TITLE administration

Part V. General Services Commission

Chapter 115. Building and Property Services Division

Subchapter A. State Owned Property

1 TAC §115.7

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the General Services Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The General Services Commission proposes the repeal of Title 1, Texas Administrative Code (TAC), §115.7, concerning burial in the Texas State Cemetery in order to delete obsolete language that resulted from the creation of the Texas State Cemetery Committee ("Committee") by Senate Bill 973, 75th Legislature (1997). The Committee has proposed for adoption new rules under Title XIII, (TAC), Chapter 71, for the administration of the Texas State Cemetery that will go into effect in the latter part of November. The Committee's rulemaking authority is located under the Texas Government Code, Sections 2165.256(i) and 2165.2561(m).

Jerry Williams, Associate Deputy Director, has determined that for the first five-year period there will be no fiscal impact to state or local government as a result of repealing rule §115.7.

Jerry Williams, Associate Deputy Director, also has determined that for each of the first five years the repeal is in effect the public benefit anticipated as a result of enforcing the repeal of rule §115.7 will be the deletion of obsolete language. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal as proposed.

Comments on the proposals may be submitted to Judy Ponder, General Counsel, General Services Commission, P.O. Box 13047, Austin, Texas 78711-3047. Comments must be received no later than thirty days from the date of publication of the proposal to the Texas Register .

The repeal of rule §115.7 is proposed under the Texas Government Code, Title 10, Subtitle D, Section 2152.003, which provides the General Services Commission with the authority to promulgate rules consistent with Subtitle D.

The Texas Government Code, Chapter 2165, Sections 2165.256 and 2165.2561 are affected by the proposed repeal of rule §115.7.

§115.7. Burial in the State Cemetery.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on November 16, 1998.

TRD-9817604

Judy Ponder

General Counsel

General Services Commission

Earliest possible date of adoption: January 3, 1999

For further information, please call: (512) 463-3960


Part XVI. State Council on Competitive Government

Chapter 401. Administration

The State Council on Competitive Government proposes amendments to Title 1, Texas Administrative Code, Part XVI, Chapter 401 under Subchapter A - Sections 401.1 - 401.4; Subchapter B - 401.21 - 401.28; Subchapter C - 401.42 - 401.49; Subchapter D - 401.61 and 401.62; Subchapter E - 401.81 and 401.82; and Subchapter F - 401.102 - 401.104 relating to Administration. The amendments are being proposed to clarify existing language and to update the title of the statute. The council also proposes under Subchapter F. Monitoring of Services, a new §401.105 relating to Contract Modification Notification by Contracting Agency to the Council. This new section is being proposed to clarify an executing agency's responsibilities regarding a contract.

Tom Treadway, Clerk of the Council on Competitive Government, has determined that for the first five years the proposed amendments and the new section are in effect, there will be no fiscal implications for state or local government as a result of administering the proposed changes.

Tom Treadway, Clerk of the Council on Competitive Government, has determined that for each year of the first five years the sections are in effect, the public benefit anticipated will be improved efficiency due to clarification of language. There will be no cost to small or large businesses and/or individuals.

Comments on the proposed sections may be submitted to Michelle, Director, State Council on Competitive Government, 1711 San Jacinto, Room 201-E, Austin, Texas 78711. Comments must be received no later than 30 days from the date of publication of the proposed sections in the Texas Register .

Subchapter A. General Rules

1 TAC §§401.1-401.4

The amended sections are proposed under Government Code, Title 10, Subtitle D, Chapter 2162, Subchapter B, Section 2162.101 (General Powers) which provide the State Council on Competitive Government with the authority to adopt a rule governing any aspect of the Council's duties or responsibilities.

The following code is affected by the proposed amendments: Government Code, Title, Subtitle D, Chapter 2162.

§401.1.General Statement of Purpose.

