CHAPTER 2262. STATEWIDE CONTRACT MANAGEMENT
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;
(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, 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.
(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.
(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;
(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,
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;
(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, 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.
(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, 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.