The City Purchasing Agent recommends that City Council approve an ordinance authorizing an Interlocal Purchasing Agreement (IPA) between the City of Houston and the Harris County Hospital District d/b/a Harris Health System (“Harris Health”) for cooperative purchasing and other matters related to the procurement of goods and services. The term of the City’s agreement with Harris Health is for one year and will automatically renew itself for ten successive one-year terms, unless a party indicates in writing to the other party its intent to terminate this IPA before the end of the then current term.
Chapter 271, Subchapter F of the Texas Local Government Code allows local governments to participate in a cooperative purchasing program with another local government or a local cooperative organization. The local government that purchases goods or services under Subchapter F satisfies any State law requiring the local government to seek competitive bids for the purchasing of good or services.
The IPA will allow the City and Harris Health to jointly participate in solicitations for the procurement of like goods and services. The alliance will enable both agencies to leverage buying power through volume purchases, which ultimately will result in saving of valuable taxpayer dollars. Additionally, this IPA will generate significant cost savings associated with human resources and administrative procurement functions. Furthermore, it is anticipated that procurement lead-time will be reduces for both agencies.
This arrangement is part of the Strategic Procurement Division’s ongoing effort to improve the City of Houston’s purchasing process.
Buyer: Kenny Chin