Section 5: Purchase of Services

Definition of Service

The Purchase of Services method of purchase may be used on certain highway maintenance projects. The total cost of the services cannot exceed $24,999.99. Materials may be included as part of the purchase order or supplied by TxDOT. These type contracts will usually meet one of the following conditions:
  • the project does not require detailed specifications
  • there is a need to expedite the project, or
  • it would be impractical to use the regular routine maintenance contract letting procedures
Refer to the
Purchasing Manual
 for guidance.

Materials and Services Used on the Roadway

All services and materials used on highways must be accounted for in the Maintenance Management System (MMS). The MMS is used by TxDOT to combine all activities and costs for roadway maintenance. When materials and services procured via Purchase of Services contracts are not reflected in the MMS, reported maintenance expenditures are lower than actual. Typical services procured using Purchase of Services contracts which must be brought into MMS via an MMS work order number include (but are not limited to):
  • Hazardous Materials Removal
  • Intelligent Transportation Services (ITS)
  • Traffic Control
  • Equipment Rentals with Operator
Typical roadway materials which may be procured using Purchase of Services contracts and must be brought into MMS via an MMS work order number include (but are not limited to):
  • Pavement materials such as hot mix, hot mix cold laid, LRA, etc
  • Traffic signal and electrical parts
For further information on how to create work orders in MMS for a Purchase of Services requisition and how to create requisitions in Oracle Peoplesoft tied to MMS work orders, see resources on the MMS Support SharePoint site. Services and materials used on highways which are procured using Purchase Orders are not to be charged to overhead or directly to the roadway without an MMS work order in Oracle Peoplesoft.