CHAPTER 2261. STATE CONTRACTING STANDARDS AND OVERSIGHT
GOVERNMENT CODE
TITLE 10. GENERAL GOVERNMENT
SUBTITLE F. STATE AND LOCAL CONTRACTS AND FUND MANAGEMENT
CHAPTER 2261. STATE CONTRACTING STANDARDS AND OVERSIGHT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 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 comptroller nor made under purchasing
authority delegated to the agency by or under Section 51.9335 or
73.115, Education Code, or Section 2155.131 or 2155.132.
(b) This chapter applies to contracts and to contract management
activities that are related to the procurements to which it
applies.
(c) The comptroller 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 or 2155.132; 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(e) Repealed by Acts 2003, 78th Leg., ch. 309, Sec. 7.25.
Added by Acts 1999, 76th Leg., ch. 1498, Sec. 5, eff. Sept. 1,
1999. Renumbered from Sec. 2259.001 by Acts 2001, 77th Leg., ch.
1420, Sec. 21.001(71), eff. Sept. 1, 2001. Amended by Acts 2003,
78th Leg., ch. 309, Sec. 7.25, eff. June 18, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
937, Sec. 1.76, eff. September 1, 2007.
Sec. 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, Sec. 5, eff. Sept. 1,
1999. Renumbered from Sec. 2259.002 by Acts 2001, 77th Leg., ch.
1420, Sec. 21.001(71), eff. Sept. 1, 2001.
Sec. 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, Sec. 5, eff. Sept. 1,
1999. Renumbered from Sec. 2259.003 by Acts 2001, 77th Leg., ch.
1420, Sec. 21.001(71), eff. Sept. 1, 2001.
SUBCHAPTER B. CONTRACTOR SELECTION
Sec. 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, Sec. 5, eff. Sept. 1,
1999. Renumbered from Sec. 2259.051 by Acts 2001, 77th Leg., ch.
1420, Sec. 21.001(71), eff. Sept. 1, 2001.
Sec. 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, Sec. 5, eff. Sept. 1,
1999. Renumbered from Sec. 2259.052 by Acts 2001, 77th Leg., ch.
1420, Sec. 21.001(71), eff. Sept. 1, 2001.
Sec. 2261.053. PROHIBITION ON CERTAIN BIDS AND CONTRACTS. (a)
In this section:
(1) "Disaster" has the meaning assigned by Section 418.004.
(2) "Hurricane Katrina" means the hurricane of that name that
struck the gulf coast region of the United States in August 2005.
(b) Except as provided by Subsection (c), a state agency may not
accept a bid or award a contract that includes proposed financial
participation by a person who, during the five-year period
preceding the date of the bid or award, has been:
(1) convicted of violating a federal law in connection with a
contract awarded by the federal government for relief, recovery,
or reconstruction efforts as a result of Hurricane Rita, as
defined by Section 39.459, Utilities Code, Hurricane Katrina, or
any other disaster occurring after September 24, 2005; or
(2) assessed a penalty in a federal civil or administrative
enforcement action in connection with a contract awarded by the
federal government for relief, recovery, or reconstruction
efforts as a result of Hurricane Rita, as defined by Section
39.459, Utilities Code, Hurricane Katrina, or any other disaster
occurring after September 24, 2005.
(c) A bid or award subject to the requirements of this section
must include the following statement:
"Under Section 2261.053, Government Code, the contractor
certifies that the individual or business entity named in this
bid or contract is not ineligible to receive the specified
contract and acknowledges that this contract may be terminated
and payment withheld if this certification is inaccurate."
(d) If a state agency determines that an individual or business
entity holding a state contract was ineligible to have the bid
accepted or contract awarded under Subsection (b), the state
agency may immediately terminate the contract without further
obligation to the contractor.
(e) This section does not create a cause of action to contest a
bid or award of a state contract.
Added by Acts 2007, 80th Leg., R.S., Ch.
1302, Sec. 3, eff. September 1, 2007.
SUBCHAPTER C. CONTRACT PROVISIONS
Sec. 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, Sec. 5, eff. Sept. 1,
1999. Renumbered from Sec. 2259.101 by Acts 2001, 77th Leg., ch.
1420, Sec. 21.001(71), eff. Sept. 1, 2001.
Sec. 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, Sec. 5, eff. Sept. 1,
1999. Renumbered from Sec. 2259.102 by Acts 2001, 77th Leg., ch.
1420, Sec. 21.001(71), eff. Sept. 1, 2001.
SUBCHAPTER D. PAYMENT AND REIMBURSEMENT METHODS
Sec. 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, Sec. 5, eff. Sept. 1,
1999. Renumbered from Sec. 2259.151 by Acts 2001, 77th Leg., ch.
1420, Sec. 21.001(71), eff. Sept. 1, 2001.
SUBCHAPTER E. CONTRACTOR OVERSIGHT
Sec. 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, Sec. 5, eff. Sept. 1,
1999. Renumbered from Sec. 2259.201 by Acts 2001, 77th Leg., ch.
1420, Sec. 21.001(71), eff. Sept. 1, 2001.
Sec. 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, Sec. 5, eff. Sept. 1,
1999. Renumbered from Sec. 2259.202 by Acts 2001, 77th Leg., ch.
1420, Sec. 21.001(71), eff. Sept. 1, 2001.
Sec. 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, Sec. 5, eff. Sept. 1,
1999. Renumbered from Sec. 2259.203 by Acts 2001, 77th Leg., ch.
1420, Sec. 21.001(71), eff. Sept. 1, 2001. Amended by Acts 2003,
78th Leg., ch. 785, Sec. 43, eff. Sept. 1, 2003.