84R10957 CJC-D

By: Elkins H.B. No. 3361

A BILL TO BE ENTITLED

AN ACT

relating to state agency contracts for information technology commodity items and services.

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

SECTION 1. Section 2157.068, Government Code, is amended by adding Subsections (b-1), (j), and (k) to read as follows:

(b-1) Except as otherwise provided by this subsection, the value of a contract for a commodity item entered into under this section by a state agency, including the value of a renewal or an extension of the contract, may not exceed $1 million. The limitation prescribed by this subsection does not apply to a department contract for the bulk purchase of commodity items intended for use by more than one state agency.

(j) Rules adopted under Subsection (f) must require a state agency entering into a contract for a commodity item under this section to:

(1) obtain at least three competitive offers from vendors selected by the department under Subsection (b) if:

(A) the value of the agency's contract, including the value of a renewal or an extension of the contract, exceeds $25,000; and

(B) at least three vendors selected by the department under Subsection (b) offer the item;

(2) submit purchase orders under the contract to the department for submission by the department to the vendor with which the agency contracts;

(3) report to the department the amounts paid by the agency under the contract to the vendor; and

(4) notwithstanding Section 441.185, retain all documents relating to the contract for at least three years after the date on which the contract expires.

(k) The department shall publish in a conspicuous place on the department's Internet website the payment information reported to the department under Subsection (j)(3) as well as a brief description of the contract under which the payments were made.

SECTION 2. Subchapter B, Chapter 2157, Government Code, is amended by adding Section 2157.070 to read as follows:

Sec. 2157.070. DELIVERABLES-BASED INFORMATION TECHNOLOGY SERVICES. (a) Except as otherwise provided by this section, Section 2157.068 applies to the purchase of deliverables-based information technology services by a state agency.

(b) Notwithstanding Section 2157.068(b-1), the value of a contract entered into with a vendor selected by the department under Section 2157.068(b) for deliverables-based information technology services may not exceed $3 million.

(c) Before a state agency purchases deliverables-based information technology services, the agency must submit the scope of work prepared for the purchase to:

(1) the department, for review and approval by the department; and

(2) the Contract Advisory Team established under Subchapter C, Chapter 2262, for review by the team.

(d) In conducting the review required under Subsection (c), the department must consider whether the services to be purchased under the contract are appropriate for purchase as commodity items under Section 2157.068.

(e) An amendment to a contract for deliverables-based information technology services that has the effect of increasing the total value of the contract by 25 percent or more must be approved by the department. The amendment must be reviewed by the Contract Advisory Team established under Subchapter C, Chapter 2262. The department must consider the Contract Advisory Team's recommendation.

(f) The department shall monitor payments made by a state agency to a vendor selected by the department under Section 2157.068(b) for deliverables-based information technology services to ensure compliance with the limitation prescribed by Subsection (b). If a vendor is paid an amount in excess of that limitation, the department shall notify the comptroller and the comptroller may not authorize any expenditure in excess of that limitation.

(g) The quality assurance team established under Section 2054.158:

(1) shall review and monitor each state agency contract for deliverables-based information technology services with a value greater than $1 million; and

(2) may review and analyze the risk associated with a particular contract for deliverables-based information technology services and, based on that review, make appropriate recommendations to the Legislative Budget Board.

SECTION 3. The change in law made by this Act applies only to a contract for commodity items that is entered into on or after the effective date of this Act. A 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 4. This Act takes effect September 1, 2015.