1-1 By: Armbrister S.B. No. 1321
1-2 (In the Senate - Filed March 10, 1995; March 20, 1995, read
1-3 first time and referred to Committee on State Affairs; May 2, 1995,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 8, Nays 0; May 2, 1995, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 1321 By: Armbrister
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the purchase of goods and services by the state and to
1-10 purchasing services provided by the state to local governments.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subdivision (5), Section 1.02, State Purchasing
1-13 and General Services Act (Article 601b, Vernon's Texas Civil
1-14 Statutes), is amended to read as follows:
1-15 (5) "Best value" for purposes of Section 3.081 of this
1-16 Act means lowest overall cost of information systems based on the
1-17 following factors, including, but not limited to:
1-18 (A) purchase price;
1-19 (B) compatibility to facilitate exchange of
1-20 existing data;
1-21 (C) capacity for expansion and upgrading to more
1-22 advanced levels of technology;
1-23 (D) quantitative reliability factors;
1-24 (E) the level of training required to bring
1-25 end-users to a stated level of proficiency;
1-26 (F) the technical support requirements for
1-27 maintenance of data across a network platform and management of the
1-28 network's hardware and software; and
1-29 (G) compliance with applicable statewide
1-30 standards adopted by the Department of Information Resources or a
1-31 subsequent entity as validated by criteria established by the
1-32 department or a subsequent entity in administrative rule.
1-33 SECTION 2. Article 3, State Purchasing and General Services
1-34 Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
1-35 adding Section 3.011 to read as follows:
1-36 Sec. 3.011. PROVIDING CERTAIN PURCHASING SERVICES ON
1-37 FEE-FOR-SERVICE BASIS. (a) The commission may provide open market
1-38 purchasing services on a fee-for-service basis for state agency
1-39 purchases that are delegated to an agency under Section 3.06 or
1-40 3.08 of this Act. The commission shall set the fees in an amount
1-41 that recovers the commission's costs in providing the services.
1-42 (b) The commission shall publish a schedule of its fees for
1-43 services that are subject to this section. The schedule must
1-44 include the commission's fees for:
1-45 (1) reviewing bid and contract documents for clarity,
1-46 completeness, and compliance with laws and rules;
1-47 (2) developing and transmitting invitations to bid;
1-48 (3) receiving and tabulating bids;
1-49 (4) determining which bidder offers the best value to
1-50 the state and awarding the contract to that bidder; and
1-51 (5) creating and transmitting purchase orders.
1-52 SECTION 3. Section 3.022, State Purchasing and General
1-53 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
1-54 amended to read as follows:
1-55 Sec. 3.022. COMPETITIVE SEALED PROPOSALS. (a) The
1-56 commission may acquire supplies, materials, services, or equipment
1-57 <telecommunications devices, systems, or services or any automated
1-58 information systems, the computers on which they are automated, or
1-59 a service related to the automation of information systems or the
1-60 computers on which they are automated, including computer
1-61 software,> by following a procedure using competitive sealed
1-62 proposals <if the commission determines by rule that competitive
1-63 sealed bidding or informal competitive bidding is not practical or
1-64 is disadvantageous to the state. Items to be purchased from higher
1-65 education research funds may be acquired by following a procedure
1-66 using competitive sealed proposals>. The commission, or a state
1-67 agency or <an> institution of higher education if the agency or
1-68 institution is making the acquisition <if research purchasing
2-1 authority has been delegated to that institution> under Section
2-2 3.06 or 3.08 of this article, must first determine that competitive
2-3 sealed bidding or informal competitive bidding is not practical or
2-4 is disadvantageous to the state. If the competitive sealed
2-5 proposal procedure is to be handled by the state agency or
2-6 institution of higher education, the agency or institution shall
2-7 follow the procedures outlined by this section for the commission.
2-8 (b) The commission shall consult with appropriate personnel
2-9 of a requisitioning agency to develop specifications for a request
2-10 for competitive sealed proposals under this section.
2-11 (c) The commission shall solicit proposals by a request for
2-12 proposals. The commission shall give public notice of a request
2-13 for proposals in the manner provided for requests for bids under
2-14 Section 3.12 of this article.
2-15 (d) <(c)> The commission shall open each proposal in a
2-16 manner that does not disclose the contents of the proposal during
2-17 the process of negotiating with competing offerors. The commission
2-18 shall file each proposal in a register of proposals, which shall be
2-19 open for public inspection after a contract is awarded unless the
2-20 register contains information that is excepted from disclosure <as
2-21 an open record> under Subchapter C, Chapter 552, Government Code
2-22 <Section 3, Chapter 424, Acts of the 63rd Legislature, Regular
2-23 Session, 1973 (Article 6252-17a, Vernon's Texas Civil Statutes)>.
2-24 (e) <(d)> As provided in a request for proposals and under
2-25 the rules adopted by the commission, the commission may discuss
2-26 acceptable or potentially acceptable proposals with offerors in
2-27 order to assess an offeror's ability to meet the solicitation
2-28 requirements. After the submission of a proposal but before making
2-29 an award, the commission may permit the offeror to revise the
2-30 proposal in order to obtain the best final offer. The commission
2-31 may not disclose any information derived from proposals submitted
2-32 from competing offerors in conducting discussions under this
2-33 subsection. The commission shall provide each offeror with an
2-34 equal opportunity for discussion and revision of proposals.
2-35 (f) <(e)> The commission shall invite a requisitioning
2-36 agency to participate in discussions conducted under Subsection (e)
2-37 <(d)> of this section.
