Guide to County Purchasing: Stages of Procurement

The terms "purchasing" and "procurement" are often used interchangeably. However, "purchasing" is only one stage of the procurement cycle. The stages of procurement are:

• Planning and budgeting - Planning is necessary for various efficiency reasons that impact commissioners court budgetary processes and operational programs. Planning is necessary in order to consolidate purchases to achieve economies of scale. Good market data helps control estimated budgets accuracy. Good planning ensures that goods and services are delivered timely to meet operational needs.
• Source selection (purchasing) - The process through which solicitations are issued, offers are made, contracts awarded, and goods or services received; and
• Contract administration - The process of ensuring the terms of the purchase agreement are enforced, goods and services delivered satisfactory, and the bills are paid.

Since procurement activities result in legal contracts, every procurement action is a legal action. County procurement activities are governed by common and case law, by the Uniform Commercial Code, by the County Purchasing Act, other state and federal laws, and the rules and procedures of the purchasing agent and commissioners court. Thus, those persons making procurement decisions are subjected to legal constraints and exposure well beyond what other financial officials may routinely experience.