80R3102 TAD-F

By: Isett H.B. No. 2918

A BILL TO BE ENTITLED

AN ACT

relating to state information technology contracting and procurement practices.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Section 2054.0565, Government Code, is amended to read as follows:

Sec. 2054.0565. USE OF CONTRACTS BY OTHER [GOVERNMENTAL] ENTITIES.

SECTION 2. Section 2054.0565(a), Government Code, is amended to read as follows:

(a) The department may include terms in a procurement contract entered into by the department, including a contract entered into under Section 2157.068, that allow the contract to be used by another state agency, a political subdivision of this state, [or] a governmental entity of another state, or an assistance organization as defined by Section 2175.001.

SECTION 3. Section 2054.301, Government Code, is amended to read as follows:

Sec. 2054.301. APPLICABILITY. This subchapter applies only to:

(1) a major information resources project; or

(2) a major contract as defined by Section 2262.001(4).

SECTION 4. Sections 2054.303(a) and (c), Government Code, are amended to read as follows:

(a) For each proposed major information resources project or major contract, a state agency must prepare:

(1) a business case providing the initial justification for the project or contract, including the anticipated return on investment in terms of cost savings and efficiency for the project or contract; and

(2) a statewide impact analysis of the project's or contract's effect on the state's common information resources infrastructure, including the possibility of reusing code or other resources.

(c) The department shall use the analysis to ensure that the proposed project or major contract does not unnecessarily duplicate existing statewide information resources technology.

SECTION 5. Section 2054.304, Government Code, is amended to read as follows:

Sec. 2054.304. PROJECT PLANS. (a) A state agency shall develop a project plan for each major information resources project or major contract.

(b) Except as provided by Subsection (c), the state agency must file the project plan with the quality assurance team and the Texas Building and Procurement Commission before the agency:

(1) spends more than 10 percent of allocated funds for the project or major contract; or

(2) first issues a vendor solicitation for the project or contract.

(c) Unless the project plan has been filed under this section:

(1) the Texas Building and Procurement Commission may not issue a vendor solicitation for the project or major contract; and

(2) the agency may not post a vendor solicitation for the project or contract in the state business daily under Section 2155.083.

SECTION 6. Section 2054.305, Government Code, is amended to read as follows:

Sec. 2054.305. PROCUREMENT PLAN AND METHOD FOR MONITORING CONTRACTS. Before issuing a vendor solicitation for a project or major contract, the state agency must develop, consistent with department guidelines:

(1) a procurement plan with anticipated service levels and performance standards for each vendor; and

(2) a method to monitor changes to the scope of each contract.

SECTION 7. Section 2155.502, Government Code, is amended by amending Subsection (c) and adding Subsection (e) to read as follows:

(c) The commission may not list a multiple award contract on a schedule developed under Subsection (a) [this section] if the goods or services provided by that contract:

(1) are available from only one vendor; [or]

(2) are telecommunications services, facilities, or equipment; or

(3) are commodity items as defined by Section 2157.068(a).

(e) The department may develop a schedule of multiple award contracts for commodity items as defined by Section 2157.068(a) using the criteria established under Subsection (a).

SECTION 8. Section 2157.061, Government Code, is amended to read as follows:

Sec. 2157.061. USE OF CATALOG PURCHASE METHOD [REQUIRED UNLESS BEST VALUE AVAILABLE ELSEWHERE]. The department may adopt rules that specify the requirements for a catalog purchase method for [commission or a state agency shall purchase an] automated information systems [system through the catalog procedure provided by this subchapter unless the commission or state agency determines that the best value may be obtained from another purchase method authorized by this subtitle].

SECTION 9. Subchapter B, Chapter 2157, Government Code, is amended by adding Section 2157.0615 to read as follows:

Sec. 2157.0615. CATALOG PURCHASE METHOD FOR COMMODITY ITEMS. The department shall establish a catalog purchase method for the purchase by a state agency of commodity items as defined by Section 2157.068(a) if the department determines that the method is necessary to obtain the best value for the state.

SECTION 10. Section 2157.067(a), Government Code, is amended to read as follows:

(a) The department [commission] shall make the catalog purchase method [purchasing procedure] available to a local government that qualifies for cooperative purchasing under Sections 271.082 and 271.083, Local Government Code.

SECTION 11. Section 2157.068(b), Government Code, is amended to read as follows:

(b) The department shall negotiate with [catalog information systems] vendors to attempt to obtain a favorable price for all of state government on licenses for commodity items, based on the aggregate volume of purchases expected to be made by the state. The terms and conditions of a license agreement between a vendor and the department under this section may not be less favorable to the state than the terms of similar license agreements between the vendor and retail distributors.

SECTION 12. Section 2262.051, Government Code, is amended by adding Subsection (h) to read as follows:

(h) The guide must establish procedures for major contracts that outsource a state function or process to a contractor, including when applicable the use of documents required under Subchapter J, Chapter 2054.

SECTION 13. Section 2262.053(b), Government Code, is amended to read as follows:

(b) The training must provide the contract manager with information regarding how to:

(1) fairly and objectively select and negotiate with the most qualified contractor;

(2) establish prices that are cost-effective and that reflect the cost of providing the service;

(3) include provisions in a contract that hold the contractor accountable for results;

(4) monitor and enforce a contract;

(5) make payments consistent with the contract; [and]

(6) comply with any requirements or goals contained in the contract management guide; and

(7) use and apply advanced sourcing strategies, techniques, and tools.

SECTION 14. The following sections are repealed:

(1) 2155.507, Government Code;

(2) 2157.0611, Government Code;

(3) 2157.062, Government Code;

(4) 2157.063, Government Code; and

(5) 2157.066, Government Code.

SECTION 15. Subchapter J, Chapter 2054, Government Code, as amended by this Act, applies only to a major contract entered into on or after the effective date of this Act. A major contract entered into before the effective date of this Act is governed by the law in effect on the date the contract was entered into, and the former law is continued in effect for that purpose.

SECTION 16. The Department of Information Resources must comply with Section 2157.067, Government Code, as amended by this Act, not later than October 1, 2007.

SECTION 17. The Texas Building and Procurement Commission must comply with Section 2262.051(h), Government Code, as added by this Act, and Section 2262.053(b), Government Code, as amended by this Act, not later than October 1, 2007.

SECTION 18. This Act takes effect September 1, 2007.