79R3421 MTB-D
By: Isett H.B. No. 2247
A BILL TO BE ENTITLED
AN ACT
relating to state contract management, including the training of
personnel, the negotiation of contracts, and the standardization of
practices.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 551, Government Code, is
amended by adding Section 551.0726 to read as follows:
Sec. 551.0726. GOVERNING BODY OF STATE AGENCY:
DELIBERATION REGARDING CONTRACT BEING NEGOTIATED; CLOSED MEETING.
(a) In this section, "state agency" means a department, board,
commission, or other agency in the executive branch of state
government.
(b) The governing body of a state agency may conduct a
closed meeting to deliberate business and financial issues relating
to a contract being negotiated if, before conducting the closed
meeting:
(1) the governing body votes unanimously that
deliberation in an open meeting would have a detrimental effect on
the position of the state in negotiations with a third person; and
(2) the attorney advising the governing body issues a
written determination that deliberation in an open meeting would
have a detrimental effect on the position of the state in
negotiations with a third person.
(c) Notwithstanding Section 551.103(a), the governing body
must make a tape recording of the proceedings of a closed meeting
held under this section.
SECTION 2. Section 2155.078, Government Code, is amended by
adding Subsection (o) to read as follows:
(o) In addition to the three levels of training provided by
this section, the commission shall develop and implement a
continuing education course on cost analysis and price negotiation.
State agency purchasing personnel who attend the course shall
review the course and provide the review to the commission.
SECTION 3. Subchapter B, Chapter 2155, Government Code, is
amended by adding Section 2155.0785 to read as follows:
Sec. 2155.0785. WORKING GROUP. (a) The commission shall
form a working group of representatives of state agencies:
(1) to review the training programs administered under
Sections 2155.078 and 2262.053; and
(2) to offer recommendations to the commission on
improvements and modifications to the training programs.
(b) The working group shall meet annually at a time
designated by the commission.
(c) A representative of a state agency that takes part in
the working group established under this section shall report to
the governing body of the represented state agency on the efforts of
the working group.
SECTION 4. Subchapter B, Chapter 2155, Government Code, is
amended by adding Section 2155.085 to read as follows:
Sec. 2155.085. REPORT ON CERTAIN PURCHASES. (a) Not later
than August 1 of each year, the commission shall publish a report on
the number and dollar value of sole source purchases made and open
market purchases made or contracts awarded for which there were
fewer than three responses to the contract or open market
solicitation in the previous calendar year. The report must compare
the total dollar value of all sole source purchases made and all
open market purchases made or contracts awarded for which there
were fewer than three responses to the contract or open market
solicitation with the total dollar value of all competitively
awarded contracts and open market purchases for which there were
three or more responses to the contract or open market
solicitation.
(b) Each state agency shall timely provide the commission
with the information the commission requires for the purpose of
creating the report under Subsection (a).
SECTION 5. Section 2262.001, Government Code, is amended by
adding Subdivision (3-a) to read as follows:
(3-a) "Department" means the Department of
Information Resources.
SECTION 6. Section 2262.053, Government Code, is amended by
adding Subsections (e) and (f) to read as follows:
(e) The commission shall establish minimum qualifications
for certifying contract managers. The minimum standards must
require completion of the contract management training required
under this section and Section 2155.078.
(f) The commission shall develop guidelines by which a state
agency is required to involve a contract manager during various
stages of the contracting process based on the size of the contract
and the risk associated with the contract.
SECTION 7. Subchapter B, Chapter 2262, Government Code, is
amended by adding Sections 2262.065-2262.067 to read as follows:
Sec. 2262.065. PERFORMANCE MEASURES. Each state agency
shall develop a plan for incorporating performance measures into an
appropriate percentage of contracts for services entered into by
the agency. The agency shall determine the appropriate percentage
in consultation with the commission.
Sec. 2262.066. INFORMATION-SHARING PORTAL. The commission
and department shall jointly:
(1) review the options for establishing an
information-sharing portal for use by state agencies in contract
management and administration; and
(2) if the commission and department determine that
establishing the portal is cost-effective, establish the portal.
Sec. 2262.067. UNIFORM DEFINITIONS AND CONTRACT LIBRARY.
(a) The commission shall develop and publish a uniform set of
definitions for use as applicable in state contracts.
(b) The commission shall develop and publish a uniform and
automated set of forms, including sample contracts and contract
terms, for use in the different stages of the contracting process.
SECTION 8. Chapter 2262, Government Code, is amended by
adding Subchapter G to read as follows:
SUBCHAPTER G. CONTRACT MANAGEMENT OF MAJOR CONTRACTS
Sec. 2262.301. DEFINITION. In this subchapter, "quality
assurance team" means the quality assurance team established under
Section 2054.158.
