By: Armbrister S.B. No. 1752
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the purchase of goods and services by the state and to
1-2 purchasing services provided by the state to local governments.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter A, Chapter 2152, Government Code, is
1-5 amended by adding Section 2152.003 to read as follows:
1-6 Sec. 2152.003. AUTHORITY TO ADOPT RULES. The commission may
1-7 adopt rules to efficiently and effectively administer this
1-8 subtitle.
1-9 SECTION 2. Section 2155.065, Government Code, is amended to
1-10 read as follows:
1-11 Sec. 2155.065. CONTRACTS WITH DEPARTMENT OF CRIMINAL
1-12 JUSTICE. (a) The commission is authorized to make contracts with
1-13 the Texas Department of Criminal Justice for the purchase of goods
1-14 and services for use by another state agency.
1-15 (b) The Texas Department of Criminal Justice shall test
1-16 goods and services it sells under this section before delivery to
1-17 the extent necessary to ensure quality. The department may enter
1-18 into a contract with a private or public entity to assist with
1-19 testing.
1-20 (c) The commission shall make awards under this section
1-21 based on proposed goods and services meeting formal state
1-22 specifications developed by the commission or meeting commercial
1-23 specifications approved by the commission.
2-1 SECTION 3. Section 2155.068, Government Code, is amended to
2-2 read as follows:
2-3 Sec. 2155.068. UNIFORM STANDARDS AND SPECIFICATIONS.
2-4 (a) The commission may coordinate uniform standards and
2-5 specifications for goods purchased by the commission. The
2-6 commission by rule may adopt appropriate standards developed by a
2-7 nationally recognized standards-making association as part of its
2-8 specifications and standards program.
2-9 (b) The commission shall enlist the cooperation of other
2-10 state agencies in the establishment, maintenance, and revision of
2-11 uniform standards and specifications [and shall foster their use to
2-12 accomplish continuously the most efficient purchase of goods].
2-13 (c) The commission shall review contracts administered by
2-14 the commission [and procedures] to ensure that all goods and
2-15 services meet contract specifications.
2-16 (d) As part of the standards and specifications program, the
2-17 commission shall review contracts for opportunities to recycle
2-18 [recycling] waste produced at state buildings.
2-19 SECTION 4. Section 2155.069, Government Code, is amended to
2-20 read as follows:
2-21 Sec. 2155.069. TESTING AND INSPECTION. (a) The commission
2-22 may [shall] test and inspect goods and services purchased under a
2-23 contract administered by the commission [under a program] to ensure
2-24 compliance with specifications.
2-25 (b) The commission may contract for testing under this
3-1 section.
3-2 (c) The commission may, on request, test and inspect goods
3-3 and services purchased by other state governmental entities on a
3-4 cost recovery basis [shall provide for testing and inspection of
3-5 all costly purchases and may adopt rules necessary to carry out
3-6 this duty].
3-7 (d) The commission may also test and inspect goods and
3-8 services before they are purchased. Other state agencies may test
3-9 and inspect goods and services before purchase under standard
3-10 industry testing methods, or they may contract for testing. The
3-11 commission may inform agencies about available private testing
3-12 facilities.
3-13 SECTION 5. Subsections (a), (b), and (d), Section 2155.070,
3-14 Government Code, are amended to read as follows:
3-15 (a) A state agency that determines that goods or services
3-16 received under a contract administered by the commission do not
3-17 meet specifications shall promptly notify the commission in writing
3-18 of the reasons for the determination. The commission shall
3-19 immediately make its own determination of whether the goods and
3-20 services meet specifications.
3-21 (b) The commission or a state agency, including an
3-22 institution of higher education, has the authority [has the sole
3-23 power] to determine that goods and services exempted from the
3-24 commission's purchasing authority meet or fail to meet
3-25 specifications.
4-1 (d) If the commission receives repeated complaints against a
4-2 vendor, the commission shall remove the vendor's name and the
4-3 vendor's goods and services from the commission's bidders list for
4-4 not longer than one year. If complaints resume after the vendor is
4-5 reinstated on the bidders list, the commission may bar the vendor
4-6 from participating in state contracts for a period under Section
4-7 2155.077.
4-8 SECTION 6. Subchapter B, Chapter 2155, Government Code, is
4-9 amended by adding Sections 2155.074 through 2155.082 to read as
4-10 follows:
4-11 Sec. 2155.074. BEST VALUE STANDARD FOR PURCHASE OF GOODS OR
4-12 SERVICES. (a) Each state agency, including the commission, shall
4-13 purchase goods and services that provide the best value for the
4-14 state.
4-15 (b) In determining the best value for the state, the
4-16 purchase price and whether the goods or services meet
4-17 specifications are the most important considerations. However, the
4-18 commission or other state agency may, subject to Subsection (c) and
4-19 Section 2155.075, consider other relevant factors, including:
4-20 (1) installation costs;
4-21 (2) life cycle costs;
4-22 (3) the quality and reliability of the goods and
4-23 services;
4-24 (4) the delivery terms;
4-25 (5) indicators of probable vendor performance under
5-1 the contract such as past vendor performance, the vendor's
5-2 financial resources and ability to perform, the vendor's experience
5-3 or demonstrated capability and responsibility, and the vendor's
5-4 ability to provide reliable maintenance agreements and support;
5-5 (6) the cost of any employee training associated with
5-6 a purchase;
5-7 (7) the effect of a purchase on agency productivity;
5-8 and
5-9 (8) other factors relevant to determining the best
5-10 value for the state in the context of a particular purchase.
5-11 (c) A state agency shall consult with and receive approval
5-12 from the commission before considering factors other than price and
5-13 meeting specifications when the agency procures through competitive
5-14 bidding goods or services with a value that exceeds $100,000.
