CHAPTER 2262. STATEWIDE CONTRACT MANAGEMENT

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GOVERNMENT CODE

TITLE 10. GENERAL GOVERNMENT

SUBTITLE F. STATE AND LOCAL CONTRACTS AND FUND MANAGEMENT

CHAPTER 2262. STATEWIDE CONTRACT MANAGEMENT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 2262.001. DEFINITIONS. In this chapter:

(1) "Team" means the Contract Advisory Team created under

Subchapter C.

(1-a) "Commission" means the Texas Building and Procurement

Commission.

(2) "Contract management guide" means the guide developed under

Section 2262.051.

(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, as determined by the agency in consultation with the

state auditor.

(4) "Major contract" means a contract that has a value of at

least $1 million.

(5) "State agency" has the meaning provided by Section 2056.001.

Added by Acts 2001, 77th Leg., ch. 1422, Sec. 5.01, eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 309, Sec. 7.19, eff.

June 18, 2003.

For expiration of this section, see Section 2151.0041.

Sec. 2262.0011. TRANSFER OF DUTIES; REFERENCE. (a) The powers

and duties of the commission under this chapter are transferred

to the comptroller.

(b) In this chapter, a reference to the commission means the

comptroller.

Added by Acts 2007, 80th Leg., R.S., Ch.

937, Sec. 1.77, eff. September 1, 2007.

Sec. 2262.002. EXEMPTIONS. (a) This chapter does not apply to

an institution of higher education as defined by Section 61.003,

Education Code.

(b) This chapter does not apply to contracts of the Texas

Department of Transportation that:

(1) relate to highway construction or highway engineering; or

(2) are subject to Section 201.112, Transportation Code.

Added by Acts 2001, 77th Leg., ch. 1422, Sec. 5.01, eff. Sept. 1,

2001.

Amended by:

Acts 2005, 79th Leg., Ch.

281, Sec. 2.93, eff. June 14, 2005.

Sec. 2262.003. REQUIRED CONTRACT PROVISION 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.

Added by Acts 2003, 78th Leg., ch. 785, Sec. 44, eff. Sept. 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1012, Sec. 2, eff. June 18, 2005.

Sec. 2262.004. REQUIRED NEPOTISM DISCLOSURE. (a) In this

section:

(1) "Major stockholder" means a person who directly or

indirectly owns or controls more than a 10 percent interest or a

pecuniary interest with a value exceeding $25,000 in a business

entity.

(2) "Purchasing personnel" means an employee of a state agency

who makes decisions on behalf of the state agency or

recommendations regarding:

(A) contract terms or conditions on a major contract;

(B) who is to be awarded a major contract;

(D) evaluation of a bid or proposal.

(b) Before a state agency may award a major contract for the

purchase of goods or services to a business entity, each of the

state agency's purchasing personnel working on the contract must

disclose in writing to the administrative head of the state

agency any relationship the purchasing personnel is aware about

that the employee has with an employee, a partner, a major

stockholder, a paid consultant with a contract with the business

entity the value of which exceeds $25,000, or other owner of the

business entity that is within a degree described by Section

573.002.

a relationship under Subsection (b).

(d) Notwithstanding Section 2262.001 or 2262.002, this section

applies to:

(1) an institution of higher education as defined by Section

61.003, Education Code; and

(2) contracts of the Texas Department of Transportation that

relate to highway construction or highway engineering.

Added by Acts 2005, 79th Leg., Ch.

649, Sec. 1, eff. September 1, 2005.

SUBCHAPTER B. CONTRACT MANAGEMENT

Sec. 2262.051. CONTRACT MANAGEMENT GUIDE; RULES. (a) In

consultation with the attorney general, the Department of

Information Resources, the comptroller, and the state auditor,

the commission 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).

(b) The commission may adopt rules necessary to develop or

update the guide.

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.

(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 and provide sufficient flexibility to

accommodate those needs, consistent with protecting the interests

of this state; and

(3) include maximum contract periods under which a new

competitive solicitation is not necessary.

(e) The guide must recommend time frames under which a state

agency may issue a competitive solicitation for a major contract

in relation to the date on which the contract is to be executed.

(f) The guide must establish procedures by which a state agency

is required to consult with the team before issuing a

solicitation for a major contract. The procedures must establish

a process under which the team is required to review and comment

on whether to proceed with the solicitation. As detailed in the

procedures, the team may recommend that the agency use the

services of the attorney general or private counsel or of private

consultants who are experts in any technical matter that is the

subject of the major contract.

(g) The guide must establish procedures under which a state

agency is required to solicit explanations from qualified

potential respondents who did not respond to a competitive

solicitation for a contract on which fewer than two qualified

bids were received by the agency.

(h) The guide must establish procedures for major contracts that

outsource a state function or process to a contractor, including

when applicable the use of documents required under Subchapter J,

Chapter 2054.

Added by Acts 2001, 77th Leg., ch. 1422, Sec. 5.01, eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 309, Sec. 7.20, eff.

June 18, 2003; Acts 2003, 78th Leg., ch. 785, Sec. 45, eff. Sept.

1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 7.006, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1081, Sec. 13, eff. September 1, 2007.

Sec. 2262.052. COMPLIANCE WITH GUIDE. (a) Each state agency

shall comply with the contract management guide.

Text of subsec. (b) as amended by Acts 2003, 78th Leg., ch. 309,

Sec. 7.21

(b) The state auditor shall:

(1) periodically monitor compliance with this section;

(2) report any noncompliance to:

(A) the governor;

(B) the lieutenant governor;

(D) the team; and

(3) assist, in coordination with the commission and the

comptroller, a noncomplying state agency to comply with this

section.

Text of subsec. (b) as amended by Acts 2003, 78th Leg., ch. 785,

Sec. 46

(b) Subject to the legislative audit committee's approval of

including the work described by this subsection in the audit plan

under Section 321.013(c), the state auditor may:

(1) periodically monitor compliance with this section;

(2) report any noncompliance to:

(A) the governor;

(B) the lieutenant governor;

(D) the team; and

(3) assist, in coordination with the attorney general and the

comptroller, a noncomplying state agency to comply with this

section.

Added by Acts 2001, 77th Leg., ch. 1422, Sec. 5.01, eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 309, Sec. 7.21, eff.

June 18, 2003; Acts 2003, 78th Leg., ch. 785, Sec. 46, eff. Sept.

1, 2003.

Sec. 2262.053. TRAINING. (a) In coordination with the

comptroller, Department of Information Resources, and state

auditor, the commission shall develop or administer a training

program for contract managers.

(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; and

(7) use and apply advanced sourcing strategies, techniques, and

tools.

managers complete the training developed under this section.

(d) The Texas Building and Procurement Commission shall

administer the training program under this section.

Added by Acts 2001, 77th Leg., ch. 1422, Sec. 5.01, eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 309, Sec. 7.22, eff.

June 18, 2003; Acts 2003, 78th Leg., ch. 785, Sec. 47, eff. Sept.

1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1081, Sec. 14, eff. September 1, 2007.

Sec. 2262.054. PUBLIC COMMENT. The commission by rule may

establish procedures by which each state agency is required to

invite public comment by publishing the proposed technical

specifications for major contracts on the Internet through the

information service known as the Texas Marketplace or through a

suitable successor information service. The guide must define

"technical specifications."

Added by Acts 2001, 77th Leg., ch. 1422, Sec. 5.01, eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 309, Sec. 7.23, eff.

June 18, 2003.

SUBCHAPTER C. CONTRACT ADVISORY TEAM

Sec. 2262.101. CREATION; DUTIES. The Contract Advisory Team is

created to assist state agencies in improving contract management

practices by:

(1) reviewing the solicitation of major contracts by state

agencies;

(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; and

(3) providing recommendations to the commission regarding:

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

(B) the training under Section 2262.053.

Added by Acts 2001, 77th Leg., ch. 1422, Sec. 5.01, eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 309, Sec. 7.24, eff.

June 18, 2003.

Sec. 2262.102. MEMBERS. (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) one member from the Texas Building and Procurement

Commission; and

(5) one member from the governor's office.

(b) The Legislative Budget Board and the state auditor shall

provide technical assistance to the team.

Added by Acts 2001, 77th Leg., ch. 1422, Sec. 5.01, eff. Sept. 1,

2001.

Sec. 2262.103. PERSONNEL. Each agency or officer with

representation on the team shall provide, at the request of the

team, staff to assist the team in carrying out its duties under

this chapter.

Added by Acts 2001, 77th Leg., ch. 1422, Sec. 5.01, eff. Sept. 1,

2001.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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