By Lucio                                              S.B. No. 1512
         77R5353 MXM-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the use of multiple award contracts for state and local
 1-3     government purchasing.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Chapter 2155, Government Code, is amended by
 1-6     adding Subchapter I to read as follows:
 1-7               SUBCHAPTER I.  MULTIPLE AWARD CONTRACT SCHEDULE
 1-8           Sec. 2155.501.  DEFINITIONS. In this subchapter:
 1-9                 (1)  "Local government" has the meaning assigned by
1-10     Section 271.101, Local Government Code.
1-11                 (2)  "Multiple award contract" means an award of a
1-12     contract for an indefinite amount of one or more similar goods or
1-13     services from a vendor.
1-14                 (3)  "Schedule" means a list of multiple award
1-15     contracts.
1-16           Sec. 2155.502.  DEVELOPMENT OF MULTIPLE AWARD CONTRACT
1-17     SCHEDULE. (a)  The commission shall develop a schedule of multiple
1-18     award contracts that have been previously competitively bid and
1-19     administered by:
1-20                 (1)  the commission;
1-21                 (2)  a state agency other than the commission;
1-22                 (3)  the federal government, including the federal
1-23     General Services Administration; or
1-24                 (4)  any other governmental entity in any state.
 2-1           (b)  In developing the schedule under Subsection (a), the
 2-2     commission may modify any contractual terms, with the agreement of
 2-3     the parties to the contract, as necessary to comply with any
 2-4     federal or state requirements, including rules adopted under this
 2-5     subchapter.
 2-6           (c)  The commission may not list a multiple award contract on
 2-7     a schedule developed under this section if the goods or services
 2-8     provided by that contract are available from only one vendor.
 2-9           Sec. 2155.503.  RULES. (a)  The commission and the Department
2-10     of Information Resources shall adopt rules to implement this
2-11     subchapter.  The rules must:
2-12                 (1)  establish standard terms for contracts listed on a
2-13     schedule; and
2-14                 (2)  maintain consistency with existing purchasing
2-15     standards.
2-16           (b)  The commission and the Department of Information
2-17     Resources shall consult with the attorney general and the
2-18     comptroller in developing rules under this section.
2-19           Sec. 2155.504.  USE OF SCHEDULE BY GOVERNMENTAL ENTITIES. (a)
2-20     A state agency or local government may purchase goods or services
2-21     directly from a vendor under a contract listed on a schedule
2-22     developed under this subchapter, including goods or services
2-23     subject to Chapter 2157.
2-24           (b)  The price listed for a good or service under a multiple
2-25     award contract is a maximum price.  An agency or local government
2-26     may negotiate a lower price for goods or services under a contract
2-27     listed on a schedule developed under this subchapter.
 3-1           (c)  The commission by rule shall limit the number of goods
 3-2     or services that an agency or local government may order in a
 3-3     single purchase under this section.
 3-4           Sec. 2155.505.  HISTORICALLY UNDERUTILIZED AND SMALL
 3-5     BUSINESSES. (a)  In this section, "historically underutilized
 3-6     business" has the meaning assigned by Section 2161.001.
 3-7           (b)  The commission by rule may establish size standards that
 3-8     a business may not exceed if it is to be considered a small
 3-9     business under this section.
3-10           (c)  A historically underutilized business or small business
3-11     may sell or provide a service for a contract listed on a schedule
3-12     developed under this subchapter if:
3-13                 (1)  the contract is also on a schedule developed by
3-14     the federal General Services Administration;
3-15                 (2)  the vendor for the contract authorizes in writing
3-16     the historically underutilized business or small business to sell
3-17     or provide a service under that contract; and
3-18                 (3)  the historically underutilized business or small
3-19     business provides that written authorization to the commission.
3-20           Sec. 2155.506.  REPORTING REQUIREMENTS. (a)  A vendor listed
3-21     on a contract for a schedule developed under this subchapter shall
3-22     report its sales at least quarterly to the commission.  The
3-23     commission shall prescribe the format for the reports.