5-15 Sec. 2155.075. REQUIREMENT TO SPECIFY VALUE FACTORS IN
5-16 REQUEST FOR BIDS OR PROPOSALS. (a) For a purchase made through
5-17 competitive bidding, the commission or other state agency making
5-18 the purchase must specify in the request for bids the factors other
5-19 than price that the commission or agency will consider in
5-20 determining which bid offers the best value for the state.
5-21 (b) For a purchase made through competitive sealed
5-22 proposals, the commission or other state agency making the
5-23 purchase:
5-24 (1) must specify in the request for proposals the
5-25 known factors other than price that the commission or agency will
6-1 consider in determining which proposal offers the best value for
6-2 the state; and
6-3 (2) may concurrently inform each vendor that made a
6-4 proposal on the contract of any additional factors the commission
6-5 or agency will consider in determining which proposal offers the
6-6 best value for the state if the commission or other agency
6-7 determines after opening the proposals that additional factors not
6-8 covered under Subdivision (1) are relevant in determining which
6-9 proposal offers the best value for the state.
6-10 Sec. 2155.076. PROTEST PROCEDURES. (a) The commission and
6-11 each state agency by rule shall develop and adopt protest
6-12 procedures for resolving vendor protests relating to purchasing
6-13 issues. An agency's rules must be consistent with the commission's
6-14 rules. The rules must include standards for maintaining
6-15 documentation about the purchasing process to be used in the event
6-16 of a protest.
6-17 (b) A state agency that is not subject to Chapter 2001
6-18 shall provide public notice of its proposed and adopted protest
6-19 rules and provide a procedure for public comment on the proposed
6-20 rules.
6-21 Sec. 2155.077. BARRING VENDOR FROM PARTICIPATION IN STATE
6-22 CONTRACTS. (a) The commission may bar a vendor from participating
6-23 in state contracts that are subject to this subtitle, including
6-24 contracts for which purchasing authority is delegated to a state
6-25 agency, for:
7-1 (1) substandard performance under a contract with the
7-2 state or a state agency;
7-3 (2) material misrepresentations in a bid or proposal
7-4 to the state or a state agency or during the course of performing a
7-5 contract with the state or a state agency;
7-6 (3) fraud; or
7-7 (4) breaching a contract with the state or a state
7-8 agency.
7-9 (b) The commission shall bar a vendor from participating in
7-10 state contracts under this section for a period that is
7-11 commensurate with the seriousness of the vendor's action and the
7-12 damage to the state's interests.
7-13 (c) The commission by rule shall:
7-14 (1) state generally the reasons for which a vendor may
7-15 be barred from participating in state contracts and the periods for
7-16 which the vendor may be barred; and
7-17 (2) prescribe the procedures under which the
7-18 commission will determine whether and for how long a vendor will be
7-19 barred.
7-20 Sec. 2155.078. TRAINING AND CERTIFICATION OF STATE AGENCY
7-21 PURCHASING PERSONNEL. (a) The commission shall establish and
7-22 administer a system of training, continuing education, and
7-23 certification for state agency purchasing personnel. The
7-24 commission may adopt rules to administer this section, including
7-25 rules relating to monitoring a certified purchaser's compliance
8-1 with the continuing education requirements of this section.
8-2 (b) Except as provided by Subsection (n), all state agency
8-3 purchasing personnel, including agencies exempted from the
8-4 purchasing authority of the commission, must receive the training
8-5 and continuing education to the extent required by rule of the
8-6 commission. A state agency employee who is required to receive the
8-7 training may not participate in purchases by the employing agency
8-8 unless the employee has received the required training or received
8-9 equivalent training from a national association recognized by the
8-10 commission. The equivalent training may count, as provided by
8-11 Subsection (k), toward the continuing education requirements.
8-12 (c) The commission shall set and collect a fee from state
8-13 agencies that employ purchasing personnel. The commission shall
8-14 set the fee in an amount that recovers the commission's costs under
8-15 this section.
8-16 (d) The commission may provide training, continuing
8-17 education, and certification under this section to purchasing
8-18 personnel employed by a political subdivision or other public
8-19 entity of the state. Political subdivision purchasing personnel
8-20 may receive, but are not required to receive, the training,
8-21 continuing education, or certification provided under this section.
8-22 The commission shall collect the fees described by Subsection (c)
8-23 for training, education, or certification under this subsection.
8-24 (e) The commission may provide training and continuing
8-25 education under this section using its own personnel or through
9-1 contracts with private entities. The commission may also, by
9-2 agreement with a public entity, use the services of persons
9-3 employed by the public entity to provide training and continuing
9-4 education under this section.
9-5 (f) The commission shall provide at least three levels of
9-6 training under this section.
9-7 (g) The basic training level must include an introduction to
9-8 contract purchasing methods, ethical issues affecting purchasing
9-9 decisions, and instruction in any other processes and issues that
9-10 the commission considers appropriate for introductory purchasing
9-11 training.
9-12 (h) The second training level must include advanced
9-13 instruction in formal and informal bidding methods, introduction to
9-14 negotiation methods, instruction in writing specifications, and
9-15 instruction in any other processes and issues that the commission
9-16 considers appropriate for the second level of purchasing training.
9-17 (i) The third training level must include an introduction to
9-18 complex negotiations, instruction in the criteria for determining
9-19 which product or service offers the best value for the state, and
9-20 instruction in any other processes and issues that the commission
9-21 considers appropriate for advanced purchasing training.
9-22 (j) The commission may prescribe the circumstances under
9-23 which a state agency may delegate to a certified purchaser
9-24 signature purchasing authority to approve purchase orders.
9-25 (k) The commission shall require 24 hours of continuing
10-1 education each year to maintain a certification level. The
10-2 commission may allow attendance at equivalent certification
10-3 training recognized by the commission to count toward up to 16
10-4 hours of the continuing education requirement.
