Procedures, which must be followed in order to purchase through the cooperative, are as follows:

1. An entity may have free trial access to the BuyBoard for a 90 day period in order to investigate the value of the cooperative for the entity. A demonstration of the manner in which the BuyBoard works may be accessed by using the Agency Name: txcoop, User ID: demo and Password: demo. The BuyBoard can be accessed at http://www.buyboard.com.

2. The entity must complete a resolution authorizing membership and an Interlocal Agreement before purchasing may begin on a regular basis. There is an annual membership fee of $200, which must accompany the resolution and Interlocal Agreement. The entity may authorize an unlimited number of staff members to access the BuyBoard, and may designate the authorized role of each individual. Roles available include shopper/purchaser, approver, and releaser. The resolution and Interlocal Agreement forms are available at http://www.tasb.org/buyboard/new_users/howtojoin.shtml.

3. Once the membership is received, passwords will be set up. Access to the Buyboard, technical support, and vendor relations are provided for the cost of the annual membership fee.

4. When the entity is ready to make purchases on the BuyBoard, the buyer selects items, and creates a shopping basket. A Purchase Requisition can be created as a result of completing the shopping cycle.

5. After the approval cycle is completed, a Purchase Order is created and sent to the supplier of the products selected. Orders may be sent electronically, by fax, or it may be sent directly to the vendor, with a copy to the cooperative.

6. The supplier will fill the request from the Purchase Order, and ship the items according to instructions.

7. The buying entity receives the products and initiates payment. The payment may be electronically remitted to the supplier.

Vendors pay a two percent fee based upon sales. No charge for governmental entities.

The Texas Local Government Statewide Purchasing Cooperative was organized on January 26, 1998, in accordance with Section 791 of the Texas Government Code. All products are competitively bid according to Texas statutes in a manner which meets the bidding requirements of local governments. During the first two years of the cooperative, the bidding function was outsourced. The function was moved in-house in July 2000.

The cooperative was created in order to centralize the purchasing activity and increase purchasing power of local governments throughout Texas using a customized electronic purchasing system that redefines the purchasing process. A seven-member Board of Trustees appointed by the TASB President, which consists of representatives of school (4 members), city (2 members) and county governments (1 member), awards all contracts. The cooperative is administered by the Texas Association of School Boards (TASB) and is co-sponsored by the Texas Municipal League (TML) and The Texas Association of Counties (TAC).

The cooperative uses an e-commerce system called the BuyBoard, which allows members access to all information needed to make purchases from the awarded contracts through the Internet. Searches are available for products by key word, part number, manufacturer, or vendor. The Buyboard provides product descriptions, commodity codes, part numbers, and images in order to make more informed purchases. Security control of authority to research prices and make purchases is provided, and can be customized to the needs of the entity. Once an order is approved, a Purchase Order can be created, and transmitted electronically to the vendor.

Membership is open to all local governments, non-profits, and other political subdivisions of the State of Texas. School districts must be a member of TASB in order to participate. Membership fees are billed in September of each year for the period of September through August. Members who join in June, July or August will not be billed the membership fee until September. Revenue to operate the BuyBoard system and the Cooperative comes primarily from a service fee of 2% which is payable by participating vendors. Currently, the cooperative has over 400 members, and approximately 250 vendors under contract. Purchases from cooperative bids totaled approximately $12 million in the fiscal year ended in 2000. It is expected that the purchase total will increase in FY 2001, as new products and services are added, and more governmental entities become members.

The staff investigates products and services, which will be of interest to the members of the Cooperative. Specifications are developed on those, which generate enough interest among members. Formal sealed bids are taken by either a firm fixed price or by discount from catalogs. Advertisements are placed in compliance with state laws, in newspapers of general circulation throughout the state. When bids have been opened and tabulated, they are presented to the Board of Trustees for award, along with recommendations for award from the staff. Multiple award contracts may be made when vendors have geographic delivery limitations. Awarded bids are posted on the BuyBoard. All purchase order and requisition history is tracked by the BuyBoard.

Competitive bids posted on the BuyBoard may also originate with another regional cooperative or a large entity (school, city, or county). These items will also have been competitively bid according to State laws. Members are encouraged to have their current vendors participate in the bids of the Cooperative, or those bid by other cooperatives or entities. Vendors may register to participate in future bids by completing an information form located at the website.

Input is obtained from members through meetings in their geographic area. This input includes topics such as specification terms and conditions, vendors and suppliers, and commodity and product offerings. Input is also solicited on BuyBoard technology and the e-commerce purchasing process. If cooperative members encounter problems with a supplier of a bid, the member may obtain the assistance of the Cooperative staff to intervene.

Procedures are currently under way to establish interlocal agreements with the states of New Mexico and Oklahoma for joint purchases of certain products, including technology items. Major bids also under consideration include serving as an aggregator for electricity, and procurement card services. The cooperative is working on integration with a variety of financial software packages in order to be able to encumber purchases directly.