Consider and take appropriate action to:
Staff Report & Agenda Item Details
Local Government Code section 262.011(o) requires the County Purchasing Agent to adopt the rules and procedures necessary to implement the Purchasing Office and his duties. These rules and procedures must be approved by the Commissioners Court.<br data-pasted="true"><br>Chapter 32 Purchasing Rules includes the statutory authority of the Purchasing Agent, the intent of the Purchasing Office, a Code of Purchasing Ethics, and the assembly of the many delegations of authority to the Purchasing Agent that were previously scattered throughout Chapter 32.<br><br>The Purchasing Procedures Guide includes 24 sections, organized in chronological order to mirror the life cycle of a purchase from solicitation and contract award through contract management, and the life of an asset from purchase and yearly inventory to disposal.<br><br>This item presents proposed revisions to both Chapter 32 and the Purchasing Procedures Guide. A section-by-section summary of the recommended redlined changes is attached as Exhibit A. The two most significant changes update the County rules to match recent State law and complete the countywide expansion of the Purchasing Card program. These and other changes are summarized below.<br><br><strong><u>History of Travis County’s Formal Bid Limit</u></strong><br>The County Purchasing Act, Chapter 262 of the Local Government Code, sets the dollar threshold at or above which the County must use a formal competitive procurement method (the formal bid limit). The Legislature periodically raises this limit to account for inflation and the rising cost of goods and services.<br>For many years the County formal bid limit was $25,000. In 2009, the 81st Texas Legislature enacted House Bill 987, which amended Section 262.023 of the Local Government Code to raise the county formal bid limit from $25,000 to $50,000. Travis County implemented the increased limit through Commissioners Court action on July 21, 2009, when the Court approved a revised Purchasing Policy and Procedures Manual that replaced Chapter 32 and changed all references from $25,000 to $50,000. The $50,000 limit then remained in effect for more than fifteen years.<br><br><strong><u>Statutory Authority to Increase the Formal Bid Limit to $100,000</u></strong><br>In 2025, the 89th Texas Legislature enacted Senate Bill 1173, which amended Section 262.023(a) of the Local Government Code to raise the county formal bid limit from $50,000 to $100,000, effective September 1, 2025. SB 1173 applies prospectively to purchases made on or after the effective date.<br>The proposed revisions update all corresponding dollar thresholds in Chapter 32 and the Purchasing Procedures Guide, along with the related section titles and the delegations of signature authority to the Purchasing Agent, to align the County rules with the new statutory formal bid limit of $100,000.<br><br><strong><u>Purchasing Card (P-Card) Program: Background and Countywide Expansion</u></strong><br>On August 1, 2023, the Comm