88R4227 YDB-D     By: Capriglione H.B. No. 1418       A BILL TO BE ENTITLED   AN ACT   relating to state agency contracting and certain state employees   involved with the contracting.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 656.052(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 guide;                (7)  use and apply advanced sourcing strategies,   techniques, and tools;                (8)  maintain required documentation for contracting   decisions, changes to a contract, and problems with a contract;                (9)  create a risk evaluation and mitigation strategy;                (10)  create a plan for potential problems with the   contract;                (11)  develop an accurate and comprehensive statement   of work; [and]                (12)  complete the contract and evaluate performance   under the contract; and                (13)  determine best value for the state through the   exercise of informed business judgment based on price and non-price   factors expected to result in best value, including the factors   described by Section 2155.074.          SECTION 2.  Subchapter K, Chapter 659, Government Code, is   amended by adding Section 659.2552 to read as follows:          Sec. 659.2552.  SALARY INCREASE FOR CONTRACT EVALUATORS. A   state agency may establish a procedure and requirements for   determining the eligibility for a salary increase of an agency   employee who acts as an evaluator for agency procurement in   addition to the employee's regularly assigned duties. The procedure   and requirements may authorize a salary increase only for an   employee who meets the qualifications for employment in the agency   division overseeing the implementation of the procurement.          SECTION 3.  Section 2155.074, Government Code, is amended by   amending Subsections (b) and (b-1) and adding Subsection (b-2) to   read as follows:          (b)  In determining the best value for the state, the   purchase price and whether the goods or services meet   specifications are principal considerations that must be balanced   with other relevant factors, including the factors described by   this section.          (b-1)  For a procurement in an amount equal to $20 million or   less, the [The] comptroller or other state agency may, subject to   Subsection (c) and Section 2155.075, consider other [the following]   relevant factors [under Subsection (b)], including:                (1)  required contract outcomes [installation costs];                (2)  best quality for economic value of the contract    [life cycle costs];                (3)  timely performance under the contract [the quality   and reliability of the goods and services];                (4)  the encouragement of continued participation by   quality contractors [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 impact on the agency's flexibility in   developing alternative procurement and business relationships [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 to the   state or a subdivision of the state, including potential tax   revenue and employment;                (9)  the impact of a purchase on the agency's   administrative resources; and                (10)  other factors relevant to determining the best   value for the state in the context of a particular purchase.          (b-2)  For a procurement in an amount that exceeds $20   million, the comptroller or other state agency shall, subject to   Subsection (c) and Section 2155.075, consider the factors listed in   Subsection (b-1) and the purchase price.          SECTION 4.  Section 2155.144, Government Code, is amended by   adding Subsections (h-1) and (j-1) to read as follows:          (h-1)  Each health and human services agency and the Health   and Human Services Commission shall ensure the agency's contract   managers complete the training developed under Section 656.052 and   comply with the requirements of Section 2262.058.          (j-1)  The contract management handbook published under   Subsection (j) must include:                (1)  instructions for ensuring that:                      (A)  health and human services agency employees   who are involved in implementing a specific procurement are also   involved in evaluating and scoring the responses submitted to the   solicitation for the procurement;                      (B)  appropriate health and human services agency   employees answer questions from vendors in a timely manner; and                      (C)  vendors that participate or are interested in   participating in a state agency procurement have access to at least   two agency employees who serve as contacts for the agency;                (2)  a model communications procedure for vendors and   state agency employees, developed in collaboration with   representatives from vendors and state agencies, to use in agency   solicitations; and                (3)  procedures for:                      (A)  notifying other responsive vendors if a state   agency employee or another vendor violates the communications   requirements for a solicitation;                      (B)  determining when a state agency employee or   vendor has failed to comply with the communications provisions of a   solicitation; and                      (C)  ensuring an appropriate number of interested   vendors are granted access to a pre-bid, pre-offer, or pre-proposal   conference.          SECTION 5.  Sections 2262.051(a) and (c), Government Code,   are amended to read as follows:          (a)  In consultation with the attorney general, the   Department of Information Resources, business and industry   representatives, and the state auditor, the comptroller shall   develop or periodically update a contract management guide for use   by state agencies.  Participation by the state auditor under this   subsection is subject to approval by the legislative audit   committee for inclusion in the audit plan under Section 321.013(c).          (c)  The guide must provide information regarding the   primary duties of a contract manager, including how to:                (1)  develop and negotiate a contract;                (2)  select a contractor; [and]                (3)  monitor contractor and subcontractor performance   under a contract;                (4)  appoint as evaluators for procurements agency   employees who serve in agency divisions overseeing the   implementation of the procurements;                (5)  ensure that appropriate state agency employees   answer questions in a timely manner;                (6)  develop a model communications procedure for   vendors and state agency employees to be included in the agency's   solicitations; and                (7)  establish procedures for:                      (A)  notifying other responsive vendors if a state   agency employee or another vendor violates the communications   requirements for the solicitation;                      (B)  determining when a state agency employee or   vendor has failed to comply with the communications provisions of a   solicitation;                      (C)  ensuring an appropriate number of interested   vendors are granted access to a pre-bid, pre-offer, or pre-proposal   conference; and                      (D)  ensuring that state agency personnel who are   involved in implementing a specific procurement are also involved   in evaluating and scoring the responses submitted to the   solicitation for the procurement.          SECTION 6.  Subchapter B, Chapter 2262, Government Code, is   amended by adding Section 2262.058 to read as follows:          Sec. 2262.058.  CERTAIN CONTRACT MANAGERS. For a contract   manager who participates in the procurement of a contract with a   value of $20 million or more, the contract manager shall:                (1)  participate in additional training specific to the   category of goods or services to be procured; and                (2)  develop a document to be retained with the records   for the procurement that includes a written statement certified by   the contract manager that the contract manager developed and   implemented appropriate control mechanisms to ensure vendor   proposals or other expressions of interest were evaluated or scored   as outlined in the solicitation for the procurement.          SECTION 7.  As soon as practicable after the effective date   of this Act, the comptroller of public accounts shall adopt the   rules and update the contract management handbook and contract   management guide as necessary to implement the changes in law made   by this Act.          SECTION 8.  (a)  The changes in law made by this Act apply   only to a contract for which a state agency first advertises or   otherwise solicits offers, bids, proposals, qualifications, or   other applicable expressions of interest on or after the effective   date of this Act.  A contract for which a state agency first   advertises or otherwise solicits offers, bids, proposals,   qualifications, or other applicable expressions of interest before   the effective date of this Act is governed by the law as it existed   immediately before the effective date of this Act, and that law is   continued in effect for that purpose.          (b)  Notwithstanding Section 656.052, Government Code, as   amended by this Act, or Section 2262.058, Government Code, as added   by this Act, a state agency employee is not required to comply with   the training requirements under those sections before March 1,   2024.          SECTION 9.  If before implementing any provision of this Act   a state agency determines that a waiver or authorization from a   federal agency is necessary for implementation of that provision,   the agency affected by the provision shall request the waiver or   authorization and may delay implementing that provision until the   waiver or authorization is granted.          SECTION 10.  This Act takes effect September 1, 2023.