Pursuant to Government Code, Chapter 2162 [ Texas Civil Statutes, Article 601b, Article 15 ], the State Council on Competitive Government shall [ is responsible for developing a program to ] encourage competition, innovation, and creativity in providing state services in order to improve the quality and cost-effectiveness of those services. These rules are promulgated to inform the public and provide an orderly procedure to accomplish the responsibilities provided by law.

§401.2.Definitions.

The following words, terms, and phrases, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1)

Agency in-house cost estimate--A state agency report containing [ that contains ] the agency's computation of the estimated cost to the agency of producing [ to produce ] or delivering [ deliver ] a desired quality and quantity of an identified state service using agency personnel and facilities and [ ,which computation must be made using ] the council-approved cost methodology.

(2)

Clerk--The executive director of the commission, who shall serve as the clerk of the council pursuant to §401.21(b) of this title (relating to Council Officers) as follows.

[ Commission--The General Services Commission. ]

(3)

Commercially available service--A service performed or provided by at least two private service providers within the state.

(4)

Commission--The General Services Commission.

(5)

Competitive process--Any procedure approved by the council [ that is ] designed to provide identified state services in competition with [ private ] service providers[ or other state agency providers ].

(6)

Comptroller--The Comptroller of Public Accounts.

(7)

Council--The State Council on Competitive Government.

(8)

Council-approved cost methodology--A methodology developed or approved by the council, designed to accurately identify all direct and indirect costs incurred by a state agency in providing a particular service, for use by state agencies in preparing agency in-house cost estimates or similar reports to the council, and for other purposes specified in this chapter.

(9)

Designees--Individuals designated by council members to act on their behalf pursuant to §401.22 of this title (relating to Designees) as follows.

[ Historically underutilized business-- ]

[ (A)

a corporation formed to make for the purpose of making a profit in which at least 51% of all classes of the shares of stock or other equitable securities are owned by one or more persons who: ]

[ (i)

have suffered the effects of discriminatory practices or similar insidious circumstances over which they have no control, including African Americans, Hispanic Americans, women, Asian Americans, and Native Americans; and]

[ (ii)

have a proportionate interest and demonstrate active participation in the control, operation, and management of the corporation's affairs; ]

[ (B)

a sole proprietorship created for the purpose of making a profit that is 100% owned, operated, and controlled by a person described by subparagraph (A)(i) of this definition; ]

[ (C)

a partnership formed for the purpose of making a profit in which at least 51% of the assets and interest in the partnership is owned by one or more persons who:]

[ (i)

are described by subparagraph (A)(i) of this definition; and]

[ (ii)

have a proportionate interest and demonstrate active participation in the control, operation, and management of the partnership affairs;]

[ (D)

a joint venture in which each entity in the joint venture is a historically underutilized business under this section; or ]

[ (E)

a supplier contract between a historically underutilized business under this section and a prime contractor under which the historically underutilized business is directly involved in the manufacture or distribution of the supplies or materials or otherwise warehouses and ships the supplies. ]

(10)

Identified state service--A service provided by the state that the council identifies [ has identified ] as a commercially available service and is reviewed [ brought under study ] by the council to determine whether the service may [ better ] be provided more effectively through competition with private service providers and/or state agencies other than the agency currently providing the service.

(11)

Management study--A state agency analysis of an activity conducted by that agency used [ that is made ] to determine the essential elements of an activity, [ the ] quality and quantity of the services delivered, and the method used by the agency to provide those services.

(12)

Person--Any individual, corporation, partnership, joint venture, or other legal entity, including an agency or office of state or local government.

(13)

Proposal--An offer to perform an identified state service, made within guidelines prescribed by the council.

(14)

Proposer--Any person who submits a proposal to the council.

(15)

Salvage property--Any personal property which through use, time, or accident is so depleted, worn out, damaged, used, or consumed that it has no value for the purpose for which it was originally intended.

(16)

Service provider--A public or private entity performing an identified state service.

