This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.
79R13668 MTB-F
By: Zaffirini, Barrientos, Brimer, Deuell, S.B. No. 12
Janek, Ogden, Shapleigh, et al.
Substitute the following for S.B. No. 12:
By: Swinford C.S.S.B. No. 12
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 2155.085 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).
(c) The commission shall establish requirements for the
provision of information under Subsection (b) in consultation with
the Contract Advisory Team created under Subchapter C, Chapter
2262, the Health and Human Services Commission, and the Texas
Department of Transportation.
(d) The commission may not require a state agency to provide
information under Subsection (b) on a contract related to health
and human services if:
(1) the value of the contract cannot be determined at
the time of execution of the contract; and
(2) any qualified vendor is eligible for the contract.
SECTION 4. 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 5. Section 2262.051, Government Code, is amended by
adding Subsection (h) to read as follows:
(h) The commission, in consultation with the team, the
Health and Human Services Commission, and the Texas Department of
Transportation, shall establish criteria in the guide for
determining whether a proposed project requires a business case
under Section 2262.303 or a project plan under Section 2262.304.
SECTION 6. Section 2262.053, Government Code, is amended by
adding Subsections (e), (f), and (g) 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.
(f) The commission may establish a system of charges and
billings to recover the cost of administering the training program
under this section.
(g) The commission, in consultation with the team, the
Health and Human Services Commission, and the Texas Department of
Transportation, 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. MANAGEMENT OF PROJECTS FOR CERTAIN MAJOR CONTRACTS
Sec. 2262.301. APPLICABILITY. This subchapter applies only
to a:
(1) project that is likely to result in a major
contract for services; and
(2) major contract for services.
Sec. 2262.302. GUIDELINES; FORMS. (a) A state agency shall
prepare each document required by this subchapter in a manner
consistent with commission guidelines.
(b) The commission, in consultation with the team, the
Health and Human Services Commission, and the Texas Department of
Transportation, shall develop and provide guidelines and forms for
the documents required by this subchapter.
Sec. 2262.303. BUSINESS CASE. (a) For each proposed
project that meets the criteria established under Section
2262.051(h), a state agency must prepare a business case providing
the initial justification for the related major 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. 2262.304. PROJECT PLANS. (a) A state agency shall
develop a project plan for each proposed project that meets the
criteria established under Section 2262.051(h).
(b) Except as provided by Subsection (c), the state agency
must file the project plan with the commission 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) A state agency may not post in the state business daily a
contractor solicitation for the related major 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
related contract.
Sec. 2262.305. CONTRACT REVIEW. (a) A state agency shall
periodically review and report on the contractor's performance
throughout the term of the contract. The agency shall provide the
review to the agency's executive director and to the commission.
(b) The commission shall store in a database the contractor
performance reviews provided to the commission by state agencies
under Subsection (a).
(c) The commission 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.
Sec. 2262.306. APPROVAL BY STATE AGENCIES. (a) A state
agency's executive director, or the executive director's designee,
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. 2262.307. NEGOTIATION CONTRACTS. (a) A state agency
shall consider contracting with a state governmental entity or a
private entity for negotiation services or advice on a 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(o), Government Code, as added
by this Act.
SECTION 12. A state agency is not required to comply with
Section 2262.303 or 2262.304, Government Code, as added by this
Act, until the contract management guide is revised as required by
Section 2262.051(h), Government Code, as added by this Act.
SECTION 13. This Act takes effect September 1, 2005.