|   | 
      
      
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        | 
           		
			 | 
        
          A BILL TO BE ENTITLED
         | 
      
      
        | 
           
			 | 
        
          AN ACT
         | 
      
      
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			 | 
        relating to certain requirements applicable to contracts entered  | 
      
      
        | 
           
			 | 
        into by, and the contract management process of, state agencies. | 
      
      
        | 
           
			 | 
               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
        | 
           
			 | 
               SECTION 1.  Section 2113.102(a), Government Code, is amended  | 
      
      
        | 
           
			 | 
        to read as follows: | 
      
      
        | 
           
			 | 
               (a)  A state agency may not use appropriated money to  | 
      
      
        | 
           
			 | 
        contract with a person to audit [the financial records or accounts 
         | 
      
      
        | 
           
			 | 
        
          of] the agency except: | 
      
      
        | 
           
			 | 
                     (1)  as provided by[:
         | 
      
      
        | 
           
			 | 
                     [(1)]  Subsections (b), (c), and (d); and | 
      
      
        | 
           
			 | 
                     (2)  in accordance with Section 321.020 [Chapter 466, 
         | 
      
      
        | 
           
			 | 
        
          pertaining to the state lottery;
         | 
      
      
        | 
           
			 | 
                     [(3)
           
           
          Chapter 2306, pertaining to the Texas Department 
         | 
      
      
        | 
           
			 | 
        
          of Housing and Community Affairs; and
         | 
      
      
        | 
           
			 | 
                     [(4)
           
           
          Chapter 361, Transportation Code, pertaining to 
         | 
      
      
        | 
           
			 | 
        
          the Texas Turnpike Authority division of the Texas Department of 
         | 
      
      
        | 
           
			 | 
        
          Transportation]. | 
      
      
        | 
           
			 | 
               SECTION 2.  Section 2155.086(a), Government Code, is amended  | 
      
      
        | 
           
			 | 
        to read as follows: | 
      
      
        | 
           
			 | 
               (a)  In this section [and in Section 2155.087], "chief clerk"  | 
      
      
        | 
           
			 | 
        means the chief clerk of the comptroller or the chief clerk's  | 
      
      
        | 
           
			 | 
        designee. | 
      
      
        | 
           
			 | 
               SECTION 3.  Section 2162.103(a), Government Code, is amended  | 
      
      
        | 
           
			 | 
        to read as follows: | 
      
      
        | 
           
			 | 
               (a)  In comparing the cost of providing a service, the  | 
      
      
        | 
           
			 | 
        council shall consider the: | 
      
      
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			 | 
                     (1)  cost of supervising the work of a private  | 
      
      
        | 
           
			 | 
        contractor; [and] | 
      
      
        | 
           
			 | 
                     (2)  cost of a state agency's performance of the  | 
      
      
        | 
           
			 | 
        service, including: | 
      
      
        | 
           
			 | 
                           (A)  the costs of the comptroller, attorney  | 
      
      
        | 
           
			 | 
        general, and other support agencies; and | 
      
      
        | 
           
			 | 
                           (B)  other indirect costs related to the agency's  | 
      
      
        | 
           
			 | 
        performance of the service; | 
      
      
        | 
           
			 | 
                     (3)  installation costs and any other initial costs  | 
      
      
        | 
           
			 | 
        associated with a contract with a private contractor; | 
      
      
        | 
           
			 | 
                     (4)  other costs associated with the transition to  | 
      
      
        | 
           
			 | 
        using a private contractor's goods or services; and | 
      
      
        | 
           
			 | 
                     (5)  cost savings to the state if a private contractor  | 
      
      
        | 
           
			 | 
        were awarded the contract. | 
      
      
        | 
           
			 | 
               SECTION 4.  Section 2261.002, Government Code, is amended to  | 
      
      
        | 
           
			 | 
        read as follows: | 
      
      
        | 
           
			 | 
               Sec. 2261.002.  DEFINITIONS.  In this chapter: | 
      
      
        | 
           
			 | 
                     (1)  "Contract" includes an agreement or other written  | 
      
      
        | 
           
			 | 
        expression of terms of agreement, including an amendment, a  | 
      
      
        | 
           
			 | 
        modification, a renewal, or an extension, for the purchase or sale  | 
      
      
        | 
           
			 | 
        of goods or services that is entered into or paid for, wholly or  | 
      
      
        | 
           
			 | 
        partly, by a state agency during a fiscal year and 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)  "Contract deliverable" means a unit or increment  | 
      
      
        | 
           
			 | 
        of work required by a contract, including goods, services, reports,  | 
      
      
        | 
           
			 | 
        or documents. | 
      
      
        | 
           
			 | 
                     (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. | 
      
      
        | 
           
			 | 
                     (4)  "Executive director" means the administrative  | 
      
      
        | 
           
			 | 
        head of a state agency. | 
      
      
        | 
           
			 | 
                     (5)  "General counsel" means the general counsel of a  | 
      
      
        | 
           
			 | 
        state agency. | 
      
      
        | 
           
			 | 
                     (6)  "Major contract" means a contract, including a  | 
      
      
        | 
           
			 | 
        renewal of a contract, that has a value of at least $1 million.  The  | 
      
      
        | 
           
			 | 
        term includes a service contract. | 
      
      
        | 
           
			 | 
                     (7)  "State agency" has the meaning assigned by Section  | 
      
      
        | 
           
			 | 
        2151.002. | 
      
      
        | 
           
			 | 
               SECTION 5.  Subchapter A, Chapter 2261, Government Code, is  | 
      
      
        | 
           
			 | 
        amended by adding Sections 2261.004, 2261.005, 2261.006, and  | 
      
      
        | 
           
			 | 
        2261.007 to read as follows: | 
      
      
        | 
           
			 | 
               Sec. 2261.004.  STATE AGENCY REPOSITORY AND RECORDS.   | 
      
      
        | 
           
			 | 
        (a)  Each state agency shall maintain in a central location all  | 
      
      
        | 
           
			 | 
        contracts for that agency. | 
      
      
        | 
           
			 | 
               (b)  Each state agency shall maintain a comprehensive list of  | 
      
      
        | 
           
			 | 
        all contracts for that agency. | 
      
      
        | 
           
			 | 
               (c)  In this subsection, "contract" includes a sole-source  | 
      
      
        | 
           
			 | 
        contract.  Each state agency shall maintain accurate records of all  | 
      
      
        | 
           
			 | 
        essential information relating to agency contracts, including  | 
      
      
        | 
           
			 | 
        information on: | 
      
      
        | 
           
			 | 
                     (1)  a contract delay or changes to a contract in which  | 
      
      
        | 
           
			 | 
        total expenditures under the contract increase by more than 35  | 
      
      
        | 
           
			 | 
        percent from the original contract amount; and | 
      
      
        | 
           
			 | 
                     (2)  cost overruns, including a written explanation of  | 
      
      
        | 
           
			 | 
        why expenditures have increased under a contract. | 
      
      
        | 
           
			 | 
               Sec. 2261.005.  CONTRACT REPORTING.  (a)  In this section,  | 
      
      
        | 
           
			 | 
        "contract" includes a construction contract. | 
      
      
        | 
           
			 | 
               (b)  The following sections prescribe reporting requirements  | 
      
      
        | 
           
			 | 
        for certain contracts: | 
      
      
        | 
           
			 | 
                     (1)  Section 322.020; | 
      
      
        | 
           
			 | 
                     (2)  Section 2054.008; | 
      
      
        | 
           
			 | 
                     (3)  Section 2166.2551; | 
      
      
        | 
           
			 | 
                     (4)  Section 2254.006; and | 
      
      
        | 
           
			 | 
                     (5)  Section 2254.0301. | 
      
      
        | 
           
			 | 
               Sec. 2261.006.  PROFESSIONAL SERVICES.  A state agency shall  | 
      
      
        | 
           
			 | 
        procure professional services in accordance with Subchapter A,  | 
      
      
        | 
           
			 | 
        Chapter 2254. | 
      
      
        | 
           
			 | 
               Sec. 2261.007.  CONTRACT GUIDELINES AND PROCEDURES.  Each  | 
      
      
        | 
           
			 | 
        state agency shall establish formal guidelines and procedures for  | 
      
      
        | 
           
			 | 
        all employees involved in the contracting process: | 
      
      
        | 
           
			 | 
                     (1)  regarding who may approve a contract for the  | 
      
      
        | 
           
			 | 
        agency; | 
      
      
        | 
           
			 | 
                     (2)  for contract planning and solicitation; | 
      
      
        | 
           
			 | 
                     (3)  for contract negotiations; | 
      
      
        | 
           
			 | 
                     (4)  for contract management; and | 
      
      
        | 
           
			 | 
                     (5)  for contract oversight. | 
      
      
        | 
           
			 | 
               SECTION 6.  Subchapter B, Chapter 2261, Government Code, is  | 
      
      
        | 
           
			 | 
        amended by adding Section 2261.054 to read as follows: | 
      
      
        | 
           
			 | 
               Sec. 2261.054.  BEST VALUE STANDARD FOR CONTRACTING FOR  | 
      
      
        | 
           
			 | 
        GOODS AND SERVICES.  In determining the best value for the state,  | 
      
      
        | 
           
			 | 
        the purchase price and whether the goods or services meet  | 
      
      
        | 
           
			 | 
        specifications are the most important considerations.  A state  | 
      
      
        | 
           
			 | 
        agency may consider, subject to Sections 2155.074(c) and 2155.075,  | 
      
      
        | 
           
			 | 
        other relevant factors, including: | 
      
      
        | 
           
			 | 
                     (1)  installation costs; | 
      
      
        | 
           
			 | 
                     (2)  life cycle costs; | 
      
      
        | 
           
			 | 
                     (3)  the quality and reliability of the goods and  | 
      
      
        | 
           
			 | 
        services; | 
      
      
        | 
           
			 | 
                     (4)  the delivery terms; | 
      
      
        | 
           
			 | 
                     (5)  indicators of probable vendor performance under  | 
      
      
        | 
           
			 | 
        the contract such as past vendor performance, the vendor's  | 
      
      
        | 
           
			 | 
        financial resources and ability to perform, the vendor's experience  | 
      
      
        | 
           
			 | 
        or demonstrated capability and responsibility, and the vendor's  | 
      
      
        | 
           
			 | 
        ability to provide reliable maintenance agreements and support; | 
      
      
        | 
           
			 | 
                     (6)  the cost of any employee training associated with  | 
      
      
        | 
           
			 | 
        a purchase; | 
      
      
        | 
           
			 | 
                     (7)  the effect of a purchase on agency productivity; | 
      
      
        | 
           
			 | 
                     (8)  the vendor's anticipated economic impact on the  | 
      
      
        | 
           
			 | 
        state or a subdivision of the state, including potential tax  | 
      
      
        | 
           
			 | 
        revenue and employment;  and | 
      
      
        | 
           
			 | 
                     (9)  other factors relevant to determining the best  | 
      
      
        | 
           
			 | 
        value for the state in the context of a particular purchase. | 
      
      
        | 
           
			 | 
               SECTION 7.  The heading to Subchapter C, Chapter 2261,  | 
      
      
        | 
           
			 | 
        Government Code, is amended to read as follows: | 
      
      
        | 
           
			 | 
        SUBCHAPTER C. CONTRACT FORMATION AND PROVISIONS | 
      
      
        | 
           
			 | 
               SECTION 8.  Subchapter C, Chapter 2261, Government Code, is  | 
      
      
        | 
           
			 | 
        amended by adding Sections 2261.103, 2261.104, 2261.105, and  | 
      
      
        | 
           
			 | 
        2261.106 to read as follows: | 
      
      
        | 
           
			 | 
               Sec. 2261.103.  USE OF UNIFORM FORMS.  A state agency may use  | 
      
      
        | 
           
			 | 
        any forms developed by the comptroller as templates, guides, or  | 
      
      
        | 
           
			 | 
        samples for contracts entered into by the agency. | 
      
      
        | 
           
			 | 
               Sec. 2261.104.  ESSENTIAL CONTRACT PROVISIONS.  The  | 
      
      
        | 
           
			 | 
        following are required provisions in each contract to which the  | 
      
      
        | 
           
			 | 
        provisions are applicable, other than a grant: | 
      
      
        | 
           
			 | 
                     (1)  legal authority; | 
      
      
        | 
           
			 | 
                     (2)  statement of work; | 
      
      
        | 
           
			 | 
                     (3)  indemnification or damage claims; | 
      
      
        | 
           
			 | 
                     (4)  consideration; | 
      
      
        | 
           
			 | 
                     (5)  specifications; | 
      
      
        | 
           
			 | 
                     (6)  funding out clause; | 
      
      
        | 
           
			 | 
                     (7)  antitrust; | 
      
      
        | 
           
			 | 
                     (8)  payment; | 
      
      
        | 
           
			 | 
                     (9)  dispute resolution; | 
      
      
        | 
           
			 | 
                     (10)  term of contract; | 
      
      
        | 
           
			 | 
                     (11)  confidential information; | 
      
      
        | 
           
			 | 
                     (12)  abandonment or default; | 
      
      
        | 
           
			 | 
                     (13)  right to audit; | 
      
      
        | 
           
			 | 
                     (14)  force majeure; | 
      
      
        | 
           
			 | 
                     (15)  independent contractor; and | 
      
      
        | 
           
			 | 
                     (16)  termination. | 
      
      
        | 
           
			 | 
               Sec. 2261.105.  CONTRACT PROVISIONS REQUIRED BY STATE LAW.   | 
      
      
        | 
           
			 | 
        In any contract for the acquisition of goods or services to which a  | 
      
      
        | 
           
			 | 
        state agency is a party, a provision required by applicable law to  | 
      
      
        | 
           
			 | 
        be included in the contract is considered to be a part of the  | 
      
      
        | 
           
			 | 
        executed contract without regard to whether: | 
      
      
        | 
           
			 | 
                     (1)  the provision appears on the face of the contract;  | 
      
      
        | 
           
			 | 
        or | 
      
      
        | 
           
			 | 
                     (2)  the contract includes any provision to the  | 
      
      
        | 
           
			 | 
        contrary. | 
      
      
        | 
           
			 | 
               Sec. 2261.106.  CONTRACT RENEWAL.  A state agency shall  | 
      
      
        | 
           
			 | 
        establish a standardized process for renewing all contracts of the  | 
      
      
        | 
           
			 | 
        agency. | 
      
      
        | 
           
			 | 
               SECTION 9.  Subchapter D, Chapter 2261, Government Code, is  | 
      
      
        | 
           
			 | 
        amended by adding Section 2261.152 to read as follows: | 
      
      
        | 
           
			 | 
               Sec. 2261.152.  CONTRACT PAYMENT.  (a) For each contract for  | 
      
      
        | 
           
			 | 
        goods or services that is subject to this chapter, a state agency  | 
      
      
        | 
           
			 | 
        shall require that payment under the contract be linked to clear and  | 
      
      
        | 
           
			 | 
        measurable achievements, such as  length of time of work or contract  | 
      
      
        | 
           
			 | 
        deliverables. | 
      
      
        | 
           
			 | 
               (b)  A state agency may not make a final payment on a contract  | 
      
      
        | 
           
			 | 
        for goods or services that is subject to this chapter unless the  | 
      
      
        | 
           
			 | 
        agency verifies that all contract deliverables have been received. | 
      
      
        | 
           
			 | 
               SECTION 10.  The heading to Subchapter E, Chapter 2261,  | 
      
      
        | 
           
			 | 
        Government Code, is amended to read as follows: | 
      
      
        | 
           
			 | 
        SUBCHAPTER E.  CONTRACT MONITORING AND [CONTRACTOR] OVERSIGHT | 
      
      
        | 
           
			 | 
               SECTION 11.  Section 2261.202, Government Code, is amended  | 
      
      
        | 
           
			 | 
        to read as follows: | 
      
      
        | 
           
			 | 
               Sec. 2261.202.  CONTRACT MONITORING RESPONSIBILITIES.  (a)   | 
      
      
        | 
           
			 | 
        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 agency staff,  | 
      
      
        | 
           
			 | 
        including internal audit staff and other inspection,  | 
      
      
        | 
           
			 | 
        investigative, or audit staff. | 
      
      
        | 
           
			 | 
               (b)  The policy must establish clear lines of  | 
      
      
        | 
           
			 | 
        accountability, staff roles and responsibilities, and  | 
      
      
        | 
           
			 | 
        decision-making authority for program staff, contract management  | 
      
      
        | 
           
			 | 
        staff, and executive management staff. | 
      
      
        | 
           
			 | 
               SECTION 12.  Subchapter E, Chapter 2261, Government Code, is  | 
      
      
        | 
           
			 | 
        amended by adding Sections 2261.204, 2261.205, 2261.206, 2261.207,  | 
      
      
        | 
           
			 | 
        2261.208, 2261.209, 2261.210, 2261.211, 2261.212, 2261.213, and  | 
      
      
        | 
           
			 | 
        2261.214 to read as follows: | 
      
      
        | 
           
			 | 
               Sec. 2261.204.  INFORMATION ON CONTRACTOR PERFORMANCE.   | 
      
      
        | 
           
			 | 
        (a)  After a contract is completed or otherwise terminated, each  | 
      
      
        | 
           
			 | 
        state agency shall review the contractor's performance under the  | 
      
      
        | 
           
			 | 
        contract. | 
      
      
        | 
           
			 | 
               (b)  Using forms made available to the state agency, a state  | 
      
      
        | 
           
			 | 
        agency shall report to the comptroller on the results of the review  | 
      
      
        | 
           
			 | 
        regarding a contractor's performance under a major contract. | 
      
      
        | 
           
			 | 
               (c)  A state agency may use any vendor performance tracking  | 
      
      
        | 
           
			 | 
        system available to state agencies to determine whether to award a  | 
      
      
        | 
           
			 | 
        contract to a person reviewed in the database. | 
      
      
        | 
           
			 | 
               Sec. 2261.205.  EXCLUDING CONTRACTOR FROM SOLICITATION  | 
      
      
        | 
           
			 | 
        PROCESS.  Based on its own contractor performance reviews and on  | 
      
      
        | 
           
			 | 
        information in any vendor performance tracking system available to  | 
      
      
        | 
           
			 | 
        state agencies, a state agency may exclude a contractor from the  | 
      
      
        | 
           
			 | 
        solicitation process for a contract if the agency determines the  | 
      
      
        | 
           
			 | 
        contractor has performed poorly on a previous state contract  | 
      
      
        | 
           
			 | 
        without regard to whether the contractor has been barred under  | 
      
      
        | 
           
			 | 
        Section 2155.077. | 
      
      
        | 
           
			 | 
               Sec. 2261.206.  CONTRACTING STAFF.  (a)  Each state agency  | 
      
      
        | 
           
			 | 
        that enters into contracts other than interagency contracts shall  | 
      
      
        | 
           
			 | 
        establish a career ladder program for contract management in the  | 
      
      
        | 
           
			 | 
        agency. | 
      
      
        | 
           
			 | 
               (b)  An employee hired as a contract manager may participate  | 
      
      
        | 
           
			 | 
        in procurement planning, contract solicitation, contract  | 
      
      
        | 
           
			 | 
        formation, price establishment, and other contract activities. | 
      
      
        | 
           
			 | 
               (c)  Each state agency shall determine, in consultation with  | 
      
      
        | 
           
			 | 
        the state auditor, the amount and significance of contract  | 
      
      
        | 
           
			 | 
        management duties sufficient for an employee to be considered a  | 
      
      
        | 
           
			 | 
        contract manager, program staff, or a contract specialist. | 
      
      
        | 
           
			 | 
               Sec. 2261.207.  APPROVAL OF CONTRACTS.  (a)  Each state  | 
      
      
        | 
           
			 | 
        agency shall adopt a policy to establish a monetary threshold above  | 
      
      
        | 
           
			 | 
        which agency contracts and amendments to or extensions of agency  | 
      
      
        | 
           
			 | 
        contracts require written authorization by the agency executive  | 
      
      
        | 
           
			 | 
        director. | 
      
      
        | 
           
			 | 
               (b)  For state agency contracts valued in excess of $1  | 
      
      
        | 
           
			 | 
        million, the agency executive director must authorize a contract  | 
      
      
        | 
           
			 | 
        amendment in writing. | 
      
      
        | 
           
			 | 
               (c)  Each state agency shall annually report to the  | 
      
      
        | 
           
			 | 
        comptroller a list of persons authorized to approve contracts at  | 
      
      
        | 
           
			 | 
        the agency.  The list must include each person's name, position, and  | 
      
      
        | 
           
			 | 
        supervisory responsibility, if any. | 
      
      
        | 
           
			 | 
               Sec. 2261.208.  NEGOTIATION OF MAJOR CONTRACT BY SINGLE  | 
      
      
        | 
           
			 | 
        EMPLOYEE PROHIBITED.  A state agency may not negotiate a major  | 
      
      
        | 
           
			 | 
        contract with only one employee engaging in the negotiation. | 
      
      
        | 
           
			 | 
               Sec. 2261.209.  CONTRACT REVIEW; REPORTING.  (a)  A  | 
      
      
        | 
           
			 | 
        contractor's performance must be periodically reviewed throughout  | 
      
      
        | 
           
			 | 
        the term of a contract. | 
      
      
        | 
           
			 | 
               (b)  A state agency shall ensure ongoing communication  | 
      
      
        | 
           
			 | 
        between executive management staff, contract management staff, and  | 
      
      
        | 
           
			 | 
        program staff of the results of the reviews performed under  | 
      
      
        | 
           
			 | 
        Subsection (a) with specific attention to contracts that are: | 
      
      
        | 
           
			 | 
                     (1)  anticipated to be completed later than originally  | 
      
      
        | 
           
			 | 
        estimated; or | 
      
      
        | 
           
			 | 
                     (2)  expected to cost more than the amount that was  | 
      
      
        | 
           
			 | 
        originally budgeted. | 
      
      
        | 
           
			 | 
               (c)  To implement this section, a state agency shall create a  | 
      
      
        | 
           
			 | 
        system for agency-wide reporting on the status of, activity on, and  | 
      
      
        | 
           
			 | 
        contractor performance for each contract. | 
      
      
        | 
           
			 | 
               Sec. 2261.210.  CONTRACT ADMINISTRATION TEAM.  (a) This  | 
      
      
        | 
           
			 | 
        section applies to a state agency: | 
      
      
        | 
           
			 | 
                     (1)  that has a contract with a value of $5 million or  | 
      
      
        | 
           
			 | 
        more; or | 
      
      
        | 
           
			 | 
                     (2)  for which 60 percent or more of the agency's budget  | 
      
      
        | 
           
			 | 
        is  spent on contracts. | 
      
      
        | 
           
			 | 
               (b)  A state agency to which this section applies shall   | 
      
      
        | 
           
			 | 
        create a contract administration team to: | 
      
      
        | 
           
			 | 
                     (1)  ensure and verify the performance of all agency  | 
      
      
        | 
           
			 | 
        contracts; and | 
      
      
        | 
           
			 | 
                     (2)  maintain within the agency contract oversight  | 
      
      
        | 
           
			 | 
        expertise to effectively manage contractors. | 
      
      
        | 
           
			 | 
               Sec. 2261.211.  CONTRACT MONITORING PROCESS.  A state agency  | 
      
      
        | 
           
			 | 
        shall establish and implement a monitoring process for agency  | 
      
      
        | 
           
			 | 
        contracts that includes: | 
      
      
        | 
           
			 | 
                     (1)  identifying the appropriate criteria for use in  | 
      
      
        | 
           
			 | 
        measuring contract performance; | 
      
      
        | 
           
			 | 
                     (2)  creating a schedule for monitoring contract  | 
      
      
        | 
           
			 | 
        performance; | 
      
      
        | 
           
			 | 
                     (3)  comparing work accomplished to work planned to be  | 
      
      
        | 
           
			 | 
        accomplished; | 
      
      
        | 
           
			 | 
                     (4)  analyzing contract performance variances; and | 
      
      
        | 
           
			 | 
                     (5)  addressing contracting performance problems with  | 
      
      
        | 
           
			 | 
        corrective action. | 
      
      
        | 
           
			 | 
               Sec. 2261.212.  RISK MANAGEMENT PROCESS.  (a) A state agency  | 
      
      
        | 
           
			 | 
        shall establish and implement a: | 
      
      
        | 
           
			 | 
                     (1)  process for evaluating risk to the state, such as  | 
      
      
        | 
           
			 | 
        product risk, process risk, financial risk, and schedule risk, if  | 
      
      
        | 
           
			 | 
        contract implementation or performance problems occur, including a  | 
      
      
        | 
           
			 | 
        process for: | 
      
      
        | 
           
			 | 
                           (A)  risk identification; | 
      
      
        | 
           
			 | 
                           (B)  risk analysis; | 
      
      
        | 
           
			 | 
                           (C)  risk evaluation; | 
      
      
        | 
           
			 | 
                           (D)  risk treatment and contingency planning; and | 
      
      
        | 
           
			 | 
                           (E)  risk monitoring; and | 
      
      
        | 
           
			 | 
                     (2)  mitigation procedure for use when contract  | 
      
      
        | 
           
			 | 
        implementation or performance problems occur. | 
      
      
        | 
           
			 | 
               (b)  In creating the process required by Subsection (a)(1),  | 
      
      
        | 
           
			 | 
        the state agency shall consider: | 
      
      
        | 
           
			 | 
                     (1)  the complexity and subject matter of agency  | 
      
      
        | 
           
			 | 
        contracts; | 
      
      
        | 
           
			 | 
                     (2)  the dollar value of agency contracts and whether  | 
      
      
        | 
           
			 | 
        the procurement will result in a major contract; | 
      
      
        | 
           
			 | 
                     (3)  the anticipated payment methodology; | 
      
      
        | 
           
			 | 
                     (4)  the experience of agency staff with the type of  | 
      
      
        | 
           
			 | 
        procurement; | 
      
      
        | 
           
			 | 
                     (5)  whether the results of the procurement will impact  | 
      
      
        | 
           
			 | 
        the public or only impact the agency; | 
      
      
        | 
           
			 | 
                     (6)  time constraints or the expected duration of the  | 
      
      
        | 
           
			 | 
        procurement; and | 
      
      
        | 
           
			 | 
                     (7)  the type, availability, and experience of staff  | 
      
      
        | 
           
			 | 
        resources required to implement the objectives of the procurement.  | 
      
      
        | 
           
			 | 
               Sec. 2261.213.  CONTRACT COMMUNICATION.  (a) A state agency  | 
      
      
        | 
           
			 | 
        shall maintain effective communication procedures regarding  | 
      
      
        | 
           
			 | 
        contract performance. | 
      
      
        | 
           
			 | 
               (b)  The chief financial officer of a state agency, or an  | 
      
      
        | 
           
			 | 
        individual designated by the executive director with similar duties  | 
      
      
        | 
           
			 | 
        and skills as a chief financial officer, shall report at least  | 
      
      
        | 
           
			 | 
        monthly to the executive director on the status of agency  | 
      
      
        | 
           
			 | 
        contracts.  The report must include a clear indication of: | 
      
      
        | 
           
			 | 
                     (1)  any contract cost overruns or contracts that are  | 
      
      
        | 
           
			 | 
        performing poorly; and | 
      
      
        | 
           
			 | 
                     (2)  contracts that may cause the state to delay or  | 
      
      
        | 
           
			 | 
        default on service delivery. | 
      
      
        | 
           
			 | 
               Sec. 2261.214.  REPORT ON CERTAIN PURCHASES.  (a)  Not later  | 
      
      
        | 
           
			 | 
        than August 1 of each year, the comptroller shall publish a report  | 
      
      
        | 
           
			 | 
        on the number and dollar value of sole source and emergency  | 
      
      
        | 
           
			 | 
        purchases made in the previous calendar year. The report must  | 
      
      
        | 
           
			 | 
        compare the total dollar value of all sole source and emergency  | 
      
      
        | 
           
			 | 
        purchases made with the total dollar value of all competitively  | 
      
      
        | 
           
			 | 
        awarded contracts. | 
      
      
        | 
           
			 | 
               (b)  Each state agency shall timely provide to the  | 
      
      
        | 
           
			 | 
        comptroller the information the comptroller requires for the  | 
      
      
        | 
           
			 | 
        purpose of creating the report under Subsection (a). | 
      
      
        | 
           
			 | 
               (c)  The comptroller shall establish requirements for the  | 
      
      
        | 
           
			 | 
        provision of information under Subsection (b) in consultation with  | 
      
      
        | 
           
			 | 
        the Contract Advisory Team created under Subchapter C, Chapter  | 
      
      
        | 
           
			 | 
        2262, the Health and Human Services Commission, and the Texas  | 
      
      
        | 
           
			 | 
        Department of Transportation. | 
      
      
        | 
           
			 | 
               (d)  The comptroller may not require a state agency to  | 
      
      
        | 
           
			 | 
        provide information under Subsection (b) on a contract related to  | 
      
      
        | 
           
			 | 
        health and human services if: | 
      
      
        | 
           
			 | 
                     (1)  the value of the contract cannot be determined at  | 
      
      
        | 
           
			 | 
        the time of execution of the contract; and | 
      
      
        | 
           
			 | 
                     (2)  any qualified vendor is eligible for the contract. | 
      
      
        | 
           
			 | 
               SECTION 13.  Chapter 2261, Government Code, is amended by  | 
      
      
        | 
           
			 | 
        adding Subchapters F, G, H, and I to read as follows: | 
      
      
        | 
           
			 | 
        SUBCHAPTER F.  CHANGES TO CONTRACTS | 
      
      
        | 
           
			 | 
               Sec. 2261.251.  CONTRACT AMENDMENTS, EXTENSIONS, AND CHANGE  | 
      
      
        | 
           
			 | 
        ORDERS.  (a)  An extension of or amendment to a state agency  | 
      
      
        | 
           
			 | 
        contract, including a change order, is subject to the same agency  | 
      
      
        | 
           
			 | 
        approval processes as the original contract. | 
      
      
        | 
           
			 | 
               (b)  A state agency may not extend or amend a contract unless  | 
      
      
        | 
           
			 | 
        the agency complies with the same agency approval processes for the  | 
      
      
        | 
           
			 | 
        extension or amendment as required for the original contract and  | 
      
      
        | 
           
			 | 
        the agency states in writing why the extension or amendment is  | 
      
      
        | 
           
			 | 
        necessary or advantageous to the state. | 
      
      
        | 
           
			 | 
               (c)  This section does not affect whether a state agency is  | 
      
      
        | 
           
			 | 
        required to undertake a new solicitation process in the manner  | 
      
      
        | 
           
			 | 
        required for a new contract in order to extend or amend a contract. | 
      
      
        | 
           
			 | 
               Sec. 2261.252.  LARGE CHANGE IN CONTRACT VALUE; COST  | 
      
      
        | 
           
			 | 
        OVERRUNS.  (a)  If a proposed contract amendment or extension  | 
      
      
        | 
           
			 | 
        changes the monetary value of a major contract by at least 35  | 
      
      
        | 
           
			 | 
        percent or $1 million, the state agency must submit the amendment or  | 
      
      
        | 
           
			 | 
        extension for review to the Contract Advisory Team created under  | 
      
      
        | 
           
			 | 
        Subchapter C, Chapter 2262, and the agency's executive director  | 
      
      
        | 
           
			 | 
        before the agency amends or extends the contract. | 
      
      
        | 
           
			 | 
               (b)  Subsection (a) does not apply to a proposed contract  | 
      
      
        | 
           
			 | 
        amendment required by a state or federal statute. | 
      
      
        | 
           
			 | 
               (c)  The executive director shall be timely notified of any  | 
      
      
        | 
           
			 | 
        unanticipated contract cost overrun. | 
      
      
        | 
           
			 | 
               Sec. 2261.253.  CERTAIN CONTRACT EXTENSIONS.  This  | 
      
      
        | 
           
			 | 
        subchapter does not apply to contract extensions that are  | 
      
      
        | 
           
			 | 
        specifically established as a component of the original  | 
      
      
        | 
           
			 | 
        procurement. | 
      
      
        | 
           
			 | 
        SUBCHAPTER G.  TRAINING | 
      
      
        | 
           
			 | 
               Sec. 2261.301.  TRAINING FOR CONTRACT MANAGERS.  (a)  A  | 
      
      
        | 
           
			 | 
        state agency shall require a contract manager to be trained under  | 
      
      
        | 
           
			 | 
        Section 2262.053. | 
      
      
        | 
           
			 | 
               (b)  A state agency shall maintain a list of contract  | 
      
      
        | 
           
			 | 
        managers who have completed the contract management training. | 
      
      
        | 
           
			 | 
               (c)  A state agency may develop qualified contract manager  | 
      
      
        | 
           
			 | 
        training to supplement the training required under this section. | 
      
      
        | 
           
			 | 
               Sec. 2261.302.  TRAINING FOR GOVERNING BODIES.  All members  | 
      
      
        | 
           
			 | 
        of the governing body of a state agency shall complete at least one  | 
      
      
        | 
           
			 | 
        course of abbreviated training provided under Section 2262.053.   | 
      
      
        | 
           
			 | 
        This section does not apply to a state agency that does not enter  | 
      
      
        | 
           
			 | 
        into any contracts. | 
      
      
        | 
           
			 | 
        SUBCHAPTER H. CONTRACT PLANNING AND SOLICITATION | 
      
      
        | 
           
			 | 
               Sec. 2261.351.  CONTRACT PLANNING.  Before a state agency  | 
      
      
        | 
           
			 | 
        solicits a contract, the agency must: | 
      
      
        | 
           
			 | 
                     (1)  identify, justify, and document the need for the  | 
      
      
        | 
           
			 | 
        good or service; | 
      
      
        | 
           
			 | 
                     (2)  identify general contracting objectives,  | 
      
      
        | 
           
			 | 
        assumptions, and constraints; | 
      
      
        | 
           
			 | 
                     (3)  consider alternatives to soliciting the contract;  | 
      
      
        | 
           
			 | 
        and | 
      
      
        | 
           
			 | 
                     (4)  determine the preferred method of delivery for the  | 
      
      
        | 
           
			 | 
        good or service. | 
      
      
        | 
           
			 | 
               Sec. 2261.352.  SOLICITATION OF CONTRACT.  (a) A  | 
      
      
        | 
           
			 | 
        solicitation for a contract must include the following: | 
      
      
        | 
           
			 | 
                     (1)  a description of the work; | 
      
      
        | 
           
			 | 
                     (2)  a specific and measurable standard of performance; | 
      
      
        | 
           
			 | 
                     (3)  a list of the test conditions, method, or  | 
      
      
        | 
           
			 | 
        procedure for verifying that the contract deliverable meets the  | 
      
      
        | 
           
			 | 
        standard; | 
      
      
        | 
           
			 | 
                     (4)  a method or process to monitor and ensure quality  | 
      
      
        | 
           
			 | 
        in the contract deliverable; | 
      
      
        | 
           
			 | 
                     (5)  an acceptance process for each contract  | 
      
      
        | 
           
			 | 
        deliverable that is expected to be delivered; | 
      
      
        | 
           
			 | 
                     (6)  a compensation structure that is consistent with  | 
      
      
        | 
           
			 | 
        the type and value of work performed; and | 
      
      
        | 
           
			 | 
                     (7)  a remedy, if appropriate, for failure to meet  | 
      
      
        | 
           
			 | 
        contract deliverables. | 
      
      
        | 
           
			 | 
               (b)  In preparing a contract solicitation, a state agency  | 
      
      
        | 
           
			 | 
        must include in the requirements for the contract deliverables: | 
      
      
        | 
           
			 | 
                     (1)  the quality level of the good or service; | 
      
      
        | 
           
			 | 
                     (2)  the amount of completion that is required; | 
      
      
        | 
           
			 | 
                     (3)  the suitability of the good or service for the work  | 
      
      
        | 
           
			 | 
        to be done for the agency; and | 
      
      
        | 
           
			 | 
                     (4)  a defined and documented method of evaluation to  | 
      
      
        | 
           
			 | 
        be used in making the award and in determining the best value bid  | 
      
      
        | 
           
			 | 
        for the procurement. | 
      
      
        | 
           
			 | 
        SUBCHAPTER I. CONTRACT CLOSING | 
      
      
        | 
           
			 | 
               Sec. 2261.401.  CLOSING PROCEDURE.  A state agency shall  | 
      
      
        | 
           
			 | 
        create and follow a procedure for contract closing that includes  | 
      
      
        | 
           
			 | 
        procedures for: | 
      
      
        | 
           
			 | 
                     (1)  verification that all: | 
      
      
        | 
           
			 | 
                           (A)  required goods or services have been  | 
      
      
        | 
           
			 | 
        delivered or performed, inspected, and accepted; and | 
      
      
        | 
           
			 | 
                           (B)  existing options have been exercised or have  | 
      
      
        | 
           
			 | 
        expired; | 
      
      
        | 
           
			 | 
                     (2)  issuance of a contract completion notice by one of  | 
      
      
        | 
           
			 | 
        the parties; | 
      
      
        | 
           
			 | 
                     (3)  acquisition of all required forms, reports, and  | 
      
      
        | 
           
			 | 
        clearances; | 
      
      
        | 
           
			 | 
                     (4)  verification that other applicable terms have been  | 
      
      
        | 
           
			 | 
        met; | 
      
      
        | 
           
			 | 
                     (5)  verification that there are no outstanding claims  | 
      
      
        | 
           
			 | 
        or disputes; and | 
      
      
        | 
           
			 | 
                     (6)  final payment. | 
      
      
        | 
           
			 | 
               SECTION 14.  Section 2262.001(2), Government Code, is  | 
      
      
        | 
           
			 | 
        amended to read as follows: | 
      
      
        | 
           
			 | 
                     (2)  "Contract management manual [guide]" means the  | 
      
      
        | 
           
			 | 
        manual [guide] developed under Section 2262.051. | 
      
      
        | 
           
			 | 
               SECTION 15.  Section 2262.051, Government Code, is amended  | 
      
      
        | 
           
			 | 
        to read as follows: | 
      
      
        | 
           
			 | 
               Sec. 2262.051.  CONTRACT MANAGEMENT MANUAL [GUIDE];  RULES.   | 
      
      
        | 
           
			 | 
        (a)  In consultation with the attorney general, the Department of  | 
      
      
        | 
           
			 | 
        Information Resources, [the comptroller,] and the state auditor,  | 
      
      
        | 
           
			 | 
        the comptroller [commission] shall develop or periodically update a  | 
      
      
        | 
           
			 | 
        contract management manual [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 comptroller [commission] may adopt rules necessary  | 
      
      
        | 
           
			 | 
        to develop or update the manual [guide]. | 
      
      
        | 
           
			 | 
               (c)  The manual [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 manual [guide] must include model provisions for  | 
      
      
        | 
           
			 | 
        state agency contracts.  The manual [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; | 
      
      
        | 
           
			 | 
                     (3)  include maximum contract periods under which a new  | 
      
      
        | 
           
			 | 
        competitive solicitation is not necessary; and | 
      
      
        | 
           
			 | 
                     (4)  include the model contract management process  | 
      
      
        | 
           
			 | 
        developed under Section 2262.104 and recommendations on the  | 
      
      
        | 
           
			 | 
        appropriate use of the model. | 
      
      
        | 
           
			 | 
               (e)  The manual [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. | 
      
      
        | 
           
			 | 
               (g)  The manual [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 manual [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. | 
      
      
        | 
           
			 | 
               SECTION 16.  The heading to Section 2262.052, Government  | 
      
      
        | 
           
			 | 
        Code, is amended to read as follows: | 
      
      
        | 
           
			 | 
               Sec. 2262.052.  COMPLIANCE WITH MANUAL [GUIDE]. | 
      
      
        | 
           
			 | 
               SECTION 17.  Section 2262.052(a), Government Code, is  | 
      
      
        | 
           
			 | 
        amended to read as follows: | 
      
      
        | 
           
			 | 
               (a)  Each state agency shall comply with the contract  | 
      
      
        | 
           
			 | 
        management manual [guide]. | 
      
      
        | 
           
			 | 
               SECTION 18.  Section 2262.053(b), Government Code, is  | 
      
      
        | 
           
			 | 
        amended to read as follows: | 
      
      
        | 
           
			 | 
               (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 manual [guide]; and | 
      
      
        | 
           
			 | 
                     (7)  use and apply advanced sourcing strategies,  | 
      
      
        | 
           
			 | 
        techniques, and tools. | 
      
      
        | 
           
			 | 
               SECTION 19.  Section 2262.054, Government Code, is amended  | 
      
      
        | 
           
			 | 
        to read as follows: | 
      
      
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               Sec. 2262.054.  PUBLIC COMMENT.  The commission by rule may  | 
      
      
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        establish procedures by which each state agency is required to  | 
      
      
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        invite public comment by publishing the proposed technical  | 
      
      
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        specifications for major contracts on the Internet through the  | 
      
      
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        information service known as the Texas Marketplace or through a  | 
      
      
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        suitable successor information service.  The contract management  | 
      
      
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        manual [guide] must define "technical specifications." | 
      
      
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               SECTION 20.  Section 2262.101, Government Code, as amended  | 
      
      
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        by Chapters 676 (H.B. 1965) and 1227 (S.B. 1681), Acts of the 83rd  | 
      
      
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        Legislature, Regular Session, 2013, is reenacted and amended to  | 
      
      
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        read as follows: | 
      
      
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               Sec. 2262.101.  CREATION; DUTIES. (a)  The Contract  | 
      
      
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        Advisory Team is created to assist state agencies in improving  | 
      
      
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        contract management practices by: | 
      
      
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                     (1)  reviewing and making recommendations on the  | 
      
      
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        solicitation documents and contract documents for contracts of  | 
      
      
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        state agencies that have a value of at least $10 million; | 
      
      
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                     (2)  reviewing any findings or recommendations made by  | 
      
      
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        the state auditor, including those made under Section 2262.052(b),  | 
      
      
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        regarding a state agency's compliance with the contract management  | 
      
      
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        manual [guide]; | 
      
      
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                     (3)  providing recommendations to the comptroller  | 
      
      
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        regarding: | 
      
      
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                           (A)  the development of the contract management  | 
      
      
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        manual [guide]; and | 
      
      
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                           (B)  the training under Section 2262.053; | 
      
      
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                     (4)  providing recommendations and assistance to state  | 
      
      
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        agency personnel throughout the contract management process; | 
      
      
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                     (5)  coordinating and consulting with the quality  | 
      
      
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        assurance team established under Section 2054.158 on all contracts  | 
      
      
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        relating to a major information resources project; [and] | 
      
      
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                     (6) [(4)]  developing and recommending policies and  | 
      
      
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        procedures to improve state agency contract management practices; | 
      
      
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                     (7) [(5)]  developing and recommending procedures to  | 
      
      
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        improve state agency contracting practices by including  | 
      
      
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        consideration for best value; and | 
      
      
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                     (8) [(6)]  creating and periodically performing a risk  | 
      
      
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        assessment to determine the appropriate level of management and  | 
      
      
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        oversight of contracts by state agencies. | 
      
      
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               (b)  The risk assessment created and performed [reviewed]  | 
      
      
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        under Subsection (a)(8) [(a)(6)] must include[, but is not limited 
         | 
      
      
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          to] the following criteria: | 
      
      
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                     (1)  the amount of appropriations to the agency; | 
      
      
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                     (2)  total contract value as a percentage of  | 
      
      
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        appropriations to the agency; or | 
      
      
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                     (3)  the impact of the functions and duties of the state  | 
      
      
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        agency on the health, safety, and well-being of residents  | 
      
      
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        [citizens]. | 
      
      
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               (c)  The comptroller shall oversee the activities of the  | 
      
      
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        team, including ensuring that the team carries out its duties under  | 
      
      
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        Subsections [Subsection] (a)(5) and (a)(7). | 
      
      
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               (d)  A state agency shall: | 
      
      
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                     (1)  comply with a recommendation made under Subsection  | 
      
      
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        (a)(1); or | 
      
      
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                     (2)  submit a written explanation regarding why the  | 
      
      
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        recommendation is not applicable to the contract under review. | 
      
      
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               (e)  The team may review documents under Subsection (a)(1)  | 
      
      
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        only for compliance with contract management and best practices  | 
      
      
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        principles and may not make a recommendation regarding the purpose  | 
      
      
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			 | 
        or subject of the contract. | 
      
      
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               (f)  The team may develop an expedited process for reviewing  | 
      
      
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        solicitations under Subsection (a)(1) for contracts: | 
      
      
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                     (1)  that the team identifies as posing a low risk of  | 
      
      
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			 | 
        loss to the state; or | 
      
      
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                     (2)  for which templates will be used more than once by  | 
      
      
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			 | 
        a state agency. | 
      
      
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			 | 
               SECTION 21.  The following provisions of the Government Code  | 
      
      
        | 
           
			 | 
        are repealed: | 
      
      
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			 | 
                     (1)  Section 2155.080; | 
      
      
        | 
           
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                     (2)  Section 2155.081; | 
      
      
        | 
           
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                     (3)  Section 2155.087; and | 
      
      
        | 
           
			 | 
                     (4)  Section 2155.138. | 
      
      
        | 
           
			 | 
               SECTION 22.  Sections 2261.104, 2261.105, 2261.208,  | 
      
      
        | 
           
			 | 
        2261.351, and 2261.352, Government Code, as added by this Act,  | 
      
      
        | 
           
			 | 
        apply only to a contract for which a state agency first advertises  | 
      
      
        | 
           
			 | 
        or otherwise solicits bids, proposals, offers, or qualifications on  | 
      
      
        | 
           
			 | 
        or after the effective date of this Act. | 
      
      
        | 
           
			 | 
               SECTION 23.  A contract manager is not required to complete  | 
      
      
        | 
           
			 | 
        the training required under Section 2261.301, Government Code, as  | 
      
      
        | 
           
			 | 
        added by this Act, until September 1, 2017. | 
      
      
        | 
           
			 | 
               SECTION 24.  A member of a governing body of a state agency  | 
      
      
        | 
           
			 | 
        is not required to complete the training required under Section  | 
      
      
        | 
           
			 | 
        2261.302, Government Code, as added by this Act, until September 1,  | 
      
      
        | 
           
			 | 
        2017. | 
      
      
        | 
           
			 | 
               SECTION 25.  A state agency is not required to comply with  | 
      
      
        | 
           
			 | 
        Section 2261.202, Government Code, as amended by this Act, and  | 
      
      
        | 
           
			 | 
        Section 2261.004 and Sections 2261.204 through 2261.213,  | 
      
      
        | 
           
			 | 
        Government Code, as added by this Act, until September 1, 2017. | 
      
      
        | 
           
			 | 
               SECTION 26.  To the extent of any conflict, this Act prevails  | 
      
      
        | 
           
			 | 
        over another Act of the 84th Legislature, Regular Session, 2015,  | 
      
      
        | 
           
			 | 
        relating to nonsubstantive additions to and corrections in enacted  | 
      
      
        | 
           
			 | 
        codes. | 
      
      
        | 
           
			 | 
               SECTION 27.  This Act takes effect November 1, 2015. |