80R3333 TAD-D
 
  By: Gattis H.B. No. 2733
 
 
 
   
 
 
A BILL TO BE ENTITLED
AN ACT
relating to the creation of an office of state contract management
at the Texas Building and Procurement Commission.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 2262.002(b), Government Code, is amended
to read as follows:
       (b)  Except as otherwise provided by this chapter, this
[This] chapter does not apply to contracts of the Texas Department
of Transportation that:
             (1)  relate to highway construction or highway
engineering; or
             (2)  are subject to Section 201.112, Transportation
Code.
       SECTION 2.  Section 2262.101, Government Code, is amended to
read as follows:
       Sec. 2262.101.  CREATION; DUTIES.  The Contract Advisory
Team is created to assist state agencies in improving contract
management practices by:
             (1)  [reviewing the solicitation of major contracts by
state agencies;
             [(2)]  reviewing any findings or recommendations made
by the state auditor, including those made under Section
2262.052(b), regarding a state agency's compliance with the
contract management guide; and
             (2) [(3)]  providing recommendations to the commission
regarding:
                   (A)  the development of the contract management
guide; and
                   (B)  the training under Section 2262.053.
       SECTION 3.  Chapter 2262, Government Code, is amended by
adding Subchapter D to read as follows:
SUBCHAPTER D. STATE OFFICE OF CONTRACT MANAGEMENT
       Sec. 2262.151.  DEFINITIONS. In this subchapter:
             (1)  "High-risk contract" means a state agency contract
that:
                   (A)  has a value of at least $10 million; or
                   (B)  has a value of less than $10 million, but has
high-risk factors as identified by the office.
             (2)  "Major information resources project" has the
meaning assigned by Section 2054.003(10).
             (3)  "Office" means the state office of contract
management.
             (4)  "Quality assurance team" means the quality
assurance team established under Section 2054.158.
             (5)  "Solicitation" means a solicitation for bids,
offers, qualifications, proposals, or similar expressions of
interest for a high-risk contract.
       Sec. 2262.152.  TEXAS DEPARTMENT OF TRANSPORTATION.  
Notwithstanding any other law, this subchapter applies to contracts
of the Texas Department of Transportation that:
             (1)  relate to highway construction or highway
engineering; or
             (2)  are subject to Section 201.112, Transportation
Code.
       Sec. 2262.153.  ESTABLISHMENT; GENERAL DUTIES. The
commission shall establish a state office of contract management
to:
             (1)  develop criteria for identifying high-risk
factors in contracts;
             (2)  review and approve an action related to a
high-risk contract as provided by Section 2262.154;
             (3)  provide recommendations and assistance to state
agency personnel throughout the contract management process; and
             (4)  coordinate and consult with the quality assurance
team on all high-risk contracts relating to a major information
resources project.
       Sec. 2262.154.  REVIEW AND APPROVAL; WAIVER.  (a)  Each state
agency must receive approval from the office before taking the
following actions in relation to a high-risk contract:
             (1)  publicly releasing solicitation documents;
             (2)  executing a final contract; and
             (3)  making a payment or a series of payments that equal
half of the contract value.
       (b)  In determining whether to approve an action described by
Subsection (a), the office shall review related documentation to
ensure that potential risks related to the high-risk contract have
been identified and mitigated.
       (c)  The commission by rule may adopt criteria for waiving
the review and approval requirements under Subsections (a) and (b).
       Sec. 2262.155.  SOLICITATION AND CONTRACT CANCELLATION.
After review of and comment on the matter by the Legislative Budget
Board and the governor, the office may recommend the cancellation
of a solicitation or a contract during the review process under
Section 2262.154 if:
             (1)  a proposed solicitation is not in the best
interest of the state;
             (2)  a proposed contract would place the state at an
unacceptable risk if executed; or
             (3)  an executed contract is experiencing performance
failure or payment irregularities.
       SECTION 4.  Section 2262.051(f), Government Code, is
repealed.
       SECTION 5.  Subchapter D, Chapter 2262, Government Code, as
added by this Act, applies only in relation to a contract:
             (1)  for which the solicitation of bids, offers,
qualifications, proposals, or similar expressions of interest is
published on or after September 1, 2007;
             (2)  that is extended or modified on or after September
1, 2007; or
             (3)  for which a change order is submitted on or after
September 1, 2007.
       SECTION 6.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2007.