2-38 (g) <(f)> The commission shall make a written award of a
2-39 purchase or lease to the offeror whose proposal offers <is> the
2-40 best value <most advantageous> to the state, considering price,
2-41 past vendor performance, vendor reputation, and the evaluation
2-42 factors in the request for proposals, except that if the commission
2-43 finds that none of the offers is acceptable, it shall refuse all
2-44 offers. In determining which proposal offers the best value <is
2-45 most advantageous> to the state, the commission shall, subject to
2-46 Section 3.104 of this article, consider the factors listed in this
2-47 subsection and in Section 3.103 of this article or, when
2-48 applicable, the factors listed in this subsection and in Section
2-49 1.02(5) of this Act <such as installation costs, the overall life
2-50 of the system or equipment, the cost of acquisition, operation, and
2-51 maintenance of hardware included with, associated with, or required
2-52 for the system or equipment during the state's ownership or lease,
2-53 the cost of acquisition, operation, and maintenance of software
2-54 included with, associated with, or required for the system or
2-55 equipment during the state's ownership or lease, the estimated cost
2-56 of supplies, the estimated costs of employee training, the
2-57 estimated cost of additional long-term staff needed, and the
2-58 estimated increase in employee productivity. The contract file
2-59 must state in writing the basis on which the award is made>.
2-60 (h) <(g)> The commission shall adopt rules necessary or
2-61 convenient to perform its responsibilities under this section and
2-62 shall request assistance from other state agencies as needed.
2-63 (i) <(h)> A medical or dental unit as that term is defined
2-64 in Section 61.003, Education Code, may purchase the following types
2-65 of medical equipment by the use of competitive sealed proposals if
2-66 it follows commission rules and procedures provided by this section
2-67 regarding the use of competitive sealed proposals and submits to
2-68 the commission a written finding that competitive sealed bidding or
2-69 informal competitive bidding is not practical or is disadvantageous
2-70 to the state for the proposed acquisition:
3-1 (1) prototypical medical equipment not yet available
3-2 on the market;
3-3 (2) medical equipment so new to the market that its
3-4 benefits are not fully known; or
3-5 (3) major medical equipment that is so technically
3-6 complex that development of specifications for competitive bidding
3-7 is not feasible.
3-8 SECTION 4. Article 3, State Purchasing and General Services
3-9 Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
3-10 adding Section 3.045 to read as follows:
3-11 Sec. 3.045. COOPERATION WITH FEDERAL GOVERNMENT PURCHASING.
3-12 (a) In accordance with procedures prescribed by rules of the
3-13 commission, agencies of the federal government may purchase goods
3-14 and services through commission contracts that are established
3-15 under Section 3.11 of this Act.
3-16 (b) To the extent permitted by federal law, the commission
3-17 and other state agencies that are subject to this Act and local
3-18 governments that are eligible to participate in the commission's
3-19 purchasing program under Subchapter D, Chapter 271, Local
3-20 Government Code, may purchase goods and services through federal
3-21 supply contracts administered by the General Services
3-22 Administration, to the extent permitted by federal law and, in the
3-23 case of state agencies, as approved by the commission.
3-24 SECTION 5. Subsection (b), Section 3.061, State Purchasing
3-25 and General Services Act (Article 601b, Vernon's Texas Civil
3-26 Statutes), is amended to read as follows:
3-27 (b) The commission shall promulgate rules allowing purchases
3-28 through group purchasing programs unless the commission determines
3-29 within a reasonable period of time after receiving notification of
3-30 a particular purchase that a better value <lower price> is
3-31 available through the commission.
3-32 SECTION 6. Article 3, State Purchasing and General Services
3-33 Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
3-34 adding Sections 3.062, 3.063, and 3.064 to read as follows:
3-35 Sec. 3.062. TRAINING AND CERTIFICATION OF STATE AGENCY
3-36 PURCHASING PERSONNEL. The commission in collaboration with the
3-37 advisory committee on procurement shall establish and administer a
3-38 program of training, continuing education, and certification for
3-39 state agency purchasing personnel. The program shall address
3-40 training on purchasing methods and procedures acceptable within the
3-41 State of Texas, including value-based purchasing, to ensure a total
3-42 quality purchasing system for the state. The commission may adopt
3-43 rules to administer this section.
3-44 Sec. 3.063. PURCHASING PARTNERSHIPS BETWEEN AGENCIES.
3-45 (a) The commission shall manage a program that provides for
3-46 establishing purchasing partnerships between state agencies under
3-47 which one agency will make certain purchases for another agency.
3-48 An agency is not required to enter into a purchasing partnership
3-49 under this section.
3-50 (b) The commission shall identify agencies that are willing
3-51 to enter into purchasing partnerships with another agency and
3-52 attempt to appropriately match agencies for a purchasing
3-53 partnership based on factors such as whether an agency employs a
3-54 certified purchaser, the number and expertise of an agency's
3-55 certified purchasers, the strategic mission of an agency, the
3-56 existence or nature of an agency's automated purchasing tools, and
3-57 the types of goods and services typically purchased by an agency.
3-58 Sec. 3.064. BUYING UNDER CONTRACT ESTABLISHED BY AGENCY
3-59 OTHER THAN COMMISSION. (a) The commission shall adopt rules
3-60 specifying the circumstances under which it is advantageous for the
3-61 state to allow an agency to purchase goods or services under a
3-62 contract made by another agency other than the commission.
3-63 (b) A state agency that is a party to a contract with a
3-64 vendor who is able to supply goods or services to other agencies
3-65 under the contract shall, if commission rules allow other agencies
3-66 to make purchases under the contract:
3-67 (1) inform the commission of the terms of the contract
3-68 and the capabilities of the vendor; and
3-69 (2) post notice of the existence and terms of the
3-70 contract on the procurement marketplace.
