| (a) DSHS employees and officers may not have a conflict
of interest in contracts management. An employee or officer has a
conflict of interest when the employee, officer, or a person related
within the second degree of consanguinity or affinity to the employee
or officer, intends to have or has:
(1) actual employment with a respondent or contractor;
(2) paid consultation with a respondent or contractor;
(3) membership on a respondent's or contractor's board
of directors;
(4) ownership of 10% or more of the voting stock of
shares of a respondent or contractor;
(5) ownership of 10% or more or $5,000 or more of the
fair market value of a respondent or contractor; or
(6) received funds from a respondent or contractor
in excess of 10% of the employee's, officer's, or related person's
gross income for the previous year.
(b) DSHS employees and officers who participate in
contracts management may not:
(1) accept or solicit any gift, favor, service, or
benefit from a respondent or contractor that might reasonably tend
to influence the officer or employee in the discharge of official
duties relating to contract management, or that the officer or employee
knows or should know is being offered with the intent to influence
the officer's or employee's official duties; or
(2) intentionally or knowingly solicit, accept, or
agree to accept any benefit for having exercised official powers or
for having performed official duties in favor of another respondent
or contractor.
(c) DSHS employees who participate in contracts management
shall comply with additional standards of ethical conduct contained
in the DSHS manuals and applicable state law.
(d) A respondent and its officers and employees may
not have a conflict of interest in the solicitation for which the
respondent submits a response. A person has a conflict of interest
when that person is related within the second degree of consanguinity
or affinity to a DSHS employee or officer participating in the contract
management for that contract.
(e) A respondent may not attempt to induce any business
entity to submit or not submit a response.
(f) A respondent must arrive at its response independently
and without consultation, communication, or agreement for the purposes
of restricting competition.
(g) A respondent and its officers and employees may
not have a relationship with any person, at the time of submitting
the response or during the contract term, that may interfere with
fair competition.
(h) A respondent and its officers and employees may
not participate in the development of specific criteria for award
of the contract, nor participate in the selection of the business
entity to be awarded the contract.
(i) When contracting with former and retired employees
and officers, DSHS must ensure compliance with applicable state law,
including the Texas Government Code, §§572.054, 659.0115,
and 2252.901.
(j) Except for the contracts management of construction
contracts and performance contracts, all contracts management must
be conducted in accordance with the requirements of the DSHS or HHSC
Contracts Manual.
(k) All contracts must contain standard terms and conditions
as described in the DSHS Contracts Manual unless an exception is granted
by HHSC.
(l) DSHS is prohibited from contracting with a business
entity that:
(1) is held in abeyance or barred from the award of
a federal or state contract;
(2) is not in good standing for state tax, pursuant
to the Texas Business Corporation Act, Texas Civil Statutes, Article
2.45;
(3) is not residing or located in Texas unless the
business entity has a Texas sales tax permit or certifies that the
entity does not sell taxable goods or services within Texas, pursuant
to the Texas Government Code, §2155.004;
(4) is on warrant hold status, pursuant to the Texas
Government Code, §403.055; or
(5) is ineligible to receive a contract, pursuant to
the Texas Family Code, §231.006.
(m) DSHS must ensure that its contractors comply with
all contract provisions regardless of whether a contractor subcontracts
a portion of the contract.
(n) DSHS may make advance payments to a contractor
provided the payments meet a public purpose, ensure adequate consideration,
and are accompanied by sufficient controls to ensure accomplishment
of the public purpose. With the exception of contracts paid on a capitated
basis, at the end of each contract period the contractor must return
to DSHS any state or federal funds received from or through DSHS that
have not been expended or encumbered within the term of the contract.
(o) DSHS may recoup improper payments when it is verified
that a contractor has been overpaid because of improper billing or
accounting practices or failure to comply with the contract terms.
The determination of impropriety is based on federal, state, and local
laws and rules; DSHS procedures; contract provisions; or statistical
data on program use compiled from paid claims and other sources of
data. DSHS will recoup payments for contracted services not received
by DSHS.
(p) DSHS shall ensure quality services are provided
to consumers, including during the transition from one contractor
to another.
(q) All purchases of goods and services may be made
only pursuant to a contract.
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