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AN ACT
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relating to state information technology contracting and |
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procurement practices. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 44.031(a), Education Code, is amended to |
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read as follows: |
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(a) Except as provided by this subchapter, all school |
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district contracts, except contracts for the purchase of produce or |
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vehicle fuel, valued at $25,000 or more in the aggregate for each |
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12-month period shall be made by the method, of the following |
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methods, that provides the best value for the district: |
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(1) competitive bidding; |
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(2) competitive sealed proposals; |
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(3) a request for proposals, for services other than |
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construction services; |
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(4) [a catalogue purchase as provided by Subchapter B,
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Chapter 2157, Government Code;
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[(5)] an interlocal contract; |
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(5) [(6)] a design/build contract; |
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(6) [(7)] a contract to construct, rehabilitate, |
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alter, or repair facilities that involves using a construction |
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manager; |
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(7) [(8)] a job order contract for the minor |
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construction, repair, rehabilitation, or alteration of a facility; |
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(8) [(9)] the reverse auction procedure as defined by |
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Section 2155.062(d), Government Code; or |
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(9) [(10)] the formation of a political subdivision |
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corporation under Section 304.001, Local Government Code. |
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SECTION 2. The heading to Section 2054.0565, Government |
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Code, is amended to read as follows: |
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Sec. 2054.0565. USE OF CONTRACTS BY OTHER [GOVERNMENTAL] |
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ENTITIES. |
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SECTION 3. Section 2054.0565, Government Code, is amended |
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by amending Subsection (a) and adding Subsections (c) and (d) to |
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read as follows: |
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(a) The department may include terms in a procurement |
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contract entered into by the department, including a contract |
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entered into under Section 2157.068, that allow the contract to be |
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used by another state agency, a political subdivision of this |
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state, [or] a governmental entity of another state, or an |
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assistance organization as defined by Section 2175.001. |
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(c) Notwithstanding any other law, a state governmental |
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entity that is not a state agency as defined by Section 2054.003 may |
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use a contract as provided by Subsection (a) without being subject |
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to a rule, statute, or contract provision, including a provision in |
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a contract entered into under Section 2157.068, that would |
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otherwise require the state governmental entity to: |
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(1) sign an interagency agreement; or |
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(2) disclose the items purchased or the value of the |
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purchase. |
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(d) A state governmental entity that is not a state agency |
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as defined by Section 2054.003 that uses a contract as provided by |
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Subsection (a) may prohibit a vendor from disclosing the items |
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purchased, the use of the items purchased, and the value of the |
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purchase. |
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SECTION 4. Section 2054.301, Government Code, is amended to |
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read as follows: |
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Sec. 2054.301. APPLICABILITY; DEFINITION. (a) This |
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subchapter applies only to: |
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(1) a major information resources project; and |
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(2) a major contract. |
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(b) In this subchapter, "major contract" means a major |
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contract as defined by Section 2262.001(4) under which a vendor |
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will perform or manage an outsourced function or process. |
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SECTION 5. Sections 2054.303(a) and (c), Government Code, |
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are amended to read as follows: |
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(a) For each proposed major information resources project |
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or major contract, a state agency must prepare: |
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(1) a business case providing the initial |
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justification for the project or contract, including the |
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anticipated return on investment in terms of cost savings and |
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efficiency for the project or contract; and |
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(2) a statewide impact analysis of the project's or |
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contract's effect on the state's common information resources |
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infrastructure, including the possibility of reusing code or other |
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resources. |
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(c) The department shall use the analysis to ensure that the |
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proposed project or major contract does not unnecessarily duplicate |
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existing statewide information resources technology. |
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SECTION 6. Section 2054.304, Government Code, is amended to |
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read as follows: |
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Sec. 2054.304. PROJECT PLANS. (a) A state agency shall |
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develop a project plan for each major information resources project |
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or major contract. |
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(b) Except as provided by Subsection (c), the state agency |
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must file the project plan with the quality assurance team and the |
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Texas Building and Procurement Commission before the agency: |
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(1) spends more than 10 percent of allocated funds for |
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the project or major contract; or |
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(2) first issues a vendor solicitation for the project |
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or contract. |
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(c) Unless the project plan has been filed under this |
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section: |
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(1) the Texas Building and Procurement Commission may |
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not issue a vendor solicitation for the project or major contract; |
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and |
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(2) the agency may not post a vendor solicitation for |
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the project or contract in the state business daily under Section |
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2155.083. |
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SECTION 7. Section 2054.305, Government Code, is amended to |
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read as follows: |
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Sec. 2054.305. PROCUREMENT PLAN AND METHOD FOR MONITORING |
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CONTRACTS. Before issuing a vendor solicitation for a project or |
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major contract, the state agency must develop, consistent with |
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department guidelines: |
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(1) a procurement plan with anticipated service levels |
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and performance standards for each vendor; and |
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(2) a method to monitor changes to the scope of each |
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contract. |
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SECTION 8. Section 2155.502, Government Code, is amended by |
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amending Subsections (b) and (c) and adding Subsection (e) to read |
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as follows: |
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(b) In developing a [the] schedule under Subsection (a) or |
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(e), the commission or department, as appropriate, shall modify any |
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contractual terms, with the agreement of the parties to the |
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contract, as necessary to comply with any federal or state |
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requirements, including rules adopted under this subchapter. |
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(c) The commission may not list a multiple award contract on |
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a schedule developed under Subsection (a) [this section] if the |
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goods or services provided by that contract: |
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(1) are available from only one vendor; [or] |
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(2) are telecommunications services, facilities, or |
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equipment; or |
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(3) are commodity items as defined by Section |
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2157.068(a). |