10-5 (l) The commission's prerequisites for receiving a level-two
10-6 purchaser certification must include completion of the basic
10-7 training level, passage of a written examination, and a minimum
10-8 number of years of purchasing experience prescribed by the
10-9 commission.
10-10 (m) The commission's prerequisites for receiving a
10-11 level-three purchaser certification must include completion of the
10-12 second training level, passage of a written and an oral
10-13 examination, and a minimum of three years of purchasing experience.
10-14 (n) This section does not apply to a medical and dental unit
10-15 to which Section 51.933, Education Code, as added by Chapter 736,
10-16 Acts of the 74th Legislature, 1995, applies or to an institution to
10-17 which Section 73.115, Education Code, applies.
10-18 Sec. 2155.079. BUYING UNDER CONTRACT ESTABLISHED BY AGENCY
10-19 OTHER THAN COMMISSION. (a) The commission shall adopt rules
10-20 specifying the circumstances under which it is advantageous for the
10-21 state to allow a state agency to purchase goods or services under a
10-22 contract made by another state agency other than the commission.
10-23 (b) If commission rules allow other agencies to make
10-24 purchases under a contract entered into by an agency using
10-25 delegated purchasing authority, the agency purchasing under
11-1 delegated authority may offer the goods or services available under
11-2 the contract to other agencies only if the agency first:
11-3 (1) establishes that the goods or services being
11-4 offered under its contract are not available under a contract
11-5 administered by the commission; and
11-6 (2) informs the commission of the terms of the
11-7 contract and the capabilities of the vendor.
11-8 Sec. 2155.080. ADVISORY COMMITTEE ON PROCUREMENT. (a) The
11-9 commission may establish an advisory committee on procurement. The
11-10 purpose of the committee is to represent before the commission the
11-11 state agency purchasing community and the political subdivisions
11-12 that use the commission's purchasing services.
11-13 (b) The committee is composed of officers or employees from
11-14 the commission, from state agencies, including institutions of
11-15 higher education, and from political subdivisions who are invited
11-16 by the commission to serve on the committee. The commission shall
11-17 invite officers and employees who are experienced in public
11-18 purchasing, in public finance, or who possess other appropriate
11-19 expertise to serve on the committee. Service on the committee is
11-20 an additional duty of the member's public office or employment.
11-21 Article 6252-33, Revised Statutes, does not apply to the size or
11-22 composition of the committee. The commission shall set staggered
11-23 terms for the members of the committee.
11-24 (c) The committee may establish its own rules of operation.
11-25 (d) The committee shall recommend improvements in commission
12-1 or state agency purchasing practices to the commission. The
12-2 committee shall review and comment on findings and recommendations
12-3 related to purchasing that are made by state agency internal
12-4 auditors or by the state auditor.
12-5 Sec. 2155.081. VENDOR ADVISORY COMMITTEE. (a) The
12-6 commission may establish a vendor advisory committee. The purpose
12-7 of the committee is to represent before the commission the vendor
12-8 community, to provide information to vendors, and to obtain vendor
12-9 input on state procurement practices.
12-10 (b) The committee is composed of employees from the
12-11 commission and vendors who have done business with the state who
12-12 are invited by the commission to serve on the committee. The
12-13 commission shall invite a cross-section of the vendor community to
12-14 serve on the committee, inviting both large and small businesses
12-15 and vendors who provide a variety of different goods and services
12-16 to the state. Article 6252-33, Revised Statutes, does not apply to
12-17 the size or composition of the committee. The commission shall set
12-18 staggered terms for the members of the committee.
12-19 (c) The committee may establish its own rules of operation
12-20 but shall post notice of and hold its meetings in accordance with
12-21 Chapter 551.
12-22 Sec. 2155.082. PROVIDING CERTAIN PURCHASING SERVICES ON
12-23 FEE-FOR-SERVICE BASIS. (a) The commission may provide open market
12-24 purchasing services on a fee-for-service basis for state agency
12-25 purchases that are delegated to an agency under Section 2155.131,
13-1 2155.132, 2155.133, or 2157.121 or that are exempted from the
13-2 purchasing authority of the commission. The commission shall set
13-3 the fees in an amount that recovers the commission's costs in
13-4 providing the services.
13-5 (b) The commission shall publish a schedule of its fees for
13-6 services that are subject to this section. The schedule must
13-7 include the commission's fees for:
13-8 (1) reviewing bid and contract documents for clarity,
13-9 completeness, and compliance with laws and rules;
13-10 (2) developing and transmitting invitations to bid;
13-11 (3) receiving and tabulating bids;
13-12 (4) evaluating and determining which bidder offers the
13-13 best value to the state;
13-14 (5) creating and transmitting purchase orders; and
13-15 (6) participating in agencies' request for proposal
13-16 processes.
13-17 SECTION 7. Section 2155.132, Government Code, is amended to
13-18 read as follows:
13-19 Sec. 2155.132. PURCHASES LESS THAN SPECIFIED MONETARY
13-20 AMOUNT. (a) A state agency is delegated the authority to purchase
13-21 goods and services if the purchase does not exceed $15,000
13-22 [$5,000]. If the commission determines that a state agency has not
13-23 followed the commission's rules or the laws related to the
13-24 delegated purchases, the commission shall report its determination
13-25 to the governor, lieutenant governor, speaker of the house of
14-1 representatives, and Legislative Budget Board. [The agency may,
14-2 however, use the commission's services for those purchases.]
