HSC OP 72.11 Purchasing/Leasing Motor Vehicles | Texas Tech University Health Sciences Center
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Operating Policy and Procedure

HSC OP: 72.11, Purchasing/Leasing Motor Vehicles

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 HSC OP will be reviewed in September of each even-numbered year (ENY) by the Directors of General Services and Procurement Services, with recommendations for revision forwarded to the Executive Vice President for Finance and Operations (EVPFO).

POLICY/PROCEDURE:

1. Policy. 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.

2. Office of Vehicle Fleet Management (OVFM)
3601 4th St. STOP 9012
Lubbock, TX 79430-9012 HSC Building Room BA350
Phone: 806-743-2093 Fax: 806-743-2079
Email: generalservices@ttuhsc.edu

3. Approval must be obtained prior to making any addition to the vehicle fleet.

a. All state agencies have a vehicle fleet size cap, as required by Government Code 2171.104. The vehicle fleet shall not increase except in cases of:

1) legislatively mandated program changes,
2) federal program initiatives, or
3) documented need resulting from program growth or changes.

b. The requesting department or area must prepare a written justification prior to purchasing the vehicle, detailing at least one of the three items addressed in 3 a., with the funding source (specifying the type of funds to be used), the type of vehicle being considered including fuel type and emissions rating, and any cost savings to be gained over existing practices.

(1) After the documentation is prepared and signed by the Department Head, the requesting department should forward it to the TTUHSC OVFM.

(2) Upon receipt of the justification letter, the TTUHSC OVFM will prepare a purchase waiver request letter for the EVPFO’s signature (or designee) to the State OVFM and for review and consideration.

(3) The State OVFM will communicate any concerns with the TTUHSC OVFM, and provide approval or denial of the request.

(4) After receipt of the purchase waiver, the requesting department will be notified and the vehicle requisition process may begin.

c. A requisition for the procurement of a new, previously owned, or leased motor vehicle should be prepared by the requesting department on a TechBuy requisition that can be accessed at http://techbuy.ttu.edu.

(1) The Non-Catalog Form must be selected and the ‘Vehicles’ Purchase Category selected. Selecting this category will route the requisition electronically to the TTUHSC OVFM General Services for review and approval or rejection.

(2) Once the requisition is approved by the TTUHSC OVFM, it will be forwarded to Purchasing for procurement. Approval by TTUHSC OVFM indicates vehicle meets fleet cap, licensing and insurance requirements. Specifications of the vehicle and options can be discussed with the department but suitability of the product ordered remains the responsibility of the requesting department.

4. Notification must be made prior to replacing a vehicle in the vehicle fleet, regardless of the source of funds.

a. Replacement vehicles may be purchased without obtaining a purchase waiver from the State OVFM on a one-for-one basis. The existing vehicle should be disposed of according to HSC OP 63.04.

b. TTUHSC OVFM must submit notification of vehicle replacement to the State OVFM. 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;
(3) year;
(4) make;
(5) model;
(6) fuel type.

c. Donated vehicles and vehicles purchased with local or grant funds may not be replaced on a one-for-one basis with appropriated funds and without approval of the State OVFM.

5. Alternative Fuel Vehicles.

a. All fleet acquisitions must comply with State Fleet Plan which includes mandated purchase of alternative fuel vehicles in most cases when using State appropriated funds.

b. Emission ratings are required to be submitted with each vehicle purchase request.

6. Color of University Vehicles.

All TTUHSC-owned vehicles (new and previously-owned) are to be white in color. Refer to HSC OP 63.07, Vehicles – Inscription and Painting.

7. Delivery of Purchased/Leased Vehicles.

All new or previously-owned vehicles purchased or leased by TTUHSC will be delivered by the contractor to TTUHSC OVFM, for inspection to ensure the vehicle meets all specifications stated on the purchase order. Upon completion of the inspection, TTUHSC OVFM will ensure the inscription is affixed on the vehicle (purchased only) as described in HSC OP 63.07. If the vehicle does not meet all the criteria as called for in the specifications, the vehicle will not be accepted from the contractor. Requests to have the vehicle delivered to any other address needs to be submitted in writing to the TTUHSC OVFM for consideration prior to submission of purchase order. For example, golf carts, utility vehicles, and other types of motor vehicles may be approved for alternate delivery, but the recipient must notify TTUHSC OVFM upon receipt for insurance and title purposes.

8. Title and Insurance.

a. All vehicle titles will be retained in the TTUHSC’s Office of Vehicle Fleet Management (OVFM). All motor vehicle titles and original license plates will be ordered through the TTUHSC OVFM.

b. Insurance coverage will be obtained only by the TTU System Office of Risk Management. Proof of insurance will be sent to vehicle custodians to be maintained in all university vehicles.

9. Vehicle Use Reporting.

All TTUHSC departments with state vehicles (new and previously-owned) regardless of the source of funds used to purchase the vehicle are required to provide TTUHSC OVFM 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 HSC OP 63.03, Vehicle Fleet Management Program, for additional vehicle fleet management guidelines.

10. Vehicle Selection.

Selection of vehicles should be made based upon the intended purpose.

The State of Texas maintains contracts for the purchasing of certain types of motor vehicles. These contracts are generally effective only from October through March of each fiscal year. The state contracts must be utilized when using state appropriated funds. The requesting department should contact the appropriate purchaser in Purchasing for guidance on preparation of vehicle specifications.

Use of utility-type or golf-cart-type unregulated units may be utilized exclusively on campus. These vehicles are not licensed for on-road use, and do not require approval from the State OVFM. These vehicles typically require insurance. Vehicle custodians should contact TTUHSC OVFM regarding insurance and possible need to license prior to purchase. If vehicle is capable of speeds in excess of 35 mph or will ever cross public easements or streets, regardless of size or fuel source, it may be regulated and require licensing.