GENERAL ETHICAL STANDARDS…………………………………………………….5
CHAPTER 1-PROCUREMENT………………………………………………………….6
Procurement Thresholds…………………………………………………………7
Procurement Methods……………………………………………………………8
Purchase Request.………………………………………………………………..8
Purchase Order……………………………………………………………………9
Contract Purchase Order………………………………………………………...10
Change Order……………………………………………………………………..10
CHAPTER 2-SOLICITATIONS..………………………………………………………...10
Solicitation Requirements………………………………………………………..10
Formal/Competitive Sealed Bids…………………………………………….11-15
Request for Proposals……………………………………………………………15
Professional Services…………………………………………………………….16
Request for Qualifications………………………………………………………..16
Annual Solicitations……………………………………………………………….17
CHAPTER 3-EXEMPTIONS……………………………………………………………..17
Emergency Purchases……………………………………………………………17
Sole Source………………………………………………………………………..18
Proprietary Source………………………………………………………………...18
Cooperative Purchasing Agencies………………………………………………18
Inter-Local Agreements…………………………………………………………..19
Employee Ineligibility……………………………………………………………..21
CHAPTER 6-LEGAL REQUIREMENTS………………………………………………..21
Insurance…………………………………………………………………………. 21
Errors and Omissions Insurance………………………………………………..22
Performance and Payment Bonds……………………………………………...22
Sales Tax………………………………………………………………………….22
Signatory Authority……………………………………………………………….22
Exhibit A-Solicitation Prep Request
Exhibit B-Quote Form
Exhibit C-Code of Conduct Form
Exhibit D-Vendor Report Card
Purchasing is a division of the City of La Porte Finance Department and is responsible for
the process of acquiring goods and services necessary to provide the public with certain
The Purchasing Division provides centralized procurement and all purchasing activities are
governed by this Purchasing Policy Manual. The Purchasing Division assists each
department, division and their staff to secure the best material, services, and equipment in
the most efficient and economical manner. Furthermore, the division is responsible for
sale and/or disposal of city surplus.
City purchasing policy and procedures comply with local, state and federal codes,
ordinances, and statutes. The statutes that govern public procurement and cited
throughout the document are Texas Local Government Codes (TX LGC) 252. In the event
of conflict, the appropriate statute or ordinance will prevail. The Purchasing Division
functions in a manner that is consistent with codes, ordinances, statutes, and sound
business practices.
The purpose of this policy manual is to provide for the fair and equitable treatment of all
persons involved in public purchasing by the City, to maximize the purchasing value of
public funds in procurement, and to provide safeguards for maintaining a procurement
system of quality and integrity.
This manual applies to the procurement of supplies, services, and equipment, entered into
by the City, irrespective of the source of the funds.
The City of La Porte does not discriminate against individuals, companies, or awarding of
bids with respect to race, color, national origin, sex, age, disability, or religion.
This policy manual supersedes any and all previous purchasing policy manuals approved
or utilized by the City of La Porte and becomes effective March 2019.
City of La Porte employees shall conduct all procurement on the basis of the best benefit
to the City and that best promotes the interest of the citizens of La Porte. Unrestricted
competition on every type of procurement is encouraged, which ensures the taxpayers the
best possible return on each dollar. All contracts and purchases shall be handled to
ensure the best value for the City, with solicitations obtained whenever practical.
Ethics: To achieve the purpose of this section, it is essential that those doing business
with the City also observe the ethical standards prescribed here. It shall be a breach of
To attempt to realize personal gain through public employment with the City,
other than the employees normal duties
For any employee, officer or agent to participate directly or indirectly in
procurement when the employee knows that he or any member of the employee’s
immediate family (or associated business or organization) has a financial interest
pertaining to the procurement
No employee of the City shall solicit, demand, accept or agree to accept from
another person or business, a gratuity or an offer of employment in connection to
any solicitation pending or make available information not provided to all potential
For any employee or former employee of the City to knowingly use confidential
information for actual or anticipated personal gain
Solicit or accept anything of value from an actual or potential vendor with the
exception of promotional items of negligible value, in the form of note pads, pens,
calendars, etc., which may be accepted and used in normal City business
Appointed Official/Employee: As stated in the City of La Porte Charter §Article VIII,
Section 8.02:
“No member of City Council or any officer or employee of the City shall have a financial
interest, direct or indirect or by reason of ownership of stock in any corporation, in any
contract or in the sale to the City, or to a contractor supplying the City, of any lands or
rights of interests in any land, material, supplies or service. Any willful violation of this
section shall constitute malfeasance in office, and any officer or employee of the City
found guilty thereof shall there by forfeit his office or position. Any violation of this section
with the knowledge expressed or implied of the person or corporation contracting with the
City shall render the contract voidable by Council.”
Under Texas law, an individual is automatically removed from his or her position if that
person is finally convicted of failing to comply with the competitive bidding or
competitive proposal procedures required by TX LGC § 252.063.
The Purchasing Division has the authority and responsibility of centralized procurement for
the City of La Porte. Employees are provided authority to procure goods and services
under $2,000 with petty cash, direct pays, and procurement cards, as described under
Procurement Methods, further in this section. All other procurement unless approved by
the Purchasing Manager, must be processed through a Purchase Requisition with
authorized approval through the Purchasing Division and ordered only by a numbered
Purchase Order. Employees do not have the authority to obligate City funds and may be
held accountable for unauthorized purchases, including disciplinary action up to and
including termination as stated in the Employee Policies Handbook, 3.04 Violations
of Policies/Acts of Misconduct: “Employees may be disciplined or terminated for
misconduct dependent on the severity, including but not limited to:
1. Violation of any City or department rule, regulation, policy, or procedure”
The goals of the City’s Purchasing Division include the following:
Timely purchasing of quality goods and services;
Obtaining the best possible prices for goods and services;
Encourage and promote inter-local cooperation amoung area agencies;
Utilize cooperative purchasing programs as allowed;
Provide guidance to the individual departments regarding proper purchasing
practices, procedures and processes.
Vendor Relations: Purchasing staff acts as the liaison between the City and vendors
Purchasing staff should be the first contact for vendors. New vendors should be
directed to Purchasing for information on how to do business with the city.
Purchasing will meet with vendors upon request and forward any pertinent
information to the appropriate end-users
All vendors must be afforded equal opportunity to compete, provided the same
information, and treated fairly
End-users should coordinate meetings with vendors through Purchasing staff
All correspondence with vendors shall be through the Purchasing Division
Any solicitation or item under consideration for purchase shall not be discussed or
price revealed until a purchase order or contract has been awarded.
Public Purchase: Vendors wanting to do business with the City will need to register on
Public Purchase, which is a web based e-Procurement service that manages our vendor
data base. All Formal Quotes, Request for Bids, Request for Proposals and Request for
Qualifications are posted on Public Purchase as well as any addendums. Once a vendor
is registered they can sign up to receive email notifications when a solicitation is posted.
Procurement Thresholds:
$0 to $1,999.99 Primary source of procurement is city-issued procurement card
(p-card). If selected vendor does not accept p-cards, a direct pay may be used
for expenditures up to $199.99. Expenditures $200.00 and above should be
procured using a purchase requisition if a vendor does not allow use of the p-card.
$2,000.00 to $24,999.99 Requires a minimum of three (3) written quotes be
obtained by the department or through purchasing, utilizing standardized quote
forms. End-users should issue a purchase requisition and attach the quotes to the
requisition. At least one (1) quote should be from a minority vendor or historically
underutilized vendor (HUB), if available. Quotes must be on City Quote form or
they will be rejected.
$25,000.00 to $49,999.99 Requires Purchasing create an informal solicitation to
send to potential bidders. Once awarded, end-users shall issue a purchase
requisition and reference the informal solicitation number.
$50,000 and above Requires all state statues listed in the TX LGC Sections 252
be followed, including approval by City Council. This is supported by Ordinance
No. 2004-2736-A. Legal statutes and ramifications as provided in Texas Local
Government Code (TX LGC) and Texas Penal Code:
If a city enters into a contract without complying with the requirements of Chapter 252,
the contract is void.
Attempts to circumvent purchasing policies and limits by dividing purchases into multiple
separate invoices or payments will not be tolerated and is subject to disciplinary and/or
legal actions. If a person fails to comply with the competitive bidding or competitive
proposal procedures required by Local Government Code Chapter 252, that person may
be convicted of a Class B misdemeanor; TX. LGC §252.062. This includes a
situation in which a person makes or authorizes separate, sequential, or component
purchases in an attempt to avoid competitive bidding requirements. A Class B
misdemeanor may be punished by a fine of up to $2,000, confinement in jail for up to
180 days, or both the fine and confinement. TX Penal Code §12.22
Except as otherwise provided, acquisition of goods and services $2,000 and above
shall be made only by an approved, numbered Purchase Order issued by the
Purchasing Division, prior to placement of order. No purchase shall be made
without proper approvals and compliance with procurement thresholds.
Procurement Methods
The Finance Department accepts several methods of procuring goods and services for
the City. Each method must be approved by authorized personnel, based upon approval
forms. It is understood that the City Manager and Assistant City Manager shall be
authorized to sign for all departments.
Petty Cash: Purchases $100.00 and below may be made by authorized employees
with approval from the Department Director, from petty cash, after completing a petty cash
Direct Pay: Direct Pays may only be used for payment for the following:
Registration and Travel
Memberships and Subscriptions
Books and Videos under $100.00
Utility Payments
Petty Cash and Drawer Funds
If the payment is for a service a Purchase Request must be entered. A Direct Pay is
entered in OneSolution with appropriate back up attached. Accounts Payable has
detailed instructions on how to enter a Direct Pay in OneSolution.
Exceptions – If the item that you are purchasing is under $200.00, and the vendor does
not accept a P-Card, you may then use a Direct Pay but this must be noted on the
Direct Pay for Accounting to process the payment.
Procurement Card (P-Card): A City issued credit card is the preferred
payment method for the following:
Travel arrangements
Small dollar purchases
Over the counter expenditures
Internet purchases
Contract items (with Purchasing approval)
Purchase Request (PR): A Purchase Request shall be prepared for all purchases
unless a Procurement Card is used or the purchase meets one of the conditions listed
under Direct Pay. The PR shall originate in the user department and shall be entered into
OneSolution/Purchase Request Screen. Preparation must be done far enough ahead of
the date the goods /services are needed to allow normal purchasing procedures to prevail.
When entering a PR; make sure to include:
Detailed descriptions to allow staff and the vendor to know exactly what is
being procured
If there is freight or shipping make sure the amount is included in the total or
make a separate line item
Separate line item for trade-ins or deductions
Attach quotes on City Quote Form to the PR for expenditures between $2,000 and
$24,999 or state in the PR Note section the reason why quotes were not obtained.
No quotes, quotes not submitted on City forms, or no comments will cause the PR
to be rejected and will delay the Purchase Order process.
If the amount is over $50,000, in Comments, state the Solicitation number and
the date it was approved by Council.
Attach or provide any agreements or contracts concerning this procurement
Purchasing will email the PO to the vendor and end-user as standard procedure
unless instructions to do otherwise are included in the comments on the PR.
A step by step end user guide for entering in Purchase Requests in OneSolutiion may be
found on the CWShare drive under Purchasing.
Approvals: All PR’s are routed through a workflow for approvals and must be approved
online in OneSolution or by email if applicable. The requisitioner will save and approve the
PR and then it will route to a supervisor/director depending on the dollar amount.
IT (Information Technology) Related Purchases: Any new software, computers, printers
laptops, or technology based equipment must be approved by the IT Manager. If item is IT
related the PR will route to the IT Manager through workflow for approval.
Purchase Order (PO): PO’S are issued by purchasing staff upon receipt of a completed,
approved, purchase requisition (PR) with proper back up.
Once the PR is processed, purchasing staff will issue a copy of the PO to the awarded
vendor and end-user. When the goods are delivered, City staff should ensure the product
matches the order and is delivered in good condition. Damaged merchandise should be
returned to the vendor for replacement or credit. Staff should also review and make
certain all aspects of the service orders were completed satisfactorily and according to the
quote and/or contract.
Most POs are issued for specific items or known quantities and prices. The quantity may
be one or greater and the unit cost reflected; however, in some cases, the quantity may
be one and the amount a lump sum. If the amount is a lump sum amount the pay by
box must be checked when entering in the PR. Regular POs are issued a six-digit
number with the first two digits being the fiscal year (190001).
