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A BILL TO BE ENTITLED
|
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AN ACT
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relating to contracting issues of state agencies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2155.004(a), Government Code, is amended |
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to read as follows: |
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(a) A state agency may not accept a bid or award a contract |
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that includes proposed financial participation by a person who |
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participated, to any extent, [received compensation from the agency
|
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to participate] in preparing the specifications or request for |
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proposals on which the bid or contract is based. |
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SECTION 2. Section 2155.077(b), Government Code, is amended |
|
to read as follows: |
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(b) Except as provided by Subsection (d) and subject to |
|
Chapter 2262, the commission shall bar a vendor from participating |
|
in state contracts under Subsection (a) for a period that is |
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commensurate with the seriousness of the vendor's action and the |
|
damage to the state's interests. |
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SECTION 3. Section 2155.144(d), Government Code, is amended |
|
to read as follows: |
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(d) The [Subject to Subsection (e), the] agency shall [may] |
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consider all relevant factors in determining the best value, |
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including: |
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(1) all start-up, [any] installation, transition, |
|
monitoring, and administrative costs; |
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(2) the delivery terms; |
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(3) the quality and reliability of the vendor's goods |
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or services; |
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(4) the extent to which the goods or services meet the |
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agency's needs; |
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(5) indicators of probable vendor performance under |
|
the contract such as past vendor performance, the vendor's |
|
financial resources and ability to perform, the vendor's experience |
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and responsibility, and the vendor's ability to provide reliable |
|
maintenance agreements; |
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(6) the impact on the ability of the agency to comply |
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with laws and rules relating to historically underutilized |
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businesses or relating to the procurement of goods and services |
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from persons with disabilities; |
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(7) the total long-term cost to the agency of |
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acquiring the vendor's goods or services, including the cost of |
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replacing the vendor's goods or services if the vendor fails to |
|
fulfill its obligations under the contract and the local economic |
|
impact of any state employee job loss associated with the |
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procurement; |
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(8) the cost of any employee training associated with |
|
the acquisition; |
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(9) the effect of an acquisition on agency |
|
productivity; |
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(10) the acquisition price; and |
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(11) any other factor relevant to determining the best |
|
value for the agency in the context of a particular acquisition. |
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SECTION 4. Section 2262.001, Government Code, is amended by |
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amending Subdivisions (3) and (4) and adding Subdivision (3-a) to |
|
read as follows: |
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(3) "Contract manager" means a person who: |
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(A) is employed by a state agency; and |
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(B) has significant contract management duties |
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for the state agency[, as determined by the agency in consultation
|
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with the state auditor]. |
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(3-a) "Executive director" means the administrative |
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head of a state agency. |
