85R13137 AAF-F
  By: Capriglione H.B. No. 3598
  relating to the contract management guide for state agencies.
         SECTION 1.  Section 2262.005, Government Code, is amended to
  read as follows:
  AGENCIES].  The comptroller shall consult with state agencies,
  vendors, and other interested parties in developing rules, forms,
  contract terms, guides, manuals, and criteria required under this
         SECTION 2.  Section 2262.051, Government Code, is amended by
  amending Subsections (a), (b), (c), (d), and (g) and adding
  Subsections (i) and (j) to read as follows:
         (a)  In consultation with the attorney general, the
  Department of Information Resources, the [comptroller, and the]
  state auditor, and state agencies that award major contracts, the
  comptroller [commission] shall develop and [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).
         (b)  The comptroller [commission] may adopt rules necessary
  to develop or update the guide.
         (c)  The guide must provide information regarding the
  primary duties of a contract manager, including how to:
               (1)  develop and negotiate a contract;
               (2)  select a contractor; [and]
               (3)  monitor contractor and subcontractor performance
  under a contract; and
               (4)  encourage competition for goods and services
  purchased by this state.
         (d)  The guide must include model provisions for state agency
  contracts.  The guide must:
               (1)  distinguish between essential provisions that a
  state agency must include in a contract to protect the interests of
  this state and recommended provisions that a state agency may
  include in a contract;
               (2)  recognize the unique contracting needs of an
  individual state agency or program based on the size, nature, and
  type of goods or services purchased by the state agency or program
  and provide sufficient flexibility to accommodate those needs,
  consistent with protecting the interests of this state;
               (3)  include maximum contract periods under which a new
  competitive solicitation is not necessary; and
               (4)  include the model contract management process
  developed under Section 2262.104 and recommendations on the
  appropriate use of the model.
         (g)  The guide must establish procedures under which a state
  agency is required to:
               (1)  analyze the reasons [solicit explanations from
  qualified potential respondents who did not respond to] a
  competitive solicitation for a contract received fewer than two
  qualified bids; and
               (2)  develop and implement improved procurement
  practices, including:
                     (A)  providing earlier notice to prospective
  vendors of the state agency's intent to issue a competitive
                     (B)  expanding the time in which a prospective
  vendor may respond to a competitive solicitation;
                     (C)  improving up-front communication between a
  state agency and a prospective vendor about the state agency's
  needs and objectives; and
                     (D)  improving educational efforts by the state
  agency to understand vendor capabilities, skills, and benefits [on
  which fewer than two qualified bids were received by the agency].
         (i)  The guide must suggest best practices related to
  procurement metrics used by a state agency to measure and monitor
  the effectiveness of the state agency's procurement methods,
  including the:
               (1)  number and value of procurements made by the state
               (2)  number of canceled procurements by the state
               (3)  reasons for canceled procurements;
               (4)  common exceptions to the state agency's terms and
  conditions by a respondent;
               (5)  number of responses per competitive solicitation;
               (6)  average length of time for each phase of the state
  agency's procurement processes, including the length of time:
                     (A)  between the date the state agency issues the
  competitive solicitation and the date the state agency begins
  receiving responses to the solicitation;
                     (B)  for the evaluation of responses to a
  competitive solicitation;
                     (C)  of the negotiation between the state agency
  and a vendor; and
                     (D)  between the date the state agency issues the
  competitive solicitation and the date the state agency awards a
  contract to a vendor.
         (j)  The guide may include references to procurement
  maturity models and procurement readiness assessments used by other
  large public and private enterprises.
         SECTION 3.  This Act takes effect September 1, 2017.