2005 Texas Government Code CHAPTER 2262. STATEWIDE CONTRACT MANAGEMENT

GOVERNMENT CODE

CHAPTER 2262. STATEWIDE CONTRACT MANAGEMENT

SUBCHAPTER A. GENERAL PROVISIONS


	§ 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, § 5.01, eff. Sept. 1, 
2001.  Amended by Acts 2003, 78th Leg., ch. 309, § 7.19, eff. 
June 18, 2003.


	§ 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, § 5.01, eff. Sept. 1, 
2001.  Amended by Acts 2005, 79th Leg., ch. 281, § 2.93, eff. 
June 14, 2005.


	§ 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, § 44, eff. Sept. 1, 2003.  
Amended by Acts 2005, 79th Leg., ch. 1012, § 2, eff. June 18, 
2005.


	§ 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;                                  
			(C)  preparation of a solicitation for a major 
contract;  or               
			(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.
	(c)  The state auditor shall develop a form for use in 
reporting 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, § 1, eff. Sept. 1, 2005.           

SUBCHAPTER B. CONTRACT MANAGEMENT


	§ 2262.051. CONTRACT MANAGEMENT GUIDE;  RULES.                              

Text of subsec. (a) as amended by Acts 2003, ch. 309, § 7.20
	(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.

Text of subsec. (a) as amended by Acts 2003, ch. 785, § 45
	(a)  In consultation with the Texas Building and Procurement 
Commission, the Department of Information Resources, the 
comptroller, and the state auditor, the attorney general shall 
develop and 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.
	(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.     
	(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.

Added by Acts 2001, 77th Leg., ch. 1422, § 5.01, eff. Sept. 1, 
2001.  Amended by Acts 2003, 78th Leg., ch. 309, § 7.20, eff. 
June 18, 2003;  Acts 2003, 78th Leg., ch. 785, § 45, eff. Sept. 1, 
2003.


	§ 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, 
§ 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;                                                
			(C)  the speaker of the house of representatives;  
and                     
			(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, 
§ 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;                                                
			(C)  the speaker of the house of representatives;  
and                     
			(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, § 5.01, eff. Sept. 1, 
2001.  Amended by Acts 2003, 78th Leg., ch. 309, § 7.21, eff. 
June 18, 2003;  Acts 2003, 78th Leg., ch. 785, § 46, eff. Sept. 1, 
2003.


	§ 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;  and                         
		(6)  comply with any requirements or goals contained in 
the contract management guide.
	(c)  Each state agency shall ensure that the agency's 
contract 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, § 5.01, eff. Sept. 1, 
2001.  Amended by Acts 2003, 78th Leg., ch. 309, § 7.22, eff. 
June 18, 2003;  Acts 2003, 78th Leg., ch. 785, § 47, eff. Sept. 1, 
2003.


	§ 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, § 5.01, eff. Sept. 1, 
2001.  Amended by Acts 2003, 78th Leg., ch. 309, § 7.23, eff. 
June 18, 2003.

SUBCHAPTER C. CONTRACT ADVISORY TEAM


	§ 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, § 5.01, eff. Sept. 1, 
2001.  Amended by Acts 2003, 78th Leg., ch. 309, § 7.24, eff. 
June 18, 2003.


	§ 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, § 5.01, eff. Sept. 1, 
2001.     


	§ 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, § 5.01, eff. Sept. 1, 
2001.