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But I Want It Now

But I Want It Now. A Guide to Emergency Procurement in the State of Texas. First Things First. Lack of Planning Does Not Constitute An Emergency. We’re texas. We know that we’re going to have certain kinds of emergencies and natural disasters. Best practice. Consider contingency contracts

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But I Want It Now

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  1. But I Want It Now A Guide to Emergency Procurement in the State of Texas

  2. First Things First • Lack of Planning Does Not Constitute An Emergency

  3. We’re texas • We know that we’re going to have certain kinds of emergencies and natural disasters

  4. Best practice • Consider contingency contracts • May be negotiated in advance • Because not considered an emergency contract—even if to be used in the event of an emergency—it’s possible to comply with all procurement statutes • Triggered by precipitating event

  5. Water and Ice

  6. Non-perishable foods

  7. Other Essential services

  8. I still want it now

  9. Definition of EMERGENCY PROCUREMENT • Where the procurement is necessary to prevent a hazard to life, health, safety, welfare or property; or • To avoid undue additional cost to the state • Texas Gov’t Code § 2155.083(i)

  10. Examples

  11. Delegated authority

  12. Agency responsibility • CPA delegated to all agencies authority to make emergency purchases • Decision to declare emergency rests with the agency • Agency still subject to CPA rules & procedures • CPA does not certify existence of emergency

  13. cOMPETITION

  14. Solicitation procedures • At least 3 informal bids whenever possible • Award should be made based on best value, given the type of emergency • Negotiations encouraged • Agency will have to handle complaints arising from process

  15. Solicitation, cont’d. • Purchases over $25,000.00 must be posted in the ESBD BUT • Minimum ESBD posting requirements do not apply • These posting requirements are in addition to TPASS procedures governing emergency procurements

  16. Justification Requirements • Purchasing director must sign letter documenting emergency • Must address nature and cause of emergency • Must address estimated impact or damage that will occur following normal procurement practices • General statement of loss/damage insufficient

  17. HUB STILL APPLICABLE

  18. Audit Requirements • Goods/services >$25,000.00 are pre-payment audited by CPA • Retain original documentation • Include the following: • Signed quote/estimate/bid or SOW • Beginning and ending date • Bid tabulation sheet • Justification letter • Purchase order • ESDB posting

  19. Additional recommendations • CPA strongly suggests use of all CPA T&Cs for emergency procurements regardless of amount • If informal bid process used, CPA T&Cs may be included by reference as part of purchase order • Be familiar with other specific statutes applicable to certain contracts, i.e., major consulting services, which may still apply. • Limit duration of contract

  20. Is there another way?

  21. Texas Disaster Act • Governor may declare state of disaster if has occurred or threat is imminent • Gives the Governor the authority to issue executive orders/proclamations/regulations that have the force and effect of law • Gives authority to suspend provisions of regulatory statute if strict compliance would prevent/hinder/delay necessary action

  22. Definition: • Disaster: the occurrence or imminent threat of widespread or severe damage, injury or loss of life or property resulting from any natural or man-made cause, including fire, flood, earthquake, wind, storm, wave action, oil spill or other water contamination, volcanic activity, epidemic, air contamination, blight, drought, infestation, explosion, riot, hostile military or paramilitary action, extreme heat, other public calamity requiring emergency action or energy emergency

  23. Wind storm

  24. Oil Spill

  25. volcano

  26. epidemic

  27. BLIGHT

  28. DROUGHT

  29. INFESTATION

  30. not that kind

  31. Civil unrest

  32. EXTREME HEAT

  33. Sample language • As provided in Section 418.016 of the code, all rules and regulations that may inhibit or prevent prompt response to this threat are suspended for the duration of the state of disaster. • Limited to nature and scope of declaration

  34. Federal Reimbursement

  35. Requirements • FEMA requires competitive bidding except in very limited circumstances • Distinguishes between “emergency work” and “emergency contracting” • Non-competitive contracts allowed only if award cannot be delayed by amount of time required to obtain competitive bidding

  36. distinction • This can’t wait

  37. This can…

  38. Not sure if it’s an emergency?

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