14-3 (b) The commission by rule may delegate to a state agency
14-4 the authority to purchase goods and services if the purchase
14-5 exceeds $15,000 [$5,000]. In delegating purchasing authority under
14-6 this subsection or Section 2155.131, the commission shall consider
14-7 factors relevant to a state agency's ability to perform purchasing
14-8 functions, including:
14-9 (1) the capabilities of the agency's purchasing staff
14-10 and the existence of automated purchasing tools at the agency;
14-11 (2) the certification levels held by the agency's
14-12 purchasing personnel;
14-13 (3) the results of the commission's procurement review
14-14 audits of an agency's purchasing practices; and
14-15 (4) whether the agency has adopted and published
14-16 protest procedures consistent with those of the commission as part
14-17 of its purchasing rules.
14-18 (c) The commission shall monitor the purchasing practices of
14-19 state agencies that are making delegated purchases under Subsection
14-20 (b) or Section 2155.131 to ensure that the certification levels of
14-21 the agency's purchasing personnel and the quality of the agency's
14-22 purchasing practices continue to warrant the amount of delegated
14-23 authority provided by the commission to the agency. The commission
14-24 may revoke for cause all or part of the purchasing authority that
14-25 the commission delegated to a state agency. The commission shall
15-1 adopt rules to administer this subsection.
15-2 (d) [(c)] The commission by rule:
15-3 (1) shall prescribe procedures for a delegated
15-4 purchase; and
15-5 (2) shall prescribe procedures by which agencies may
15-6 use the commission's services for delegated purchases, in
15-7 accordance with Section 2155.082 [may delegate to the comptroller
15-8 the commission's authority under Subchapter F to audit purchases
15-9 and purchase information if the purchases do not exceed $500 or a
15-10 greater amount prescribed by the commission].
15-11 (e) [(d)] Competitive bidding, whether formal or informal,
15-12 is not required for a purchase by a state agency if the purchase
15-13 does not exceed $2,000 [$1,000], or a greater amount prescribed by
15-14 commission rule.
15-15 (f) [(e)] Goods purchased under this section may not
15-16 include:
15-17 (1) an item for which a contract has been awarded
15-18 under the contract purchase procedure, unless the quantity
15-19 purchased is less than the minimum quantity specified in the
15-20 contract;
15-21 (2) an item required by statute to be purchased from a
15-22 particular source; or
15-23 (3) a scheduled item that has been designated for
15-24 purchase by the commission.
15-25 (g) [(f)] A large purchase may not be divided into small lot
16-1 purchases to meet the dollar limits prescribed by this section.
16-2 The commission may not require that unrelated purchases be combined
16-3 into one purchase order to exceed the dollar limits prescribed by
16-4 this section.
16-5 (h) [(g)] A state agency making a purchase under this
16-6 section for which competitive bidding is required must:
16-7 (1) attempt to obtain at least three competitive bids
16-8 from sources listed on the master bidders list that normally offer
16-9 for sale the goods being purchased; and
16-10 (2) comply with Subchapter E.
16-11 SECTION 8. Subsection (b), Section 2155.134, Government
16-12 Code, is amended to read as follows:
16-13 (b) The commission shall adopt rules that allow institutions
16-14 of higher education or state agencies to make purchases [purchases
16-15 to be made] through group purchasing programs except when the
16-16 commission determines within a reasonable time after receiving
16-17 notice of a particular purchase that costs more than $100,000 that
16-18 a better value [lower price] is available through the commission.
16-19 SECTION 9. Section 2155.138, Government Code, is amended to
16-20 read as follows:
16-21 Sec. 2155.138. EXEMPTION OF GOODS OR SERVICES OF BLIND OR
16-22 VISUALLY IMPAIRED PERSONS. (a) The competitive bidding provisions
16-23 of this chapter do not apply to a state purchase of goods or
16-24 services that:
16-25 (1) are made or provided by blind or visually impaired
17-1 persons;
17-2 (2) are offered for sale to a state agency through
17-3 efforts made under law by the Texas Council on Purchasing from
17-4 People with Disabilities [Committee on Purchases of Products and
17-5 Services of Blind and Severely Disabled Persons];
17-6 (3) meet state specifications for quantity, [and]
17-7 quality, delivery, and life cycle costs; and
17-8 (4) cost not more than the fair market price of
17-9 similar items.
17-10 (b) The council shall test the goods and services to the
17-11 extent necessary to ensure quality. The council may enter into a
17-12 contract with a private or public entity to assist with testing.
17-13 (c) The commission shall make awards under this section
17-14 based on proposed goods and services meeting formal state
17-15 specifications developed by the commission or meeting commercial
17-16 specifications approved by the commission.
17-17 SECTION 10. Section 2155.263, Government Code, is amended to
17-18 read as follows:
17-19 Sec. 2155.263. COMMISSION TO MAINTAIN CENTRALIZED MASTER
17-20 BIDDERS LIST. (a) The commission shall maintain a centralized
17-21 master bidders list and annually register on the list the name and
17-22 address of each vendor that applies for registration under rules
17-23 adopted under this subchapter. The commission may include other
17-24 relevant vendor information on the list.
17-25 (b) The commission shall maintain the centralized master
18-1 bidders list in a manner that facilitates a state agency's
18-2 solicitation of vendors that serve the agency's geographic area.
18-3 (c) The centralized master bidders list shall be used for
18-4 all available procurement processes authorized by this subtitle and
18-5 shall also be used to the fullest extent possible by state agencies
18-6 that make purchases exempt from the commission's purchasing
18-7 authority.
18-8 SECTION 11. Section 2155.268, Government Code, is amended by
18-9 adding Subsection (d) to read as follows:
18-10 (d) A state agency may purchase goods and services from a
18-11 vendor who is not on the bidders list if the purchase price does
18-12 not exceed $5,000.
