Purchasing Laws

  • The Texas Education Code (TEC) addresses the requirement to competitively bid purchases that exceed $50,000, in the aggregate, over a 12-month period. Since non-compliance may result in criminal penalties, this requirement will be strictly enforced.

     Anticipated purchases, which may exceed this limit, should be brought to the attention of Business Services well in advance of the need for the goods and services. The bidding process may take approximately 2 to 3 months, from bid specifications to School Board approval.

    Little Elm ISD, as well as other school districts in the State of Texas, is governed by the state competitive bid law provided below.

    Education Code Chapter 44 Sec. 44.031 – Purchasing Contracts

    a. Except as provided by this subchapter, all school district contracts, except contracts for the purchase of produce or vehicle fuel, valued at $50,000 or more in the aggregate for each 12-month period shall be made by the method, of the following methods, that provides the best value for the district:

    1. Competitive bidding for services other than construction services.
    2. Competitive sealed proposals for services other than construction services.
    3. A request for proposals for services other than construction services
    4. An interlocal contract.
    5. A method provided by Chapter 2269, Government Code, for construction services.
    6. The reverse auction procedure as defined by Section 2155.062(d), Government Code.
    7. The formation of a political subdivision corporation under Section 304.001, Local Government Code.

    b. Except as provided by this subchapter, in determining to whom to award a contract, the district shall consider:

    1. The purchase price.
    2. The reputation of the vendor and of the vendor's goods or services.
    3. The quality of the vendor's goods or services.
    4. The extent to which the goods or services meet the district's needs.
    5. The vendor's past relationship with the district.
    6. The impact on the ability of the district to comply with laws and rules relating to historically underutilized businesses.
    7. The total long-term cost to the district to acquire the vendor's goods or services.
    8. A contract for goods and services, other than goods and services related to telecommunications and information services, building construction and maintenance, or instructional materials, whether the vendor or vendor’s ultimate parent company or majority owner:
      1. Has its principal of business in this state,
      2. Employs at least 500 persons in this state
    9. Any other relevant factor specifically listed in the request for bids or proposals.