4-1 SECTION 7. Section 3.08, State Purchasing and General
4-2 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
4-3 amended to read as follows:
4-4 Sec. 3.08. PURCHASES LESS THAN A SPECIFIED MONETARY AMOUNT.
4-5 (a) State agencies are delegated the authority to purchase
4-6 supplies, materials, and equipment if the purchase does not exceed
4-7 $25,000 <$5,000, although an agency may continue to use the
4-8 commission's services for those purchases>. The commission by rule
4-9 shall prescribe procedures for these purchases.
4-10 (b) The commission<, and> by rule may delegate to state
4-11 agencies the authority to purchase supplies, materials, or
4-12 equipment if the purchase exceeds $25,000 <$5,000>. In delegating
4-13 purchasing authority under this subsection or Section 3.06(b) of
4-14 this article, the commission shall consider factors relevant to a
4-15 state agency's ability to perform purchasing functions, including:
4-16 (1) the capabilities of the agency's purchasing staff;
4-17 (2) the certification levels held by the agency's
4-18 purchasing personnel;
4-19 (3) the existence of recent satisfactory audits of the
4-20 agency's purchasing practices; and
4-21 (4) the agency's compliance with the state's
4-22 purchasing programs for historically underutilized businesses and
4-23 the agency's good faith efforts to meet the state's purchasing
4-24 goals for historically underutilized businesses.
4-25 (c) The commission shall monitor the purchasing practices of
4-26 state agencies that are making delegated purchases under Subsection
4-27 (b) of this section or Section 3.06(b) of this article. The
4-28 commission may revoke for cause all or part of the purchasing
4-29 authority that the commission delegated to a state agency. The
4-30 commission in collaboration with the advisory committee on
4-31 procurement shall adopt rules to administer this subsection.
4-32 (d) <(b)> The commission by rule may delegate to the
4-33 comptroller the commission's authority under Section 3.15 to audit
4-34 purchases and purchase data when the purchases do not exceed $500
4-35 or a greater amount prescribed by the commission.
4-36 (e) <(c)> Competitive bidding, whether formal or informal,
4-37 is not required for a purchase by a state agency if the purchase
4-38 does not exceed $2,500 <$1,000>, or a greater amount prescribed by
4-39 rule of the commission.
4-40 (f) <(d)> Supplies or materials purchased under this section
4-41 may not include:
4-42 (1) items for which contracts have been awarded under
4-43 the contract purchase procedure, unless the quantity purchased is
4-44 less than the minimum quantity specified in the contract;
4-45 (2) any item required by statute to be purchased from
4-46 a particular source; or
4-47 (3) scheduled items that have been designated for
4-48 purchase by the commission.
4-49 (g) <(e)> Large purchases may not be divided into small lot
4-50 purchases in order to meet the specified dollar limits. The
4-51 commission may not require that unrelated purchases be combined
4-52 into one purchase order in order to exceed the specified dollar
4-53 limits.
4-54 (h) <(f)> Agencies making purchases under this section for
4-55 which competitive bidding is required must attempt to obtain at
4-56 least three competitive bids from sources which normally offer for
4-57 sale the merchandise being purchased and must comply with Section
4-58 3.101 of this article.
4-59 SECTION 8. Section 3.101, State Purchasing and General
4-60 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
4-61 amended by adding Subsections (k) and (l) to read as follows:
4-62 (k) The commission shall require information about an
4-63 applicant's past history as a vendor with the state in the
4-64 commission's uniform registration form, including information about
4-65 the persons who own or control the applicant and information about
4-66 any vendor history the applicant or the persons who own or control
4-67 the applicant may have from doing business with the state under
4-68 other names.
4-69 (l) The commission shall include in the commission's uniform
4-70 registration form a statement about the applicability of relevant
5-1 criminal law, including Section 37.10, Penal Code, to entering
5-2 information on the form and to presenting documentation in
5-3 connection with the form. The commission shall refer any suspected
5-4 violations of relevant criminal law, including Section 37.10, Penal
5-5 Code, related to entering information on the form or presenting
5-6 documentation in connection with the form to the appropriate legal
5-7 authorities for investigation or prosecution.
5-8 SECTION 9. Article 3, State Purchasing and General Services
5-9 Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
5-10 adding Sections 3.103 and 3.104 to read as follows:
5-11 Sec. 3.103. BEST VALUE STANDARD FOR PURCHASE OF GOODS OR
5-12 SERVICES. (a) Each state agency, including the commission, shall
5-13 purchase goods and services that provide the best value for the
5-14 state.
5-15 (b) In determining the best value for the state, the
5-16 commission or other state agency making a purchase is not
5-17 restricted to considering the purchase price alone, but subject to
5-18 Section 3.104 of this Act may also consider any other factor
5-19 relevant to evaluating the value to the state of a good or service,
5-20 including:
5-21 (1) installation costs;
5-22 (2) life-cycle costs;
5-23 (3) the quality, availability, adaptability, and
5-24 reliability of the good or service;
5-25 (4) the delivery terms;
5-26 (5) indicators of probable vendor performance under
5-27 the contract such as past vendor performance, the vendor's
5-28 financial resources, skill, and ability to perform, the vendor's
5-29 experience, responsibility, and reputation, the vendor's previous
5-30 and existing compliance with laws that relate to providing the good
5-31 or service, and the vendor's ability to provide reliable
5-32 maintenance and support;
5-33 (6) the number and scope of conditions attached to a
5-34 vendor's bid or proposal;
5-35 (7) the cost of any employee training associated with
5-36 a purchase;
5-37 (8) the effect of a purchase on agency productivity;
5-38 and
5-39 (9) factors relevant to determining the best value for
5-40 the state in the context of a particular purchase.
