval of SOW by DIR for certain services >$100, 000. 00 o • Formal competitive bidding process required; All CMBL vendors for commodity code are sent notices, including HUB’s. Vendor performance reporting required. > $50, 000. 00 purchase of IT products and services o o • At least 3 informal competitive bids required from CMBL vendors, including two HUBS; Must use Smart. Buy, DIR, CCG, TCI or TIBH if available. >$25, 000. 00 o o o • Competitive bids not required. Select any qualified vendor not a terrorist; Must use Smart. Buy, DIR, CCG, TCI or TIBH if available. HUB Subcontracting Plan required. >$1, 000. 00 o CATRAD review required. 2/24/2016

What are exceptions? You may select a vendor without competition if one of the following applies: • < $5 K & not found on Smart. Buy; not sold by DIR, TIBH, CCG or TCI. • Proprietary o Must provide justification letter signed by Executive Director. • Emergency o Lack of planning does not make an emergency • TXMAS o Allowed by law to use without competitive process o Variety of products and services available o Found on Smart. Buy • TGC 2155 -143 o Gives TJJD authority to award contracts for “care and treatment services” o Exempt from competitive process o Based on qualifications and reasonable price 2/24/2016

What does all of this mean? • It’s OK to Google search or select your own vendor. • The purchaser may not be able to purchase from your suggested vendor but will try within the rules. • Purchaser will communicate with you about your requisition. • Accurate cost estimates and detailed descriptions are the most important. • Vendor quote may be used for negotiation and will become part of the purchase order or contract. 2/24/2016

Why even bother to look for a vendor? • May be only way to get cost estimate. • Quotes give us more detailed description for products or services being offered. • Gives information that can be verified if on a state or DIR contract. • Helps to find competing bids to obtain best value. • We’re impressed by your efforts. 2/24/2016

How can I find a vendor? If you want to find a vendor instead of Google search check out these web links: • http: //www. window. state. tx. us/procurement/cmblhub. html • http: //www. dir. state. tx. us/ict/contracts/Pages/Products. Servi ces. aspx • http: //portal. cpa. state. tx. us/txmas/ • http: //www. tibh. org/store/ • http: //www. tci. tdcj. state. tx. us/ • http: //www. ccg. state. tx. us/contracts/index. php 2/24/2016