2005 Texas Government Code CHAPTER 2261. STATE CONTRACTING STANDARDS AND OVERSIGHT

GOVERNMENT CODE

CHAPTER 2261. STATE CONTRACTING STANDARDS AND OVERSIGHT

SUBCHAPTER A. GENERAL PROVISIONS


	§ 2261.001. APPLICABILITY.  (a) This chapter applies only 
to each procurement of goods or services made by a state agency that 
is neither made by the General Services Commission nor made under 
purchasing authority delegated to the agency by or under Section 
51.9335 or 73.115, Education Code, or Section 2155.131, 2155.132, 
or 2155.133.
	(b)  This chapter applies to contracts and to contract 
management activities that are related to the procurements to which 
it applies.
	(c)  The General Services Commission on request shall 
determine whether a procurement or type of procurement:
		(1)  is made under purchasing authority delegated to an 
agency by or under Section 2155.131, 2155.132, or 2155.133;  or
		(2)  is made under some other source of purchasing 
authority.               
	(d)  This chapter does not apply to a procurement made by the 
Texas Department of Transportation or a procurement paid for by 
local or institutional funds of an institution of higher education.
	(e)  Repealed by Acts 2003, 78th Leg., ch. 309, § 7.25.                     

Added by Acts 1999, 76th Leg., ch. 1498, § 5, eff. Sept. 1, 1999.  
Renumbered from V.T.C.A., Government Code § 2259.001 by Acts 
2001, 77th Leg., ch. 1420, § 21.001(71), eff. Sept. 1, 2001.  
Amended by Acts 2003, 78th Leg., ch. 309, § 7.25, eff. June 18, 
2003.


	§ 2261.002. DEFINITIONS.  In this chapter:                                  
		(1)  "Contract" includes a grant, other than a grant 
made to a school district or a grant made for other academic 
purposes, under which the recipient of the grant is required to 
perform a specific act or service, supply a specific type of 
product, or both.
		(2)  "State agency" has the meaning assigned by Section 
2151.002.           

Added by Acts 1999, 76th Leg., ch. 1498, § 5, eff. Sept. 1, 1999.  
Renumbered from V.T.C.A., Government Code § 2259.002 by Acts 
2001, 77th Leg., ch. 1420, § 21.001(71), eff. Sept. 1, 2001.


	§ 2261.003. OPEN MARKET PURCHASES.  This chapter does not 
require a state agency to purchase a good or service under contract 
if the agency is authorized under other law to purchase the good or 
service on the open market.

Added by Acts 1999, 76th Leg., ch. 1498, § 5, eff. Sept. 1, 1999.  
Renumbered from V.T.C.A., Government Code § 2259.003 by Acts 
2001, 77th Leg., ch. 1420, § 21.001(71), eff. Sept. 1, 2001.

SUBCHAPTER B. CONTRACTOR SELECTION


	§ 2261.051. COMPETITIVE CONTRACTOR SELECTION 
PROCEDURES.  Each state agency shall assess its contractor 
selection procedures and use competitive selection procedures to 
the greatest extent possible when selecting contractors.

Added by Acts 1999, 76th Leg., ch. 1498, § 5, eff. Sept. 1, 1999.  
Renumbered from V.T.C.A., Government Code § 2259.051 by Acts 
2001, 77th Leg., ch. 1420, § 21.001(71), eff. Sept. 1, 2001.


	§ 2261.052. DETERMINING LOWEST AND BEST BID OR 
PROPOSAL.  (a) In determining the lowest and best bid or proposal, 
a state agency shall consider:
		(1)  the vendor's price to provide the good or service;                       
		(2)  the probable quality of the offered good or 
service;  and              
		(3)  the quality of the vendor's past performance in 
contracting with the agency, with other state entities, or with 
private sector entities.
	(b)  This section does not apply to a procurement covered by 
Section 2155.144.

Added by Acts 1999, 76th Leg., ch. 1498, § 5, eff. Sept. 1, 1999.  
Renumbered from V.T.C.A., Government Code § 2259.052 by Acts 
2001, 77th Leg., ch. 1420, § 21.001(71), eff. Sept. 1, 2001.

