[Minor revision-posted 2/13/18 (replaces 4/14/16 edition)]
Operating Policy and Procedure
OP 72.15: Purchasing/Leasing Motor Vehicles
DATE: February 13, 2018
PURPOSE: The purpose of this Operating Policy/Procedure (OP) is to implement the state of Texas Vehicle Fleet Management Plan, as developed in accordance with Government Code, Section 2171.104, and to establish the procedures to be followed when purchasing or leasing new or previously owned motor vehicles.
REVIEW: This OP will be reviewed in September of odd-numbered years by the Chief Procurement Officer with substantive revisions forwarded to the Assistant Vice President for Operations, the Assistant Vice President for Financial and Business Services, and the Vice President for Administration & Finance and Chief Financial Officer (VPAF/CFO).
This policy will apply when purchasing or leasing all types of new or previously owned motor vehicles for a period of 12 months or longer, regardless of the source of funds.
This policy is applicable to all vehicles managed by TTU Vehicle Fleet Management, regardless of whether they are classified as Texas Tech University System or Texas Tech University.
Vehicle purchases/leases must comply with OP 72.09, Purchase of Goods and Services.
2. Vehicle Fleet Cap Size
The Texas Tech University vehicle fleet shall not increase except in cases of legislatively mandated program changes, federal program initiatives, or documented need resulting from program growth or changes.
3. Additions to the Vehicle Fleet
a. To increase the TTU vehicle fleet, the requesting department or area must prepare a written justification for the signature of the appropriate vice president or provost stating that any vehicles to be purchased are due to one of the three items addressed in section 2 above.
(1) The letter of justification shall also include the type of vehicle to be purchased, the intended purpose of the vehicle, and the funding source.
(2) After the documentation is prepared and signed by the appropriate vice president or provost, the requesting department shall forward the documentation to the TTU vehicle fleet manager.
(3) Upon receipt of the justification, the TTU vehicle fleet manager will prepare a formal request letter to the state Office of Vehicle Fleet Management. The letter will then be forwarded to the state Office of Vehicle Fleet Management for review and consideration.
(4) If the state Office of Vehicle Fleet Management does not approve the addition to the university vehicle fleet and provides a letter of denial, the requesting department may not purchase the vehicle.
If the state Office of Vehicle Fleet Management approves the addition to the university vehicle fleet, an approval letter will be provided to the TTU Vehicle Fleet Manager.
(5) After receipt of the approval letter, the requesting department will be notified and the vehicle procurement process may begin.
b. A requisition for the procurement of a new, previously owned, or leased motor vehicle shall be prepared by the requesting department in Techbuy.
(1) The department shall contact Purchasing to determine if the vehicle can be purchased on an existing pricing contract or if a formal bid process will be required. Vehicles cannot be sole sourced.
(2) Once the procurement process has been satisfied, the department shall attach the approval letter to the TechBuy requisition. The approval letter shall also include approval from the appropriate divisional vice president, the Provost and Senior Vice President, or system vice chancellor.
(3) The TechBuy requisition will then be forwarded electronically to the TTU Vehicle Fleet Manager. Note: The TechBuy requisition will route automatically to the TTU Vehicle Fleet Manager by selecting the purchasing category "vehicles."
(4) Once the Vehicle Fleet Manager approves the requisition, it will be routed electronically to Purchasing for review and processing.
c. The following are exceptions to the above procedures. Follow the procedures outlined in section 3 for the purchase of the following:
(1) Law enforcement vehicles, including pursuit vehicles;
(2) Emergency vehicles;
(3) Vehicles used for safety purposes;
(4) Vehicle itself is used for research, such as crash tests;
(5) Heavy equipment, including tractors, bulldozers, and highway construction maintenance equipment;
(6) Non-licensed utility purpose vehicles such as golf-carts and forklifts;
(7) Replacement of wrecked vehicles; and
(8) Replacement of vehicles destroyed as a result of a natural disaster.
4. Replacements to the Vehicle Fleet
a. Replacement vehicles may be purchased on a one-for-one basis, meaning a vehicle may be purchased to replace an existing vehicle. Departments may not add vehicles to the fleet without approval from TTU Operations and the VPAF/CFO.
b. Replacement vehicles may not be purchased from appropriated funds, which includes funds starting with 11, 12, 13, and 14 without written approval from the VPAF/CFO.
c. The department shall contact Purchasing to determine if the vehicle can be purchased on an existing pricing contract or if a formal bid process will be required. Vehicles cannot be sole sourced.
d. A requisition for the procurement of a new, previously owned, or leased motor vehicle shall be prepared by the requesting department by submitting a TechBuy requisition. The requisition must contain a memo with the signature approval from the requesting department's divisional vice president, the Provost and Senior Vice President, or system vice chancellor.
