This information is found in the Texas Government Code, Chapter 2155

The area of purchasing and contracting is very susceptible to abuse. The ESD may make purchases from businesses in which individual board persons had prohibited interest as long as the interest was declared, the affidavit signed and the involved person refrained from participation. Avoid, if possible, any purchases or contracting with business in which ESD Commissioners have an interest in order to reduce the appearance of impropriety.

Beyond this, the next limitation is that the ESD may not enter into any purchase or contract requiring the expenditure of more than $50,000 without complying with the competitive bidding procedures. The exceptions covered in the Health and Safety Code, Chapter 755.084 include:

  • Purchase of real property
  • Sole source items
  • Emergency expenditures
  • Contracts for:
    • Fire extinguishment suppression services
    • Emergency rescue services
    • Ambulance services
    • Purchase of fuel
    • Purchase of firefighter bunker gear
    • The purchase of insurance overage
    • Repairs funded by a payment made under an insurance claim

Keep in mind that the Board may adopt a policy setting with a lower ceiling above which competitive bids must be obtained. Additional guidance can be found in Local Government Code, Chapter 262 and Chapter 271.