H.B. No. 2918
 
 
 
 
AN ACT
  relating to state information technology contracting and
  procurement practices.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 44.031(a), Education Code, is amended to
  read as follows:
         (a)  Except as provided by this subchapter, all school
  district contracts, except contracts for the purchase of produce or
  vehicle fuel, valued at $25,000 or more in the aggregate for each
  12-month period shall be made by the method, of the following
  methods, that provides the best value for the district:
               (1)  competitive bidding;
               (2)  competitive sealed proposals;
               (3)  a request for proposals, for services other than
  construction services;
               (4)  [a catalogue purchase as provided by Subchapter B,
  Chapter 2157, Government Code;
               [(5)]  an interlocal contract;
               (5) [(6)]  a design/build contract;
               (6) [(7)]  a contract to construct, rehabilitate,
  alter, or repair facilities that involves using a construction
  manager;
               (7) [(8)]  a job order contract for the minor
  construction, repair, rehabilitation, or alteration of a facility;
               (8) [(9)]  the reverse auction procedure as defined by
  Section 2155.062(d), Government Code; or
               (9) [(10)]  the formation of a political subdivision
  corporation under Section 304.001, Local Government Code.
         SECTION 2.  The heading to Section 2054.0565, Government
  Code, is amended to read as follows:
         Sec. 2054.0565.  USE OF CONTRACTS BY OTHER [GOVERNMENTAL]
  ENTITIES.
         SECTION 3.  Section 2054.0565, Government Code, is amended
  by amending Subsection (a) and adding Subsections (c) and (d) to
  read as follows:
         (a)  The department may include terms in a procurement
  contract entered into by the department, including a contract
  entered into under Section 2157.068, that allow the contract to be
  used by another state agency, a political subdivision of this
  state, [or] a governmental entity of another state, or an
  assistance organization as defined by Section 2175.001.
         (c)  Notwithstanding any other law, a state governmental
  entity that is not a state agency as defined by Section 2054.003 may
  use a contract as provided by Subsection (a) without being subject
  to a rule, statute, or contract provision, including a provision in
  a contract entered into under Section 2157.068, that would
  otherwise require the state governmental entity to:
               (1)  sign an interagency agreement; or
               (2)  disclose the items purchased or the value of the
  purchase.
         (d)  A state governmental entity that is not a state agency
  as defined by Section 2054.003 that uses a contract as provided by
  Subsection (a) may prohibit a vendor from disclosing the items
  purchased, the use of the items purchased, and the value of the
  purchase.
         SECTION 4.  Section 2054.301, Government Code, is amended to
  read as follows:
         Sec. 2054.301.  APPLICABILITY; DEFINITION.  (a) This
  subchapter applies only to:
               (1)  a major information resources project; and
               (2)  a major contract.
         (b)  In this subchapter, "major contract" means a major
  contract as defined by Section 2262.001(4) under which a vendor
  will perform or manage an outsourced function or process.
         SECTION 5.  Sections 2054.303(a) and (c), Government Code,
  are amended to read as follows:
         (a)  For each proposed major information resources project
  or major contract, a state agency must prepare:
               (1)  a business case providing the initial
  justification for the project or contract, including the
  anticipated return on investment in terms of cost savings and
  efficiency for the project or contract; and
               (2)  a statewide impact analysis of the project's or
  contract's effect on the state's common information resources
  infrastructure, including the possibility of reusing code or other
  resources.
         (c)  The department shall use the analysis to ensure that the
  proposed project or major contract does not unnecessarily duplicate
  existing statewide information resources technology.
         SECTION 6.  Section 2054.304, Government Code, is amended to
  read as follows:
         Sec. 2054.304.  PROJECT PLANS.  (a)  A state agency shall
  develop a project plan for each major information resources project
  or major contract.
         (b)  Except as provided by Subsection (c), the state agency
  must file the project plan with the quality assurance team and the
  Texas Building and Procurement Commission before the agency:
               (1)  spends more than 10 percent of allocated funds for
  the project or major contract; or
               (2)  first issues a vendor solicitation for the project
  or contract.
         (c)  Unless the project plan has been filed under this
  section:
               (1)  the Texas Building and Procurement Commission may
  not issue a vendor solicitation for the project or major contract;
  and
               (2)  the agency may not post a vendor solicitation for
  the project or contract in the state business daily under Section
  2155.083.
         SECTION 7.  Section 2054.305, Government Code, is amended to
  read as follows:
         Sec. 2054.305.  PROCUREMENT PLAN AND METHOD FOR MONITORING
  CONTRACTS.  Before issuing a vendor solicitation for a project or
  major contract, the state agency must develop, consistent with
  department guidelines:
               (1)  a procurement plan with anticipated service levels
  and performance standards for each vendor; and
               (2)  a method to monitor changes to the scope of each
  contract.
         SECTION 8.  Section 2155.502, Government Code, is amended by
  amending Subsections (b) and (c) and adding Subsection (e) to read
  as follows:
         (b)  In developing a [the] schedule under Subsection (a) or
  (e), the commission or department, as appropriate, shall modify any
  contractual terms, with the agreement of the parties to the
  contract, as necessary to comply with any federal or state
  requirements, including rules adopted under this subchapter.
