Bill Text: TX SB68 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to contracting issues of state agencies, including ethics issues related to state contracting.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2011-04-26 - Left pending in committee [SB68 Detail]
Download: Texas-2011-SB68-Introduced.html
| 82R1294 MTB-F | ||
| By: Zaffirini | S.B. No. 68 | |
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| relating to contracting issues of state agencies, including ethics | ||
| issues related to state contracting. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 322.020, Government Code, is amended by | ||
| amending Subsections (b), (c), and (e) and adding Subsection (g) to | ||
| read as follows: | ||
| (b) Each state agency shall provide the Legislative Budget | ||
| Board: | ||
| (1) copies of the following documents: | ||
| (A) [ |
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| agency; and | ||
| (B) [ |
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| to bid, or comparable solicitation related to the major contract; | ||
| and | ||
| (2) information regarding each major contract entered | ||
| into by the agency, including: | ||
| (A) the name of the contractor; | ||
| (B) the contract value; | ||
| (C) the beginning date and end date of the | ||
| contract; | ||
| (D) a description of any amendments made to the | ||
| contract, including the costs of those amendments; | ||
| (E) cumulative payments and encumbrances under | ||
| the contract; | ||
| (F) any anticipated cost savings to the state | ||
| under the contract and a timeline for achieving those savings; | ||
| (G) key contract terms that are out of compliance | ||
| in terms of timeliness standards, deliverables, and failure to meet | ||
| performance measures; and | ||
| (H) any other information that the board, in | ||
| consultation with the Contract Advisory Team and the state office | ||
| of contract management, considers necessary. | ||
| (c) The Legislative Budget Board shall post on the Internet: | ||
| (1) each major contract of a state agency; [ |
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| (2) each request for proposal, invitation to bid, or | ||
| comparable solicitation related to the major contract; and | ||
| (3) information provided to the board under Subsection | ||
| (b)(2) regarding a major contract. | ||
| (e) The Legislative Budget Board shall make the information | ||
| searchable by contract value, state agency, [ |
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| including both the beginning date and the end date of the contract. | ||
| The Legislative Budget Board may make the information searchable by | ||
| other subjects as appropriate. | ||
| (g) The Legislative Budget Board, in consultation with the | ||
| Contract Advisory Team and the state office of contract management, | ||
| shall set appropriate criteria to determine when and what | ||
| information should be updated. | ||
| SECTION 2. Section 2113.102(a), Government Code, is amended | ||
| to read as follows: | ||
| (a) A state agency may not use appropriated money to | ||
| contract with a person to audit [ |
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| (1) as provided by[ |
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| (2) in accordance with Section 321.020 [ |
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| SECTION 3. Section 2162.103(a), Government Code, is amended | ||
| to read as follows: | ||
| (a) In comparing the cost of providing a service, the | ||
| council shall consider the: | ||
| (1) cost of supervising the work of a private | ||
| contractor; [ |
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| (2) cost of a state agency's performance of the | ||
| service, including: | ||
| (A) the costs of the comptroller, attorney | ||
| general, and other support agencies; and | ||
| (B) other indirect costs related to the agency's | ||
| performance of the service; | ||
| (3) installation costs and any other initial costs | ||
| associated with a contract with a private contractor; | ||
| (4) other costs associated with the transition to | ||
| using a private contractor's goods or services; and | ||
| (5) cost savings to the state if a private contractor | ||
| were awarded the contract. | ||
| SECTION 4. Section 2262.001, Government Code, is amended by | ||
| amending Subdivisions (3) and (4) and adding Subdivision (3-a) to | ||
| read as follows: | ||
| (3) "Contract manager" means a person who: | ||
| (A) is employed by a state agency; and | ||
| (B) has significant contract management duties | ||
| for the state agency[ |
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| (3-a) "Executive director" means the administrative | ||
| head of a state agency. | ||
| (4) "Major contract" means a contract, including a | ||
| renewal of a contract, that has a value of at least $1 million. | ||
| SECTION 5. Subchapter A, Chapter 2262, Government Code, is | ||
| amended by adding Section 2262.0015 to read as follows: | ||
| Sec. 2262.0015. APPLICABILITY TO CERTAIN CONTRACTS. (a) | ||
| The comptroller by rule shall establish threshold requirements that | ||
| exclude small or routine contracts, including purchase orders, from | ||
| the application of this chapter. | ||
| (b) This chapter does not apply to an enrollment contract | ||
| described by 1 T.A.C. Section 391.183 as that section existed on | ||
| November 1, 2007. | ||
| SECTION 6. The heading to Section 2262.053, Government | ||
| Code, is amended to read as follows: | ||
| Sec. 2262.053. TRAINING FOR CONTRACT MANAGERS. | ||
| SECTION 7. Section 2262.053, Government Code, is amended by | ||
| amending Subsections (a) and (d) and adding Subsections (e), (f), | ||
| and (g) to read as follows: | ||
| (a) In coordination with the [ |
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| Information Resources, [ |
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| Services Commission, the comptroller or a private vendor selected | ||
| by the comptroller [ |
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| training program for contract managers. | ||
| (d) The comptroller [ |
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| section. | ||
| (e) The comptroller shall certify contract managers who | ||
| have completed the contract management training required under this | ||
| section and keep a list of those contract managers. | ||
| (f) The program developed under this section must include a | ||
| separate class on ethics and contracting. | ||
| (g) A state agency or educational entity may develop | ||
| qualified contract manager training to supplement the training | ||
| required under this section. The comptroller may incorporate the | ||
| training developed by the agency or entity into the training | ||
| program under this section. | ||
| SECTION 8. Subchapter B, Chapter 2262, Government Code, is | ||
| amended by adding Section 2262.0535 and Sections 2262.055 through | ||
| 2262.066 to read as follows: | ||
| Sec. 2262.0535. TRAINING FOR GOVERNING BODIES. (a) The | ||
| comptroller or a private vendor selected by the comptroller shall | ||
| adapt the program developed under Section 2262.053 to develop an | ||
| abbreviated program for training the members of the governing | ||
| bodies of state agencies. The training may be provided together | ||
| with other required training for members of state agency governing | ||
| bodies. | ||
| (b) All members of the governing body of a state agency | ||
| shall complete at least one course of the training developed under | ||
| this section. This subsection does not apply to a state agency that | ||
| does not enter into any contracts. | ||
| Sec. 2262.055. FEES FOR TRAINING. The comptroller shall | ||
| set and collect a fee from state agencies that receive training | ||
| under this subchapter in an amount that recovers the comptroller's | ||
| costs for the training. | ||
| Sec. 2262.056. STATE AGENCY REPOSITORY. Each state agency | ||
| shall maintain in a central location all contracts for that agency. | ||
| Sec. 2262.057. REPORTING CONTRACTOR PERFORMANCE. (a) | ||
| After a contract is completed or otherwise terminated, each state | ||
| agency shall review the contractor's performance under the | ||
| contract. | ||
| (b) Using the forms developed by the team under Sections | ||
| 2262.104 and 2262.105, the state agency shall report to the | ||
| comptroller, governor, lieutenant governor, and speaker of the | ||
| house of representatives on the results of the review regarding the | ||
| contractor's performance under the contract. | ||
| Sec. 2262.058. CONTRACTOR PERFORMANCE DATABASE. (a) The | ||
| comptroller shall store in a database contractor performance | ||
| reviews as provided by this section. | ||
| (b) The comptroller shall evaluate the contractor's | ||
| performance based on the information reported under Section | ||
| 2262.057 and criteria established by the comptroller. | ||
| (c) The comptroller shall establish an evaluation process | ||
| that allows vendors who receive an unfavorable performance review | ||
| to protest any classification given by the comptroller. | ||
| (d) The comptroller shall develop a database that | ||
| incorporates the performance reviews and aggregates the reviews for | ||
| each contractor. | ||
| (e) A state agency may use the performance review database | ||
| to determine whether to award a contract to a contractor reviewed in | ||
| the database. | ||
| (f) The comptroller shall make the performance review | ||
| database accessible to the public on the comptroller's Internet | ||
| website. | ||
| Sec. 2262.059. EXCLUDING CONTRACTOR FROM SOLICITATION | ||
| PROCESS. Based on its own contractor performance reviews and on | ||
| information in the database developed under Section 2262.058, a | ||
| state agency may exclude a contractor from the solicitation process | ||
| for a contract if the agency determines the contractor has | ||
| performed poorly on a previous state contract without regard to | ||
| whether the contractor has been barred under Section 2155.077. | ||
| Sec. 2262.060. PERFORMANCE MEASURES; REPORTS. (a) Each | ||
| state agency shall develop a plan for incorporating performance | ||
| measures into all contracts entered into by the agency. This | ||
| includes ensuring that performance measures are written into each | ||
| contract prior to execution. | ||
| (b) Not later than March 1 of each year, each state agency | ||
| shall report to the team, governor, lieutenant governor, and | ||
| speaker of the house of representatives regarding performance | ||
| measures in the agency's contracts. The report must describe the | ||
| agency's efforts to include performance-based provisions in the | ||
| agency's contracts. | ||
| (c) The state agency shall make the report accessible to the | ||
| public on the agency's website. | ||
| Sec. 2262.061. CONTRACT MANAGERS. (a) Each state agency | ||
| that enters into contracts other than interagency contracts shall | ||
| establish a career ladder program for contract management in the | ||
| agency. | ||
| (b) An employee hired as a contract manager may engage in | ||
| procurement planning, contract solicitation, contract formation, | ||
| price establishment, and other contract activities. | ||
| (c) Each state agency shall determine, in consultation with | ||
| the state auditor, the amount and significance of contract | ||
| management duties sufficient for an employee to be considered a | ||
| contract manager under this chapter. | ||
| Sec. 2262.062. APPROVAL OF CONTRACTS. (a) Each state | ||
| agency shall establish formal guidelines regarding who may approve | ||
| a contract for the agency. | ||
| (b) Each state agency shall adopt administrative rules to | ||
| establish a monetary threshold above which agency contracts and | ||
| amendments to or extensions of agency contracts require written | ||
| authorization by the agency executive director. | ||
| (c) For state agency contracts valued in excess of $1 | ||
| million the agency executive director must authorize a contract | ||
| amendment in writing. | ||
| (d) Each state agency shall annually report to the | ||
| comptroller a list of each person authorized to approve contracts | ||
| at the agency. The list must include the person's name, position, | ||
| and supervisory responsibility, if any. | ||
| Sec. 2262.063. NEGOTIATION OF CONTRACT BY SINGLE EMPLOYEE | ||
| PROHIBITED. A state agency may not negotiate a contract with only | ||
| one employee engaging in the negotiation. | ||
| Sec. 2262.064. DEVELOPMENT OF OPTIMIZED MODEL FOR CERTAIN | ||
| CONTRACTS. (a) If a state agency determines that a proposed | ||
| contract or proposed contract extension or amendment would | ||
| outsource existing services or functions performed by the agency | ||
| that have a value of $10 million or more, or that would lead to the | ||
| loss of 100 or more existing state employee positions, the agency | ||
| shall create an optimized model for the identified functions or | ||
| services to determine how and at what cost the agency could most | ||
| efficiently provide the functions or services. | ||
| (b) The model must show consideration of all relevant | ||
| factors, including: | ||
| (1) best practices in this state and other states; | ||
| (2) available technology; | ||
| (3) access to benefits and services for clients; | ||
| (4) program integrity; and | ||
| (5) assessment of state agency skills available | ||
| throughout the life of the project. | ||
| (c) An agency that develops an optimized model under this | ||
| section shall use it as the basis for cost comparison under Section | ||
| 2262.066 when deciding whether to outsource the identified | ||
| functions or services. | ||
| (d) A model developed under this section is confidential and | ||
| is not subject to disclosure under Chapter 552 until a final | ||
| determination has been made to award the contract for which the | ||
| model was developed. | ||
| Sec. 2262.065. ANALYSIS OF SERVICES AND FUNCTIONS. (a) In | ||
| this section, "inherently governmental in nature" means a function | ||
| or service that involves the exercise or use of governmental | ||
| authority or discretion. | ||
| (b) If a state agency determines that a proposed contract or | ||
| proposed contract extension or amendment would outsource existing | ||
| services or functions performed by the agency that have a value of | ||
| $10 million or more, or would lead to the loss of 100 or more | ||
| existing state employee positions, then before the agency may issue | ||
| a competitive solicitation for the contract or amend or extend the | ||
| contract the agency shall contract with the State Council on | ||
| Competitive Government for its staff to perform an analysis to | ||
| determine if any of the services or functions to be performed under | ||
| the contract or contract extension or amendment are inherently | ||
| governmental in nature. | ||
| (c) Except as provided by Subsection (e), if the State | ||
| Council on Competitive Government determines that a service or | ||
| function to be performed under the contract or contract extension | ||
| or amendment is inherently governmental in nature, the state agency | ||
| may not: | ||
| (1) contract with a private entity to perform the | ||
| service or function; or | ||
| (2) amend or extend the contract, if a private entity | ||
| is to perform the service or function under the contract extension | ||
| or amendment. | ||
| (d) The analysis required under this section must use the | ||
| standards and policies contained in the Office of Federal | ||
| Procurement Policy, Policy Letter 92-1, or comparable guidelines | ||
| developed by the State Council on Competitive Government. | ||
| (e) A state agency may contract with a private entity to | ||
| perform a service or function or amend or extend an existing | ||
| contract to allow a private entity to perform a service or function | ||
| that the State Council on Competitive Government determines to be | ||
| inherently governmental in nature if the chief administrative | ||
| officer of the agency issues a report stating that there is a | ||
| compelling state interest in outsourcing the service or function. | ||
| Sec. 2262.066. FULL AND FAIR COST COMPARISON. (a) If a | ||
| state agency determines that a proposed contract or proposed | ||
| contract extension or amendment would outsource existing services | ||
| or functions performed by the agency that have a value of $10 | ||
| million or more, or that would lead to the loss of 100 or more | ||
| existing state employee positions, the agency shall: | ||
| (1) conduct a full and fair cost comparison to | ||
| determine whether a private entity could perform the service or | ||
| function with a comparable or better level of quality at a cost | ||
| savings to the state; and | ||
| (2) prepare a business case providing the initial | ||
| justification for the proposed contract or proposed contract | ||
| extension or amendment that includes: | ||
| (A) the results of the comparison required under | ||
| Subdivision (1); and | ||
| (B) the anticipated return on investment in terms | ||
| of cost savings and efficiency for the proposed contract or | ||