After the end-user has determined the vendor has successfully provided the goods or
service, a Receiving Report (RR) in OneSolution must be completed in order for
Accounts Payable to have the authority to pay for the goods and services. If the goods
are not excepted or returned or canceled, contact Purchasing to adjust the PO.
Contract Purchase Order: Contract PO’s are for annual contracts and construction/CIP
projects. Annual contracts are for items or services or items purchased throughout the year.
Purchase Request for annual contract items and construction projects will be processed
by the Purchasing staff through the OneSolution Contract Module and then the PR will go
through the appropriate workflow approvals for the department. Contract POs are issued
a six-digit number that begins with a C (C000001).
Change Order: TX LCG §252.048 states a change order necessary after work has
begun or the quantity increases or decreases, the total contract price may not be
increased by more than 25% of the original contract price and the contractor or vendor
must consent to a decrease over 25%. City Council must approve all change orders
$50,000 and above and may grant authority to an administrative official to approve
changes below $50,000. All change orders must be within budget or additional funds must
be requested, prior to PO processing. Change orders for regular PO’s will be entered by
the department on the Change Orders screen in OneSolution. Change Orders for
contract PO’s will be entered by Purchasing through the Contract Module. All change
orders for contract PO’s will be in writing and signed by the Department Director or
Project Manager and the Contractor.
City policy requires competitive solicitations on any procurement over $2,000; however,
the process may be accomplished with various methods as listed below:
Quotes- $2,001-$25,000
Informal Bids- $25,001-$49,999
Formal Bids-$50,000 and above
Requests for Qualifications-Used for Professional Services
Requests for Proposal-$50,000 and above
Solicitation Prep Request Form: Solicitations pertaining to construction projects will
require the Solicitation Prep Request Form be filled out and sent to Purchasing. This form
has information that will assist Purchasing with the Bid Documents. This form can be found
on the CWShared Drive/Forms,Policies & Manuals/Purchasing/Forms. See Exhibit A
Available Funds: Before Purchasing staff will begin any type of solicitation, funds for the
goods or services must be available and approved in the annual budget. The approved
estimated budget will drive the type of solicitation to be used. All funding listed at or near
$50,000 will require a formal bid process.
Grants/Federal Funds: End-users must notify Purchasing staff that a grant or federal
funds are used prior to the solicitation process. Government grantees must follow the
procurement regulations set forth in the Uniform Grant Guidance 2 CFR 200.318-
200.326, General Procurement Standards. There is a separate policy, Procedures for
Purchasing with Federal Grant Funds that must be followed in order to receive grant
Quotes or Informal Bids: Three (3) written quotes are required for procurement of goods
or services from $2,000 to $49,999.99. Departments shall use the quote form found under
Forms/Purchasing in the CWShare Drive (See Exhibit B) for all solicitations under
$25,000. Specifications for quotes over $25,000 should be submitted to the
Purchasing office and it will be posted on Public Purchase.
Historically Underutilized Business(HUB): Texas Local Government Code 252 requires
a city, in making an expenditure of more than $3,000 but less than $50,000, to contact
at least two HUBs on a rotating basis, based on information provided by the
Texas Comptroller’s Office pursuant to Chapter 2161 of the Government Code
(http://cpa.state.tx.us/procurement/prog/hub/). If the list fails to identify a HUB in the
county in which the city is located, the city is exempt. TX LGC §252.0215
To research HUBs and comply with this section, visit
http://www.window.state.tx.us/procurement/cmbl/cmblhub.html . Print the list of vendors or
message that states no vendors were found for your records and attach to the requisition.
Formal/Competitive Sealed Bids: State law requires a formal, competitive process
for purchases of more than $50,000 (Texas Local Government Code 252.021). Any
City department requiring a purchase which involves the expenditure of $50,000 or
over, shall be required to obtain competitive sealed bids or proposals. The following
procedures shall be followed to facilitate the bidding process. All competitive bids must go
through the Purchasing Department. Specifications should be submitted to the Purchasing
office to allow a minimum of eight (8) weeks until award.
A city may not avoid the application of competitive bidding or proposal laws by
purposely dividing a single purchase into smaller components so that each
component purchase is less than $50,000. Chapter 252 of the Local Government
Code prohibits the use of “separate, sequential, or component purchases” as a
means of avoiding bidding requirements.
Specifications: The requesting department for which the items are budgeted will be
responsible for preparing and/or assisting Purchasing in the development of specifications
and/or any required scope of services. Purchasing will assist the department in any way
necessary to develop specifications that will promote full and unrestricted competition.
Departments should provide the Purchasing division at least two (2) weeks to properly
prepare a solicitation. It is imperative that departments carefully plan their requests giving
consideration to the Purchasing division’s timelines in connection with department
All specifications shall seek to promote overall economy for the purpose intended and
encourage competition in satisfying the City’s needs, and shall be unduly restrictive.
Bid Schedule: In conjunction with the requesting division, Purchasing will establish the
schedule of events including advertisement dates, pre-bid conference, and bid opening
date. All formal solicitations will be assigned a number which will be included in the title of
the bid or proposal.
Public Notice/Advertisement: Any solicitation that is projected to exceed $50,000 will be
advertised. In accordance with 252.041 of the Texas Local Government Code: “notice of
the time and place at which the bids will be publicly opened and read aloud must be
published at least once a week for two consecutive weeks in a newspaper published by in
the municipality. The date of the first publication must be before the 14
day before the
date set to publicly open the bids and read them aloud” Bids are also advertised on the
City’s website and posted on Public Purchase. Purchasing will be responsible for the
advertisement and posting of the bids.
Pre-Bid Conferences and Site Visits: A pre-bid conference may be held when
specifications or the scope of work is considered somewhat complex and requirements
need to be clarified by City personnel. Because of this some pre-bid conferences are
mandatory and any vendor that does not attend a mandatory meeting will not have their
bid considered. The Purchasing Manager or his designee will attend all pre-bid meetings.
There will be at least one City employee from the requesting department present at the
pre-bid meeting that is knowledgeable of the bid specifications. Sign in sheets will be
made available to all attending the pre-bid conference. Bids received from vendors not
listed on the role of attendees of mandatory pre-bid conferences will be rejected and
returned unopened to the bidder.
Addendums: Some situations may arise where the specifications or bid documents need
to be revised or changed before the bid opening date. These changes are documented
with an addendum to the Bid that is prepared and signed by the Purchasing Manager or
his/her designee. All addendums will be posted by Purchasing to Public Purchase.
Bid Acceptance/Opening: Bids will be accepted at the City Hall receptionist desk
Bids must be sealed and are to be time and date stamped when received.
Purchasing will accept all bids and place them in a secure area until the date and time of
opening. Late bids will not be considered and will be returned un-opened to the bidder.
Bids shall be opened publicly in the presence of one or more witnesses. Bids will be
opened and read in the City Council Chambers at City Hall. The amount of each bid and
name of each bidder shall be recorded and that record shall be open to public inspection.
Bid Evaluation/Tabulation: Purchasing will prepare a tabulation for each item
or group of items following the bid opening and will consult with each department involved
to arrive at a mutual agreement for recommendation. Bids shall be evaluated based on
criteria set forth in the Bid documents in order to determine which represents the lowest
responsive and responsible bidder.
Bidders Responsiveness: Responsiveness is compliance with the requirements
of the solicitation, including specifications and contractual terms and conditions. It
also insure that all bidders respond to a solicitation in a common manner that
provides the equal competition. Failure by the bidder to accept the requirements of
the bid is grounds for rejection of its bid. Some common instances where bids must
be rejected and declared non-responsive:
The bidder states that it will not accept an award unless the solicitation
terms and conditions are modified or altered
The bidder states that it will only accept an award for all line items when the
solicitation allows award by line item or aggregate grouping of line items.
The bid is not submitted on the City’s Bid Form
The bid item does not meet the stated specifications and bidder has not
indicated the item bid is an alternate.
Requested information such as Contractor qualification statement or
financial information is not included in bid response.
If a bid is non-responsive, it shall be rejected and will not be considered for an award.
Rejection of Bids/Re-bid: It may be necessary to reject all bids and re-bid the goods or
services. Instances where all bids may be rejected are:
Poor response, lack of competition
All bids submitted are over budget for an item or project.
The rejection of all bids and approval to re-bid must be approved by City Council. It will
be the requesting departments responsible to prepare the agenda request for City
Award: The contract shall be awarded with reasonable promptness by the City Council to
the lowest responsible bidder or the bidder who provides goods or services at the best
value for the City.
In determining best value for the City, the City may consider items listed in 252.043 of the
Texas Local Government Code. The best value method is determined by considering the
The reputation of the bidder and the bidder’s goods or services
The quality of the bidder’s goods or services
The bidder’s past relationship with the City
The long term cost to the city to acquire the bidder’s goods or services;
Any relevant criteria specifically listed in the request for bids or proposals.
The City must indicate in the bid specifications and requirements that the contract will
be awarded either to the lowest responsible bidder or to the bidder who provides goods
or services at the “best valuefor the City.
Any expenditure over $50,000 must be approved by City Council. Purchasing will assist
in the agenda item; the responsible department will place and present the item for
recommendation for City Council approval. Agenda items should be sent to Purchasing for
review before placing item on the agenda.
Upon approval by the City Council, Purchasing will be responsible for the signatory of any
contracts and obtaining payment and performance bonds and proper proof of insurance.
Formal Bids for a Public Works or Construction Project: All rules apply as mentioned
above with the following exceptions:
Bonds: The Government Code mandates that a municipality contracting for a public
work in excess of $50,000 shall require its contractor to execute a payment bond.
The Government code also mandates that a municipality contracting for public work
in excess of $100,000 shall require its contractor to execute a performance bond.
Both the payment and performance bonds must be written for the total contract
value. The City may also chose to require a vendor include a bid bond with their bid
to ensure the successful bidder executes contract documents and proceeds with
performance. The bid bond is normally 5% of the total bid price.
Contractor Qualifications: Each bid must contain evidence of Bidder’s
qualifications to perform work described in the contract documents. The bidder
must list similar projects completed in the last five years. The City may request the
bidder to submit a Statement of Qualification Form.
Financial Qualifications: Per the City of La Porte, Code of Ordinances Chapter 2-
Administration/Public Works Contracts Section 2-106, qualification requirement of
the apparent low bidder for contracts above one (1) million but less than two (2)
million submit reviewed financial statements that are performed by an independent
certified public accountant. Contracts which are above two (2) million require the
apparent low bidder submit audited financial statements by an independent certified
public accountant.
Retainage: If payment will be made by monthly progress payments with approved
pay applications during construction, retainage should be withheld monthly. The
amount of retainage will be 10%. Retainage will be set up by Purchasing in the
Contract Module in OneSolution and reflected on the Purchase Order.
Project Design: If project is designed by an Engineering Firm or Architect the
following shall apply:
Specifications and plans/drawings shall be sent to Purchasing electronically.
Purchasing will add specification and plans/drawings to City of La Porte bid
and contract documents.
Engineer/Architect will prepare Bid Proposal Form and send electronically to
Purchasing and it will be inserted in the bid package.
Bids must be stamped with the licensed professional engineer/architect seal
Engineer/Architect will participate in Pre-bid meeting if applicable and clarify
any questions pertaining to the plans or specifications.
If any changes will be made to the specifications or plans before the bid
opening date, the Engineer/Architect will prepare and sign the addendum.
Engineer/Architect may attend the bid opening and will prepare the bid
tabulation and review all bids.
Engineer/Architect will prepare a letter for recommendation of award and
submit to the City.
Requests for Proposals (RFP): A contract may be entered into by competitive
sealed proposals when the Purchasing Manager determines that the use of
competitive sealed bidding is either not practicable or not advantages to the City.
RFP’s are used for services that are high technology or complex projects. Price is
not the only consideration of award, there are other factors that should be
considered and will be specified in the RFP. Revisions of proposals and price
negotiations may be permitted after submission and prior to award.
Public Notice/Advertisement: Must be advertised as stated in Formal Competitive
Sealed Bids (pg.11).
RFP Schedule: In conjunction with the requesting division, Purchasing will establish the
schedule of events including advertisement dates, proposal due dates and evaluation
due dates. The RFP will be assigned a number which will be included in the title of the
Evaluation Criteria: The RFP shall state the relative importance of price and other
factors and sub-factors. The evaluation criteria must be listed in the RFP. If price is
part of the evaluation criteria it cannot exceed 50% of the total evaluation criteria.
Purchasing and the requesting department will work together to compile the
evaluation factors.
Receipt of Proposals: Proposals shall be opened so as to avoid disclosure of
contents to competing offers. Openings will be public and will be in the City Council
Chambers, however, only the name of the responding vendors will be announced. A
tabulation shall be prepared after the opening and may be open for public inspection
after the award of the contract.
Evaluation Committee: A minimum of three (3) City staff members shall comprise an
evaluation committee to review and evaluate the returned responses, based on the
requirements specified within the RFP. Each committee member will sign and submit to
Purchasing a Code of Conduct Form (See Exhibit C) before they begin their
evaluations. Evaluations sheets will be prepared and distributed by Purchasing to
each committee member. Purchasing will total all evaluation scores and compile one
score sheet.
Interviews: The committee may choose to interview the top rated firms.
Best and Final Offers: After the interviews, firms are allowed the opportunity to submit
a “best and final offer” (BAFO) and the committee may once again score the firms to
select the firm that best meets the needs of the City. In conducting discussions, there shall
be no disclosure of any information derived from proposal submitted by competing
Award: Recommendation of award shall be made to the top ranked firm. Any expenditure
over $50,000 must be approved by City Council. Purchasing will assist in the agenda
item; the responsible department will place and present the item for recommendation for
City Council approval. Agenda items should be sent to Purchasing for review before placing
item on the agenda.
Professional Services: Texas law specifically exempts contracts for professional
services from the competitive bidding requirements. TX LGC§252.022(a)(4):
“a procurement for personal, professional, or planning services”.
A city is prohibited under state law from obtaining certain professional services through
competitive bidding such as the services of: certified public accountant; architect; land
surveyor; physician, surgeon, or optometrist; planner or professional engineer; state
certified or stated licensed real estate appraiser; or registered nurse.”
The Texas Attorney General has provided an opinion as follows:
Professional services have been described as those services which are
mainly mental or intellectual rather than physical or manual
Those disciplines requiring special knowledge or attainment and a high
order of learning, skill, and intelligence
Op. Tex. Att’y Gen. Nos. JM-1038 (1989); JM-940 (1988); MW-344 (1981)
t for Qualifications (RFQ):
Although competitive bids shall not be obtained,
neither the law nor Attorney General Opinions prohibit the City from soliciting
qualifications from professional service providers and evaluating the responses to
determine the top-rated firm. The City utilizes a Request for Qualifications (RFQ) to
obtain qualifications and experience for professional service firms. Since this solicitation
is based only on the qualifications of the respondent; price is not requested or considered.
The end-user submits information to Purchasing staff detailing the project and list of
qualifications. Purchasing will follow the same procedures as listed in Request for
Proposals with the following exceptions:
Negotiations: The committee selects the top-rated firm based on the qualification
factors listed in the RFQ. The end-user department meets with the top firm to discuss
the project and negotiate a firm price. If a price cannot be agreed upon, the negotiations
will terminate and the next top-rated firm will be contacted and negotiations proceed. At
no point, may the first firm be re-considered. The process continues until the City and a
firm reaches an agreement.
Agreements: If an agreement is reached, the City Manager may award if under $50,000;
if $50,000 or above, City Council approval is required. The City Manager or Assistant
City Manager must approve all new agreements over $5,000. Once the City determines
and contracts with the top-rated firm for a particular service, that same entity may be
hired for like projects; however, once a contract has terminated, it is advisable to
issue new solicitations for qualifications periodically to ensure the best vendor is
performing the right services for the City.
Annual Solicitations: Annual contracts that extend for a period of one (1) or more years
may be obtained through quotes, formal bids, or request for proposals. Annual
solicitations must include a term, including the start and termination date and a specific
number of years. Annuals may include additional option years for renewal upon consent
of both parties. Option years should be renewed with the exact same terms as the original
award, if possible. Exceptions may include documented and verified federal wage
increases, manufacturing product increases, or circumstances beyond the vendor’s
control. All renewals shall be processed and issued by the Purchasing Division with prior
consent of the end-user department.
Any commodity that is purchased through-out the year and exceeds $25,000 should be
considered an annual contract and awarded through the Purchasing office with the
appropriate solicitation method.
When expenditures exceed $50,000 and require Council approval, the agenda item shall
contain the following items:
Term and option years renewals, if any
Annual Budget
Amount of the recommended bid
Not-to-exceed annual dollar amount to be spent, if less than total of recommended
Annual contracts should provide good estimated quantities based on the prior year and
include an allowance for unforeseen circumstances. Be aware that any increase or
decrease to an annual contract must comply with the rules pertaining to change orders.
Any increase at time of renewal will need to be in writing for consideration.
Exemptions from competitive solicitations are specific exceptions that relieve the City of
the need to bid or seek proposals of an item or service.
Emergency Purchases: An emergency purchase is defined as follows: TX LGC §252.022
A procurement made because of public calamity that requires the immediate appropriation
of money to relieve the necessity of the municipality’s residents or to preserve the
property of the municipality; or, a procurement necessary to preserve or protect the public
health or safety of the municipality’s residents; or,
Procurement necessary because of unforeseen damage to public machinery, equipment,
or other property.
Emergency purchases may be made for items costing more than $2,000 and less than
$50,000 without being subjected to the competitive quotes. A properly executed
requisition and a signed statement from the Department Director certifying that an
emergency exists must be submitted to the Purchasing Division.
The Purchasing Division shall attempt to secure more than one quote if time and/or
circumstance will allow. If the emergency procurement occurs during normal business
hours, a purchase order must be issued or a P-card transactions authorized through the
Purchasing division.
If the emergency procurement is required outside of normal office hours, the proper
paperwork shall be submitted to Purchasing by noon the following business day whereby
Purchasing will either authorize a P-card transaction or issue a purchase order to conclude
the emergency purchasing activity. In the case of natural disasters, P-card limits may be
increased and temporarily allow P-card transactions over $2,000.