18-13 SECTION 12. Section 2155.441, Government Code, is amended to
18-14 read as follows:
18-15 Sec. 2155.441. PREFERENCE FOR PRODUCTS OF PERSONS WITH
18-16 MENTAL RETARDATION OR PHYSICAL DISABILITIES. (a) The products of
18-17 workshops, organizations, or corporations whose primary purpose is
18-18 training and employing individuals having mental retardation or a
18-19 physical disability shall be given preference if they meet state
18-20 specifications regarding quantity, quality, delivery, life cycle
18-21 costs, and price.
18-22 (b) The workshops, organizations, or corporations shall test
18-23 the products to the extent necessary to ensure quality in
18-24 accordance with Section 2155.069 and may enter into contracts with
18-25 a private or public entity to assist with testing.
19-1 (c) The commission is not required to purchase products
19-2 under this section that do not meet formal state specifications
19-3 developed by the commission or meet commercial specifications
19-4 approved by the commission.
19-5 SECTION 13. Section 2156.005, Government Code, is amended to
19-6 read as follows:
19-7 Sec. 2156.005. BID SUBMISSION AND OPENING; PUBLIC
19-8 INSPECTION. (a) A bidder must submit a sealed bid to the
19-9 commission or to the state agency making a purchase. The bid must
19-10 be identified on the envelope as a bid.
19-11 (b) The commission or other state agency making a purchase
19-12 shall open bids at the time and place stated in the invitation to
19-13 bid.
19-14 (c) [The state auditor or a member of the state auditor's
19-15 staff may be present at a bid opening.]
19-16 [(d)] The commission shall keep a tabulation of all bids
19-17 received by the commission available for public inspection under
19-18 rules adopted by the commission. State agencies making purchases
19-19 shall adopt the commission's rules related to bid opening and
19-20 tabulation.
19-21 SECTION 14. Sections 2156.007 through 2156.010, Government
19-22 Code, are amended to read as follows:
19-23 Sec. 2156.007. CONTRACT AWARD. (a) The commission or other
19-24 state agency making a purchase shall award a contract to the bidder
19-25 offering the best value for the state while [submitting the lowest
20-1 and best bid] conforming to the specifications required.
20-2 (b) In determining the [lowest and best] bidder offering the
20-3 best value, the commission or other state agency may consider the
20-4 safety record of the bidder, the entity represented by the bidder,
20-5 and any person acting for the represented entity only if:
20-6 (1) the commission or other state agency has adopted a
20-7 written definition and criteria for accurately determining the
20-8 safety record of a bidder; and
20-9 (2) the commission or state agency provided [gave]
20-10 notice in the bid specifications to prospective bidders that a
20-11 bidder's safety record may be considered in determining the [lowest
20-12 and best] bidder offering the best value for the state.
20-13 (c) A determination of a bidder's safety record may not be
20-14 arbitrary and capricious.
20-15 (d) In determining the [lowest and best] bidder offering the
20-16 best value, in addition to price the commission or other state
20-17 agency shall consider:
20-18 (1) the quality and availability of the goods or
20-19 contractual services and their adaptability to the use required;
20-20 (2) the [number and] scope of conditions attached to
20-21 the bid;
20-22 (3) the bidder's ability, capacity, and skill to
20-23 perform the contract or provide the service required;
20-24 (4) the bidder's ability to perform the contract or
20-25 provide the service promptly, or in the time required, without
21-1 delay or interference;
21-2 (5) the bidder's character, responsibility, integrity,
21-3 [reputation,] and experience;
21-4 (6) the quality of performance of previous contracts
21-5 or services;
21-6 (7) the bidder's previous and existing compliance with
21-7 laws relating to the contract or service;
21-8 (8) the bidder's previous or existing noncompliance
21-9 with specification requirements relating to the time of submission
21-10 of specified information, including samples, models, drawings, or
21-11 certificates;
21-12 (9) the sufficiency of the bidder's financial
21-13 resources and ability to perform the contract or provide the
21-14 service; and
21-15 (10) the bidder's ability to provide future
21-16 maintenance, repair parts, and service for the use of the
21-17 contract's subject.
21-18 Sec. 2156.008. REJECTION OF BIDS. (a) The commission or
21-19 other state agency making the purchase shall reject a bid in which
21-20 there is a material failure to comply with specification
21-21 requirements.
21-22 (b) The commission or other state agency may reject all bids
21-23 or parts of bids if the rejection serves the state's interest.
21-24 Sec. 2156.009. REASONS FOR AWARD. On award of a contract,
21-25 the division of the commission responsible for purchasing or the
22-1 state agency making the purchase shall prepare and file with other
22-2 records relating to the transaction a statement of the reasons for
22-3 making the award to the successful bidder and the factors
22-4 considered in determining which bidder offered the best value for
22-5 the state [the lowest and best bid].
22-6 Sec. 2156.010. TIE BIDS. In the case of tie bids, the value
22-7 and cost to the state [quality and service] being equal, a contract
22-8 shall be awarded under commission rules.
22-9 SECTION 15. Sections 2156.062 and 2156.063, Government Code,
22-10 are amended to read as follows:
22-11 Sec. 2156.062. MINIMUM NUMBER AND EVALUATION OF BIDS. An
22-12 open market purchase shall, to the extent possible, be:
22-13 (1) based on at least three competitive bids; and
22-14 (2) awarded to the [lowest and best] bidder offering
22-15 the best value for the state in accordance with standards set forth
22-16 in Chapters 2155, 2156, 2157, and 2158.
22-17 Sec. 2156.063. SOLICITATION OF BIDS. The commission and
22-18 each state agency making a purchase shall solicit bids under this
22-19 subchapter by direct mail, telephone, or telegraph.
22-20 SECTION 16. Sections 2156.065 and 2156.066, Government Code,
22-21 are amended to read as follows:
22-22 Sec. 2156.065. AGENCY REVIEW OF BIDS. (a) On the request
22-23 of a state agency to review the bids on a purchase administered by
22-24 the commission, the commission shall send or make available to the
22-25 requesting agency copies of each bid received and the commission's
23-1 recommended award.