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(e) The department may develop a schedule of multiple award |
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contracts for commodity items as defined by Section 2157.068(a) |
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using the criteria established under Subsection (a). |
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SECTION 9. Subchapter A, Chapter 2157, Government Code, is |
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amended by adding Section 2157.006 to read as follows: |
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Sec. 2157.006. PURCHASING METHODS. (a) The commission or |
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other state agency shall purchase an automated information system |
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using: |
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(1) the purchasing method described by Section |
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2157.068 for commodity items; or |
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(2) a purchasing method designated by the commission |
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to obtain the best value for the state, including a request for |
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offers method. |
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(b) A local government may purchase an automated |
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information system using a method listed under Subsection (a). A |
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local government that purchases an item using a method listed under |
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Subsection (a) satisfies any state law requiring the local |
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government to seek competitive bids for the purchase of the item. |
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(c) The commission shall adopt rules for designating |
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purchasing methods under Subsection (a)(2). |
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SECTION 10. The heading to Subchapter B, Chapter 2157, |
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Government Code, is amended to read as follows: |
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SUBCHAPTER B. COMMODITY ITEMS [CATALOG PURCHASE METHOD] |
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SECTION 11. The heading to Section 2157.068, Government |
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Code, is amended to read as follows: |
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Sec. 2157.068. PURCHASE OF INFORMATION TECHNOLOGY |
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COMMODITY ITEMS. |
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SECTION 12. Section 2157.068, Government Code, is amended |
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by amending Subsection (b) and adding Subsection (i) to read as |
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follows: |
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(b) The department shall negotiate with [catalog
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information systems] vendors to attempt to obtain a favorable price |
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for all of state government on licenses for commodity items, based |
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on the aggregate volume of purchases expected to be made by the |
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state. The terms and conditions of a license agreement between a |
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vendor and the department under this section may not be less |
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favorable to the state than the terms of similar license agreements |
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between the vendor and retail distributors. |
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(i) Unless the agency has express statutory authority to |
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employ a best value purchasing method other than a purchasing |
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method designated by the commission under Section 2157.006(a)(2), a |
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state agency shall use a purchasing method provided by Section |
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2157.006(a) when purchasing a commodity item if: |
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(1) the agency has obtained an exemption from the |
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department or approval from the Legislative Budget Board under |
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Subsection (f); or |
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(2) the agency is otherwise exempt from this section. |
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SECTION 13. Section 2262.051, Government Code, is amended |
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by adding Subsection (h) to read as follows: |
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(h) The guide must establish procedures for major contracts |
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that outsource a state function or process to a contractor, |
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including when applicable the use of documents required under |
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Subchapter J, Chapter 2054. |
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SECTION 14. Section 2262.053(b), Government Code, is |
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amended to read as follows: |
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(b) The training must provide the contract manager with |
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information regarding how to: |
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(1) fairly and objectively select and negotiate with |
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the most qualified contractor; |
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(2) establish prices that are cost-effective and that |
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reflect the cost of providing the service; |
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(3) include provisions in a contract that hold the |
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contractor accountable for results; |
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(4) monitor and enforce a contract; |
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(5) make payments consistent with the contract; [and] |
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(6) comply with any requirements or goals contained in |
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the contract management guide; and |
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(7) use and apply advanced sourcing strategies, |
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techniques, and tools. |
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SECTION 15. Section 60.454, Water Code, is amended to read |
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as follows: |
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Sec. 60.454. PURCHASING CONTRACT METHODS. Notwithstanding |
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any other provision of this chapter or other law, a district |
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contract valued at $25,000 or more in the aggregate for each |
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12-month period may be made by the method below that, in the opinion |
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of the district's commission, provides the best value for the |
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district: |
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(1) a design-build contract to construct, |
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rehabilitate, alter, or repair facilities; |
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(2) a contract to construct, rehabilitate, alter, or |
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repair facilities that involves using a construction manager-agent |
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or construction manager-at-risk; |
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(3) competitive sealed proposals; |
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(4) a job order contract for the construction, repair, |
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rehabilitation, or alteration of a facility; |
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(5) a request for proposals, if the contract is for |
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services other than construction services; |
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(6) competitive sealed bids; |
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(7) [a catalog purchase as provided by Subchapter B,
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Chapter 2157, Government Code;
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[(8)] an interlocal contract as provided by Chapter |
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791, Government Code; |
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(8) [(9)] the reverse auction procedure as defined by |
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Section 2155.062(d), Government Code; |
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(9) [(10)] a contract with the United States, |
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including any agency thereof; or |
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(10) [(11)] a contract with this state, including an |
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agency of this state. |
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SECTION 16. The following sections are repealed: |
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(1) 2155.507, Government Code; |
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(2) 2157.061, Government Code; |
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(3) 2157.0611, Government Code; |
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(4) 2157.062, Government Code; |
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(5) 2157.063, Government Code; |
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(6) 2157.066, Government Code; and |
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(7) 2157.067, Government Code. |
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SECTION 17. Subchapter J, Chapter 2054, Government Code, as |
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amended by this Act, applies only to a major contract entered into |
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on or after the effective date of this Act. A major contract |
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entered into before the effective date of this Act is governed by |
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the law in effect on the date the contract was entered into, and the |
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former law is continued in effect for that purpose. |
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SECTION 18. The Texas Building and Procurement Commission |
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must comply with Sections 2157.006(c) and 2262.051(h), Government |
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Code, as added by this Act, and Section 2262.053(b), Government |
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Code, as amended by this Act, not later than October 1, 2007. |
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SECTION 19. This Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2918 was passed by the House on May 8, |
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2007, by the following vote: Yeas 146, Nays 0, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 2918 on May 24, 2007, by the following vote: Yeas 141, Nays 0, |
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2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2918 was passed by the Senate, with |
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amendments, on May 22, 2007, by the following vote: Yeas 30, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |