SRC-AXB C.S.S.B. 555 76(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 555
76R11030  DRH-DBy: Ogden
State Affairs
4/12/1999
Committee Report (Substituted)
DIGEST 

Currently, even if the lowest bidder indicates that it has no intention of
completing or performing a highway improvement contract, the Texas
Department of Transportation (TxDOT) is still required to award the
contract to that contractor, under certain circumstances.  Such bid
improprieties cause construction delays, which could be solved by awarding
certain contracts to the second lowest bidder at the lowest bidder's price.
C.S.S.B. 555 creates a provision allowing the Texas Transportation
Commission to award a contract to the second lowest bidder. 

PURPOSE

As proposed, C.S.S.B. 555 creates a provision for the Texas Transportation
Commission (TTC) to award a contract to the second lowest bidder for
maintenance contracts involving a maximum of $100,000, if the lowest bidder
withdraws its bid or fails to execute the contract; and authorizes TTC to
adopt rules governing a second lowest bidder contract award. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Transportation Commission in
SECTION 1 (Section 223.0041(c), Transportation Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 223A, Transportation Code, by adding Section
223.0041, as follows: 

Sec.  223.0041.  AWARD OF CONTRACTS.  Requires certain unrejected bids to
be tabulated and forwarded to the Texas Transportation Commission (TTC).
Authorizes TTC to accept or reject the bids.  Requires TTC to award the
contract to the lowest bidder, subject to Section 223.045, except as
provided in Subsection (c).  Sets forth provisions authorizing TTC to award
a contract to another bidder for a maintenance contract involving a maximum
of $100,000, if the lowest bidder withdraws its bid before being awarded a
contract, or fails to execute the contract.  Authorizes TTC to adopt rules
for the Texas Department of Transportation  to govern the award of a
maintenance contract to the second lowest bidder. 

SECTION 2.  Amends Sections 223.005(b)-(d), Transportation Code, to delete
existing Subsections (b) and (c), regarding the tabulation of bids and
award of a contract.  Makes a conforming change. 

SECTION 3.Emergency clause.
  Effective date:  upon passage.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Section 223.0041, Transportation Code, to clarify that a second
lowest bidder may be awarded a maintenance contract for a project involving
a maximum of $100,000.  Makes nonsubstantive and conforming changes. 

SECTION 2. 

 Amends Sections 223.005(b)-(d), Transportation Code, to make a
nonsubstantive change.