By: Zaffirini S.B. No. 1679

A BILL TO BE ENTITLED

AN ACT

relating to state agency procurement.

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

SECTION 1. Section 2155.002, Government Code, is amended to read as follows:

Sec. 2155.002. COMPTROLLER [COMMISSION] FOCUS ON LARGE EXPENDITURES. To the extent possible, the comptroller [commission] shall focus [its efforts under this chapter and Chapters 2156, 2157, and 2158] on purchases and contracts that involve relatively large amounts of money or that leverage state spending in the most efficient manner.

SECTION 2. Section 2155.064, Government Code, is amended to read as follows:

Sec. 2155.064. LEVERAGED [SCHEDULE AND BULK] PURCHASING. To the greatest extent possible, the comptroller shall pursue statewide contracts and attempt to leverage state spending to achieve cost savings for this state. [The commission may combine orders in a system of schedule purchasing and shall attempt to benefit from bulk purchasing.]

SECTION 3. Section 2155.072, Government Code, is amended to read as follows:

Sec. 2155.072. STATEWIDE OR REGIONAL GOODS OR SERVICES CONTRACTS; COMPTROLLER [COMMISSION] STUDIES. Each state fiscal year, the comptroller [(a) The commission annually] shall consider one or more goods or services purchased by one or more state agencies for development into statewide contracts. The comptroller shall determine if a particular good or service may be leveraged for multiple state agencies at a cost savings to this state compared to the cost to this state of purchasing the good or service under individual state agency contracts [select for study at least one service that is purchased by one or more state agencies]. The comptroller [commission] shall consider awarding statewide contracts by region [study a selected service to determine whether the state would benefit if the service were provided to appropriate state agencies under a regional or statewide contract. The commission shall give priority to studying services for which the commission has delegated the purchasing function to many state agencies].

[(b) The commission is not required to enter into a statewide or regional contract for the provision of a service to state agencies if more than five bidders are willing to provide the service to the state under a statewide or regional contract.]

SECTION 4. Section 2155.074, Government Code, is amended to read as follows:

Sec. 2155.074. PROCUREMENT MANUAL; BEST VALUE AND SOURCING STANDARDS [STANDARD] FOR PURCHASE OF GOODS OR SERVICES. (a) The comptroller shall publish and maintain a procurement manual for state agencies to follow that incorporates the sourcing standards of this section and the best practices for procurement. Before publication, the procurement manual must be reviewed by the Contract Advisory Team established under Chapter 2262. Each state agency shall comply with the procurement manual in its procurement activities.

(b) For a purchase of goods and services under this chapter, each state agency, including the comptroller [commission], shall purchase goods and services that provide the best value for the state.

(c) [(b)] In determining the best value for the state, the purchase price and whether the goods or services meet specifications are the most important considerations. However, the comptroller [commission] or other state agency may, subject to Subsection (d) [(c)] and Section 2155.075, consider other relevant factors, including:

(1) installation costs;

(2) life cycle costs;

(3) the quality and reliability of the goods and services;

(4) the delivery terms;

(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 or demonstrated capability and responsibility, and the vendor's ability to provide reliable maintenance agreements and support;

(6) the cost of any employee training associated with a purchase;

(7) the effect of a purchase on agency productivity;

(8) the vendor's anticipated economic impact to the state or a subdivision of the state, including potential tax revenue and employment; and

(9) other factors relevant to determining the best value for the state in the context of a particular purchase.

(d) [(c)] A state agency shall:

(1) consult with and receive approval from the comptroller [commission] before considering factors other than price and meeting specifications when the agency procures through competitive bidding goods or services with a value that exceeds $100,000; and

(2) maintain in its records a written explanation of the reasons other factors are more important than price and meeting specifications in the procurement of the goods or services.

(e) The comptroller shall:

(1) identify commercially available goods and services needed or used by state agencies; and

(2) analyze and determine whether the goods and services are better provided through a statewide contract.

(f) If the comptroller determines that a good or service identified under Subsection (e) is better provided through a statewide contract, the comptroller may partner with state agencies to implement any process, including competitive bidding, developed by the comptroller to award one or more statewide contracts for the good or service.

SECTION 5. Subsection (n), Section 2155.083, Government Code, is amended to read as follows:

(n) Notwithstanding any other provision of this section, a state agency that conducts covert law enforcement operations is not required to post the specifications for covert equipment in the state business daily. [This section does not apply to a state agency to which Section 51.9335 or 73.115, Education Code, applies.]

SECTION 6. Subchapter B, Chapter 2155, Government Code, is amended by adding Section 2155.088 to read as follows:

Sec. 2155.088. PROCUREMENT PLANS FOR GOODS AND SERVICES. The comptroller shall partner with each state agency to facilitate efficient communications between the agency and the comptroller on the agency's procurement plans, including identifying the major purchases of goods or services the agency has planned for each fiscal biennium.

SECTION 7. Section 2155.131, Government Code, is amended to read as follows:

Sec. 2155.131. DELEGATION OF AUTHORITY TO STATE AGENCIES. (a) The comptroller [commission] may delegate purchasing functions to a state agency.

(b) In delegating purchasing authority under this section or Section 2155.132, the comptroller shall consider factors relevant to a state agency's ability to perform purchasing functions, including:

(1) the purchasing capabilities of the agency's purchasing personnel and the existence of automated purchasing tools at the agency;

(2) the certification levels held by the agency's purchasing personnel;

(3) the results of the comptroller's procurement review audits of an agency's purchasing practices; and

(4) whether the agency has adopted and published as part of its purchasing rules protest procedures consistent with the comptroller's protest procedures.

(c) The comptroller shall monitor the purchasing practices of each state agency that the comptroller delegates purchasing authority to under Subsection (b) or Section 2155.132 to ensure that the certification levels of the agency's purchasing personnel and the quality of the agency's purchasing practices continue to warrant the delegated purchasing authority. The comptroller may revoke for any cause, including the agency's failure to comply with Section 2155.074, all or part of the delegated purchasing authority. The comptroller shall adopt rules to administer this subsection.

(d) The comptroller by rule shall develop best practices for:

(1) the procedures a state agency must follow in making a delegated purchase; and

(2) the procedures by which a state agency may use the comptroller's services for delegated purchases under Section 2155.082.

(e) The comptroller on request of a state agency shall provide assistance to the agency for a delegated purchase.

SECTION 8. Section 2155.132, Government Code, is amended to read as follows:

Sec. 2155.132. PURCHASES LESS THAN SPECIFIED MONETARY AMOUNT. (a) A state agency is delegated the authority to purchase goods and services if the purchase does not exceed $15,000. If the comptroller [commission] determines that a state agency has not followed the comptroller's [commission's] rules or the laws related to the delegated purchases, the comptroller [commission] shall report the comptroller's [its] determination to the members of the state agency's governing body and to the governor, lieutenant governor, speaker of the house of representatives, and Legislative Budget Board.

(b) The comptroller [commission] by rule may delegate to a state agency the authority to purchase goods and services if the purchase exceeds $15,000. [In delegating purchasing authority under this subsection or Section 2155.131, the commission shall consider factors relevant to a state agency's ability to perform purchasing functions, including:

[(1) the capabilities of the agency's purchasing staff and the existence of automated purchasing tools at the agency;

[(2) the certification levels held by the agency's purchasing personnel;

[(3) the results of the commission's procurement review audits of an agency's purchasing practices; and

[(4) whether the agency has adopted and published protest procedures consistent with those of the commission as part of its purchasing rules.]

(c) [The commission shall monitor the purchasing practices of state agencies that are making delegated purchases under Subsection (b) or Section 2155.131 to ensure that the certification levels of the agency's purchasing personnel and the quality of the agency's purchasing practices continue to warrant the amount of delegated authority provided by the commission to the agency. The commission may revoke for cause all or part of the purchasing authority that the commission delegated to a state agency. The commission shall adopt rules to administer this subsection.

[(d) The commission by rule:

[(1) shall prescribe procedures for a delegated purchase; and

[(2) shall prescribe procedures by which agencies may use the commission's services for delegated purchases, in accordance with Section 2155.082.

[(e)] Competitive bidding, whether formal or informal, is required for a purchase by a state agency if the purchase:

(1) exceeds $5,000; and

(2) is made under a written contract.

(d) [(f)] Goods purchased under this section may not include:

(1) an item for which a statewide contract has been awarded by the comptroller [under the contract purchase procedure], unless the quantity purchased is less than any [the] minimum quantity specified in the contract;

(2) an item required by statute to be purchased from a particular source, including through the program administered under Chapter 122, Human Resources Code, or from the Texas Correctional Industries under Chapter 497; or

(3) a scheduled item that has been designated for purchase by the comptroller [commission].

(e) [(g)] A large purchase may not be divided into small lot purchases to circumvent [meet] the dollar limits prescribed by this section. The comptroller [commission] may not require that unrelated purchases be combined into one purchase order to exceed the dollar limits prescribed by this section.

(f) [(h)] A state agency making a purchase under this section for which competitive bidding is required shall [must]:

(1) attempt to obtain at least three competitive bids from:

(A) sources listed on the master bidders list that normally offer for sale the goods being purchased; or

(B) if three vendors are not available on the master bidders list, vendors in the applicable industry; and

(2) comply with Subchapter E.

SECTION 9. The following sections of the Government Code are repealed:

(1) Section 2155.086;

(2) Section 2155.087; and

(3) Section 2155.141.

SECTION 10. 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, 2013.