23-2 (b) If, after review of the bids and evaluation of the
23-3 quality of goods or services offered in the bids, the state agency
23-4 determines that the bid selected by the commission does [is] not
23-5 offer the best value for the state [the lowest and best bid], the
23-6 agency may file with the commission a written recommendation that
23-7 the award be made to the bidder who, according to the agency's
23-8 determination, offers the best value for the state [made the lowest
23-9 and best bid]. The agency recommendation must include a
23-10 justification of the agency's determination.
23-11 (c) The commission shall consider, but is not bound by, the
23-12 agency recommendation in making the award.
23-13 Sec. 2156.066. STATEMENT OF REASONS FOR AWARD. The division
23-14 of the commission responsible for purchasing or the state agency
23-15 making a purchase shall prepare and file with other records
23-16 relating to a transaction under this subchapter a statement of the
23-17 reasons for placing an order with a successful bidder for the
23-18 transaction and the factors considered in determining the [lowest
23-19 and best] bid offering the best value for the state [for the
23-20 transaction].
23-21 SECTION 17. Subchapter C, Chapter 2156, Government Code, is
23-22 amended to read as follows:
23-23 SUBCHAPTER C. COMPETITIVE SEALED PROPOSALS FOR
23-24 ACQUISITION OF [CERTAIN] GOODS AND SERVICES
23-25 Sec. 2156.121. USE OF COMPETITIVE SEALED PROPOSALS [ELIGIBLE
24-1 ACQUISITIONS]. (a) The commission or other state agency may
24-2 follow a procedure using competitive sealed proposals to acquire[:]
24-3 [(1)] goods [having an acquisition cost of $1 million
24-4 or more;] or
24-5 [(2) routine] services if [having an acquisition cost
24-6 of $100,000 or more.]
24-7 [Sec. 2156.122. PURCHASE AUTHORITY LIMITED TO COMMISSION.
24-8 Only the commission may use competitive sealed proposals under this
24-9 subchapter to acquire goods or services. The commission may not
24-10 delegate this authority to a state agency.]
24-11 [Sec. 2156.123. DETERMINATION REGARDING COMPETITIVE BIDDING.
24-12 To acquire goods or services under this subchapter,] the commission
24-13 determines [must first determine in an open meeting] that
24-14 competitive sealed bidding and informal competitive bidding for the
24-15 purchase or type of purchase are not practical or are
24-16 disadvantageous to the state.
24-17 (b) A state agency shall send its proposal specifications
24-18 and criteria to the commission for approval or request the
24-19 commission to develop the proposal specifications and criteria.
24-20 Sec. 2156.122 [2156.124]. SOLICITATION OF PROPOSALS. The
24-21 commission or other state agency shall:
24-22 (1) solicit proposals under this subchapter by a
24-23 request for proposals; and
24-24 (2) give public notice of a request for proposals in
24-25 the manner provided for requests for bids under Subchapter B.
25-1 [Sec. 2156.125. DEVELOPMENT OF SPECIFICATIONS. The
25-2 commission shall consult with the appropriate personnel of a
25-3 requisitioning agency to develop the specifications for a request
25-4 for proposals under this subchapter.]
25-5 Sec. 2156.123 [2156.126]. OPENING AND FILING OF PROPOSALS;
25-6 PUBLIC INSPECTION. (a) The commission or other state agency shall
25-7 avoid disclosing the contents of each proposal on opening the
25-8 proposal and during negotiations with competing offerors.
25-9 (b) The commission or other state agency shall file each
25-10 proposal in a register of proposals, which, after a contract is
25-11 awarded, is open for public inspection unless the register contains
25-12 information that is excepted from required disclosure [as an open
25-13 record] under Subchapter C, Chapter 552.
25-14 Sec. 2156.124 [2156.127]. DISCUSSION AND REVISION OF
25-15 PROPOSALS. (a) As provided in a request for proposals and under
25-16 rules adopted by the commission, the commission or other state
25-17 agency may discuss acceptable or potentially acceptable proposals
25-18 with offerors to assess an offeror's ability to meet the
25-19 solicitation requirements. When the commission is managing the
25-20 request for proposals process, it [and] shall invite a
25-21 requisitioning agency to participate in discussions conducted under
25-22 this section.
25-23 (b) After receiving a proposal but before making an award,
25-24 the commission or other state agency may permit the offeror to
25-25 revise the proposal to obtain the best final offer.
26-1 (c) The commission or other state agency may not disclose
26-2 information derived from proposals submitted from competing
26-3 offerors in conducting discussions under this section.
26-4 (d) The commission or other state agency shall provide each
26-5 offeror an equal opportunity to discuss and revise proposals.
26-6 Sec. 2156.125 [2156.128]. CONTRACT AWARD. (a) The
26-7 commission or other state agency shall make a written award of a
26-8 contract to the offeror whose proposal offers [is] the best value
26-9 for [most advantageous to] the state, considering price, past
26-10 vendor performance, vendor experience, and the evaluation factors
26-11 in the request for proposals.
26-12 (b) The commission or other state agency shall refuse all
26-13 offers if none of the offers submitted is acceptable.
26-14 (c) The commission or other state agency shall determine
26-15 which proposal offers the best value for the state in accordance
26-16 with Sections 2155.074 and 2155.075.
26-17 (d) The commission or other state agency shall state in
26-18 writing in the contract file the reasons for making an award.
26-19 Sec. 2156.126 [2156.129]. ADOPTION OF RULES; STATE AGENCY
26-20 ASSISTANCE. The commission may adopt rules and request assistance
26-21 from other state agencies to perform its responsibilities under
26-22 this subchapter.