5-41 Sec. 3.104. REQUIREMENT TO SPECIFY VALUE FACTORS IN REQUEST
5-42 FOR BIDS OR PROPOSALS. (a) For a purchase made through
5-43 competitive bidding, the commission or other state agency making
5-44 the purchase must specify in the request for bids the factors other
5-45 than price, past vendor performance, or vendor reputation that the
5-46 commission or agency will consider in determining which bid offers
5-47 the best value for the state.
5-48 (b) For a purchase made through competitive sealed
5-49 proposals, the commission or other state agency making the
5-50 purchase:
5-51 (1) must specify in the request for proposals the
5-52 known factors other than price, past vendor performance, or vendor
5-53 reputation that the commission or agency will consider in
5-54 determining which proposal offers the best value for the state; and
5-55 (2) may concurrently inform each vendor that made a
5-56 proposal on the contract of any additional factors the commission
5-57 or agency will consider in determining which proposal offers the
5-58 best value for the state if the commission or other agency
5-59 determines after opening the proposals that additional factors not
5-60 covered under Subdivision (1) of this subsection are relevant in
5-61 determining which proposal offers the best value for the state.
5-62 SECTION 10. Subsections (b), (d), (e), (f), (g), and (h),
5-63 Section 3.11, State Purchasing and General Services Act (Article
5-64 601b, Vernon's Texas Civil Statutes), are amended to read as
5-65 follows:
5-66 (b) Centralized Master Bidders List. The commission shall
5-67 maintain a centralized master bidders list and shall add or delete
5-68 names from the list in accordance with Section 3.101 of this Act
5-69 <by the application and utilization of applicable standards set
5-70 forth in Subsection (e) of this section>. Bid invitations under
6-1 this section shall be sent only to those who have expressed a
6-2 desire to bid on the particular types of items which are the
6-3 subject of the bid invitation. Use of the centralized master
6-4 bidders list shall not be confined to contract purchases but it may
6-5 be used by the commission in making any purchase.
6-6 (d) Bid Opening Procedure. Bids shall be submitted to the
6-7 commission, sealed, and identified as bids on the envelope, except
6-8 that when the commission considers that the electronic information
6-9 capabilities of the state and of the vendor community are
6-10 sufficient, the commission may also allow facsimile or on-line
6-11 transmission of bids. Bids shall be opened at the time and place
6-12 stated in the public notices and the invitation to bid. The state
6-13 auditor or a member of his staff may be present at any bid opening.
6-14 A tabulation of all bids received shall be available for public
6-15 inspection under regulations to be established by the commission.
6-16 (e) Award of Contract. The commission shall award contracts
6-17 to the bidder offering the best value for the state while
6-18 <submitting the lowest and best bid> conforming to the
6-19 specifications required. Complying with the specified time limit
6-20 for submission of written data, samples, or models on or before bid
6-21 opening time is essential to the materiality of a bid, provided,
6-22 however, that the commission shall have the authority to waive this
6-23 provision if the failure to comply is beyond control of the bidder.
6-24 In determining which <who is the lowest and best> bidder offers the
6-25 best value for the state, the commission may take into account the
6-26 safety record of the bidder, or the firm, corporation, partnership,
6-27 or institution represented by the bidder, or anyone acting for such
6-28 firm, corporation, partnership, or institution, provided, however,
6-29 that the commission has adopted a written definition and criteria
6-30 for accurately determining the safety record of a bidder and has
6-31 given notice to prospective bidders, in the bid specifications,
6-32 that the safety record of a bidder may be considered in determining
6-33 the <lowest and best> bidder offering the best value for the state
6-34 and, provided further, that such determinations are not arbitrary
6-35 and capricious. The <In determining who is the lowest and best
6-36 bidder, in addition to price, the> commission shall determine which
6-37 bidder offers the best value for the state in accordance with
6-38 Sections 3.103 and 3.104 of this Act <consider:>
6-39 <(1) the quality, availability, and adaptability of
6-40 the supplies, materials, equipment, or contractual services, to the
6-41 particular use required;>
6-42 <(2) the number and scope of conditions attached to
6-43 the bid;>
6-44 <(3) the ability, capacity, and skill of the bidder to
6-45 perform the contract or provide the service required;>
6-46 <(4) whether the bidder can perform the contract or
6-47 provide the service promptly, or within the time required, without
6-48 delay or interference;>
6-49 <(5) the character, responsibility, integrity,
6-50 reputation, and experience of the bidder;>
6-51 <(6) the quality of performance of previous contracts
6-52 or services;>
6-53 <(7) the previous and existing compliance by the
6-54 bidder with laws relating to the contract or service;>
6-55 <(8) any previous or existing noncompliance by the
6-56 bidder with specification requirements relating to time of
6-57 submission of specified data such as samples, models, drawings,
6-58 certificates, or other information;>
6-59 <(9) the sufficiency of the financial resources and
6-60 ability of the bidder to perform the contract or provide the
6-61 service; and>
6-62 <(10) the ability of the bidder to provide future
6-63 maintenance, repair parts, and service for the use of the subject
6-64 of the contract>.
6-65 (f) Rejection of Bids. If a bid is submitted in which there
6-66 is a material failure to comply with the specification
6-67 requirements, such bid shall be rejected and the contract awarded
6-68 to the bidder offering the best value for the state and <submitting
6-69 the lowest and best bid> conforming to the specifications,
6-70 provided, however, the commission shall in any event have the
7-1 authority to reject all bids or parts of bids when the interest of
7-2 the state will be served thereby.
7-3 (g) Bid Record. When an award is made, a statement of the
7-4 basis for placing the order with the successful bidder and the
7-5 factors considered in determining which bidder offered the best
7-6 value for the state <the lowest and best bid> shall be prepared by
7-7 the purchasing division and filed with other papers relating to the
7-8 transaction.