| proposed contract extension or amendment. | ||
| (b) To perform the comparison required by Subsection | ||
| (a)(1), a state agency may: | ||
| (1) contract with the State Council on Competitive | ||
| Government to have its staff perform the comparison; or | ||
| (2) use the methodology provided in Section 2162.103. | ||
| (c) Before executing a final contract, a state agency shall | ||
| submit the business case required under Subsection (a)(2) to the | ||
| governor, lieutenant governor, speaker of the house of | ||
| representatives, Legislative Budget Board, state office of | ||
| contract management, and standing committees of the legislature | ||
| that have primary jurisdiction over the agency, over state | ||
| appropriations, and over state purchasing. | ||
| SECTION 9. Section 2262.101, Government Code, is amended to | ||
| read as follows: | ||
| Sec. 2262.101. CREATION; DUTIES. (a) The Contract | ||
| Advisory Team is created to assist state agencies in improving | ||
| contract management practices by: | ||
| (1) [ |
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| by the state auditor, including those made under Section | ||
| 2262.052(b), regarding a state agency's compliance with the | ||
| contract management guide; [ |
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| (2) [ |
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| comptroller [ |
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| (A) the development of the contract management | ||
| guide; and | ||
| (B) the training under Section 2262.053; and | ||
| (3) certifying that state agencies have complied with | ||
| Sections 2262.064 and 2262.066. | ||
| (b) The team shall consult with state agencies in developing | ||
| forms, contract terms, guidelines, and criteria required under this | ||
| chapter. | ||
| SECTION 10. Section 2262.102(a), Government Code, is | ||
| amended to read as follows: | ||
| (a) The team consists of the following five members: | ||
| (1) one member from the attorney general's office; | ||
| (2) one member from the comptroller's office; | ||
| (3) one member from the Department of Information | ||
| Resources; | ||
| (4) [ |
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| (5) one member from the State Council on Competitive | ||
| Government. | ||
| SECTION 11. Subchapter C, Chapter 2262, Government Code, is | ||
| amended by adding Sections 2262.104 and 2262.105 to read as | ||
| follows: | ||
| Sec. 2262.104. UNIFORM DEFINITIONS AND FORMS. (a) The team | ||
| shall develop and publish a uniform set of definitions for use as | ||
| applicable in state contracts. | ||
| (b) The team shall develop and publish a uniform and | ||
| automated set of forms that a state agency may use in the different | ||
| stages of the contracting process. | ||
| Sec. 2262.105. FORMS FOR REPORTING CONTRACTOR PERFORMANCE. | ||
| As part of the uniform forms published under Section 2262.104, the | ||
| team shall develop forms for use by state agencies in reporting a | ||
| contractor's performance under Section 2262.057. | ||
| SECTION 12. Chapter 2262, Government Code, is amended by | ||
| adding Subchapters D, E, F, and G to read as follows: | ||
| SUBCHAPTER D. CONTRACT PROVISIONS | ||
| Sec. 2262.151. USE OF UNIFORM FORMS. A state agency may use | ||
| the forms developed under Section 2262.104 as templates, guides, or | ||
| samples for contracts entered into by the agency. | ||
| Sec. 2262.152. CONTRACT TERMS RELATING TO NONCOMPLIANCE. | ||
| (a) The team shall develop recommendations for contract terms | ||
| regarding penalties for contractors who do not comply with a | ||
| contract, including penalties for contractors who do not disclose | ||
| conflicts of interest under Section 2262.201. The team may develop | ||
| recommended contract terms that are generally applicable to state | ||
| contracts and terms that are applicable to important types of state | ||
| contracts. | ||
| (b) A state agency may include applicable recommended terms | ||
| in a contract entered into by the agency. | ||
| Sec. 2262.153. REQUIRED PROVISION RELATING TO | ||
| SUBCONTRACTOR COMPLIANCE. Each state agency contract must require | ||
| that each contractor provide a list of all subcontractors for the | ||
| contract and include a provision that: | ||
| (1) holds the contractor responsible for the conduct | ||
| of all subcontractors in complying with the contractor's contract | ||
| with the state agency; and | ||
| (2) requires each subcontractor to disclose all | ||
| potential conflicts of interest to the state agency, according to | ||
| guidelines developed under Section 2262.201(b), when the | ||
| subcontractor contracts with or is otherwise hired by the | ||
| contractor. | ||
| Sec. 2262.154. REQUIRED CONTRACTOR DISCLOSURE STATEMENT; | ||
| STATE AGENCY EMPLOYEES. Before entering into a contract with the | ||
| state, a contractor and subcontractor shall disclose each employee: | ||
| (1) who was employed by: | ||
| (A) the state at any time during the two years | ||
| before the date of the disclosure and is now employed by the | ||
| contractor or subcontractor; or | ||
| (B) the contractor or subcontractor at any time | ||
| during the year before the date of the disclosure and is now | ||
| employed by the state; and | ||
| (2) who is materially involved in the development of | ||
| the contract terms or the management of the contract. | ||
| Sec. 2262.155. REQUIRED CONTRACTOR DISCLOSURE STATEMENT; | ||
| OUTSOURCING. (a) Each contract entered into by a state agency must | ||
| include a provision requiring disclosure of any services materially | ||
| necessary to fulfill the contract, including services performed by | ||
| a subcontractor, that will be or are performed in a country other | ||
| than the United States. This section does not apply to services | ||
| that are occasional, minor, or incidental to fulfilling the | ||
| contract. | ||
| (b) The contract must include a provision allowing the state | ||
| agency to terminate the contract and solicit a new contract, except | ||
| as provided by Subsection (d), if: | ||
| (1) the contractor or a subcontractor of the | ||
| contractor performs a service materially necessary to fulfill the | ||
| contract in a country other than the United States; and | ||
| (2) the contractor does not disclose in the contract | ||
| that the service will be performed in a country other than the | ||
| United States. | ||
| (c) A state agency that decides not to solicit a new | ||
| contract under circumstances in which the agency is authorized to | ||
| do so under a contract provision required by Subsection (b) shall | ||
| report this decision to: | ||
| (1) the governor; | ||
| (2) the lieutenant governor; | ||
| (3) the speaker of the house of representatives; and | ||
| (4) the team. | ||
| (d) A contractor may replace a subcontractor without | ||
| termination of a contract under this section if the contractor | ||
| determines that the subcontractor is performing a service | ||
| materially necessary to fulfill the contract in a country other | ||
| than the United States and did not disclose that fact to the | ||
| contractor. | ||
| Sec. 2262.156. HIRING PREFERENCE PROVISION FOR CERTAIN | ||
| LARGE CONTRACTS. If a state agency determines that a proposed | ||
| contract or proposed contract extension or amendment would | ||
| outsource existing services or functions performed by the agency | ||
| that have a value of $10 million or more, or that would lead to the | ||
| loss of 100 or more existing state employee positions, the contract | ||
| or contract amendment must contain a provision that requires the | ||
| contractor to give preference in hiring to former employees of a | ||
| state agency: | ||
| (1) whose employment is terminated because of the | ||
| contract or contract extension or amendment; | ||
| (2) who satisfy the contactor's hiring criteria for | ||
| that position; and | ||
| (3) whose salary requirements are competitive with | ||
| market rates for positions with equivalent skills and experience. | ||
| SUBCHAPTER E. ETHICS; CONFLICT OF INTEREST | ||
| Sec. 2262.201. CONTRACTOR CONFLICTS OF INTEREST. (a) Each | ||
| contractor who responds to a state agency's contract solicitation | ||
| shall disclose in its response all potential conflicts of interest | ||
| to the agency. | ||
| (b) The team shall develop guidelines to aid contractors and | ||
| state agencies in identifying potential conflicts of interest. | ||
| Sec. 2262.202. EXECUTIVE DIRECTORS; ETHICS AND CONTRACTING | ||
| CLASS. Each executive director of a state agency shall annually | ||
| complete the ethics and contracting class developed under Section | ||
| 2262.053(f). This section does not apply to a state agency that | ||
| does not enter into any contracts. | ||
| SUBCHAPTER F. CHANGES TO CONTRACTS | ||
| Sec. 2262.251. CONTRACT AMENDMENTS, EXTENSIONS, AND CHANGE | ||
| ORDERS. (a) An extension of or amendment to a contract, including | ||
| a change order, is subject to the same approval processes as the | ||
| original contract. | ||
| (b) A state agency may not extend or amend a contract | ||
| unless: | ||
| (1) the agency complies with the same approval | ||
| processes for the extension or amendment as required for the | ||
| original contract; and | ||
| (2) a contract manager for the agency states in | ||
| writing why the extension or amendment is necessary. | ||
| (c) This section does not affect whether a state agency is | ||
| required to undertake a new solicitation process in the manner | ||
| required for a new contract in order to extend or amend a contract. | ||
| Sec. 2262.252. LARGE CHANGE IN CONTRACT VALUE. (a) If a | ||
| proposed contract amendment or extension changes the monetary value | ||
| of a contract by $1 million or more, the state agency must obtain | ||
| review and approval from the team and the agency's executive | ||
| director before the agency amends or extends the contract. | ||
| (b) This section does not apply to a proposed contract | ||
| amendment required by a state or federal statute. | ||
| Sec. 2262.253. CERTAIN CONTRACT EXTENSIONS. This | ||
| subchapter does not apply to contract extensions that are | ||
| specifically established as a component of the original | ||
| procurement. | ||
| SUBCHAPTER G. STATE OFFICE OF CONTRACT MANAGEMENT | ||
| Sec. 2262.301. DEFINITIONS. In this subchapter: | ||
| (1) "High-risk contract" means a state agency contract | ||
| that: | ||
| (A) has a value of at least $10 million; | ||
| (B) has a value of less than $10 million, but has | ||
| high-risk factors as identified by the office; or | ||
| (C) would outsource existing services or | ||
| functions performed by the agency that have a value of at least $10 | ||
| million or would lead to a loss of at least 100 existing state | ||
| employee positions. | ||
| (2) "Major information resources project" has the | ||
| meaning assigned by Section 2054.003. | ||
| (3) "Office" means the state office of contract | ||
| management. | ||
| (4) "Quality assurance team" means the quality | ||
| assurance team established under Section 2054.158. | ||
| (5) "Solicitation" means a solicitation for bids, | ||
| offers, qualifications, proposals, or similar expressions of | ||
| interest for a high-risk contract. | ||
| Sec. 2262.302. ESTABLISHMENT; GENERAL DUTIES. The | ||
| comptroller shall establish a state office of contract management | ||
| to: | ||
| (1) develop criteria for identifying high-risk | ||
| factors in contracts; | ||
| (2) review and approve an action related to a | ||
| high-risk contract as provided by Section 2262.303; | ||
| (3) provide recommendations and assistance to state | ||
| agency personnel throughout the contract management process; and | ||
| (4) coordinate and consult with the quality assurance | ||
| team on all high-risk contracts relating to a major information | ||
| resources project. | ||
| Sec. 2262.303. REVIEW AND APPROVAL; WAIVER. (a) Each state | ||
| agency must receive approval from the office before taking the | ||
| following actions in relation to a high-risk contract: | ||
| (1) publicly releasing solicitation documents; | ||
| (2) executing a final contract; and | ||
| (3) making a payment or a series of payments that equal | ||
| half of the contract value. | ||
| (b) In determining whether to approve an action described by | ||
| Subsection (a), the office shall review related documentation, | ||
| including, for a contract that would outsource existing services or | ||
| functions performed by the agency that have a value of at least $10 | ||
| million or would lead to the loss of at least 100 existing state | ||
| employee positions, the optimized model developed under Section | ||
| 2262.064 and the cost comparison conducted under Section 2262.066, | ||
| to ensure that potential risks related to the high-risk contract | ||
| have been identified and mitigated. | ||
| (c) The comptroller by rule may adopt criteria for waiving | ||
| the review and approval requirements under Subsections (a) and (b). | ||
| Sec. 2262.304. SOLICITATION AND CONTRACT CANCELLATION. | ||
| After review of and comment on the matter by the Legislative Budget | ||
| Board and the governor, the office may recommend the cancellation | ||
| of a solicitation or a contract during the review process under | ||
| Section 2262.303 if: | ||
| (1) a proposed solicitation is not in the best | ||
| interest of the state; | ||
| (2) a proposed contract would place the state at an | ||
| unacceptable risk if executed; or | ||
| (3) an executed contract is experiencing performance | ||
| failure or payment irregularities. | ||
| SECTION 13. Section 2262.003, Government Code, is | ||
| transferred to Subchapter D, Chapter 2262, Government Code, as | ||
| added by this Act, is redesignated as Section 2262.157, Government | ||
| Code, and is amended to read as follows: | ||
| Sec. 2262.157 [ |
||
| RELATING TO AUDITING. (a) Each state agency shall include in each | ||
| of its contracts a term that provides that: | ||
| (1) the state auditor may conduct an audit or | ||
| investigation of any entity receiving funds from the state directly | ||
| under the contract or indirectly through a subcontract under the | ||
| contract; | ||
| (2) acceptance of funds directly under the contract or | ||
| indirectly through a subcontract under the contract acts as | ||
| acceptance of the authority of the state auditor, under the | ||
| direction of the legislative audit committee, to conduct an audit | ||
| or investigation in connection with those funds; and | ||
| (3) under the direction of the legislative audit | ||
| committee, an entity that is the subject of an audit or | ||
| investigation by the state auditor must provide the state auditor | ||
| with access to any information the state auditor considers relevant | ||
| to the investigation or audit. | ||
| (b) The state auditor shall provide assistance to a state | ||
| agency in developing the contract provisions. | ||
| SECTION 14. Section 2262.051(f), Government Code, is | ||
| repealed. | ||
| SECTION 15. (a) Sections 2262.063 through 2262.066 and | ||
| 2262.154, Government Code, and Subchapter G, Chapter 2262, | ||
| Government Code, as added by this Act, apply only 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. | ||
| (b) Section 2262.201(a), Government Code, as added by this | ||
| Act, applies only in relation to a contract for which a state agency | ||
| first solicits bids, proposals, offers, or qualifications on or | ||
| after the date that the Contract Advisory Team's guidelines | ||
| regarding potential conflicts of interest take effect. | ||
| SECTION 16. Not later than May 1, 2012, the comptroller of | ||
| public accounts shall develop the training program, including the | ||
| ethics and contracting class, required by Section 2262.053, | ||
| Government Code, as amended by this Act, and Section 2262.0535, | ||
| Government Code, as added by this Act. | ||
| SECTION 17. A member of a governing body of a state agency | ||
| is not required to complete the training developed under Section | ||
| 2262.0535, Government Code, as added by this Act, until September | ||
| 1, 2013. | ||
| SECTION 18. An executive director of a state agency is not | ||
| required to comply with Section 2262.202, Government Code, as added | ||
| by this Act, until September 1, 2013. | ||
| SECTION 19. A contract manager is not required to be | ||
| certified under Chapter 2262, Government Code, as amended by this | ||
| Act, until September 1, 2013. | ||
| SECTION 20. (a) As soon as practicable, and not later than | ||
| May 1, 2012, the Contract Advisory Team shall develop the forms, | ||
| criteria, recommendations, and provisions required by this Act, | ||
| including Sections 2262.104, 2262.105, 2262.152, and 2262.201(b), | ||
| Government Code, as added by this Act. | ||
| (b) A state agency is not required to comply with Sections | ||
| 2262.056 through 2262.062 and Sections 2262.153, 2262.155, and | ||
| 2262.156, Government Code, as added by this Act, until September 1, | ||
| 2013. A state agency may comply earlier if the forms, electronic | ||
| requirements, database, or other items are available before that | ||
| date. | ||
| SECTION 21. This Act takes effect November 1, 2011. | ||