26-23 Sec. 2156.127 [2156.130]. COMPETITIVE SEALED PROPOSALS FOR
26-24 TELECOMMUNICATIONS AND AUTOMATED INFORMATION SYSTEMS NOT AFFECTED.
26-25 This subchapter does not affect Subchapter C, Chapter 2157.
27-1 SECTION 18. Section 2157.003, Government Code, is amended to
27-2 read as follows:
27-3 Sec. 2157.003. DETERMINING BEST VALUE FOR PURCHASES OF
27-4 AUTOMATED INFORMATION SYSTEMS. "Best value" for purposes of this
27-5 chapter means the lowest overall cost of an automated information
27-6 system. In determining the lowest overall cost for a purchase or
27-7 lease of an automated information system under this chapter, the
27-8 commission or a state agency shall consider factors including:
27-9 (1) the purchase price;
27-10 (2) the compatibility to facilitate the exchange of
27-11 existing data;
27-12 (3) the capacity for expanding and upgrading to more
27-13 advanced levels of technology;
27-14 (4) quantitative reliability factors;
27-15 (5) the level of training required to bring persons
27-16 using the system to a stated level of proficiency;
27-17 (6) the technical support requirements for the
27-18 maintenance of data across a network platform and the management of
27-19 the network's hardware and software; [and]
27-20 (7) the compliance with applicable Department of
27-21 Information Resources statewide standards validated by criteria
27-22 adopted by the department by rule; and
27-23 (8) applicable factors listed in Section 2155.074(b).
27-24 SECTION 19. Subchapter B, Chapter 2157, Government Code, is
27-25 amended by adding Section 2157.0611 to read as follows:
28-1 Sec. 2157.0611. REQUIREMENT TO EVALUATE THREE PROPOSALS WHEN
28-2 POSSIBLE. A catalogue purchase or lease shall, when possible, be
28-3 based on an evaluation of at least three catalogue proposals made
28-4 to the commission or other state agency by qualified information
28-5 systems vendors. If at least three catalogue proposals are not
28-6 evaluated by the commission or other state agency before the
28-7 purchase or lease is made, the commission or other agency shall
28-8 document the reasons for that fact before making the purchase or
28-9 lease under Section 2157.063.
28-10 SECTION 20. Sections 2157.121 through 2157.125, Government
28-11 Code, are amended to read as follows:
28-12 Sec. 2157.121. ACQUISITION THROUGH COMPETITIVE SEALED
28-13 PROPOSALS. (a) The commission or other state agency may acquire a
28-14 telecommunications device, system, or service or an automated
28-15 information system by using competitive sealed proposals if the
28-16 commission determines [by rule] that competitive sealed bidding and
28-17 informal competitive bidding are not practical or are
28-18 disadvantageous to the state.
28-19 (b) A state agency shall send its proposal specifications
28-20 and criteria to the commission for approval or request the
28-21 commission to develop the proposal specifications and criteria.
28-22 Sec. 2157.122. SOLICITATION OF PROPOSALS; PUBLIC NOTICE.
28-23 The commission or other state agency shall:
28-24 (1) solicit proposals under this subchapter by a
28-25 request for proposals; and
29-1 (2) give public notice of the request in the manner
29-2 provided for requests for bids under Subchapter B, Chapter 2156.
29-3 Sec. 2157.123. OPENING AND FILING PROPOSALS; PUBLIC
29-4 INSPECTION. (a) The commission or other state agency shall avoid
29-5 disclosing the contents of each proposal on opening the proposal
29-6 and during negotiations with competing offerors.
29-7 (b) The commission or other state agency shall file each
29-8 proposal in a register of proposals, which, after a contract is
29-9 awarded, is open for public inspection unless the register contains
29-10 information that is excepted from required disclosure [as an open
29-11 record] under Subchapter C, Chapter 552.
29-12 Sec. 2157.124. DISCUSSION AND REVISION OF PROPOSAL. (a) As
29-13 provided by a request for proposals and under commission rules, the
29-14 commission or other state agency may discuss an acceptable or
29-15 potentially acceptable proposal with an offeror to assess the
29-16 offeror's ability to meet the solicitation requirements. When the
29-17 commission is managing the request for proposals process, it [and]
29-18 shall invite a requisitioning agency to participate in discussions
29-19 conducted under this section.
29-20 (b) After receiving a proposal but before making an award,
29-21 the commission or other state agency may permit an offeror to
29-22 revise a proposal to obtain the best final offer.
29-23 (c) The commission or other state agency may not disclose
29-24 information derived from a proposal submitted by a competing
29-25 offeror in conducting discussions under this section.
30-1 (d) The commission or other state agency shall provide each
30-2 offeror an equal opportunity to discuss and revise proposals.
30-3 Sec. 2157.125. CONTRACT AWARD; FACTORS CONSIDERED. (a) The
30-4 commission or other state agency shall make a written award of a
30-5 purchase or lease to the offeror whose proposal under this
30-6 subchapter offers [is] the best value for [most advantageous to]
30-7 the state, considering price, past vendor performance, vendor
30-8 experience, and the evaluation factors in the request for
30-9 proposals.
30-10 (b) The commission or other state agency shall refuse all
30-11 offers if no offer submitted is acceptable.
30-12 (c) In determining which [whether a] proposal under this
30-13 subchapter offers the best value for [is most advantageous to] the
30-14 state, the commission or other state agency shall, when applicable
30-15 and subject to Sections 2155.074 and 2155.075, consider factors
30-16 including:
30-17 (1) the installation cost;
30-18 (2) the overall life of the system or equipment;
30-19 (3) the cost of acquisition, operation, and
30-20 maintenance of hardware included with, associated with, or required
30-21 for the system or equipment during the state's ownership or lease;
30-22 (4) the cost of acquisition, operation, and
30-23 maintenance of software included with, associated with, or required
30-24 for the system or equipment during the state's ownership or lease;
30-25 (5) the estimated cost of other supplies needed
31-1 because of the acquisition;
31-2 (6) the estimated cost of employee training needed
31-3 because of the acquisition;
31-4 (7) the estimated cost of necessary additional
31-5 permanent employees because of the acquisition; and
31-6 (8) the estimated increase in employee productivity
31-7 because of the acquisition.