7-9 (h) Tie Bids. In case of tie bids, the value to the state
7-10 <quality and service> being equal, the contract shall be awarded
7-11 under rules and regulations to be adopted by the commission.
7-12 SECTION 11. Subsections (b), (c), (e), and (f), Section
7-13 3.12, State Purchasing and General Services Act (Article 601b,
7-14 Vernon's Texas Civil Statutes), are amended to read as follows:
7-15 (b) Minimum Number of Bids. All open market purchases
7-16 shall, whenever possible, be based on at least three competitive
7-17 bids, and shall be awarded to the <lowest and best> bidder offering
7-18 the best value for the state in accordance with the standards set
7-19 forth under this article.
7-20 (c) Notice Inviting Bids. The commission shall solicit bids
7-21 by:
7-22 (1) direct mail request to prospective vendors; <or>
7-23 (2) telephone or telegraph;
7-24 (3) facsimile transmission;
7-25 (4) on-line electronic transmission; or
7-26 (5) posting on an electronic bulletin board.
7-27 (e) Agency Review. If a state agency requests that it be
7-28 allowed to review the bids on a purchase request, the commission
7-29 shall forward copies of the bids received or make the same
7-30 available to the requesting agency along with the commission's
7-31 recommended award. If, after review of the bids and evaluation of
7-32 the quality of products offered in the bids, the state agency
7-33 determines that the bid selected by the commission does <is> not in
7-34 its opinion offer the best value for the state <the lowest and best
7-35 bid>, it may file with the commission a written recommendation,
7-36 complete with justification, that the award be made to the bidder
7-37 determined to offer the best value for the state <be the lowest and
7-38 best bid>. The commission shall give consideration to, but is not
7-39 bound by, the agency recommendation in making the award.
7-40 (f) Statement of Award. A statement of the basis for
7-41 placing the order with the successful bidder and the factors
7-42 considered in determining the <lowest and best> bid offering the
7-43 best value for the state shall be prepared by the purchasing
7-44 division and filed with other papers relating to the transaction.
7-45 SECTION 12. Section 3.16, State Purchasing and General
7-46 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
7-47 amended by amending Subsection (a) and by adding Subsections (c)
7-48 and (d) to read as follows:
7-49 (a) After the comptroller and the commission have approved
7-50 financial data and purchase data, when such advance approval is
7-51 required by the rules of the commission, the comptroller shall draw
7-52 a warrant upon the state treasury for the amount due on the invoice
7-53 or for so much thereof as has been allowed. The comptroller may
7-54 distribute the warrant directly to the vendor. The comptroller,
7-55 when appropriate, may combine into a single warrant payments that
7-56 the state owes to a vendor under more than one invoice, including
7-57 payments to the vendor made on behalf of more than one state
7-58 agency.
7-59 (c) The comptroller may allow a state agency to schedule
7-60 payments that the comptroller will make to a vendor. The
7-61 comptroller shall prescribe the circumstances under which advance
7-62 scheduling of payments is appropriate.
7-63 (d) The comptroller may require vendors to provide payment
7-64 addresses, vendor identification numbers, social security numbers
7-65 to the extent allowed by federal law, federal employer
7-66 identification numbers, and other account information directly to
7-67 the comptroller.
7-68 SECTION 13. Subsection (a), Section 3.17, State Purchasing
7-69 and General Services Act (Article 601b, Vernon's Texas Civil
7-70 Statutes), is amended to read as follows:
8-1 (a) The commission shall have the authority to establish and
8-2 maintain a specifications and standards program to coordinate the
8-3 establishment and maintenance of uniform standards and
8-4 specifications for materials, supplies, and equipment purchased by
8-5 the commission. The commission shall enlist the cooperation of
8-6 other state agencies, the advisory committee on procurement, and
8-7 the vendor advisory committee in the establishment, maintenance,
8-8 and revision of uniform standards and specifications and shall
8-9 encourage and foster the use of standard specifications in order
8-10 that the most efficient purchase of materials, supplies, and
8-11 equipment may be continuously accomplished.
8-12 SECTION 14. Section 3.20, State Purchasing and General
8-13 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
8-14 amended to read as follows:
8-15 Sec. 3.20. PREFERENCE FOR PRODUCTS OF RETARDED OR
8-16 HANDICAPPED PERSONS. The products of workshops, organizations, or
8-17 corporations whose primary purpose is training and employing
8-18 mentally retarded or physically handicapped persons shall be given
8-19 preference if they meet state specifications as to quantity,
8-20 quality, delivery, and price. The commission shall test the
8-21 products in accordance with Section 3.17 of this Act to the extent
8-22 necessary to ensure quality. The commission shall consider product
8-23 quality and delivery performance in agreeing to the price for
8-24 products purchased under this section.
8-25 SECTION 15. Section 3.22, State Purchasing and General
8-26 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
8-27 amended to read as follows:
8-28 Sec. 3.22. EXEMPTION OF GOODS OR SERVICES OF BLIND PERSONS.
8-29 The provisions of this article with respect to competitive bids are
8-30 not applicable to state purchases of blind-made goods or services
8-31 offered for sale to state agencies as a result of efforts made by
8-32 the Texas Committee on Purchases of Blind-Made Goods and Services
8-33 acting in accordance with legislation applicable to the committee
8-34 if the goods or services meet state specifications as to delivery,
8-35 quantity, and quality and the cost is not in excess of the fair
8-36 market price of like items. The commission shall test the goods or
8-37 services in accordance with Section 3.17 of this Act to the extent
8-38 necessary to ensure quality. The commission shall consider product
8-39 or service quality and delivery performance in agreeing to the
8-40 price for goods or services purchased under this section.