(17)

State agency--

(A)

any department, commission, board, office, or other agency in the executive branch of state government created by the constitution or a statute [ of this state, except the Texas High-Speed Rail Authority ];

(B)

the supreme court [ Supreme Court of Texas ], the court of criminal appeals [ Court of Criminal Appeals of Texas ], a court of [ civil ] appeals, or the Texas [ Civil ] Judicial Council; or

(C)

a university system or an institution of higher education as defined in the Education Code, §61.003, as amended, other than a public community/junior [ junior ] college.

(18)

Suggestion--A solicited or unsolicited letter, memorandum, or other document submitted to the council or a state agency pursuant to §401.42 of this title (relating to Submission and Receipt of Suggestions), recommending that the council consider designating a particular state service as an identified state service.

(19)

Surplus property--Any personal property exceeding [ which is in excess of ] the needs of any state agency and which is not required for its foreseeable needs. The term 'surplus property' includes [ Surplus property may be ] used or new property that retains [ but possesses ] some usefulness for the purpose for [ of ] which it was intended or for another [ some other ] purpose.

§401.3.Exemption from State Purchasing Laws.

Contracts awarded [ made ] by the council, decisions regarding whether a state agency must engage in a competitive process, the designation of services as identified state services, and all other related actions taken by the council [ in connection therewith ] are exempt from all state laws regulating or limiting state purchasing and purchasing decisions. [ This exemption applies to all decisions and actions of the council directly or indirectly relating to the competitive process. ]

§401.4.Reporting Cost Savings.

The council periodically may develop or collect information on [ regarding ] cost savings and enhanced revenue realized by the state [ and ] resulting from identified state services [ that have been ] subjected to competition by the council. The [ In connection therewith, the ] council periodically may require state agencies to identify and report to the council cost savings and enhanced revenue realized [ by such agencies and resulting ] from services provided by the [ such ] agencies which were [ have been ] subjected to competition by the council. The council may take appropriate steps to verify the information received from [ state ] agencies. The council may report its findings to the governor or the Legislative Budget Board for consideration under budget execution [ the ] provisions of the Government Code, Chapter 317.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on November 19, 1998.

TRD-9817702

Chester Beattie

Legal Counsel

State Council on Competitive Government

Earliest possible date of adoption: January 3, 1999

For further information, please call: (512) 463-3960


Subchapter B. Council Meeting Guidelines and Requirements

1 TAC §§401.21-401.28

The amended sections are proposed under Government Code, Title 10, Subtitle D, Chapter 2162, Subchapter B, Section 2162.101 (General Powers) which provide the State Council on Competitive Government with the authority to adopt a rule governing any aspect of the Council's duties or responsibilities.

The following code is affected by the proposed amendments: Government Code, Title, Subtitle D, Chapter 2162.

§401.21.Council Officers.

(a)

(No change.)

(b)

The executive director of the commission is designated as the clerk of the council and shall perform the duties contained in this title [ prescribed herein ] and [ such ] other duties determined [ as may be prescribed ] by the council.

(c)

Notices, suggestions, correspondence, or other documents to be delivered to the council shall be delivered to the clerk for distribution to the members of the council. Information [ Such information ] shall be delivered to the clerk of the [ at ] Council on Competitive Government, General Services Commission, 1711 San Jacinto, P.O. Box 13047, Austin, Texas 78711-3047, (512) 463-2169, facsimile (512) 463-3310 [ (512)463-3446 ].

§401.22.Designees.

(a)

(No change.)

(b)

Designees have full power and authority to act on behalf of the members of the council whom they represent, including all power and authority vested under Government Code, Chapter 2162 [ Texas Civil Statutes, Article 601b, Article 15 ], and under this chapter.

(c)

The council may assign staff to [ review, evaluate, ] consider[ , ] or analyze any suggestions, proposals, or other information on the council's behalf. The assigned staff shall [ may ] perform any function deemed necessary by the council. Results [ The results ] of any analysis [ reviews or evaluations ] may be made in writing and submitted to the clerk for distribution to council members. The council may consider the written recommendations, but shall not be bound by such recommendations.

§401.23.Meetings.