SUBCHAPTER C. CONTRACT PROVISIONS


	§ 2261.101. REMEDIES AND SANCTIONS SCHEDULES.  (a) Each 
state agency shall create and incorporate in each of its contracts 
for goods or services that are subject to this chapter a remedies 
schedule, a graduated sanctions schedule, or both, for breach of 
the contract or substandard performance under the contract.
	(b)  State agencies shall design fair and feasible standards 
that will hold contractors accountable for breach of contract or 
substandard performance under a contract without diminishing the 
number of able providers who are willing to contract with the state.

Added by Acts 1999, 76th Leg., ch. 1498, § 5, eff. Sept. 1, 1999.  
Renumbered from V.T.C.A., Government Code § 2259.101 by Acts 
2001, 77th Leg., ch. 1420, § 21.001(71), eff. Sept. 1, 2001.


	§ 2261.102. LIABILITY INSURANCE COVERAGE REQUIRED.  Each 
state agency shall, when feasible, include provisions in each of 
its contracts for goods or services that are subject to this chapter 
that require the contractor to carry director or officer liability 
insurance coverage in an amount not less than the value of the 
contract that is sufficient to protect the interests of the state in 
the event an actionable act or omission by a director or officer of 
the contractor damages the state's interests.

Added by Acts 1999, 76th Leg., ch. 1498, § 5, eff. Sept. 1, 1999.  
Renumbered from V.T.C.A., Government Code § 2259.102 by Acts 
2001, 77th Leg., ch. 1420, § 21.001(71), eff. Sept. 1, 2001.

SUBCHAPTER D. PAYMENT AND REIMBURSEMENT METHODS


	§ 2261.151. REEVALUATION OF PAYMENT AND REIMBURSEMENT 
RATES.  (a) To ensure that its payment and reimbursement methods 
and rates are appropriate, each state agency that makes 
procurements to which this chapter applies shall reevaluate at 
least biennially its payment and reimbursement methods and rates, 
especially methods and rates based on historical funding levels or 
on a formula established by agency rule rather than being based on 
reasonable and necessary actual costs incurred.
	(b)  A state agency shall submit formal rate reevaluation 
information to the Legislative Budget Board and the comptroller on 
request.

Added by Acts 1999, 76th Leg., ch. 1498, § 5, eff. Sept. 1, 1999.  
Renumbered from V.T.C.A., Government Code § 2259.151 by Acts 
2001, 77th Leg., ch. 1420, § 21.001(71), eff. Sept. 1, 2001.

SUBCHAPTER E. CONTRACTOR OVERSIGHT


	§ 2261.201. DOUBLE-BILLING.  Each state agency that makes 
procurements to which this chapter applies shall design and 
implement procedures to detect and report double-billing by 
contractors.

Added by Acts 1999, 76th Leg., ch. 1498, § 5, eff. Sept. 1, 1999.  
Renumbered from V.T.C.A., Government Code § 2259.201 by Acts 
2001, 77th Leg., ch. 1420, § 21.001(71), eff. Sept. 1, 2001.


	§ 2261.202. CONTRACT MONITORING RESPONSIBILITIES.  As 
one of its contract management policies, each state agency that 
makes procurements to which this chapter applies shall establish 
and adopt by rule a policy that clearly defines the contract 
monitoring roles and responsibilities, if any, of internal audit 
staff and other inspection, investigative, or audit staff.

Added by Acts 1999, 76th Leg., ch. 1498, § 5, eff. Sept. 1, 1999.  
Renumbered from V.T.C.A., Government Code § 2259.202 by Acts 
2001, 77th Leg., ch. 1420, § 21.001(71), eff. Sept. 1, 2001.


	§ 2261.203. COMPARABLE COSTS.  Each state agency that 
makes procurements to which this chapter applies shall monitor 
performance under a contract to verify that comparable costs are 
being charged for comparable goods and services.

Added by Acts 1999, 76th Leg., ch. 1498, § 5, eff. Sept. 1, 1999.  
Renumbered from V.T.C.A., Government Code § 2259.203 by Acts 
2001, 77th Leg., ch. 1420, § 21.001(71), eff. Sept. 1, 2001.  
Amended by Acts 2003, 78th Leg., ch. 785, § 43, eff. Sept. 1, 
2003.