88R4227 YDB-D
 
  By: Capriglione H.B. No. 1418
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to state agency contracting and certain state employees
  involved with the contracting.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 656.052(b), Government Code, is amended
  to read as follows:
         (b)  The training must provide the contract manager with
  information regarding how to:
               (1)  fairly and objectively select and negotiate with
  the most qualified contractor;
               (2)  establish 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)  monitor and enforce a contract;
               (5)  make payments consistent with the contract;
               (6)  comply with any requirements or goals contained in
  the contract management guide;
               (7)  use and apply advanced sourcing strategies,
  techniques, and tools;
               (8)  maintain required documentation for contracting
  decisions, changes to a contract, and problems with a contract;
               (9)  create a risk evaluation and mitigation strategy;
               (10)  create a plan for potential problems with the
  contract;
               (11)  develop an accurate and comprehensive statement
  of work; [and]
               (12)  complete the contract and evaluate performance
  under the contract; and
               (13)  determine best value for the state through the
  exercise of informed business judgment based on price and non-price
  factors expected to result in best value, including the factors
  described by Section 2155.074.
         SECTION 2.  Subchapter K, Chapter 659, Government Code, is
  amended by adding Section 659.2552 to read as follows:
         Sec. 659.2552.  SALARY INCREASE FOR CONTRACT EVALUATORS. A
  state agency may establish a procedure and requirements for
  determining the eligibility for a salary increase of an agency
  employee who acts as an evaluator for agency procurement in
  addition to the employee's regularly assigned duties. The procedure
  and requirements may authorize a salary increase only for an
  employee who meets the qualifications for employment in the agency
  division overseeing the implementation of the procurement.
         SECTION 3.  Section 2155.074, Government Code, is amended by
  amending Subsections (b) and (b-1) and adding Subsection (b-2) to
  read as follows:
         (b)  In determining the best value for the state, the
  purchase price and whether the goods or services meet
  specifications are principal considerations that must be balanced
  with other relevant factors, including the factors described by
  this section.
         (b-1)  For a procurement in an amount equal to $20 million or
  less, the [The] comptroller or other state agency may, subject to
  Subsection (c) and Section 2155.075, consider other [the following]
  relevant factors [under Subsection (b)], including:
               (1)  required contract outcomes [installation costs];
               (2)  best quality for economic value of the contract 
  [life cycle costs];
               (3)  timely performance under the contract [the quality
  and reliability of the goods and services];
               (4)  the encouragement of continued participation by
  quality contractors [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 impact on the agency's flexibility in
  developing alternative procurement and business relationships [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;
               (9)  the impact of a purchase on the agency's
  administrative resources; and
               (10)  other factors relevant to determining the best
  value for the state in the context of a particular purchase.
         (b-2)  For a procurement in an amount that exceeds $20
  million, the comptroller or other state agency shall, subject to
  Subsection (c) and Section 2155.075, consider the factors listed in
  Subsection (b-1) and the purchase price.
         SECTION 4.  Section 2155.144, Government Code, is amended by
  adding Subsections (h-1) and (j-1) to read as follows:
         (h-1)  Each health and human services agency and the Health
  and Human Services Commission shall ensure the agency's contract
  managers complete the training developed under Section 656.052 and
  comply with the requirements of Section 2262.058.
         (j-1)  The contract management handbook published under
  Subsection (j) must include:
               (1)  instructions for ensuring that:
                     (A)  health and human services agency employees
  who are involved in implementing a specific procurement are also
  involved in evaluating and scoring the responses submitted to the
  solicitation for the procurement;
                     (B)  appropriate health and human services agency
  employees answer questions from vendors in a timely manner; and
                     (C)  vendors that participate or are interested in
  participating in a state agency procurement have access to at least
  two agency employees who serve as contacts for the agency;
               (2)  a model communications procedure for vendors and
  state agency employees, developed in collaboration with
  representatives from vendors and state agencies, to use in agency
  solicitations; and
               (3)  procedures for:
                     (A)  notifying other responsive vendors if a state
  agency employee or another vendor violates the communications
  requirements for a solicitation;
                     (B)  determining when a state agency employee or
  vendor has failed to comply with the communications provisions of a
  solicitation; and
                     (C)  ensuring an appropriate number of interested
  vendors are granted access to a pre-bid, pre-offer, or pre-proposal
  conference.
         SECTION 5.  Sections 2262.051(a) and (c), Government Code,
  are amended to read as follows:
         (a)  In consultation with the attorney general, the
  Department of Information Resources, business and industry
  representatives, and the state auditor, the comptroller 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).
         (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;
               (4)  appoint as evaluators for procurements agency
  employees who serve in agency divisions overseeing the
  implementation of the procurements;
               (5)  ensure that appropriate state agency employees
  answer questions in a timely manner;
               (6)  develop a model communications procedure for
  vendors and state agency employees to be included in the agency's
  solicitations; and
               (7)  establish procedures for:
                     (A)  notifying other responsive vendors if a state
  agency employee or another vendor violates the communications
  requirements for the solicitation;
                     (B)  determining when a state agency employee or
  vendor has failed to comply with the communications provisions of a
  solicitation;
                     (C)  ensuring an appropriate number of interested
  vendors are granted access to a pre-bid, pre-offer, or pre-proposal
  conference; and
                     (D)  ensuring that state agency personnel who are
  involved in implementing a specific procurement are also involved
  in evaluating and scoring the responses submitted to the
  solicitation for the procurement.
         SECTION 6.  Subchapter B, Chapter 2262, Government Code, is
  amended by adding Section 2262.058 to read as follows:
         Sec. 2262.058.  CERTAIN CONTRACT MANAGERS. For a contract
  manager who participates in the procurement of a contract with a
  value of $20 million or more, the contract manager shall:
               (1)  participate in additional training specific to the
  category of goods or services to be procured; and
               (2)  develop a document to be retained with the records
  for the procurement that includes a written statement certified by
  the contract manager that the contract manager developed and
  implemented appropriate control mechanisms to ensure vendor
  proposals or other expressions of interest were evaluated or scored
  as outlined in the solicitation for the procurement.
         SECTION 7.  As soon as practicable after the effective date
  of this Act, the comptroller of public accounts shall adopt the
  rules and update the contract management handbook and contract
  management guide as necessary to implement the changes in law made
  by this Act.
         SECTION 8.  (a)  The changes in law made by this Act apply
  only to a contract for which a state agency first advertises or
  otherwise solicits offers, bids, proposals, qualifications, or
  other applicable expressions of interest on or after the effective
  date of this Act.  A contract for which a state agency first
  advertises or otherwise solicits offers, bids, proposals,
  qualifications, or other applicable expressions of interest before
  the effective date of this Act is governed by the law as it existed
  immediately before the effective date of this Act, and that law is
  continued in effect for that purpose.
         (b)  Notwithstanding Section 656.052, Government Code, as
  amended by this Act, or Section 2262.058, Government Code, as added
  by this Act, a state agency employee is not required to comply with
  the training requirements under those sections before March 1,
  2024.
         SECTION 9.  If before implementing any provision of this Act
  a state agency determines that a waiver or authorization from a
  federal agency is necessary for implementation of that provision,
  the agency affected by the provision shall request the waiver or
  authorization and may delay implementing that provision until the
  waiver or authorization is granted.
         SECTION 10.  This Act takes effect September 1, 2023.