(a)

The council shall meet subject to [ at least once quarterly and at other times at the ] call of the presiding officer or upon the written request of three or more members of the council. Written [ Any written ] requests must be filed with the clerk. All meetings shall comply with [ the ] open meetings provisions in the Government Code, Chapters [ Chapter ] 551 and 2162 [ ;Texas Civil Statutes, Article 601b, Article 15; ] and this chapter.

(b)

The council shall maintain a written plan describing [ that describes ] how a person who does not speak English, or who has a physical, mental, or developmental impairment [ handicap ] may be provided with reasonable access to council meetings.

(c)

The clerk shall file [ be responsible for filing ] notice of meetings as required by law. The clerk shall also give notice of the meetings to council members.

(d)

(No change.)

§401.24.Agenda for Council Meetings.

(a) - (c)

(No change.)

(d)

If the presiding officer finds that an emergency exists requiring immediate council action, additional items may be added to the agenda in accordance with [ the ] provisions of Government Code, Chapter 551 [ the Texas Open Meetings Act ].

§401.25.Record of Meetings.

The clerk shall keep a complete record of council [ the ] meetings [ of the council ] and shall prepare written summaries or minutes reflecting actions taken by [ the ] council members present as required by the Government Code, Chapter 551.

§401.26.Voting Procedures.

The council may act [ take action ] upon a majority vote of [ the ] members eligible to vote on that action. A council member is not eligible to vote on the award of a contract by the council if that council member has a conflict of interest under §401.49 of this title (relating to Conflict of Interest), or is otherwise precluded from voting by §401.49 of this title.

§401.27.Public Comment.

(a)

The council shall develop and implement reasonable policies providing [ that provide ] the public with an opportunity to appear before the council and speak on issues within the scope of the council's jurisdiction.

(b)

Public comments shall be heard subject to limitations imposed at the discretion of the presiding officer, including time limits and other constraints [ as ] necessary for efficient and fair consideration of agenda items.

(c)

(No change.)

§401.28.Public Hearings.

The council may periodically hold public hearings to obtain input regarding [ the ] policies and operations of the council, issues before the council, and to solicit suggestions and ideas from interested members of the public.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on November 19, 1998.

TRD-9817704

Chester Beattie

Legal Counsel

State Council on Competitive Government

Earliest possible date of adoption: January 3, 1999

For further information, please call: (512) 463-3960


Subchapter C. Identification and Review of State Services

1 TAC §§401.42-401.49

The amended sections are proposed under Government Code, Title 10, Subtitle D, Chapter 2162, Subchapter B, Section 2162.101 (General Powers) which provide the State Council on Competitive Government with the authority to adopt a rule governing any aspect of the Council's duties or responsibilities.

The following code is affected by the proposed amendments: Government Code, Title, Subtitle D, Chapter 2162.

§401.42.Submission and Receipt of Suggestions.

(a)

Any person may submit written suggestions to the council. Such suggestions must [ should ] be submitted to the council through the clerk, by means of facsimile transmission, hand delivery, or private or public mail. The clerk will promptly distribute copies of all suggestions to council members.

(b)

(No change.)

(c)

A state agency receiving [ that receives ] a suggestion or proposal shall forward a copy to the clerk within 30 calendar [ 10 ] days from [ of the ] receipt of the suggestion [ same ] by the state agency.

Agency Information for Identification of Services [ Council Mandated Information ].

(a)

The council may require a state agency to provide information regarding any service it provides, to assist the council in identifying state services that are commercially available and could be provided through competition with commercial sources and/or other service providers. A state agency [ that has been ] required by the council to provide information regarding a service must provide a written analysis of the service, within the time prescribed by the council.

(b)

The written analysis must include the following:

(1)

a detailed description of the service that conforms to all applicable council guidelines and instructions [ a brief overview and a description of the service ], including [ the ] technical requirements or specifications of the service to allow the council to get price data from qualified service providers ;

(2) - (3)

(No change.)