3-24           (b)  The commission shall compile the information reported
3-25     under Subsection (a)  and include the information in its report
3-26     under Section 2101.011.
3-27           Sec. 2155.507.  EXEMPTION FROM CATALOGUE PURCHASE METHOD FOR
 4-1     INFORMATION SYSTEM VENDORS. Section 2157.062 does not apply to a
 4-2     vendor who applies to be listed on a schedule developed under this
 4-3     subchapter.
 4-4           Sec. 2155.508.  INTERNET AVAILABILITY. (a)  The commission
 4-5     shall develop a database of the multiple award contracts developed
 4-6     under this subchapter and make that information available on an
 4-7     Internet site.  The database must have search capabilities that
 4-8     allow a person to easily access the contracts.
 4-9           (b)  The commission shall allow vendors to apply through the
4-10     Internet site to be listed on a schedule developed under this
4-11     subchapter.  The applicant shall provide an electronic mail address
4-12     to the commission as part of the application process.
4-13           Sec. 2155.509.  RISK MANAGEMENT. (a)  The commission by rule
4-14     shall develop procedures for limiting the risk of liability to the
4-15     state when a state agency uses a contract listed on a schedule
4-16     developed under this subchapter.
4-17           (b)  A state agency may not accept increased risk under a
4-18     contract listed on a schedule developed under this subchapter
4-19     unless rules adopted by the commission under this section authorize
4-20     that increased risk.
4-21           (c)  A vendor may reject an order that increases its risk
4-22     beyond that ordinarily contemplated in the vendor's multiple award
4-23     contract if the vendor makes the rejection before the vendor issues
4-24     the purchase order.
4-25           Sec. 2155.510.  NOTICE REGARDING PROCUREMENTS EXCEEDING
4-26     $25,000.  After a purchase order has been placed, a state agency
4-27     subject to Section 2155.083 shall post, as required under that
 5-1     section, a procurement made under a contract listed on a schedule
 5-2     developed under this subchapter.
 5-3           SECTION 2. Section 2155.062(a), Government Code, is amended
 5-4     to read as follows:
 5-5           (a)  The procedures that the commission may use in [In]
 5-6     purchasing goods and services include [the commission may use, but
 5-7     is not limited to,] the:
 5-8                 (1)  contract purchase procedure;
 5-9                 (2)  multiple award contract procedure, including under
5-10     any schedules developed under Subchapter I; or
5-11                 (3)  open market purchase procedure.
5-12           SECTION 3. Section 2155.079(a), Government Code, is amended
5-13     to read as follows:
5-14           (a)  The commission shall adopt rules specifying the
5-15     circumstances under which it is advantageous for the state to allow
5-16     a state agency to purchase goods or services under a contract made
5-17     by another state agency other than the commission, including as
5-18     provided under Subchapter I.
5-19           SECTION 4. Section 2155.084, Government Code, is amended by
5-20     adding Subsection (d) to read as follows:
5-21           (d)  A state agency may purchase goods or services available
5-22     under federal supply schedules of the federal General Services
5-23     Administration to the extent permitted by federal law.
5-24           SECTION 5. (a)  Not later than March 1, 2002, the General
5-25     Services Commission shall develop initial schedules of multiple
5-26     award contracts under Section 2155.502, Government Code, as added
5-27     by this Act.
 6-1           (b)  Not later than January 1, 2002, the General Services
 6-2     Commission shall adopt the rules required by Subchapter I, Chapter
 6-3     2155, Government Code, as added by this Act.
 6-4           SECTION 6.  This Act takes effect immediately if it receives
 6-5     a vote of two-thirds of all the members elected to each house, as
 6-6     provided by Section 39, Article III, Texas Constitution.  If this
 6-7     Act does not receive the vote necessary for immediate effect, this
 6-8     Act takes effect September 1, 2001.