8-41 SECTION 16. Section 3.23, State Purchasing and General
8-42 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
8-43 amended to read as follows:
8-44 Sec. 3.23. CONTRACTS WITH DEPARTMENT OF CRIMINAL JUSTICE.
8-45 The commission is authorized to make contracts with the Texas
8-46 Department of Criminal Justice for the purchase of supplies,
8-47 equipment, services, and materials for use by other state agencies.
8-48 The commission shall test the supplies, equipment, services, and
8-49 materials in accordance with Section 3.17 of this Act to the extent
8-50 necessary to ensure quality. The commission shall consider product
8-51 or service quality and delivery performance in agreeing to the
8-52 price for supplies, equipment, services, and materials purchased
8-53 under this section.
8-54 SECTION 17. Article 3, State Purchasing and General Services
8-55 Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
8-56 adding Sections 3.34 and 3.35 to read as follows:
8-57 Sec. 3.34. ADVISORY COMMITTEE ON PROCUREMENT. (a) The
8-58 commission shall establish an advisory committee on procurement.
8-59 The purpose of the committee is to represent before the commission
8-60 the state agency purchasing community and the political
8-61 subdivisions that use the commission's purchasing services.
8-62 (b) The committee is composed of officers or employees of
8-63 state agencies, including institutions of higher education, and
8-64 political subdivisions who are invited by the commission to serve
8-65 on the committee. The commission shall invite officers and
8-66 employees who are experienced in public purchasing or in public
8-67 finance or who possess other appropriate expertise to serve on the
8-68 committee. Service on the committee is an additional duty of the
8-69 member's public office or employment. A member's employer shall
8-70 pay the member's travel expenses incurred because of the member's
9-1 service on the committee. Article 6252-33, Revised Statutes, does
9-2 not apply to the size or composition of the committee. The
9-3 commission shall set staggered terms for the members of the
9-4 committee.
9-5 (c) The committee may establish its own rules of operation.
9-6 (d) The committee shall recommend to the commission
9-7 improvements in commission or state agency purchasing practices.
9-8 The committee shall review and comment on findings and
9-9 recommendations related to purchasing that are made by state agency
9-10 internal auditors or by the state auditor.
9-11 Sec. 3.35. VENDOR ADVISORY COMMITTEE. (a) The commission
9-12 shall establish a vendor advisory committee. The purpose of the
9-13 committee is to represent before the commission the vendor
9-14 community, to provide information to vendors, and to obtain vendor
9-15 input on state procurement practices.
9-16 (b) The committee is composed of vendors who have done
9-17 business with the state who are invited by the commission to serve
9-18 on the committee. The commission shall invite a cross-section of
9-19 the vendor community to serve on the committee, inviting both large
9-20 and small businesses, both historically underutilized businesses
9-21 and businesses that are not historically underutilized businesses,
9-22 and vendors who provide a variety of different goods and services
9-23 to the state. Article 6252-33, Revised Statutes, does not apply to
9-24 the size or composition of the committee. The commission shall set
9-25 staggered terms for the members of the committee.
9-26 (c) The committee may establish its own rules of operation,
9-27 but shall post notice of and hold its meetings in accordance with
9-28 the open meetings law, Chapter 551, Government Code.
9-29 SECTION 18. Article 11, State Purchasing and General
9-30 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
9-31 amended by adding Sections 11.08, 11.09, 11.10, and 11.11 to read
9-32 as follows:
9-33 Sec. 11.08. ELECTRONIC BULLETIN BOARD POSTING OF NOTICE FOR
9-34 PROCUREMENTS EXCEEDING $25,000. (a) This section applies to each
9-35 state agency seeking bids, proposals, or professional service
9-36 contracts that will exceed $25,000 in value:
9-37 (1) without regard to the source of funds the agency
9-38 will use for the procurement; and
9-39 (2) including a procurement that:
9-40 (A) is a procurement by a state agency but is
9-41 otherwise exempt from the commission's purchasing authority or the
9-42 application of this Act;
9-43 (B) is made under delegated purchasing
9-44 authority;
9-45 (C) is related to a construction project; or
9-46 (D) is a procurement of professional or
9-47 consulting services.
9-48 (b) The commission shall send to the comptroller for posting
9-49 on the comptroller's Window on State Government electronic bulletin
9-50 board information as prescribed by this section about commission or
9-51 other state agency procurements that will exceed $25,000 in value.
9-52 The commission may also send to the comptroller for posting on the
9-53 electronic bulletin board other information relating to the
9-54 business activity of the state that the commission considers to be
9-55 of interest to the public. The commission shall send the
9-56 information in a format agreed to by the comptroller.
9-57 (c) The commission shall include in the information sent to
9-58 the comptroller, to the extent it is feasible and cost-effective,
9-59 the following information for each procurement that the commission
9-60 or another state agency will make that is estimated to exceed
9-61 $25,000 in value:
9-62 (1) a description of the goods or services to be
9-63 procured;
9-64 (2) the estimated quantity of goods or services to be
9-65 procured;
9-66 (3) the bid or proposal opening date; and
9-67 (4) the name, business mailing address, and business
9-68 telephone number of the commission employee or other state agency
9-69 employee a person can contact to obtain all necessary information
9-70 related to making a bid or proposal or other applicable expression
10-1 of interest for the procurement contract.
10-2 (d) Each state agency that will award a procurement contract
10-3 estimated to exceed $25,000 in value shall send to the commission
10-4 the information the commission requires for posting on the
10-5 comptroller's electronic bulletin board under this section.
