By Pitts H.B. No. 3032
77R8603 BDH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to state agency use of performance-based and
1-3 contingency-based contracts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 2155, Government Code, is
1-6 amended by adding Sections 2155.0615 and 2155.0635 to read as
1-7 follows:
1-8 Sec. 2155.0615. STANDARD CONTRACT PROVISIONS. (a) The
1-9 commission, in cooperation with the comptroller, shall:
1-10 (1) develop sample contracts for various types of
1-11 state agency purchases, including sample performance-based and
1-12 contingency-based contracts described by Section 2155.0635; and
1-13 (2) recommend standard terms, including conditions,
1-14 for use in various types of state agency contracts for the purchase
1-15 of goods and services.
1-16 (b) The commission shall make available on the commission's
1-17 Internet website:
1-18 (1) the standard contract terms, including conditions,
1-19 adopted under Subsection (a); and
1-20 (2) a guide to drafting state agency contracts,
1-21 including recommended specifications, delivery terms, performance
1-22 requirements, and timelines for agency contracts.
1-23 Sec. 2155.0635. PERFORMANCE-BASED OR CONTINGENCY-BASED
1-24 CONTRACTS. (a) In this section:
2-1 (1) "Contingency-based contract" means a contract for
2-2 services in which all or part of the vendor's compensation is
2-3 computed by multiplying a stated percentage times the amount of
2-4 measurable savings in the state agency's expenditures or costs of
2-5 operation that are demonstrably attributable to the vendor's
2-6 services under the contract.
2-7 (2) "Performance-based contract" means a contract for
2-8 services or for goods and services under which a state agency and a
2-9 vendor contract for required results without specifying required
2-10 methods and procedures for achieving the results.
2-11 (b) A state agency that determines, when considering the
2-12 purchase of a service or the acquisition of a combination of goods
2-13 and services, that a performance-based contract or a
2-14 contingency-based contract will provide the best value for the
2-15 state may enter into such a contract to purchase the service or
2-16 acquire the goods and services. When entering into a
2-17 performance-based contract or a contingency-based contract:
2-18 (1) the state agency shall follow the competitive
2-19 sealed proposals procedure prescribed by Subchapter C, Chapter
2-20 2156;
2-21 (2) a state agency listed by Subsection (c) is not
2-22 required to comply with Section 2156.121 and the commission may
2-23 oversee the agency's acquisition only at the agency's request; and
2-24 (3) a health and human services agency listed by
2-25 Subsection (c) shall also comply with Section 2155.144 except to
2-26 the extent Section 2155.144 or a rule adopted under that section is
2-27 inconsistent with this section.
3-1 (c) If possible, the following state agencies shall use a
3-2 performance-based or contingency-based contract for each purchase
3-3 of services or of goods and services:
3-4 (1) Texas Department of Health;
3-5 (2) Texas Department of Transportation;
3-6 (3) Texas Department of Human Services;
3-7 (4) Texas Department of Mental Health and Mental
3-8 Retardation;
3-9 (5) Texas Department of Criminal Justice; and
3-10 (6) Department of Protective and Regulatory Services.
3-11 SECTION 2. (a) The General Services Commission and the
3-12 comptroller may complete an inventory of state agency contracts for
3-13 services that are:
3-14 (1) for an amount greater than $50,000; and
3-15 (2) in effect on September 1, 2002.
3-16 (b) An inventory under Subsection (a) may include for each
3-17 contract:
3-18 (1) the subject of the contract;
3-19 (2) the name and address of the contractor;
3-20 (3) the beginning and ending dates of the contract;
3-21 (4) the cost of the contract;
3-22 (5) whether the contract is renewable and the terms of
3-23 renewal; and
3-24 (6) any specific performance requirements.
3-25 SECTION 3. (a) Section 2155.0635, Government Code, as added
3-26 by this Act, applies only to a contract that is entered into or
3-27 renewed on or after the effective date of this Act. A contract in
4-1 effect before the effective date of this Act is governed by the law
4-2 as it existed immediately before that date, and that law is
4-3 continued in effect for that purpose.
4-4 (b) Before January 1, 2003, at least 25 percent of the
4-5 contracts for services or for goods and services entered into or
4-6 renewed on or after the effective date of this Act by a state
4-7 agency listed by Section 2155.0635(c), Government Code, as added by
4-8 this Act, must be performance-based or contingency-based contracts.
4-9 (c) An agency listed by Section 2155.0635(c), Government
4-10 Code, as added by this Act, shall report in the agency's strategic
4-11 plans issued during 2004 under Section 2056.002, Government Code,
4-12 the agency's progress in converting to performance-based or
4-13 contingency-based contracts.
4-14 SECTION 4. Before December 1, 2003, the General Services
4-15 Commission and the comptroller shall:
4-16 (1) evaluate the effects of converting to
4-17 performance-based and contingency-based contracts in state agency
4-18 purchases of goods and services; and
4-19 (2) report to the legislature the results of the
4-20 evaluation.
4-21 SECTION 5. Not later than March 1, 2002, the General
4-22 Services Commission shall develop sample contracts and recommend
4-23 standard contract terms under Section 2155.0615, Government Code,
4-24 as added by this Act.
4-25 SECTION 6. This Act takes effect September 1, 2001.