RCIT-18 Reeves County Department Procurement Policy

RCIT Reeves County Department Procurement Policy

Purpose

This policy ensures a structured, transparent, and efficient procurement process for acquiring IT-related goods, services, and licenses within the department. It aims to standardize documentation, prevent delays, and ensure compliance with financial and regulatory requirements.

1. General Procurement Guidelines

• Any procurement exceeding $250 requires a formal Quote, Purchase Order (PO), and an Invoice before payment processing.
• Licensing, warranty renewals, and subscription-based services must be processed at least one (1) month before expiration to prevent service disruption.
• Approval hierarchy:
  • Requests under $250: Direct purchase with supervisor approval.
  • $250 - $5,000: Requires at least two competitive quotes and approval from the IT Director and/or Commissioners court.
  • $5,001 - $25,000: Requires three competitive quotes and approval from the Department Head.
  • Above $25,000: Formal bidding process with multiple vendor evaluations and senior management approval.
• Emergency procurement: May be authorized by the IT Director, with documentation justifying urgency.

2. Documentation Requirements

2.1. Quote (Pre-Purchase Stage)

A Quote must be obtained from at least two vendors for comparison (except for proprietary or sole-source items). The quote should contain:

• Itemized description of goods/services/licenses.
• Unit price and total price (including any applicable discounts or fees).
• Terms of service or warranty details.
• Validity period of the quote.
• Expected delivery or service start date.

Selection Criteria for Quote Approval:

• Best value (cost vs. benefits).
• Compliance with technical and security requirements.
• Vendor reputation and past performance.

2.2. Purchase Order (PO) (Approval Stage)

Once a vendor is selected, a Purchase Order (PO) must be generated and approved before proceeding with the acquisition. The PO should include:

• Reference to the approved quote (attach a copy).
• PO Number (for tracking purposes).
• Detailed description of the item/service being acquired.
• Justification for purchase (especially for sole-source acquisitions).
• Expected delivery timeline.
• Approval signatures (as per procurement thresholds).

2.3. Invoice (Verification & Payment Stage)

An Invoice must be received from the vendor before payment processing. It must:

• Match the PO details and reference the PO Number.
• List items/services delivered, including serial numbers (if applicable).
• Confirm receipt of goods/services/licensing with a sign-off from an authorized department representative.
• Include payment terms and deadline.

2.4. Receipt Confirmation (Post-Acquisition Documentation)

• For goods, ensure all items are received, tested, and in working condition.
• For services, verify completion as per contract terms.
• For licenses, ensure proper activation and documentation of licensing terms.

3. Specific Procurement Categories

3.1. IT Hardware & Equipment (Computers, Servers, Networking, Peripherals)

Procurement Process:

1. Identify needs and obtain at least two quotes.
2. Compare warranty, support options, and lifecycle expectations.
3. Generate a PO with detailed specifications (model, brand, expected lifespan).
4. Upon delivery, conduct hardware inspection and testing.
5. Record in the IT asset database before finalizing payment.

Required Documentation:

✔ Quote with item specifications.
✔ PO detailing hardware type, warranty, and maintenance terms.
✔ Invoice with confirmation of delivery and asset registration.

3.2. Software & Licensing (New Acquisitions and Renewals)

Procurement Process:

1. Verify current usage and necessity of the license.
2. Initiate renewal process at least 1 month before expiration.
3. Obtain a quote including license type, duration, number of seats/users.
4. Submit PO with renewal details or new acquisition justification.
5. Upon activation, document license key and expiration date in the asset database.

Required Documentation:

✔ Quote specifying the type of license, duration, and user count.
✔ PO with clear justification (renewal vs. new purchase).
✔ Invoice confirming successful activation.
✔ Proof of compliance with licensing agreements.

3.3. IT Services & Maintenance Contracts (Consulting, Cloud Services, Support Contracts)

Procurement Process:

1. Define scope of work and deliverables.
2. Obtain at least two service provider quotes.
3. Ensure service agreements include SLAs (Service Level Agreements).
4. Generate PO referencing the approved quote.
5. Conduct service validation before invoice approval.

Required Documentation:

✔ Quote with detailed service scope, SLAs, and pricing.
✔ PO with expected service duration and milestones.
✔ Invoice with a completion report or acceptance confirmation.

3.4. Warranties & Support Renewals (Hardware & Software Maintenance)

Procurement Process:

1. Track warranty expiration dates and initiate renewals 1 month prior.
2. Obtain quotes for extended warranties or alternative maintenance options.
3. Ensure coverage details match organizational needs.
4. Verify renewal activation before expiration.

Required Documentation:

✔ Quote with coverage period and support terms.
✔ PO referencing previous warranty contract.
✔ Invoice with proof of warranty extension activation.

3.5. Emergency & Sole-Source Acquisitions

• Justification must be documented in cases where a competitive bidding process is bypassed.
• Requires IT Director and Finance approval.
• Post-purchase review must confirm that standard procurement policies were not avoidable.

4. Compliance & Audit Requirements

• All procurement records (Quotes, POs, Invoices) must be maintained for 5 years.
• Annual audit review to assess procurement efficiency and compliance.
• Violations or deviations from policy require a formal report and corrective action plan.

5. Summary of Processing Timelines

Final Notes

• All procurement requests must be initiated early to allow for approvals, processing, and vendor lead times.
• Staff are responsible for tracking renewal dates for their assigned licenses, warranties, and services.

The procurement team must notify departments when a renewal is due at least 45 days in advance.