By: Nelson S.B. No. 533

A BILL TO BE ENTITLED

AN ACT

relating to state agency contracting.

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

SECTION 1. Section 2054.1181(a), Government Code, is amended to read as follows:

(a) At the direction of the governor, lieutenant governor, or speaker of the house of representatives [The quality assurance team, in coordination with the governor, may recommend major information resources projects to the department for oversight. As part of this oversight], the department shall provide additional oversight services for major information resources projects, including risk management, quality assurance services, independent project monitoring, and project management. A state agency with a project selected for oversight shall pay for oversight by the department and quality assurance team based on a funding model developed by the department. The department may contract with a vendor to provide the necessary oversight at the department's direction.

SECTION 2. Section 2054.158, Government Code, is amended to read as follows:

Sec. 2054.158. QUALITY ASSURANCE TEAM; DUTIES. (a) The comptroller, state auditor, Legislative Budget Board, and department shall:

(1) create a quality assurance team to perform the duties specified in this chapter and other law; [and]

(2) specify in writing the responsibilities of the comptroller, state auditor, Legislative Budget Board, and department in performing the duties; and

(3) create an automated project review system.

(b) The quality assurance team shall:

(1) develop and recommend policies and procedures to improve state agency information resources technology projects; [and]

(2) develop and recommend procedures to improve the implementation of state agency information resources technology projects by including considerations for best value and return on investment; and

(3) provide annual training for state agency procurement and contract management staff on best practices and methodologies for information technology contracts.

(c) The state auditor serves on the quality assurance team as an advisor.

SECTION 3. Section 2054.303(a), Government Code, is 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; and

(3) in consultation with the department, a technical architectural assessment of the project or contract.

SECTION 4. Section 2054.304, Government Code, is amended by adding Subsection (d) to read as follows:

(d) Each project delivery framework in a project plan must be recognized as a best practice for major information resources projects or major contracts.

SECTION 5. Subchapter B, Chapter 2155, Government Code, is amended by adding Section 2155.090 to read as follows:

Sec. 2155.090. VENDOR AND EMPLOYEE INTERACTION AND COMMUNICATION POLICY. (a) Each state agency shall adopt a policy on the interactions and communication between employees of the state agency and a vendor that contracts with the state agency or seeks to conduct business with the state agency.

(b) This subtitle does not prohibit the exchange of information between a state agency and a vendor related to future solicitations or as necessary to monitor an existing contract.

SECTION 6. Sections 2157.068(e-1) and (e-2), Government Code, are amended to read as follows:

(e-1) A state agency contracting to purchase a commodity item shall use the list maintained as required by Subsection (e) as follows:

(1) for a contract with a value of $50,000 or less, the agency may directly award the contract to a vendor included on the list without submission of a request for pricing to other vendors on the list;

(2) for a contract with a value of more than $50,000 but not more than $1 million [$150,000], the agency must submit a request for pricing to at least three vendors included on the list in the category to which the contract relates; and

(3) for a contract with a value of more than $1 million [$150,000] but not more than $5 [$1] million, the agency must submit a request for pricing to at least six vendors included on the list in the category to which the contract relates or all vendors on the schedule if the category has fewer than six vendors.

(e-2) A state agency may not enter into a contract to purchase a commodity item if the value of the contract exceeds $5 [$1] million.

SECTION 7. Section 2261.251, Government Code, is amended by adding Subsection (a-1) to read as follows:

(a-1) This subchapter applies to a regional education service center established under Chapter 8, Education Code.

SECTION 8. Section 2262.101(a), Government Code, is amended to read as follows:

(a) The Contract Advisory Team is created to assist state agencies in improving contract management practices by:

(1) reviewing and making recommendations on the solicitation documents and contract documents for contracts of state agencies that have a value of at least $5 [$10] million;

(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;

(3) providing recommendations to the comptroller regarding:

(A) the development of the contract management guide; and

(B) the training under Section 2262.053;

(4) providing recommendations and assistance to state agency personnel throughout the contract management process;

(5) coordinating and consulting with the quality assurance team established under Section 2054.158 on all contracts relating to a major information resources project;

(6) developing and recommending policies and procedures to improve state agency contract management practices;

(7) developing and recommending procedures to improve state agency contracting practices by including consideration for best value; and

(8) creating and periodically performing a risk assessment to determine the appropriate level of management and oversight of contracts by state agencies.

SECTION 9. Subchapter A, Chapter 8, Education Code, is amended by adding Section 8.0091 to read as follows:

Sec. 8.0091. APPLICABILITY OF CERTAIN STATE CONTRACTING LAWS. A regional education service center and each center employee is subject to Subchapter F, Chapter 2261, Government Code. For purposes of that chapter:

(1) the center is considered to be a state agency; and

(2) each center employee is considered to be a state employee.

SECTION 10. (a) Not later than January 1, 2018, each state agency shall adopt a vendor and employee interaction and communication policy as required by Section 2155.090, Government Code, as added by this Act.

(b) The changes in law made by this Act apply only in relation 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.

SECTION 11. This Act takes effect September 1, 2017.