(4)

a detailed statement and itemization of all direct and indirect costs incurred in providing the service (including costs incurred by other agencies, e.g., [ such as the ] comptroller, retirement systems [ treasurer ], and attorney general), based on [ upon ] the council-approved cost methodology and conforming to all applicable council guidelines and instructions to [ that will ] enable the council to make meaningful and accurate cost comparisons with other potential service providers;

(5)

a detailed statement of the number and salary levels of full-time employees (or full-time employee equivalents) [ , and their salary levels, ] used to provide the service;

[ (6)

a detailed description of the service that conforms to all applicable council guidelines and instructions, containing sufficient information, as determined by the council, to allow the council to obtain adequate price information from other qualified service providers; ]

(6)

[ (7) ] a detailed description of existing contractual obligations, related to all or any portion of the service, incurred by the agency within the last three calendar years;

(7)

[ (8) ] a detailed description of the agency's level of satisfaction with the service provider and the performance records of the service providers hired as a result of the contracts described under paragraph (6) [ (7) ] of this subsection; and

(8)

[ (9) ] any other information requested by the council.

§401.44.Designation of Identified State Services.

(a)

After reviewing [ it has reviewed ] a state service pursuant to §401.43 of this title (relating to Agency Information for Identification of Services [ Council Mandated Information ]), the council may designate the service as an identified state service. The designation shall be written [ in writing, ] and [ copies shall be ] provided to the clerk and all affected state agencies.

(b)

Alternatively, after reviewing [ it has reviewed ] a state service pursuant to §401.43 of this title (relating to Agency Information for Identification of Services [ Council Mandated Information ]), the council may defer a decision regarding designation of that service as an identified state service pending further study of the service. Upon completion of additional [ such further ] study, the council may [ then ] designate the service as an identified state service[ , which designation shall be ] in writing[ , ] with copies provided to the clerk and all affected state agencies.

(c)

For purposes of this section , [ and ] §401.46 of this title (relating to Determination To Subject an Identified State Service to Competition), and §401.81 of this title (relating to Duties of Affected State Agencies), an "affected state agency" is an agency providing [ that provides ] all or a portion of the state service designated by the council as an identified state service.

For Review of Identified State Services [ Information Required for Council's Study].

(a)

The council may require a state agency to prepare a written analysis of one or more identified state services. The council may require the [ that any such ] written analysis to include [ the ] information set forth in §401.43(b) of this title (relating to Agency Information for Identification of Services [ Council Mandated Information ])[ , ] and any other information deemed pertinent by the council.

(b)

The council may request information from any source, public or private, in connection with its review of an identified state service. The council may consider:

(1)

(No change.)

(2)

[ the ] availability of potential service providers;

(3) - (4)

(No change.)

§401.46.Determination To Subject an Identified State Service to

Competition. The council may determine that an identified state service may [ better ] be provided better through competition with private commercial sources, other state agency service providers, or consolidation of similar state services or any combination thereof [ or both ]. The council's determination shall be written [ in writing ] and [ shall ] contain a brief statement of the reasons for the determination. A copy of the council's written determination shall be provided to the clerk and all affected state agencies.

§401.47.Requirement that [ That ] State Agencies Engage in a Competitive Process.

(a)

The council may at any time require a state agency to engage in any competitive process developed or described by the council to subject an identified state service to competition with private commercial sources, with other state agency service providers, or both. A state agency [ that is ] required to engage in such a process shall comply fully with all requirements and instructions of the council.

(b)

(No change.)

§401.48.Development of Competitive Process.

(a)

The council may establish procedures, issue guidelines or instructions, and take any other action [ steps ] to describe and identify the competitive process to be followed by a state agency in submitting an identified state service to competition. The written description of the competitive process may incorporate by reference any process or portion of a process described in another commonly available source. Such sources may include, but shall not be limited to, federal, state, and local statutes, rules, regulations, ordinances, procedures, and guidelines, as well as private commercial publications.

(b)

The council may require an agency to engage in any competitive process reasonably calculated to ensure competition among service providers, including, but not limited to:

(1) - (2)

(No change.)