Sec. 2262.302. APPLICABILITY. This subchapter applies only
to a major contract.
Sec. 2262.303. GUIDELINES; FORMS. (a) A state agency shall
prepare each document required by this subchapter in a manner
consistent with department guidelines.
(b) The commission, in consultation with the department,
shall develop and provide guidelines and forms for the documents
required by this subchapter.
(c) The commission, in consultation with the department,
shall work with state agencies in developing the guidelines and
forms.
Sec. 2262.304. BUSINESS CASE. (a) For each proposed major
contract, a state agency must prepare a business case providing the
initial justification for the contract, including the anticipated
return on investment in terms of cost savings and efficiency for the
contract.
(b) The agency shall file the document with the commission
and the Legislative Budget Board at the same time the agency files
its legislative appropriations request.
Sec. 2262.305. PROJECT PLANS. (a) For each major contract,
a state agency shall develop a project plan for the project to which
the major contract relates.
(b) Except as provided by Subsection (c), the state agency
must file the project plan with the quality assurance team before
the agency:
(1) spends more than 10 percent of allocated funds for
the related major contract; or
(2) first issues a contractor solicitation for the
related major contract.
(c) The commission may not issue a contractor solicitation
for the contract unless the project plan has been filed under this
section.
(d) The project plan must include:
(1) a procurement plan with anticipated service levels
and performance standards for each contractor; and
(2) a method for monitoring changes to the scope of a
contract.
Sec. 2262.306. INDEPENDENT VALIDATION AND VERIFICATION.
(a) A state agency shall budget for and incorporate an independent
validation and verification plan with the project plan required
under Section 2262.305.
(b) The commission, in consultation with the department,
shall establish standards for:
(1) validation services provided by contractors; and
(2) validation services provided by state agencies,
including standards regarding commission approval of
agency-provided validation services.
(c) If a state agency decides to perform validation services
for its own contract, the agency's validation services providers
must operate independently from the agency's contracting teams.
(d) In addition to the plan required under Subsection (a), a
state agency shall periodically submit an independent validation
and verification report to the agency's executive director and to
the commission. The commission shall determine the frequency and
content of the report in its guidelines.
Sec. 2262.307. CONTRACT REVIEW. (a) After a major contract
is completed or otherwise terminated, a state agency shall prepare
a review of the contractor's performance. The agency shall provide
the review to the agency's executive director and to the
department.
(b) The department shall store in a database the contractor
performance reviews provided to the department by state agencies
under Subsection (a).
(c) The department shall make the database available to
state agencies and searchable by:
(1) contractor;
(2) contract value;
(3) state agency; and
(4) date, including both the beginning date and the
end date of the contract.
(d) The commission, in consultation with the department,
shall develop a system by which a contractor who receives an
unfavorable review may add comments to the database relating to the
performance review of the contractor.
Sec. 2262.308. APPROVAL BY STATE AGENCIES. (a) A state
agency's executive director and its designated contract manager
must approve and sign each document required by this subchapter.
(b) If a proposed contract amendment or change order changes
the monetary value of a contract by more than 10 percent or
significantly changes the completion date of a contract, the state
agency's executive director must approve the amendment or order.
Sec. 2262.309. NEGOTIATION CONTRACTS. (a) A state agency
may contract with a state governmental entity or a private entity
for negotiation services or advice on a major contract if the agency
determines that:
(1) there is a substantial need for the negotiation
services or advice; and
(2) the agency cannot adequately perform the
negotiation services with its own personnel or cannot perform the
negotiation without advice.
(b) A state agency may contract with a private entity for
negotiation services or advice only if the agency determines that
it cannot obtain the consulting services through a contract with a
state governmental entity.
SECTION 9. (a) The Department of Information Resources, in
coordination with the Legislative Budget Board, the Texas Building
and Procurement Commission, and the comptroller, shall analyze
current automated information systems of state agencies to
determine how the systems may be combined to more effectively
standardize and synchronize state contract management, including
the use of performance measures in contracts.
(b) Not later than December 31, 2005, the department shall
report the results of its analysis to the governor, the lieutenant
governor, and the speaker of the house of representatives.
SECTION 10. A contract manager is not required to be
certified under Chapter 2262, Government Code, as amended by this
Act, until September 1, 2007.
SECTION 11. Not later than March 1, 2006, the Texas Building
and Procurement Commission shall develop the continuing education
course required by Section 2155.078, Government Code, as amended by
this Act.
SECTION 12. A state agency is not required to comply with
Sections 2262.304-2262.309, Government Code, as added by this Act,
until September 1, 2007. A state agency may comply earlier if the
forms, electronic requirements, database, or other items are
available before that date.
SECTION 13. This Act takes effect September 1, 2005.