Generally, a city must competitively procure goods or services that require an expenditure of more than $50,000. See Tex. Local Government Code §252.021(a). However, state law allows a city to procure goods or services without following a competitive procurement process if: (1) the procurement is made because of a public calamity that requires the immediate appropriation of money to relieve the necessity of the city’s residents or to preserve the property of the city; (2) the procurement is necessary to preserve or protect the public health or safety or the city’s residents; or (3) the procurement is necessary because of unforeseen damage to public machinery, equipment or other property. Id. at §252.022(a)(1)-(3).
Although Section 252.022 relieves the city from complying with the regular competitive procurement process, it does not exempt the city from complying with the requirements related to performance and payment bonds. Performance bonds are required for construction projects that exceed $100,000, and payment bonds are required for construction projects that exceed $50,000. See Tex. Government Code §2253.021.