31-8 (d) The commission or other state agency shall state in
31-9 writing in the contract file the reasons for making an award.
31-10 SECTION 21. Section 2101.038, Government Code, is amended to
31-11 read as follows:
31-12 Sec. 2101.038. DUTIES OF STATE AUDITOR. The state auditor,
31-13 when reviewing the operation of a state agency, shall audit for
31-14 compliance with the uniform statewide accounting system, the
31-15 comptroller's rules, and the Legislative Budget Board's performance
31-16 and workload measures. The state auditor shall also audit state
31-17 agencies that make purchases that are exempted from the purchasing
31-18 authority of the General Services Commission or that make purchases
31-19 under delegated purchasing authority for compliance with applicable
31-20 provisions of Subtitle D, except that this section does not require
31-21 the state auditor to audit purchases made under Section 51.933,
31-22 Education Code, as added by Chapter 736, Acts of the 74th
31-23 Legislature, 1995, or made under Section 73.115, Education Code.
31-24 The state auditor shall notify the project advisory committee, the
31-25 comptroller, the governor, the lieutenant governor, the speaker of
32-1 the house of representatives, and the Legislative Budget Board as
32-2 soon as practicable when a state agency is not in compliance.
32-3 SECTION 22. Subsection (a), Section 496.051, Government
32-4 Code, is amended to read as follows:
32-5 (a) The department shall comply with any special purchasing
32-6 procedures requiring competitive review under Subtitle D, Title 10
32-7 [the State Purchasing and General Services Act (Article 601b,
32-8 Vernon's Texas Civil Statutes)]. The department shall test the
32-9 goods and services that it purchases in accordance with Section
32-10 2155.069 and may enter into a contract with a private or public
32-11 entity to assist with testing.
32-12 SECTION 23. Section 122.007, Human Resources Code, is
32-13 amended to read as follows:
32-14 Sec. 122.007. FAIR MARKET PRICE; PURCHASING PROCEDURES.
32-15 (a) The council shall determine the fair market price of all
32-16 products and services manufactured or provided by persons with
32-17 disabilities and offered for sale to the various agencies and
32-18 departments of the state and its political subdivisions by a
32-19 community rehabilitation program. The council shall ensure that
32-20 the products and services offered for sale offer the best value for
32-21 the state or a political subdivision.
32-22 (b) A subcommittee composed of three council members
32-23 appointed by the presiding officer shall review the data used to
32-24 determine fair market price and shall make recommendations to the
32-25 council concerning fair market price for the products and services
33-1 and offering the best value to customers.
33-2 (c) The council shall revise the prices periodically to
33-3 reflect changing market conditions.
33-4 (d) Before offering for sale products and services
33-5 manufactured or provided by persons with disabilities to state
33-6 agencies and political subdivisions, the council shall test the
33-7 goods and services in accordance with Section 2155.069, Government
33-8 Code, to the extent necessary to ensure quality. The council may
33-9 enter into a contract with a private or public entity to assist
33-10 with testing. The commission shall make awards under this section
33-11 based on proposed goods and services meeting formal state
33-12 specifications developed by the commission or meeting commercial
33-13 specifications approved by the commission.
33-14 (e) Requisitions for products and services required by state
33-15 agencies are processed by the commission according to rules
33-16 established by the commission.
33-17 SECTION 24. (a) The state auditor and the advisory
33-18 committee on procurement established by this Act shall study how
33-19 the classification levels of state agency purchasing personnel
33-20 should be revised to reflect the increased levels of responsibility
33-21 and accountability given to state agency purchasing personnel under
33-22 the changes in law made by this Act. The state auditor and the
33-23 committee should consider how best to provide purchasing personnel
33-24 with a pay scale and a career path, including goals, incentives,
33-25 and initiatives, commensurate with the purchaser's knowledge,
34-1 authority, and responsibility.
34-2 (b) The state auditor and the committee shall present their
34-3 written recommendations and the results of their study to the
34-4 legislature not later than January 1, 1999.
34-5 SECTION 25. Subsection (e), Section 2155.067, Government
34-6 Code, is repealed.
34-7 SECTION 26. The changes in law made by Sections 2155.078
34-8 through 2155.081, Government Code, as added by this Act, relating
34-9 to training and certification of existing state agency purchasing
34-10 personnel, shall be implemented not later than September 1, 1998.
34-11 SECTION 27. Except as provided by Section 26 of this Act,
34-12 this Act takes effect September 1, 1997.
34-13 SECTION 28. The importance of this legislation and the
34-14 crowded condition of the calendars in both houses create an
34-15 emergency and an imperative public necessity that the
34-16 constitutional rule requiring bills to be read on three several
34-17 days in each house be suspended, and this rule is hereby suspended.
34-18 COMMITTEE AMENDMENT NO. 1
34-19 Amend S.B. No. 1752 as follows:
34-20 (1) On page 4, line 12, between "agency" and ",", insert
34-21 "subject to this chapter".
34-22 (2) On page 21, line 3, between "experience" and ";", insert
34-23 "or demonstrated capability".
34-24 (3) On page 26, line 10, between "experience" and ",",
34-25 insert "or demonstrated capability".
35-1 (4) On page 27, line 23, strike "Section 2155.074(b)" and
35-2 substitute "Sections 2155.074 and 2155.075".
35-3 (5) On page 30, line 8, between "experience" and ",", insert
35-4 "or demonstrated capability".
35-5 Wolens