(3)

a two-step selection process such as that described in the Professional Services Procurement Act, Government Code, Chapter 2254, Subchapter A [ Texas Civil Statutes, Article 664-4 ]; and

(4)

(No change.)

§401.49.Conflict of Interest.

(a)

No person may participate in specification [ the ] preparation [ of specifications ], proposal evaluation [ of proposals ], or any significant administrative function related to the competitive process, if the person has or may have a conflict of interest in the proposed or resulting contract.

(b)

A [ Without limiting the foregoing, a ] conflict of interest may be determined by the council to exist if a person participates directly or indirectly in specification [ the ] preparation [ of specifications ], proposal evaluation [ of proposals ], or any significant administrative function related to the competitive process knowing that:

(1) - (3)

(No change.)

(c)

[ (d) ] In this section:

(1)

"immediate family" means a person related in the first degree of consanguinity or affinity to a person that has a significant financial interest in the proposed contract or an arrangement concerning prospective employment from the proposed contract ;

(2)

"significant financial interest" refers to [ either ]:

(A)

receiving [ a personal receipt, ] or right to receive, money or other valuable property or benefits under the actual or proposed contract;

(B)

[ the ] holding of a position in a business such as a principal, officer, director, trustee, partner, employee, or the like, or holding any position of management;

(C)

holding more than 10% of the outstanding debt of a person directly involved in the proposed or resulting contract; or

(D)

owning substantial stock, or other interest in a business. "Substantial" in this context shall not include token ownership or ownership which would not normally be able to influence the decisions of the business.

[ (C)

the ownership of substantial stock, or other interest in a business. Substantial in this context shall not include token ownership or ownership which would not normally be able to influence the decisions of the business; or ]

[ (D)

holding more than 10% of the outstanding debt of a person directly involved in the proposed or resulting contract ].

(d)

This section does not preclude a state agency or employees of a state agency from competing to provide an identified state service already being provided by that agency, if the agency or employees do not participate directly in the evaluation of proposals relating to the council's submission of such service to a competitive process.

(e)

A [ Without limiting the foregoing, a ] council member is not eligible to vote on awarding [ the award of ] a contract if the agency represented by that council member [ has ] submitted a proposal to the council seeking the [ such ] contract or if the council member has a conflict of interest with respect to the [ such ] contract, as defined in this section.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on November 19, 1998.

TRD-9817701

Chester Beattie

Legal Counsel

State Council on Competitive Government

Earliest possible date of adoption: January 3, 1999

For further information, please call: (512) 463-3960


Subchapter D. Evaluation of Proposals

1 TAC §401.61, §401.62

The amended sections are proposed under Government Code, Title 10, Subtitle D, Chapter 2162, Subchapter B, Section 2162.101 (General Powers) which provide the State Council on Competitive Government with the authority to adopt a rule governing any aspect of the Council's duties or responsibilities.

The following code is affected by the proposed amendments: Government Code, Title, Subtitle D, Chapter 2162.

§401.61.Minimum Requirements for Proposals.

Proposals must include:

(1)

price;

(2)

a detailed statement of the number and salary of individuals [ and the salary levels of those individuals ] connected with the performance of the work, including:

(A)

employees, independent contractors or subcontractors, and others; and

(B)

any contractors or subcontractors qualifying as historically underutilized businesses, as defined by Government Code, Chapter 2161, and further clarified by Chapter 111 of this title (relating to Executive Administration Division), and listed in the directory published by the commission in compliance with Government Code, §2161.064. [ employees, independent contractors or subcontractors, and others, including detailed information regarding any contractors or subcontractors who qualify as historically underutilized businesses and are listed in the directory published by the commission in compliance with Texas Civil Statutes, Article 601b, §1.03; ]

(3)

a detailed description of health care benefits to be provided for [ the ] individuals receiving [ who will receive ] compensation in connection with the performance of the work, and the cost to the proposer of providing the [ such ] benefits;

(4)

a detailed description of retirement benefits to be provided for [ the ] individuals receiving [ who will receive ] compensation in connection with the performance of the work, and the cost to the proposer of providing the [ such ] benefits;

(5)

a detailed description of workers' compensation insurance to be provided for [ the ] individuals receiving [ who will receive ] compensation in connection with the performance of the work, and the cost to the proposer of providing such benefits;

(6)

(No change.)

