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Proprietary Procurements
A proprietary purchase is justified only when equivalent product or service competition
is not available. When the specification requirement limits consideration to one
manufacturer, one product, or one service provider, a written
justification must be provided and is subject to review by the Purchasing department
and/or the General Services Commission (GSC). The Purchasing agent or authorized
purchasing representative has final authority in determining whether the requested
purchase meets the definition of a proprietary or sole source procurement. The
proprietary specification must be stated in the Invitation for Bid (IFB). A
proprietary justification is not needed for purchases under $2,000.00 when using State
funds or purchases under $15,000 if using local funds.
The written justification must include the following:
- An explanation of the need for specification, e.g. which part or parts of the stated
specification restricts the requisition to one manufacturer or provider;
- The reason competing products are not satisfactory, e.g. a justification for the
proprietary purchase; and
- Other information if requested by the University or GSC for evaluation of the purchase.
It should be included as an attachment to the requisition and must remain with the
purchasing file for post-audit review.
Authorization
The justification must be signed by the Department head and authorized by the
Purchasing Agent or designee. If State funds are being used, a copy of the
authorizing signature must be on file with the GSC.
Accountability
When making a purchase of proprietary goods or services, the Purchasing Agent is
responsible for reviewing the justification and final authorization. If State funds
are being used, the GSC will review the justification. If the GSC takes exception, a
letter stating the reasons for exception will be mailed to the following parties:
- Board members;
- Commission members;
- The President or the chairman of the governing body;
- Elected officials of the respective agency;
- The State Auditor;
- The Legislative Budget Board; and
- The Governor
If the GSC takes an exception, the exception becomes part of the permanent file but the
purchase can proceed if the University decides it is in the best interests to do so.
When using State Funds, all purchases of services exceeding $25,000 are pre-audited
by the GSC. Purchases $25,000 or greater also require a mandatory 21-day posting on
the Internet. The Purchasing agent must send the purchasing documentation for
document type 3, PCC S to the GSC, Procurement Review Section, 1711 San Jacinto, rm. 304,
Austin, TX 78701 or P.O. Box 13047, Austin, TX 78711 immediately after the
award. This will expedite the payment approval process.
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