         (c)  The commission may not list a multiple award contract on
  a schedule developed under Subsection (a) [this section] if the
  goods or services provided by that contract:
               (1)  are available from only one vendor; [or]
               (2)  are telecommunications services, facilities, or
  equipment; or
               (3)  are commodity items as defined by Section
  2157.068(a).
         (e)  The department may develop a schedule of multiple award
  contracts for commodity items as defined by Section 2157.068(a)
  using the criteria established under Subsection (a).
         SECTION 9.  Subchapter A, Chapter 2157, Government Code, is
  amended by adding Section 2157.006 to read as follows:
         Sec. 2157.006.   PURCHASING METHODS. (a) The commission or
  other state agency shall purchase an automated information system
  using:
               (1)  the purchasing method described by Section
  2157.068 for commodity items; or
               (2)  a purchasing method designated by the commission
  to obtain the best value for the state, including a request for
  offers method.
         (b)  A local government may purchase an automated
  information system using a method listed under Subsection (a). A
  local government that purchases an item using a method listed under
  Subsection (a) satisfies any state law requiring the local
  government to seek competitive bids for the purchase of the item.
         (c)  The commission shall adopt rules for designating
  purchasing methods under Subsection (a)(2).
         SECTION 10.  The heading to Subchapter B, Chapter 2157,
  Government Code, is amended to read as follows:
  SUBCHAPTER B.  COMMODITY ITEMS [CATALOG PURCHASE METHOD]
         SECTION 11.  The heading to Section 2157.068, Government
  Code, is amended to read as follows:
         Sec. 2157.068.  PURCHASE OF INFORMATION TECHNOLOGY
  COMMODITY ITEMS.  
         SECTION 12.  Section 2157.068, Government Code, is amended
  by amending Subsection (b) and adding Subsection (i) to read as
  follows:
         (b)  The department shall negotiate with [catalog
  information systems] vendors to attempt to obtain a favorable price
  for all of state government on licenses for commodity items, based
  on the aggregate volume of purchases expected to be made by the
  state. The terms and conditions of a license agreement between a
  vendor and the department under this section may not be less
  favorable to the state than the terms of similar license agreements
  between the vendor and retail distributors.
         (i)  Unless the agency has express statutory authority to
  employ a best value purchasing method other than a purchasing
  method designated by the commission under Section 2157.006(a)(2), a
  state agency shall use a purchasing method provided by Section
  2157.006(a) when purchasing a commodity item if:
               (1)  the agency has obtained an exemption from the
  department or approval from the Legislative Budget Board under
  Subsection (f); or
               (2)  the agency is otherwise exempt from this section.
         SECTION 13.  Section 2262.051, Government Code, is amended
  by adding Subsection (h) to read as follows:
         (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.
         SECTION 14.  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; [and]
               (6)  comply with any requirements or goals contained in
  the contract management guide; and
               (7)  use and apply advanced sourcing strategies,
  techniques, and tools.
         SECTION 15.  Section 60.454, Water Code, is amended to read
  as follows:
         Sec. 60.454.  PURCHASING CONTRACT METHODS.  Notwithstanding
  any other provision of this chapter or other law, a district
  contract valued at $25,000 or more in the aggregate for each
  12-month period may be made by the method below that, in the opinion
  of the district's commission, provides the best value for the
  district:
               (1)  a design-build contract to construct,
  rehabilitate, alter, or repair facilities;
               (2)  a contract to construct, rehabilitate, alter, or
  repair facilities that involves using a construction manager-agent
  or construction manager-at-risk;
               (3)  competitive sealed proposals;
               (4)  a job order contract for the construction, repair,
  rehabilitation, or alteration of a facility;
               (5)  a request for proposals, if the contract is for
  services other than construction services;
               (6)  competitive sealed bids;
               (7)  [a catalog purchase as provided by Subchapter B,
  Chapter 2157, Government Code;
               [(8)]  an interlocal contract as provided by Chapter
  791, Government Code;
               (8) [(9)]  the reverse auction procedure as defined by
  Section 2155.062(d), Government Code;
               (9) [(10)]  a contract with the United States,
  including any agency thereof; or
               (10) [(11)]  a contract with this state, including an
  agency of this state.
         SECTION 16.  The following sections are repealed:
               (1)  2155.507, Government Code;
               (2)  2157.061, Government Code;
               (3)  2157.0611, Government Code;
               (4)  2157.062, Government Code;
               (5)  2157.063, Government Code;
               (6)  2157.066, Government Code; and
               (7)  2157.067, Government Code.
         SECTION 17.  Subchapter J, Chapter 2054, Government Code, as
  amended by this Act, applies only to a major contract entered into
  on or after the effective date of this Act. A major contract
  entered into before the effective date of this Act is governed by
  the law in effect on the date the contract was entered into, and the
  former law is continued in effect for that purpose.
         SECTION 18.  The Texas Building and Procurement Commission
  must comply with Sections 2157.006(c) and 2262.051(h), Government
  Code, as added by this Act, and Section 2262.053(b), Government
  Code, as amended by this Act, not later than October 1, 2007.
         SECTION 19.  This Act takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2918 was passed by the House on May 8,
  2007, by the following vote:  Yeas 146, Nays 0, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 2918 on May 24, 2007, by the following vote:  Yeas 141, Nays 0,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 2918 was passed by the Senate, with
  amendments, on May 22, 2007, by the following vote:  Yeas 30, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor