1. (a) Purpose. This section describes procurement standards and related requirements for recipients of state and federal public transportation grant funds.

2. (b) Standards. The standards contained in the common rule shall apply to public transportation procurement activities. All contractors must maintain written procurement policies. Those policies must, at a minimum, provide the following.

   1. (1) Vehicle purchases. All vehicle purchases, irrespective of unit price, shall be accomplished through formal sealed bids.

   2. (2) Equipment purchases.

      1. (A) Equipment with a unit cost of $15,000 or greater shall require sealed bids. Bids for computer and radio systems shall include all subcomponents necessary for the system to be operated in the unit cost. Exceptions will be allowed for those entities that are eligible to purchase items through the state open contract procedures.
      2. (B) Equipment with a unit cost of less than $15,000 does not require written bids, but does require the solicitation of bids from at least three sources. The contractor shall retain a written record of these solicitations. Exceptions will be allowed for those entities that are eligible to purchase items through the state open contract procedures.

   3. (3) Real property.

      1. (A) Acquisition of real property shall be accomplished in accordance with federal and state statutes, regulations, and policies. In particular, projects that receive federal funds must comply with the uniform relocation and real property acquisition standards established in 49 CFR Part 25.
      2. (B) Specific standards for construction and rehabilitation projects will be negotiated as part of the project agreement between the department and the contractor.
   4. (4) Records retention. All procurement documents are public information and shall be maintained by the contractor for at least three years after award of the purchase order or subcontract.

3. (c) Department role.

   1. (1) Oversight and approval. The contractor shall furnish the department with notice of procurement awards. In competitive bidding situations in which a purchase order is awarded to other than the lowest bidder, the contractor shall also provide written justification for that action. Similarly, the contractor shall provide documentation as requested by the department in instances where only one bid is received in response to a competitive solicitation. With respect to professional services subcontracts, the department may request a written description of the contractor's methodology for selecting the successful firm.
   2. (2) Technical assistance. The department will provide vehicle specifications and guidance on competitive bidding procedures to contractors upon request. If contractors choose to develop their own specifications, they assume full responsibility for ensuring that the specifications do not restrict competition.

Source Note:The provisions of this §31.44 adopted to be effective August 11, 1994, 19 TexReg 5880.