10-6 (e) The commission may adopt rules, prescribe forms, and
10-7 require information to administer this section. The commission's
10-8 rules, forms, and requirements must be consistent with the
10-9 comptroller's requirements relating to the comptroller's electronic
10-10 bulletin board.
10-11 Sec. 11.09. ELECTRONIC PROCUREMENT DATABASE. (a) The
10-12 commission shall establish and manage an electronic procurement
10-13 database. The commission may enter into contracts with private or
10-14 public entities to establish or maintain all or part of the
10-15 database. The commission shall base its decision to enter into a
10-16 contract under this subsection on an analysis that uses the State
10-17 Council on Competitive Government's cost methodology.
10-18 (b) The commission may maintain in the database information
10-19 related to state procurement that the commission considers to be
10-20 useful. The database must contain:
10-21 (1) information about vendors, including information
10-22 from the centralized master bidders list and vendor performance
10-23 information;
10-24 (2) information about products, including product
10-25 testing results; and
10-26 (3) information that relates to commission and other
10-27 state agency purchasing contracts and that can be entered into the
10-28 database electronically without the need for duplicate data entry.
10-29 (c) The commission may require information from a state
10-30 agency for inclusion in the database.
10-31 (d) The commission shall make the database available to
10-32 state agencies and political subdivisions through the procurement
10-33 marketplace.
10-34 Sec. 11.10. ELECTRONIC PROCUREMENT MARKETPLACE. (a) The
10-35 commission shall establish and manage an electronic procurement
10-36 marketplace through which the commission and state agencies may:
10-37 (1) communicate information relevant to the state's
10-38 procurement of goods and services; and
10-39 (2) conduct elements of purchasing transactions within
10-40 state government electronically to the extent that it is feasible
10-41 and cost-effective to do so.
10-42 (b) The commission shall design the procurement marketplace
10-43 as an interactive gateway between all state databases that relate
10-44 to procurement, including databases that contain information about
10-45 the availability of surplus property. The commission shall define
10-46 standards, including keyword and product code standards, for the
10-47 procurement marketplace.
10-48 (c) The commission may adopt rules relating to the design
10-49 and use of the procurement marketplace, including rules that
10-50 require state agencies to provide information for or receive
10-51 information from the procurement marketplace.
10-52 (d) The commission shall make state procurement information
10-53 available to political subdivisions through the procurement
10-54 marketplace on a fee-for-service basis. The commission shall set
10-55 the fees in an amount that recovers the state's costs in providing
10-56 the access to a political subdivision.
10-57 Sec. 11.11. ELECTRONIC COMMERCE NETWORK USING ELECTRONIC
10-58 DATA INTERCHANGE. (a) The commission shall establish and manage
10-59 an electronic commerce network under which the state's purchasing
10-60 transactions with vendors can be accomplished electronically by
10-61 means of facsimile transmissions and on-line transmission of
10-62 necessary information. The commission shall base the network on
10-63 the standard data protocol developed by the American National
10-64 Standards Institute known as electronic data interchange. The
10-65 commission is the electronic data interchange coordinator for state
10-66 government.
10-67 (b) The commission may enter into contracts with one or more
10-68 public or private entities to establish or support various elements
10-69 of the network. The commission may provide for a gateway between
10-70 the procurement marketplace and the electronic commerce network so
11-1 that the elements of a procurement transaction that are within
11-2 state government and the elements of a procurement transaction that
11-3 involve communication with a vendor may all be accomplished
11-4 electronically.
11-5 (c) Each state agency that is capable of participating in
11-6 the electronic commerce network must participate in the network and
11-7 participate in contracts entered into by the commission for the
11-8 establishment or support of the network. The commission shall
11-9 charge an agency a fee for network services provided to the agency
11-10 by the commission and require an agency to pay a fee to a
11-11 contractor for network services provided to the agency by the
11-12 contractor, so that the cost of providing network services to an
11-13 agency is paid by the agency.
11-14 (d) The commission may allow political subdivisions and
11-15 other public entities to participate in the electronic commerce
11-16 network. The commission shall provide that a participating
11-17 political subdivision is charged fees for network services provided
11-18 to the political subdivision in the same manner that participating
11-19 state agencies are charged fees under Subsection (c) of this
11-20 section.
11-21 (e) The commission may:
11-22 (1) adopt rules to administer this section;
11-23 (2) promote and enhance the use of electronic
11-24 commerce; and
11-25 (3) require participating state agencies, political
11-26 subdivisions, and other public entities to designate a network
11-27 coordinator.
11-28 SECTION 19. Article 15, State Purchasing and General
11-29 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
11-30 amended by adding Section 15.11 to read as follows:
11-31 Sec. 15.11. CONSOLIDATING OR CONTRACTING FOR MATERIALS
11-32 MANAGEMENT FUNCTIONS. (a) The council shall study the materials
11-33 management functions of state agencies and examine opportunities to
11-34 consolidate materials management functions. When the council
11-35 determines a course of action that will more effectively or
11-36 efficiently accomplish an agency's materials management functions,
11-37 the council may:
11-38 (1) order two or more state agencies to consolidate
11-39 between them warehousing, inventory control, or other materials
11-40 management functions;
11-41 (2) order a state agency to obtain under a contract
11-42 with another state agency or a private commercial source the
11-43 agency's warehousing, inventory control, or other materials
11-44 management functions; or
11-45 (3) order one or more state agencies to take a
11-46 combination of actions described under Subdivisions (1) and (2) of
11-47 this subsection.
11-48 (b) State agencies shall consolidate or contract for
11-49 materials management functions, or both consolidate and contract
11-50 for materials management functions, in the manner directed by the
11-51 council.
11-52 SECTION 20. Chapter 2102, Government Code, is amended by
11-53 adding Section 2102.013 to read as follows:
11-54 Sec. 2102.013. AUDITING OF AGENCY PURCHASING PRACTICES. The
11-55 internal auditor shall include the audit of the purchasing
11-56 practices of a state agency in audits required under this chapter.
11-57 SECTION 21. (a) Section 2251.026, Government Code, is
11-58 amended to read as follows:
11-59 Sec. 2251.026. PAYMENT OF INTEREST BY STATE AGENCY. (a) If
11-60 the warrant for a payment the originating state agency owes is not
11-61 mailed or electronically transmitted before the payment is overdue,
11-62 the agency is liable for an interest payment that accrues under
11-63 this chapter.
11-64 (b) The comptroller shall compute interest imposed on the
11-65 state agency under this chapter.
11-66 (c) The comptroller shall pay the interest at the time
11-67 payment is made on the principal.
11-68 (d) The comptroller shall submit the interest payment with
11-69 the net amount due for goods and services.
11-70 (e) The comptroller and the state agency may not require a
12-1 vendor to petition, bill, or wait an additional day to receive the
12-2 interest due.
12-3 (f) The comptroller may require necessary and timely
12-4 information and adopt rules to administer this section.
12-5 (g) Any system changes that are necessary for the
12-6 comptroller's implementation of this section must be compatible
12-7 with the uniform statewide accounting system.
12-8 (b) This section takes effect September 1, 1997. The change
12-9 in law made by this section applies only to interest on a payment
12-10 by a state agency that becomes overdue under Chapter 2251,
12-11 Government Code, on or after that date. Interest on a payment by a
12-12 state agency that becomes overdue under Chapter 2251, Government
12-13 Code, before that date is governed by Section 2251.026, Government
12-14 Code, as it exists on the date the payment becomes overdue, and the
12-15 prior law is continued in effect for this purpose.
12-16 SECTION 22. Subsection (a), Section 271.083, Local
12-17 Government Code, is amended to read as follows:
12-18 (a) A local government may participate in the purchasing
12-19 program of the commission by filing with the commission a
12-20 resolution adopted by the governing body of the local government
12-21 requesting that the local government be allowed to participate on a
12-22 voluntary basis, and to the extent the commission deems feasible,
12-23 and stating that the local government will:
12-24 (1) designate an official to act for the local
12-25 government in all matters relating to the program, including the
12-26 purchase of items from the vendor under any contract, and that the
12-27 governing body will direct the decisions of the representative;
12-28 (2) be responsible for:
12-29 (A) submitting requisitions to the commission
12-30 under any contract; or
12-31 (B) electronically sending purchase orders
12-32 directly to vendors and electronically sending to the commission
12-33 reports on actual purchases made under this paragraph that provide
12-34 the information and are sent at the times required by the
12-35 commission;
12-36 (3) be responsible <and> for making payment directly
12-37 to the vendor; and
12-38 (4) <(3)> be responsible for the vendor's compliance
12-39 with all conditions of delivery and quality of the purchased item.
12-40 SECTION 23. (a) The state auditor and the advisory
12-41 committee on procurement established by this Act shall study how
12-42 the classification levels of state agency purchasing personnel
12-43 should be revised to reflect the increased levels of responsibility
12-44 and accountability given to state agency purchasing personnel under
12-45 the changes in law made by this Act. The state auditor and the
12-46 committee should consider how best to provide purchasing personnel
12-47 with a pay scale and a career path, including goals, incentives,
12-48 and initiatives, commensurate with a purchaser's knowledge,
12-49 authority, and responsibility.
12-50 (b) The state auditor and the advisory committee on
12-51 procurement shall present their written recommendations and the
12-52 results of their study to the legislature not later than January 1,
12-53 1997.
12-54 SECTION 24. The General Services Commission may conduct
12-55 pilot studies of regional contracts and no-stock contracts.
12-56 SECTION 25. The Legislative Budget Board and the division of
12-57 the governor's office that works with budget and planning issues
12-58 shall study and consider:
12-59 (1) ways to obtain information about planned state
12-60 procurements as part of the reporting and information gathering
12-61 functions of the state's appropriations process; and
12-62 (2) ways to use that information to increase the
12-63 state's buying power.
12-64 SECTION 26. The General Services Commission shall gradually
12-65 phase in, in the most cost-effective manner and in accordance with
12-66 available appropriations, the changes in law made by this Act that
12-67 require the establishment of electronic or automated marketplaces,
12-68 networks, or databases.
12-69 SECTION 27. Section 3.0221 and Subsection (d), Section 3.09,
12-70 State Purchasing and General Services Act (Article 601b, Vernon's
13-1 Texas Civil Statutes), are repealed.
13-2 SECTION 28. (a) Section 2251.041, Government Code, is
13-3 repealed.
13-4 (b) This section takes effect September 1, 1997. The change
13-5 in law made by this section applies only to interest on a payment
13-6 by a state agency that becomes overdue under Chapter 2251,
13-7 Government Code, on or after that date. Interest on a payment by a
13-8 state agency that becomes overdue under Chapter 2251, Government
13-9 Code, before that date is governed by Section 2251.041, Government
13-10 Code, as it exists on the date the payment becomes overdue, and the
13-11 prior law is continued in effect for this purpose.
13-12 SECTION 29. Except as otherwise provided by this Act, this
13-13 Act takes effect September 1, 1995.
13-14 SECTION 30. The importance of this legislation and the
13-15 crowded condition of the calendars in both houses create an
13-16 emergency and an imperative public necessity that the
13-17 constitutional rule requiring bills to be read on three several
13-18 days in each house be suspended, and this rule is hereby suspended.
13-19 * * * * *