|(a) Purpose. The purpose of this rule is to establish
the approval authority and responsibilities for executing contracts
required by the department.
(b) Applicability. This rule applies to all contracts
entered into by the department.
(c) Definitions. As used in this section, the following
terms shall have the following meanings, unless the context clearly
(1) Board--The governing board of the department.
(2) Contract--A written agreement between the department
and a contractor for goods or services. As used in this section, "contract"
includes the following: letters of agreement; interagency/interlocal
agreements with other government entities; and other documents in
which state funds or services allocated to the department are exchanged
for the delivery of other goods or services.
(3) Major Outsourced Contract--A contract the department
executes with entities other than this state or a political subdivision
of this state that:
(A) is authorized under Government Code, Chapter 2054,
Subchapter I or Subchapter L, or Chapter 2170; or
(B) exceeds the monetary threshold in subsection (d)(1)(A)
of this section, other than those contracts described in subparagraph
(A) of this paragraph.
(4) Value--The department adopts by reference the determination
of contract value set forth in the State of Texas Contract Management
Guide. The determination of contract value shall include, in addition
to compensation to a contractor from funds allocated to the department,
an amount deposited into the State general revenue fund or other state
fund in a revenue sharing contract arrangement with a contractor.
(d) Approval Authority.
(1) Board Approval. The executive director or his/her
designee shall present certain contracts to the board for approval.
After a contractor is selected, a majority of the board shall provide
final approval of the contract with the selected contractor. The board
shall consider for final approval:
(A) any contract or amendment with a value expected
to exceed $1,000,000;
(B) any major outsourced contract;
(C) any amendment to a major outsourced contract if
the amendment has significant statewide impact. Significant statewide
impact is defined as affecting critical state contractual objectives,
assumptions or constraints , rising to the level of substantive impact
fiscally, programmatically or otherwise at a statewide level and not
as an isolated incident. Examples of situations with significant statewide
impact include, but are not limited to, contract renewal, contract
termination, and vendor changes. Examples of situations that do not
rise to the level of significant statewide impact include but are
not limited to, revisions to existing services, addition of optional
services, contract language clarifications, changes in definitions,
service provider locations, key personnel, and addition of new customers.
(D) any other contract deemed appropriate for board
approval as determined by the executive director.
(2) Agency Approval.
(A) The board delegates authority to the executive
director or his/her designee to approve all contracts not listed in
paragraph (1) of this subsection.
(B) The board delegates authority to the executive
director to approve a purchase request or contract listed in paragraph
(1) of this subsection for an emergency as such is defined in 34 TAC
§20.32, or to avoid undue material additional cost to the state.
The executive director shall report any purchase requests or contracts
executed by the executive director pursuant to the authority in this
subsection to the board chair prior to execution of any such purchase
requests or contracts subject to this rule.
(e) Authority to Execute Contracts. The board delegates
authority to the executive director to execute all contracts for the
department. This authority may be delegated by the executive director
to the deputy executive director or other designee.
(f) Contract Planning.
(1) The department will present to the Board for approval
a contract plan for the next fiscal year that outlines the agency's
anticipated contracting actions that exceed $100,000.
(2) As deemed necessary by the executive director or
his/her designee, updates to the contract plan will be provided to
the board for approval periodically throughout the fiscal year.
(g) Contract Monitoring
(1) Each contract identified as a major outsourced
contract under subsection (c)(3)(A) above shall be subject to enhanced
contract and performance monitoring.
(2) Information about contracts subject to such monitoring
shall be regularly presented to the board and the executive director
of the department.
(3) The department will immediately notify the board
of any serious issue or risk that is identified with a contract subject
to such monitoring.
|Source Note: The provisions of this §201.6 adopted to be effective March 6, 2012, 37 TexReg 1486; amended to be effective March 19, 2014, 39 TexReg 1926; amended to be effective November 23, 2015, 40 TexReg 8191; amended to be effective November 23, 2017, 42 TexReg 6505