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(4) "Major contract" means a contract, including a |
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renewal of a contract, that has a value of at least $1 million. |
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SECTION 5. Section 2262.002, Government Code, is amended by |
|
adding Subsection (c) to read as follows: |
|
(c) The comptroller on a case-by-case basis may exempt a |
|
state agency from the requirements of this chapter. |
|
SECTION 6. Sections 2262.051(a) and (b), Government Code, |
|
are amended to read as follows: |
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(a) In consultation with the attorney general, the |
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Department of Information Resources, [the comptroller,] and the |
|
state auditor, the comptroller [commission] shall develop or |
|
periodically update a contract management guide for use by state |
|
agencies. Participation by the state auditor under this |
|
subsection is subject to approval by the legislative audit |
|
committee for inclusion in the audit plan under Section 321.013(c). |
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(b) The comptroller [commission] may adopt rules necessary |
|
to develop or update the guide. |
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SECTION 7. Section 2262.052, Government Code, as amended by |
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Chapters 309 (H.B. 3042) and 785 (S.B. 19), Acts of the 78th |
|
Legislature, Regular Session, 2003, is reenacted and amended to |
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read as follows: |
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Sec. 2262.052. COMPLIANCE WITH GUIDE. (a) Each state |
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agency shall review, adopt, and comply with the contract management |
|
guide. |
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(b) Subject to the legislative audit committee's approval |
|
of including the work described by this subsection in the audit plan |
|
under Section 321.013(c), the state auditor shall: |
|
(1) periodically monitor compliance with this |
|
section; |
|
(2) report any noncompliance to: |
|
(A) the governor; |
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(B) the lieutenant governor; |
|
(C) the speaker of the house of representatives; |
|
and |
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(D) the team; and |
|
(3) assist, in coordination with the attorney general |
|
and the comptroller, a noncomplying state agency to comply with |
|
this section. |
|
(c) The comptroller may on a case-by-case basis exempt a |
|
state agency from complying with the contract management guide. |
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SECTION 8. The heading to Section 2262.053, Government |
|
Code, is amended to read as follows: |
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Sec. 2262.053. TRAINING FOR CONTRACT MANAGERS. |
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SECTION 9. Section 2262.053, Government Code, is amended by |
|
amending Subsections (a), (b), and (d) and adding Subsections (e), |
|
(f), and (g) to read as follows: |
|
(a) In coordination with the [comptroller,] Department of |
|
Information Resources, [and] state auditor, and Health and Human |
|
Services Commission, the comptroller or a private vendor selected |
|
by the comptroller [commission] shall develop [or administer] a |
|
training program for contract managers. |
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(b) The training must provide the contract manager with |
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information regarding how to: |
|
(1) fairly and objectively select and negotiate with |
|
the most qualified contractor; |
|
(2) establish rates and 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) form, monitor, oversee, and enforce a contract; |
|
(5) make payments consistent with the contract; |
|
(6) comply with any requirements or goals contained in |
|
the contract management guide; and |
|
(7) use and apply contract planning and procurement |
|
skills and advanced sourcing strategies, techniques, and tools. |
|
(d) The comptroller [Texas Building and Procurement
|
|
Commission] shall administer the training program under this |
|
section. |
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(e) The comptroller shall certify contract managers who |
|
have completed the contract management training required under this |
|
section and keep a list of those contract managers. |
|
(f) The program developed under this section must include a |
|
separate class on ethics and contracting. |
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(g) A state agency or educational entity may develop |
|
qualified contract manager training to supplement the training |
|
required under this section. The comptroller may incorporate the |
|
training developed by the agency or entity into the training |
|
program under this section. |
|
SECTION 10. Subchapter B, Chapter 2262, Government Code, is |
|
amended by adding Section 2262.0535 to read as follows: |
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Sec. 2262.0535. TRAINING FOR GOVERNING BODIES. (a) The |
|
comptroller or a private vendor selected by the comptroller shall |
|
adapt the program developed under Section 2262.053 to develop an |
|
abbreviated contract management and oversight program for training |
|
the members of the governing bodies of state agencies. The training |
|
may be provided together with other required training for members |
|
of state agency governing bodies. |
|
(b) All members of the governing body of a state agency |
|
shall complete at least one course of the training developed under |
|
this section. This subsection does not apply to a state agency that |
|
does not enter into any contracts. |
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SECTION 11. Section 2262.054, Government Code, is amended |
|
to read as follows: |
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Sec. 2262.054. PUBLIC COMMENT. The comptroller |
|
[commission] by rule may establish procedures by which each state |
|
agency is required to invite public comment by publishing the |
|
proposed technical specifications for major contracts on the |
|
Internet through the information service known as the Texas |
|
Marketplace or through a suitable successor information service. |
|
The guide must define "technical specifications." |
|
SECTION 12. Subchapter B, Chapter 2262, Government Code, is |
|
amended by adding Sections 2262.055 through 2262.068 to read as |
|
follows: |
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Sec. 2262.055. FEES FOR TRAINING. The comptroller shall |
|
set and collect a fee from state agencies that receive training |
|
under this subchapter in an amount that recovers the comptroller's |
|
costs for the training. |
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Sec. 2262.056. CONTRACT MANAGEMENT STAFF; WORKLOAD |
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MEASURES. Each state agency shall: |
|
(1) identify appropriate staffing levels necessary to |
|
perform the contract management duties and activities required |
|
under this chapter; and |
|
(2) develop workload measures and standards for the |
|
contract management staff. |
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Sec. 2262.057. STATE AGENCY REPOSITORY. Each state agency |
|
shall maintain in a central location all contracts for that agency. |
|
Sec. 2262.058. REPORTING CONTRACTOR PERFORMANCE. (a) |
|
After a contract is completed or otherwise terminated, each state |
|
agency shall review the contractor's performance under the |
|
contract. |
|
(b) Using the forms developed by the team under Sections |
|
2262.104 and 2262.105, the state agency shall report to the |
|
comptroller on the results of the review regarding the contractor's |
|
performance under the contract. |
|
Sec. 2262.059. CONTRACTOR PERFORMANCE DATABASE. (a) The |
|
comptroller shall store in a database contractor performance |
|
reviews as provided by this section. |
|
(b) The comptroller shall evaluate the contractor's |
|
performance based on the information reported under Section |
|
2262.058 and criteria established by the comptroller by rule. |
|
Based on the results of the evaluation, the comptroller shall |
|
determine whether the contractor is approved or not approved under |
|
this subsection or barred under Section 2155.077. The comptroller |
|
by rule shall state generally the reasons for which a contractor |
|
will be determined to be approved or not approved under this |
|
subsection. |
|
(c) The comptroller shall establish an evaluation process |
|
that allows vendors who receive an unfavorable contractor |
|
performance review or who are the subject of an unfavorable |
|
determination made by the comptroller under Subsection (b) to |
|
protest the unfavorable review or unfavorable determination by the |
|
comptroller. |
|
(d) The comptroller shall develop a database that |
|
incorporates the performance reviews and aggregates the reviews for |
|
each contractor. The database must also include the determination |
|
made by the comptroller under Subsection (b) for each contractor. |
|
(e) A state agency may use the performance review database |
|
to determine whether to award a contract to a contractor included in |
|
the database. |
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Sec. 2262.060. EXCLUDING CONTRACTOR FROM SOLICITATION |
|
PROCESS. Based on its own contractor performance reviews and on |
|
information in the database developed under Section 2262.059, a |
|
state agency may exclude a contractor from the solicitation process |
|
for a contract if the agency determines the contractor has |
|
performed poorly on a previous state contract without regard to |
|
whether the contractor has been barred under Section 2155.077. |
|
Sec. 2262.061. PERFORMANCE MEASURES; REPORTS. (a) Each |
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state agency shall develop a plan and timeline for incorporating |
|
process-oriented and outcome-based performance measures into all |
|
contracts entered into by the agency. This includes ensuring that |
|
performance measures are written into each contract before |
|
execution. |
|
(b) Before including the performance measures in a state |
|
agency contract, a state agency shall make available to the public a |
|
draft of the proposed performance measures and allow adequate time |
|
for review, comment, and incorporation of comments into the |
|
performance measures. |
|
(c) Not later than March 1 of each year, each state agency |
|
shall report to the team, governor, lieutenant governor, and |
|
speaker of the house of representatives regarding performance |
|
measures in the agency's contracts. The report must describe the |
|
agency's efforts to include performance-based provisions in the |
|
agency's contracts. |
|
(d) Each state agency shall make the report accessible to |
|
the public on the agency's website. |
|
Sec. 2262.062. ANNUAL EVALUATION OF CERTAIN CONTRACTS. A |
|
state agency that enters into a contract with a monetary value that |
|
exceeds the monetary threshold provided by comptroller rule shall |
|
have an independent evaluator annually review the contract and the |
|
contractor's performance under the contract to determine whether |
|
the contractor is complying with the contract terms. |
|
Sec. 2262.063. CONTRACT MANAGERS. (a) Each state agency |
|
that enters into contracts other than interagency contracts shall |
|
establish a career ladder program for contract management in the |
|
agency. |
|
(b) An employee hired as a contract manager may engage in |
|
procurement planning, contract solicitation, contract formation, |
|
price establishment, and other contract activities. |
|
(c) Each state agency shall determine, in consultation with |
|
the state auditor, the amount and significance of contract |
|
management duties sufficient for an employee to be considered a |
|
contract manager under this chapter. |
|
(d) A contract manager shall complete the training program |
|
and become certified under Section 2262.053. |
|
Sec. 2262.064. APPROVAL OF CONTRACTS. (a) Each state |
|
agency shall establish formal guidelines regarding who may approve |
|
a contract for the agency. |
|
(b) Each state agency shall adopt administrative rules to |
|
establish: |
|
(1) a monetary threshold above which agency contracts |
|
and amendments to or extensions of agency contracts require written |
|
authorization by the agency executive director; and |
|
(2) a monetary threshold above which a draft contract |
|
may not be entered into unless the agency complies with public |
|
notice, public comment, and governing body approval procedures |
|
strictly analogous to rulemaking procedures under Chapter 2001 |
|
before the contract is entered into. |
|
(c) A state agency may not enter into a contract unless the |
|
contract is: |
|
(1) approved and signed by at least two persons |
|
authorized to approve contracts for the agency; or |
|
(2) approved by the agency's governing body in an open |
|
meeting. |
|
(d) A person authorized to approve contracts for a state |
|
agency must sign a conflict-of-interest statement agreeing to |
|
disclose any potential conflict of interest before approving a |
|
contract. |
|
(e) A state agency contract must include a provision |
|
designating who may authorize amendments to the contract for the |
|
state agency. For state agency contracts valued in excess of $1 |
|
million, the agency executive director must authorize a contract |
|
amendment in writing. |
|
(f) Each state agency shall annually report to the |
|
comptroller a list of persons authorized to approve contracts at |
|
the agency. The list must include each person's name, position, and |
|
supervisory responsibility, if any. |
|
Sec. 2262.065. NEGOTIATION OF CONTRACT BY SINGLE EMPLOYEE |
|
PROHIBITED. A state agency may not negotiate a contract with only |
|
one employee engaging in the negotiation. |
|
Sec. 2262.066. DEVELOPMENT OF OPTIMIZED MODEL FOR CERTAIN |
|
CONTRACTS. (a) If a state agency determines that a proposed |
|
contract or proposed contract extension or amendment would |
|
outsource existing services or functions performed by the agency |
|
that have a value of $10 million or more, the agency shall create an |
|
optimized model for the identified functions or services to |
|
determine how and at what cost the agency could most efficiently |
|
provide the functions or services. |
|
(b) The model must show consideration of all relevant |
|
factors, including: |
|
(1) best practices in Texas and other states; |
|
(2) available technology; |
|
(3) access to benefits and services for clients; |
|
(4) program integrity; and |
|
(5) assessment of state agency skills available |
|
throughout the life of the project. |
|
(c) An agency that develops an optimized model under this |
|
section shall use it as the basis for cost comparison when deciding |
|
whether to outsource the identified functions or services. |
|
(d) A model developed under this section is confidential and |
|
is not subject to disclosure under Chapter 552 until a final |
|
determination has been made to award the contract for which the |
|
model was developed. |
|
Sec. 2262.067. ANALYSIS OF SERVICES AND FUNCTIONS. (a) In |
|
this section, "inherently governmental in nature" means a function |
|
or service that involves the exercise or use of governmental |
|
authority or discretion. |
|
(b) If a state agency determines that a proposed contract or |
|
proposed contract extension or amendment would outsource existing |
|
services or functions performed by the agency that have a value of |
|
$10 million or more, then before the agency may issue a competitive |
|
solicitation for the contract or amend or extend the contract, the |
|
agency shall contract with the State Council on Competitive |
|
Government for its staff to perform an analysis to determine if any |
|
of the services or functions to be performed under the contract or |
|
contract extension or amendment are inherently governmental in |
|
nature. |
|
(c) Except as provided by Subsection (e), if the State |
|
Council on Competitive Government determines that a service or |
|
function to be performed under the contract or contract extension |
|
or amendment is inherently governmental in nature, the state agency |
|
may not: |
|
(1) contract with a private entity to perform the |
|
service or function; or |
|
(2) amend or extend the contract, if a private entity |
|
is to perform the service or function under the contract extension |
|
or amendment. |
|
(d) The analysis required under this section must use the |
|
guidelines developed by the State Council on Competitive |
|
Government. |
|
(e) A state agency may contract with a private entity to |
|
perform a service or function or amend or extend an existing |
|
contract to allow a private entity to perform a service or function |
|
that the State Council on Competitive Government determines to be |
|
inherently governmental in nature if the chief administrative |
|
officer of the agency issues a report stating that there is a |
|
compelling state interest in outsourcing the service or function. |
|
Sec. 2262.068. FULL AND FAIR COST COMPARISON. (a) If a |
|
state agency determines that a proposed contract or proposed |
|
contract extension or amendment would outsource existing services |
|
or functions performed by the agency that have a value greater than |
|
$10 million or another amount provided by comptroller rule, the |
|
agency shall: |
|
(1) conduct a full and fair cost comparison to |
|
determine whether a private entity could perform the service or |
|
function with a comparable or better level of quality at a cost |
|
savings to the state; and |
|
(2) prepare a business case providing the initial |
|
justification for the proposed contract or proposed contract |
|
extension or amendment that includes: |
|
(A) the results of the comparison required under |
|
Subdivision (1); and |
|
(B) the anticipated return on investment in terms |
|
of cost savings and efficiency for the proposed contract or |
|
proposed contract extension or amendment. |
|
(b) To perform the comparison required by Subsection |
|
(a)(1), the state agency may: |
|
(1) contract with the State Council on Competitive |
|
Government to have its staff perform the comparison; or |
|
(2) use the methodology provided in Section 2162.103. |
|
(c) A state agency shall submit the business case required |
|
under Subsection (a)(2) to the governor, lieutenant governor, |
|
speaker of the house of representatives, Legislative Budget Board, |
|
and standing committees of the legislature that have primary |
|
jurisdiction over the agency, over state appropriations, and over |
|
state purchasing. |
|
SECTION 13. Section 2262.101, Government Code, is amended |
|
to read as follows: |
|
Sec. 2262.101. CREATION; DUTIES. (a) 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] |
|
(3) providing recommendations to the comptroller |
|
[commission] regarding: |
|
(A) the development of the contract management |
|
guide; [and] |
|
(B) the training under Section 2262.053; and |
|
(C) any state agency that should be exempt under |
|
Section 2262.002(c) or 2262.052(c) from complying with the contract |
|
management guide; |
|
(4) certifying that state agencies have complied with |
|
Sections 2262.066 and 2262.068; and |
|
(5) setting standards for outsourcing state services |
|
and prescribing methods for monitoring those services. |
|
(b) The team shall consult with state agencies in developing |
|
forms, contract terms, guidelines, and criteria required under this |
|
chapter. |
|
SECTION 14. Section 2262.102(a), Government Code, is |
|
amended to read as follows: |
|
(a) The team consists of the following five members: |
|
(1) one member from the attorney general's office; |
|
(2) two members [one member] from the comptroller's |
|
office; |
|
(3) one member from the Department of Information |
|
Resources; and |
|
(4) [one member from the Texas Building and
|
|
Procurement Commission; and
|
|
[(5)] one member from the governor's office. |
|
SECTION 15. Subchapter C, Chapter 2262, Government Code, is |
|
amended by adding Sections 2262.104 and 2262.105 to read as |
|
follows: |
|
Sec. 2262.104. UNIFORM DEFINITIONS AND FORMS. (a) The team |
|
established under Section 2262.101 shall develop and publish a |
|
uniform set of definitions for use as applicable in state |
|
contracts. Each state agency shall use the terminology as |
|
applicable in the contracts entered into by the agency. |
|
(b) The team shall develop and publish a uniform and |
|
automated set of forms that a state agency must use in the different |
|
stages of the contracting process. |
|
Sec. 2262.105. FORMS FOR REPORTING CONTRACTOR PERFORMANCE. |
|
As part of the uniform forms published under Section 2262.104, the |
|
team shall develop forms for use by state agencies in reporting a |
|
contractor's performance under Section 2262.058. |
|
SECTION 16. Chapter 2262, Government Code, is amended by |
|
adding Subchapters D, E, F, and G to read as follows: |
|
SUBCHAPTER D. CONTRACT PROVISIONS |
|
Sec. 2262.151. USE OF UNIFORM FORMS. A state agency shall |
|
use the forms developed under Section 2262.104 as templates, |
|
guides, or samples for contracts entered into by the agency. |
|
Sec. 2262.152. CONTRACT TERMS RELATING TO NONCOMPLIANCE. |
|
(a) A state agency contract shall include provisions authorizing |
|
the agency to impose clearly defined penalties for noncompliance |
|
with contract terms. The provisions must include mechanisms for |
|
identifying when a contractor fails to comply with the contract |
|
terms, remedies to compel compliance, and remedies available for |
|
persons affected by the noncompliance. |
|
(b) The team shall develop recommendations for contract |
|
terms regarding penalties for contractors who do not comply with a |
|
contract, including penalties for contractors who do not disclose |
|
conflicts of interest under Section 2262.201. The team may develop |
|
recommended contract terms that are generally applicable to state |
|
contracts and terms that are applicable to important types of state |
|
contracts. |
|
(c) A state agency may include applicable recommended terms |
|
in a contract entered into by the agency. |
|
Sec. 2262.153. REQUIRED PROVISION RELATING TO |
|
SUBCONTRACTOR COMPLIANCE. Each state agency contract must require |
|
that each contractor provide a list of all subcontractors for the |
|
contract and include a provision that: |
|
(1) holds the contractor responsible for the conduct |
|
of all subcontractors in complying with the contractor's contract |
|
with the state agency; and |
|
(2) requires each subcontractor to disclose all |
|
potential conflicts of interest to the state agency, according to |
|
guidelines developed under Section 2262.201(b), when the |
|
subcontractor contracts with or is otherwise hired by the |
|
contractor. |
|
Sec. 2262.154. LANGUAGE CONTAINED IN REQUEST FOR PROPOSALS. |
|
Each state agency contract must incorporate the language used in |
|
the request for proposals for that contract. |
|
Sec. 2262.155. PROVISION RELATED TO POLITICAL |
|
CONTRIBUTIONS. Each contract entered into by a state agency must |
|
include a provision that prohibits the contractor from making a |
|
campaign contribution to an elected official during the term of the |
|
contract. |
|
Sec. 2262.156. REQUIRED CONTRACTOR DISCLOSURE STATEMENT; |
|
OUTSOURCING. (a) Each contract entered into by a state agency must |
|
include a provision requiring disclosure of any services materially |
|
necessary to fulfill the contract, including services performed by |
|
a subcontractor, that will be or are performed in a country other |
|
than the United States. This section does not apply to services |
|
that are occasional, minor, or incidental to fulfilling the |
|
contract. |
|
(b) The contract must include a provision allowing the state |
|
agency to terminate the contract and solicit a new contract, except |
|
when a contractor takes prompt corrective action described by |
|
Subsection (c), if: |
|
(1) the contractor or a subcontractor of the |
|
contractor performs a service materially necessary to fulfill the |
|
contract in a country other than the United States; and |
|
(2) the contractor does not disclose in the contract |
|
that the service will be performed in a country other than the |
|
United States. |
|
(c) A contractor may replace a subcontractor without |
|
termination of a contract under this section if the contractor |
|
determines that the subcontractor is performing a service |
|
materially necessary to fulfill the contract in a country other |
|
than the United States and did not disclose that fact to the |
|
contractor. |
|
SUBCHAPTER E. ETHICS; CONFLICT OF INTEREST; PROHIBITIONS |
|
Sec. 2262.201. CONTRACTOR CONFLICTS OF INTEREST. (a) Each |
|
contractor who responds to a state agency's contract solicitation |
|
shall disclose in its response all potential conflicts of interest |
|
to the agency. |
|
(b) The team shall develop guidelines to aid contractors and |
|
state agencies in identifying potential conflicts of interest. |
|
Sec. 2262.202. EXECUTIVE DIRECTORS; ETHICS IN CONTRACTING |
|
CLASS. Each executive director of a state agency shall annually |
|
complete the ethics and contracting class developed under Section |
|
2262.053(f). This section does not apply to a state agency that |
|
does not enter into any contracts. |
|
Sec. 2262.203. PROHIBITIONS RELATED TO STATE CONTRACTS. |
|
(a) A state agency may not enter into or renew a contract with a |
|
person who has as an employee a former state agency employee who was |
|
involved in contracting for the agency in the preceding six months. |
|
(b) A state agency may not employ an individual who was |
|
employed by a person that conducts business with the state agency |
|
before the last day of the sixth month after the date the individual |
|
was last employed by the person. |
|
(c) The team may exempt a state agency from a prohibition |
|
provided by Subsection (a) or (b). |
|
SUBCHAPTER F. CHANGES TO CONTRACTS |
|
Sec. 2262.251. CONTRACT AMENDMENTS, EXTENSIONS, AND CHANGE |
|
ORDERS. (a) An extension of or amendment to a contract, including |
|
a change order, is subject to the same rules and approval processes |
|
as the original contract. |
|
(b) A state agency may not extend or amend a contract |
|
unless: |
|
(1) the agency complies with the same rules and |
|
approval processes for the extension or amendment as required for |
|
the original contract; and |
|
(2) a contract manager for the agency states in |
|
writing why the extension or amendment is necessary. |
|
(c) This section does not affect whether a state agency is |
|
required to undertake a new solicitation process in the manner |
|
required for a new contract in order to extend or amend a contract. |
|
Sec. 2262.252. AMENDMENT REQUIRING SIGNIFICANT ALTERATION. |
|
A state agency may not amend a contract to significantly alter the |
|
original terms or monetary value of the contract awarded through a |
|
competitive bidding process unless the state agency conducts |
|
another competitive bidding process for the goods or services under |
|
the new terms. |
|
Sec. 2262.253. CERTAIN CONTRACT EXTENSIONS. This |
|
subchapter does not apply to contract extensions that are |
|
specifically established as a component of the original |
|
procurement. |
|
SUBCHAPTER G. OFFICE OF CONTRACT MANAGEMENT; HIGH-RISK CONTRACTS |
|
Sec. 2262.301. 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 a state agency's office of |
|
contract management. |
|
(2) "Major information resources project" has the |
|
meaning assigned by Section 2054.003(10). |
|
(3) "Quality assurance team" means the quality |
|
assurance team established under Section 2054.158. |
|
(4) "Solicitation" means a solicitation for bids, |
|
offers, qualifications, proposals, or similar expressions of |
|
interest for a high-risk contract. |
|
Sec. 2262.302. ESTABLISHMENT; GENERAL DUTIES. Each state |
|
agency subject to this chapter shall establish an 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 2262.303; |
|
(3) provide recommendations and assistance to 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. 2262.303. REVIEW AND APPROVAL; WAIVER. (a) A state |
|
agency must receive approval from the agency's office of contract |
|
management 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 agency's office of contract management shall |
|
review related documentation to ensure that potential risks related |
|
to the high-risk contract have been identified and mitigated. |
|
(c) The comptroller by rule may adopt criteria for waiving |
|
the review and approval requirements under Subsections (a) and (b). |
|
Sec. 2262.304. SOLICITATION AND CONTRACT CANCELLATION. |
|
After review of and comment on the matter by the Legislative Budget |
|
Board and the governor, a state agency's office of contract |
|
management may recommend the cancellation of a solicitation or a |
|
contract during the review process under Section 2262.303 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. |
|
Sec. 2262.305. AUDIT OF HIGH-RISK CONTRACT. The state |
|
auditor shall conduct an audit of a state agency contract |
|
identified as high risk by a state agency or the team. |
|
SECTION 17. Sections 2155.004(e), 2262.001(1-a), and |
|
2262.0011, Government Code, are repealed. |
|
SECTION 18. (a) Sections 2262.065 through 2262.068, |
|
Government Code, and Subchapter G, Chapter 2262, Government Code, |
|
as added by this Act, apply only to a contract for which a state |
|
agency first advertises or otherwise solicits bids, proposals, |
|
offers, or qualifications on or after the effective date of this |
|
Act. |
|
(b) Section 2262.201(a), Government Code, as added by this |
|
Act, applies only in relation to a contract for which a state agency |
|
first solicits bids, proposals, offers, or qualifications on or |
|
after the date that the Contract Advisory Team's guidelines |
|
regarding potential conflicts of interest take effect. |
|
SECTION 19. Not later than May 1, 2010, the comptroller of |
|
public accounts shall develop the training program, including the |
|
ethics and contracting class, required by Section 2262.053, |
|
Government Code, as amended by this Act, and Section 2262.0535, |
|
Government Code, as added by this Act. |
|
SECTION 20. A member of a governing body of a state agency |
|
is not required to complete the training developed under Section |
|
2262.0535, Government Code, as added by this Act, until September |
|
1, 2011. |
|
SECTION 21. An executive director of a state agency is not |
|
required to comply with Section 2262.202, Government Code, as added |
|
by this Act, until September 1, 2011. |
|
SECTION 22. A contract manager is not required to be |
|
certified under Chapter 2262, Government Code, as amended by this |
|
Act, until September 1, 2011. |
|
SECTION 23. (a) As soon as practicable, and not later than |
|
May 1, 2010, the Contract Advisory Team shall develop the forms, |
|
criteria, recommendations, and provisions required by this Act, |
|
including Sections 2262.104, 2262.105, 2262.152, and 2262.201(b), |
|
Government Code, as added by this Act. |
|
(b) A state agency is not required to comply with Sections |
|
2262.057 through 2262.064 and Sections 2262.151, 2262.152, |
|
2262.153, and 2262.156, Government Code, as added by this Act, |
|
until September 1, 2011. A state agency may comply earlier if the |
|
forms, electronic requirements, database, or other items are |
|
available before that date. |
|
SECTION 24. This Act takes effect November 1, 2009. |