(7)

a detailed description of all charges filed against the proposer, or any person or entity affiliated with the proposer, alleging discrimination or unfair labor practices with any state or federal agency or state or federal court in the five years preceding the submission of the proposal [ bid ], together with a description of the resolution, if any, of each charge;

(8)

a detailed statement certifying that the overall package of salaries and benefits to be provided to employees performing the identified state service under the proposer's contract will be reasonably comparable to the overall package of salaries and benefits of those state employees currently performing functions similar to those performed by the proposer's employees on [ with respect to ] the identified state service, provided that [ the ] certification shall be based on the overall character of the salaries and benefits package and not on the presence, absence, or level of one particular benefit or on a specific salary level;

(9)

(No change.)

(10)

a detailed statement explaining how the proposer will satisfy the specifications for the contract to be awarded [ established ] by the council, and how the proposer's performance will be measured; and

(11)

(No change.)

§401.62.Evaluation.

(a)

Upon receipt of a proposal, the council may evaluate a proposal by considering the following [ factors ]:

(1)-(3)

(No change.)

(b)

The council may provide additional [ further ] guidelines or procedures for evaluating proposals[ , ] and may include these [ such ] guidelines or procedures in [ the ] specifications for a solicitation document [ particular contract ] or in any related written document [ as ] the council deems necessary [ or advisable ].

(c)

Following its evaluation of a proposal[ , ] the council may either reject the proposal or direct a state agency to:

(1)

(No change.)

(2)

enter into negotiations, within the time period prescribed by the council, with the proposer to reach [ aimed at reaching ] a contractual agreement to provide the identified state service[ , ] on terms consistent with the proposal and the council's actions on the proposal [ in connection therewith ].

(d)

After all proposals are evaluated and the council determines under subsection (c) of this section the course of action to be taken with respect to a proposal, the council shall provide to any party on request a brief written statement of the results of the evaluation.

(e)

[ (d) ] A contract executed by a state agency pursuant to subsection (c) of this section must be approved by the council before it is [ such contract shall be ] effective, and [ which ] approval must be evidenced by the signature of the presiding officer [ an authorized member ] of the council.

(f)

[ (e) ] The council shall have the authority to negotiate contractual terms , require a state agency to execute a contract or execute [ or enter into ] a contract on behalf of a state agency, or both, if the council determines that the state agency has not made a good faith effort to comply with the council's instructions under subsection (c) of this section.

[ (f)

After all proposals have been evaluated fully and the council has made its determination under subsection (c) of this section regarding the course of action to be taken with respect to a proposal, the council shall provide to any party on request a brief written statement of the results of the evaluation. ]

(g)

Any actual bidder, offeror, proposer, or contractor, or any affected state agency, or any affected state employee who is aggrieved in connection with the award of a contract under this chapter may formally protest to the council. The council may consolidate claims by affected state employees raising [ that raise ] substantially similar issues. Protests must be in writing and received in the office of the clerk within ten business [ five working ] days after the aggrieved person knows or should have known of the award of the contract. Copies of the protest must be mailed or delivered by the protesting party to the affected state agency or agencies and all other interested parties.

(h)

A protest must contain:

(1) - (3)

(No change.)

(4)

a statement that copies of the protest were [ have been ] mailed or delivered to the affected state agency or agencies and all other interested parties; and

(5)

(No change.)