Emergency purchases exceeding $50,000 shall require a signed statement from the
Department Director certifying that an emergency exists and approval of the City Manager
or Assistant City Manager. The department director shall submit an agenda item to
request approval by City Council at the next regularly scheduled Council meeting. Nothing
herein shall prevent the emergency purchase to be made prior to the next Council
Sole Source: Procurement of items available from only one source. Two (2) forms of
documentation are required prior to the issuance of a purchase order for sole source
Memo from the department director stating why this particular product is the only
one that may be considered, and
Letter from the manufacturer stating they are the only maker of this product and
sole supplier. If available through a single distributor, the manufacturer must
specify the supplier and why. Examples may include territories, marketing
assignments, etc.
Proprietary Source: Procurement is only available from one source due to the fact that it
must be compatible with another item. Example: parts for a John Deere tractor
Cooperative Purchasing Agencies: An agency that follows all rules and regulations of
competitive solicitation requirements to obtain pricing for specific items and/or services.
Although departments are encouraged to research and use these agencies, purchasing
staff should be notified of the intent to procure items through this method and review
required documents prior to Council award or the issuance of a Purchase Requisition.
POs will be distributed by the Purchasing office and must be sent to the vendor and the
cooperative agency for the order to be valid. The City recognizes and has agreements or
memberships with the cooperative agencies listed below; however the list is not all
inclusive and other agencies may be utilized.
Houston Galveston Area Council (H-GAC)
State of Texas
U.S. Communities
Inter-local Agreements: When procurement is obtained through an inter-local
agreement with another city or public entity by utilizing their competitive solicitation. The
solicitation must contain wording that other entities may be allowed to enter into
agreements with the awarded vendor. Both the inter-local agreement and specific
expenditure, if $50,000 or above, must be approved by Council.
The focus of contract administration is to obtain the supplies and services outlined in the
contract, of the best quality, within a specific time frame and, most importantly within
budget. As such, contract administration serves as a primary part of the procurement
process that assures that the contract is successfully executed. Purchasing Staff is
assigned the undertaking of contract administration and will work with the vendors as the
liaison; however, departmental assistance is essential for completion of these tasks.
Purchasing responsibilities will include:
Provide administration of all city-wide contracts, for example, janitorial services,
and rental of uniforms etc.
End-users must notify Purchasing staff of any issues regarding city-wide
Feedback on any type of annual or term contract is imperative to ensure
specifications and expectations are met
Vendors must be allowed the opportunity to remedy any issue
Manage the preparation, approval process and execution of contract documents
After a contract is awarded by City Council, Purchasing will send an award
letter to the vendor along with the contract documents.
Purchasing will manage the contract execution process and will receive
performance and payment bonds (when applicable) and verify certificate of
Purchasing will be the primary liaison for the City along with City
Attorney in the development and review of contract documents.
Contract Purchase Request for Annuals and Construction Projects
Once the contract documents have been executed and all required forms are
submitted, a Purchase Request will be entered by Purchasing through the
Contract Module in OneSolution and will be routed for approvals according to
the work flow process.
When the Purchase Order is received by the end-user department the
contractor can be contacted to schedule a pre-construction meeting and
prepare the Notice to Proceed, if applicable.
Maintain a centralized list of all annual contracts/agreements for goods and services.
Contact vendor and end-user department to request renewal
Review all increases and decreases
Prepare contract renewal documents and ensure they are executed by both
Audit prices on annual contracts quarterly
Purchasing will audit contract pricing quarterly, but it is the department’s
responsibility to ensure they are paying contract pricing.
Upon the completion of a contract the project manager will fill out a Vendor Report
Card, (See Exhibit D) so we will have a record of the vendor’s performance.
The Purchasing Division is responsible for the sale and/or proper disposal of surplus or
obsolete City property including vehicles, equipment, office furniture, or any other item that
is determined to be of no further use to the City. Each Department Director shall review
their department's assets each year and determine if any item should be sold through
auction or properly discarded.
Auction: Purchasing works with a licensed auctioneer to conduct online auctions as
determined by need.
Purchasing staff will notify departments of an upcoming auction and a deadline to
submit a list of items for auction.
Departments must provide a list with the following information:
Complete description
Condition of the item and any known defects
Pictures, if applicable, including front and side views of vehicles and
Storage location for bidder viewing
Point of contact name and number for pick up.
Completed VIS form for vehicles and equipment
Copy of title of vehicle is being auctioned
Proper forms for fixed asset disposal must be completed and submitted to the
Accounting Division
Departments are responsible for storage of items until sold and picked up by the
successful bidder.
The Purchasing Manager may declare any item not sold or picked up to be of no
value and recommend disposal
Disposal: Items that are broken and non-repairable and/or have no dollar value may be
properly disposed. Usable items shall not be discarded; employees shall not remove
discarded items from City property. The procedures below must be followed:
Purchasing staff must be notified of disposal items
Items should be recycled, if possible
Proper forms for fixed asset transfer must be completed and submitted to the
Accounting Division
Proper disposal must be in compliance with any laws and regulations
Contact IT to assist with disposal of hi-tech equipment as they use an outside
source to wipe the drives and provide certification of proper disposal
Employee Ineligibility: City employees are not allowed to bid on any item at City of
La Porte auctions.
Insurance: Contractors performing work on City property or public right-of-way for the
City of La Porte shall provide the City a certificate of insurance listing the City as
additional insured and evidencing the coverages identified in the solicitation. All
insurance must be written buy an insurer licensed to conduct business in the State of
Texas, unless otherwise permitted by the Owner.
All contractors shall provide proof of coverage as stated in the solicitation requirements.
Contractor shall not commence until certificate has been provided to the Purchasing
Department. Each policy obtained by the Contractor shall name the City of La Porte as
an additional insured, and shall contain wavier of subrogation in favor of the City and also
give a 30 day cancellation notice. For construction and construction related jobs, all
contractors and sub-contractors, performing service on a Public Works project, shall
provide Texas Workers’ Compensation for all employees as required by the State of
Errors and Omissions Insurance (Professional Liability Insurance): Errors and
omissions, or professional liability, insurance shall be required to cover professional advice
and services, this would be services such as consultants, auditors or legal advice.
Performance and Payment Bond: Performance an Payment Bonds are furnished as a
guaranty of the faithful performance of the work and for the protection of the claimants for
labor and material. Each bond will be in the full amount of the Contract price, executed by a
surety company or surety companies authorized to execute surety bonds under and in
accordance with the laws of the State of Texas. Purchasing will be responsible to add these
forms and requirements to the Contract Documents when applicable.
Sales Tax: The City of La Porte is exempt from payment of taxes under Chapter 20, Title
122A, Article 20.04, Revised Civil Statutes of Texas, for the purchase of tangible personal
property. Any use of the City’s tax exemption certificate for personal purchase is not
prohibited. The Texas Sales Tax Exemption Certificate may be requested from the
Purchasing or Accounting Divisions. If an employee is charged sales tax it will be their
responsibility to get a credit back from the vendor or pay the City back for the taxes
Signatory Responsibility: All agreements and contracts over $5,000 will be signed by the
City Manager or the Assistant City Manager.
Addendum: a written change to a Bid, Quote, RFQ, or RFP during the solicitation
Agreement: a formal, written document between the City and vendor providing goods
or services, describing the scope of work and term of the contract. Agreements over
$5000 must be signed by the City Manager or Assistant City Manager
Bid: a formal written offer of a price by a vendor to the City to furnish specific goods
and/or services in response to a solicitation
Bid Award: an award of a bid for which funds have lawfully been appropriated by
the City Council
Bid Bond: An insurance agreement in which a third party agrees to be liable to pay the
City a certain amount of money in the event the successful bidder does not execute the
contract documents, furnish required bonds or insurance, or proceed with performance.
The bid bond, naming the bidder as principal, is given to the City at the time of bid.
Bid Deposit/Cashier’s Check: a guaranteed check furnished in lieu of a bid bond at
the time of bid submittal.
Capital Improvement Project (CIP): any public improvement the City undertakes,
including the construction or reconstruction in whole or in part of any building, road,
highway, street improvements, physical plant, structure or facility necessary in carrying
out the functions of the City government. It does not include any routine maintenance,
operation or repair of existing structures, buildings or real property.
Change Order: a modification, deletion or addition to an executed contract by means of
a formally executed document signed by both parties. A change order shall not exceed
25% of the original contract.
Consultant Services: An outside person or firm with education and experience in
specific area of proficiency to provide expert advice and/or perform technical services
requiring an elevated level of knowledge and skill. A Request for Qualifications should
be used to select the best professional within their field of expertise. Once the City
determines and contracts with the top-rated consultant for a particular service, that same
entity may be hired for like projects.
Construction: the process of constructing a building, structure, road or drainage
utilities; altering, repairing, improving or demolishing any structure or building; or other
improvements of any kind.
Contract: (a) a deliberate verbal or written agreement between two or more competent
parties to perform a specific act or acts; or (b) any type of agreement, regardless of what
it is called, for the procurement or disposal of goods, services or construction, usually for
exchange of goods or services for money or other consideration.
Contractor: any person having a contract with the City
Designee: a duly authorized representative of a person.
Historically Underutilized Business (HUB) Program: affirmative action program to
increase the participation of disadvantaged or businesses normally used; includes
minority and women owned businesses.
Emergency Purchases: procurement that is made in response to a requirement when
the delay incident for complying with all governing rules, regulations and procedures
would be detrimental to the health, safety and welfare of the City and/or its citizens.
Employee: a person employed by the City who is drawing a salary or wages directly
from the City.
End-User Department/Division: the department/division within the City government,
that requests and utilizes goods and/or services, procured according to the Purchasing
Procedures Manual.
Goods: any tangible property other than services or real property.
Formal Bid: the solicitation document that is used for competitive sealed bidding for
procurement of construction, goods and/or services and award is based on the lowest
responsible bid or best value for the City.
Item: a separate single unit, article, product, material or service.
Payment Bond: a form of security, required on contracts over $50,000, executed
subsequent to award by a successful bidder that guarantees the payment of debts
to persons furnishing services or materials on account of the contract work and/or
payment of other responsibilities of the contractor; provided prior to contract execution.
Performance Bond: a form of security, required on contracts over $100,000, executed
subsequent to award by a successful bidder that guarantees the proper performance of
the contract; provided prior to contract execution.
Procurement/Purchase: the buying, purchasing, renting, leasing or otherwise
acquiring of any goods and/or services for public purposes in accordance with the
laws, rules, regulations and procedures intended to provide for the economic expenditure
of public funds. It includes but is not limited to all functions which pertain to the
obtaining of any supplies, materials, equipment and/or services including construction
projects and Capital Improvement Projects, as defined herein, required by any
department/division or agency of the City government regardless of the source of funds.
Procurement Card (P-Card): an instrument used to purchase goods/services in
accordance with established procedures.
Professional Services: any certified public accountant; architect; land surveyor;
physician, surgeon, or optometrist; state certified or stated licensed real estate
appraiser; or registered nurse as defined under TX LGC 252.
Proposal: an executed formal document submitted by an offeror to the City stating the
good(s) and/or service(s) offered to satisfy the need as requested in the Request for
Proposal or quote solicitation.
Public Purchase: web based e-Procurement service that manages our vendor data
base. All Formal Quotes, Request for Bids, Request for Proposals, and Request
for Qualifications are posted on Public Purchase as well as any addendum
once a vendor is registered they can sign up to receive email notifications
when a solicitation is posted.
Purchase Order: the City’s document used to authorize a purchase transaction with a
vendor. It should contain provisions for construction, goods and/or services ordered;
applicable terms as to payments, discounts, date of performance and transportation;
and other factors or conditions relating to the transaction. Acceptance of a Purchase
Order by a vendor shall constitute a contract, except instances in which a Purchase
Order is issued only as an internal encumbrance document.
Purchase Requisition (PR): System generated and approved document submitted to
purchasing to request a Purchase Order.
Quote or Informal Solicitation: written solicitation request and/or response offered to
the City by a vendor for furnishing specific goods and/or services at a stated price,
under $50,000.
Request for Proposal (RFP): a solicitation for goods and/or services for which the
scope of work, specifications or contractual terms and conditions cannot reasonably be
closely defined. Evaluation of proposal is based on stated criteria and shall state the
relative importance of all evaluation factors; other factors may be considered as stated
in the RFP.
Request for Qualifications (RFQ): may be a formal or informal request to solicit
qualifications and experience for specific services. Responses are evaluated and a
top responder is selected. Price may not be known or considered during the evaluation
process. Once a top respondent is identified, City staff negotiates a firm price and the
City Manager or Assistant City Manager sign an agreement with the individual or firm.
Retainage: A portion of the agreed upon contract price deliberately withheld until the
work is substantially complete to assure that the Contractor or Subcontractor will satisfy
its obligations and complete the project.
Services: the furnishing of labor, time and/or effort by professionals or contractors,
wherein the submission of goods or other specific end products other than reports,
studies, plans, advisories, contractual documents or other documents relating to the
required performance is incidental or secondary.
Sole Source: the only existing source of the only item which meets the needs of the
user department/division as determined by a reasonably thorough analysis of the
Specifications: a concise, descriptive statement of a set of requirements to be
satisfied by a product, material or process used in a solicitation to illustrate the goods
and/or services to be purchased or otherwise acquired.
Successful Bidder: vendor awarded the contract through solicitation, regardless of the
method used or dollar amount.
Vendor: an actual or potential provider of goods or services.
Solicitation Prep Request ( to Purchasing Division)
Project Manager _______________________________________________________________________
Project Name and Description ____________________________________________________________
City or Consultant handling (if consultant, please name) ______________________________________
Budget Amount _________________________ Grant Funded? __________________________
Engineer’s Estimate for Construction Projects _______________________________________________
Anticipated Project Start Date ___________________________________________________________
Number of calendar days to complete ______________________________________________
Number of calendar days for final payment __________________________________________
Pre-bid Conference Required? Yes____ No____ Mandatory? Yes____ No____
Pricing Liquidated Damages Yes____ No____
Lump Sum __________ Dollar Amount Per Day _____________
Progress Payments __________
Retainage __________
Licenses or Certifications required of Contractor? If so, list: _________________________________
Known vendors to be included, if any: (include phone and e-mail)
___________________________ __________________________ _______________________
___________________________ __________________________ _______________________
___________________________ __________________________ ________________________
___________________________ __________________________ ________________________
Please attach SPECIFICATIONS/SCOPE OF WORK to this form
City of La PortePurchasing
Request for Quote
Dated: Date quote sent
Name of Firm, Company
Contact Name
Mailing Address
City State Zip Code
Phone Number Email
Class Item Description Quantity Unit
Make/Model number or equal
Quantity/Unit of measure
ight/ Delivery
Please indicate if you are a Certified HUB Vendor Yes ______ No _______
VERY IN______________DAYS ARO. Prices shall b
e firm for a minimum of thirty (30) days.
of La Porte
604 W Fairmont Pkwy
La Porte TX 77571
Due date:
Pursuant to Section 2270.001 of the Texas Government Code, signing this form is verification by an authorized agent of the vendor that the
vendor 1) does not boycott Israel currently; and 2) will not boycott Israel during the term of the contract with the City of La Porte.
Evaluation Committee Code of Conduct
I, ________________________________(printed name), understand that serving on this
committee is both a commitment of judgment and time and I am prepared to make a priority
commitment of time to evaluation committee activities.
I am morally bound to be as objective and fair as possible and to conduct myself in a
professional manner at all times, whether with each other, with proposers, or the public.
I will make a sincere effort to be reasonable, open-minded, and willing to entertain and
consider suggestions and compromises that could ultimately result in a better contract for the
I acknowledge that committee membership requires trust. All proceedings will be held in
confidence until final contract award is made a matter of public record. In practice, all
outside questions relating to any areas of the process shall be referred to the Purchasing
Division representative.
I understand that I have the right to ask questions to fully understand the specifics of the RFQ
and/or proposal responses and to voice an opinion to either make or refute a point. In turn, I
understand that I am charged with negotiating a fair and reasonable price with the highest
ranked, most qualified respondent with the intent of recommending the award of a contract
to said respondent. I am prepared to defend my own vote.
I will strive to participate fully through deliberations to ultimately arrive at a collective decision
and to support the rationale behind the decision.
______________________________________________ ________________________
Signature of Committee Member Date
Vendor/Contractor Name: ______________________________________ Project Name/Bid No: ______________________
Vendor/Contractor Address: ____________________________________ Department: ______________________________
Contract Start Date: _____________________
Contract End Date: ____________________
Late Delivery
Late Delivery - Vendor Notified FINDINGS: Yes/No
Wrong Product delivered FINDINGS: Yes/No
Vendor complied with invoicing/payment requirements 1…..2…..3…..4…..5
Worksite clean, organized, safe and in compliance 1…..2…..3…..4…..5
Quality of Work 1…..2…..3…..4…..5
Vendor was cooperative with City and others 1…..2…..3…..4…..5
Ethical FINDINGS: Yes/No
Citizen/Resident valid complaints received during the Project? Findings: Yes/No
Product upgrade substitution suggested and
accepted at no additional cost to the city
Exceptional customer service response Provided value added options for cost, schedule or final product
Order or service completed satisfactorily
Provided technical/training/set-up
assistance when not required
Voluntary price reduction for large order
Signature: ___________________________
Delivery made at wrong destination Findings: Yes/No
Improper mode of delivery FINDINGS: Yes/No
Delivery made outside specified receiving hours
Date of this Report: _______________________________________
Purchase Order/Contract No: ________________________________
Supplier Report Card
(page 1 of 2)
Pricing Criteria
Delivery Criteria
Was pricing maintained in accordance with the contract proposal/bid?
Contract Compliance Criteria
Change Management Criteria
Exceptional Performance Criteria
Additional comments, where necessary, may be submitted on page 2, next
Vendor complied with scope of the contract
Vendor stayed on schedule and completed work on time
Submitted by:
Number of City recommended change orders ______
Re-Work? Provide Details if Yes
Shipment made early upon agency/co-op member request
Responsive to City directed changes (priorities, schedule,
Number of vendor recommended change orders ______
Date: __________________ Vendor/Contractor: ___________________________ Project/Bid No. ___________________
Change Management
COMMENTS to Supplier Report Card
(page 2 of 2)
Contract Compliance
Exceptional Performance