e. Written justification must be included for replacements and must provide the vehicle age, make, model, odometer reading, condition of the vehicle, and the reason it should be replaced. The justification should also include the type of vehicle to be purchased, the intended purpose, and the funding source. This justification should be included as an attachment to the TechBuy requisition.
f. The complete requisition package will be forwarded electronically to the TTU Vehicle Fleet Manager. Note: The electronic requisition will route automatically to the TTU Vehicle Fleet Manager by selecting the purchasing category "vehicles." The TTU Vehicle Fleet Manager will physically route through the Managing Director for Services, the Assistant Vice President for Operations, and the Vice President for Administration & Finance and Chief Financial Officer.
g. Once the Vice President for Administration & Finance and Chief Financial Officer approves the requisition package, the TTU Vehicle Fleet Manager will route electronically to Purchasing for review and processing.
h. TTU Vehicle Fleet Management must submit notification of vehicle replacement to the state Office of Vehicle Fleet Management. The notification shall include the following information as soon as it becomes available on both the new vehicle and the vehicle that is being replaced:
(1) Vehicle identification number
(2) License plate number
i. Donated vehicles may not be replaced without approval of the state Office of Vehicle Fleet Management.
5. Delivery of Purchased/Leased Vehicles
The vendor will deliver all new or previously owned vehicles purchased or leased by Texas Tech to Transportation Services. Transportation Services will notify the requesting department to inspect the vehicle. The requesting department must inspect all newly acquired vehicles within two working days. Upon acceptance by the requesting department, Transportation Services will notify Vehicle Fleet Management and affix the inscription on the vehicle (purchased only) as described in OP 80.01, Painting University Vehicles and Equipment. If the vehicle does not meet all the criteria as called for in the specifications, the vehicle will not be accepted from the vendor.
6. Color of University Vehicles
All Texas Tech University-owned vehicles (new and previously owned) must be white in color. Refer to OP 80.01, Painting University Vehicles and Equipment, for additional guidance.
7. Titles and Insurance
All vehicle titles will be retained in the Vehicle Fleet Management office, TTU - Physical Plant. All motor vehicle titles and license plates will be ordered through the Vehicle Fleet Management office.
Only the Procurement Services Office will obtain insurance coverage through a contracted vendor approved by Risk Management. Proof of insurance must be maintained in all university vehicles. Each department is responsible for notifying the Procurement Services Office of any additions or deletions to the vehicle inventory. Liability insurance is required on all vehicles and will be charged to the requesting department. The requesting department may choose to insure the vehicle for physical damage for an additional charge. This amount will also be charged to the requesting department. Information about insurance coverage can be obtained by emailing firstname.lastname@example.org.
8. Vehicle Use Reporting
All Texas Tech University departments with state vehicles (new and previously owned), regardless of source of funds used to purchase the vehicle, are required to provide Vehicle Fleet Management with monthly vehicle use reports, as mandated in Government Code, Section 2203.001. The Vehicle Use Report logs are to be retained in the vehicle. Refer to OP 80.07, Vehicle Fleet Management Program, for additional vehicle fleet management guidelines.
9. Vehicle Selection
Selection of vehicles should be made based upon the intended purpose.
The university has access to several pricing contracts for the purchase of motor vehicles. Departments may utilize state contracts, cooperative contracts, or General Services Administration contracts for the purchase of vehicles. If the department seeks to obtain a vehicle that is not available on a pricing contract, then a formal bid process will be required. The requesting department shall contact the appropriate purchaser in Procurement Services at 806.742.3844 for guidance on preparation of vehicle specifications and the use and availability of contracts. There is a vehicle purchase "how to" guide available on the Procurement Services website: http://www.depts.ttu.edu/procurement/resources/how-to-guides/documents/purchasing/procurement-vehicles-20150223.pdf
Use of utility-type or golf cart-type units may be utilized instead of pickups, vans, or other licensed vehicles in applications where they are used exclusively on campus. These vehicles are not licensed for on-road use, are not considered motor vehicles, and do not require approval from the state Office of Vehicle Fleet Management. Because of safety requirements for utility vehicles, all purchases of this type of vehicle must be coordinated through Vehicle Fleet Management. The purchase process for these types of equipment shall be the same as for vehicles.
In addition, consideration should be given to the purchase of previously owned (used) vehicles when appropriate. Previously owned vehicles should be considered for units that achieve low mileage but high usage, such as when confined to campus or the city. They generally would not be considered as replacements for high mileage, high usage vehicles used primarily for long-distance transportation.
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