By Lewis of Tarrant H.B. No. 1892
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the threshold contract amount at which certain
1-3 political subdivisions are required to engage in a competitive
1-4 purchasing procedure and the criteria required to evaluate bidders
1-5 in the competitive purchasing process.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Section 252.021(a), Local Government Code, is
1-8 amended to read as follows:
1-9 (a) Before a municipality may enter into a contract that
1-10 requires an expenditure of more than $25,000 [$15,000] from one or
1-11 more municipal funds, the municipality must comply with the
1-12 procedure prescribed by this chapter for competitive sealed bidding
1-13 or competitive sealed proposals.
1-14 SECTION 2. Section 252.0215, Local Government Code, is
1-15 amended to read as follows:
1-16 Sec. 252.0215. COMPETITIVE BIDDING IN RELATION TO
1-17 HISTORICALLY UNDERUTILIZED BUSINESS. A municipality, in making an
1-18 expenditure of more than $3,000 but less than $25,000 [$15,000],
1-19 shall contact at least two historically underutilized businesses on
1-20 a rotating basis, based on information provided by the General
1-21 Services Commission pursuant to Chapter 2161, Government Code. If
1-22 the list fails to identify a historically underutilized business in
1-23 the county in which the municipality is situated, the municipality
1-24 is exempt from this section.
2-1 SECTION 3. Subchapter C, Chapter 252, Local Government Code,
2-2 is amended by amending Section 252.043 and by redesignating Section
2-3 252.043(b) as Section 252.0431 to read as follows:
2-4 Sec. 252.043. AWARD OF CONTRACT: COMPETITIVE SEALED BIDDING.
2-5 (a) If the competitive sealed bidding requirement applies to the
2-6 contract, the contract must be awarded to the [lowest responsible]
2-7 bidder who provides goods or services at the best value for the
2-8 municipality. In determining the best value for the municipality,
2-9 the municipality may consider:
2-10 (1) the purchase price;
2-11 (2) the reputation of the bidder and of the bidder's
2-12 goods or services;
2-13 (3) the quality of the bidder's goods or services;
2-14 (4) the extent to which the goods or services meet the
2-15 municipality's needs;
2-16 (5) the bidder's past relationship with the
2-17 municipality;
2-18 (6) the impact on the ability of the municipality to
2-19 comply with laws and rules relating to contracting with
2-20 historically underutilized businesses and nonprofit organizations
2-21 employing persons with disabilities;
2-22 (7) the total long-term cost to the municipality to
2-23 acquire the bidder's goods or services; and
2-24 (8) any other relevant factor that a private business
2-25 entity would consider in selecting a bidder.
2-26 (b) The governing body may reject any and all bids.
2-27 (c) A bid that has been opened may not be changed for the
3-1 purpose of correcting an error in the bid price. This chapter does
3-2 not change the common law right of a bidder to withdraw a bid due
3-3 to a material mistake in the bid.
3-4 Sec. 252.0431. AWARD OF CONTRACT: COMPETITIVE SEALED
3-5 PROPOSALS. [(b)] If the competitive sealed proposals requirement
3-6 applies to the contract, the contract must be awarded to the
3-7 responsible offeror whose proposal is determined to be the most
3-8 advantageous to the municipality considering the relative
3-9 importance of price and the other evaluation factors included in
3-10 the request for proposals.
3-11 SECTION 4. Section 252.0435, Local Government Code, is
3-12 amended to read as follows:
3-13 Sec. 252.0435. SAFETY RECORD OF BIDDER CONSIDERED. In
3-14 determining which bidder provides goods or services at the best
3-15 value for the municipality [who is a responsible bidder], the
3-16 governing body may take into account the safety record of the
3-17 bidder, of the firm, corporation, partnership, or institution
3-18 represented by the bidder, or of anyone acting for such a firm,
3-19 corporation, partnership, or institution if:
3-20 (1) the governing body has adopted a written
3-21 definition and criteria for accurately determining the safety
3-22 record of a bidder;
3-23 (2) the governing body has given notice to prospective
3-24 bidders in the bid specifications that the safety record of a
3-25 bidder may be considered in determining the best value for the
3-26 municipality [the responsibility of the bidder]; and
3-27 (3) the determinations are not arbitrary and
4-1 capricious.
4-2 SECTION 5. Section 363.156(b), Local Government Code, is
4-3 amended to read as follows:
4-4 (b) To the extent competitive bidding procedures in Title 8
4-5 apply, the board may not enter purchasing contracts that involve
4-6 spending more than $25,000 [$15,000] unless the board complies
4-7 with:
4-8 (1) Subchapter C, Chapter 262, if the district was
4-9 created by a county; or
4-10 (2) Chapter 252, if the district was created by a
4-11 municipality.
4-12 SECTION 6. This Act takes effect September 1, 2001.