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FISCAL MANAGEMENT OPERATIONS GUIDE

Purchases From Existing Contracts With Vendors

State Contract

State contracts are issued by the General Services Commission for frequently used items. When ordering from the contract, no bidding is necessary as bids have already been taken by the GSC. Contract information is available electronically in the purchasing module of DEFINE or online at General Service Commission Search by Item (http://www.gsc.state.tx.us/search/site.html) and General Services Commission Listed by Class (http://www.gsc.state.tx.us/cat_page/).

The General Services Commission (GSC) issues annual contracts to take advantage of volume purchasing discounts and to reduce repetitive bidding on commonly used items. A large variety of items are covered by these contracts. These include supplies, equipment, materials and services.

Current GSC regulations require that items be purchased from the contract whenever possible.

Use of the State Contract is mandatory when using State funds. If State funds are being used, and the item requested is on State Contract, the DEFINE small order system cannot be used. A purchase request must be sent to the Purchasing office, and a General Service Commission State Contract purchase order must be issued. Exceptions to the mandatory use of the State Contract include:

1. The Spot Purchase Option (Under a specified dollar amount, the end user may choose the contract or open market purchase.) This dollar amount will be listed in the contract's general information.
2. Certain contracts require a minimum purchase amount. If the order does not meet the minimum, the contract cannot be used.
3. If the item is not sold through the State Contract or if the item offered lacks a feature or specification you require.
4. Contract use is optional when using Local Funds.

The General Services Commission has authority to administer and execute state contracts. A typical contract term lasts one year. During that time, the price of the item is expected to remain firm. The contract price is available to all state agencies and institutions in Texas.

Automated Contract

State contract items referred to as "automated" are computerized at the GSC (found on the white pages of the contract books). Each item in the automated contract books has a unique 11-digit commodity code assigned to it. The first 3 digits designate the class, the next 2 digits designate individual items in that class, and the remaining digits designate the specific type, size, grade and packaging of the item. The 5-digit code number listed to the left of the commodity code indicates the vendor for that item. There is no limitation to the number of classes per requisition as long as all items are being supplied by one contract vendor. Automated contract items may be requisitioned by completing a PB7 document on DEFINE or a Purchase Requisition form and forwarding it to the Purchasing Office.

Non-Automated Contact

Non-automated contract items are those which do not lend themselves to easy computerized processing by the GSC and are found in the yellow pages of the contract book. They are identified by the commodity class and item number only. You must reference accompanying price lists and catalogs for item descriptions and pricing. The order must include a complete description of each item including part number, model, specifications, etc. Only one vendor may be listed per requisition.

Non-automated contact items are purchased by:

1. locating them in your contract book,
2. completing the purchase request, and
3. forwarding it to the Purchase Office.