(i)

If the protest is not withdrawn or resolved by mutual agreement, the clerk shall issue a written recommendation regarding [ the ] disposition of the protest within ten business [ five ] days of receipt of the protest[ , which recommendation shall be distributed ] to members of the council. The recommendation shall suggest that the protest be sustained or denied[ , ] and [ shall ] set forth [ the ] reasons for the recommendation. The recommendation may also specify appropriate remedial action including, but not limited to, entry of an order declaring the contract void. In addition to members of the council, the clerk shall provide a copy of the recommendation to the protesting party, [ the ] affected state agency or agencies, and all other interested parties.

(j)

The clerk's recommendation may be approved, rejected, or modified by the council. The council's disposition of the protest shall be made in open meeting of the council. The council's decision shall be the final administrative action of the council relating to the [ such ] protest.

(k)

Unless the council finds good cause exists for a delay or the council determines that a protest [ on appeal ] raises issues significant to procurement practices or procedures, a protest [ or appeal ] that is not filed within the proper time period [ timely ] will not be considered.

(l)

In this section an:

(1)

"interested party" is a person submitting [ who has submitted ] a proposal for the contract involved; and

(2)

"affected state agency" is an agency providing [ that provides ] all or part [ a portion ] of the state service that is the subject of the proposal; and

(3)

"affected state employee" is a state employee whose job is [ performed as ] part of an identified state service subject to a contract awarded by the council.

(m)

If the commission submits [ clerk's agency has submitted ] a proposal for the contract involved, the presiding officer shall appoint a [ another ] council member who is disinterested in the transaction to perform the review and make the recommendations required of the clerk under this section.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on November 19, 1998.

TRD-9817700

Chester Beattie

Legal Counsel

State Council on Competitive Government

Earliest possible date of adoption: January 3, 1999

For further information, please call: (512) 463-3960


Subchapter E. Duties of Affected Agencies

1 TAC §401.81, §401.82

The amended sections are proposed under Government Code, Title 10, Subtitle D, Chapter 2162, Subchapter B, Section 2162.101 (General Powers) which provide the State Council on Competitive Government with the authority to adopt a rule governing any aspect of the Council's duties or responsibilities.

The following code is affected by the proposed amendments: Government Code, Title, Subtitle D, Chapter 2162.

§401.81.Duties of Affected State Agencies.

(a)

The council may prescribe formats for use [ the format to be used ] by state agencies in providing [ any ] information to the council, and may require an agency to adhere to any other guidelines, procedures, or instructions concerning cost accounting, auditing, or any other pertinent activity, including, but not limited to, use of [ the ] council-approved cost methodology.

(b)

The council may require a state [ an ] agency to conduct one or more public hearings on any aspect of a state service, or to prepare an agency in-house cost estimate, a management study, or any other studies, reviews, cost estimates, or other information-gathering activities in connection with any aspect of a state service under review by the council.

(c)

The council may require a state [ an ] agency to provide information to the council, perform any [ such ] tasks and engage in any process deemed advisable by the council in connection with any effort by the council to review a state service, or to submit an identified state service to competition, within a time period prescribed by the council.

(d)

Once the council designates [ has designated ] a state service as an identified state service, it may instruct an affected state agency not to enter into any contract impairing [ that impairs ] the council's review and potential bidding of such service, including any contract directly relating to the delivery of all or a portion of the identified state service. The council may grant a waiver to an affected state agency if the agency provides [ a ] written justification that the council finds meritorious.

(e)

A state agency shall comply fully with all requirements and instructions made or given by the council in the performance of its duties or [ the ] exercise of its powers.

§401.82.Disposal of Surplus and Salvage Property.

(a)

State agencies that determine they have surplus or salvage property resulting from [ as a result of ] a contract entered into at the direction of the council must inform the council of the kind, number, location, condition, original cost or value, and date of the acquisition of the surplus or salvage [ such ] property.

(b)

Unless the council directs a different disposition, any property determined to be surplus or salvage property by the council must be transferred, sold, or disposed of by the state agency in accordance with Government Code, Chapter 2175 and rules promulgated by the commission [ Texas Civil Statutes, Article 601b, Article 9 ].

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on November 19, 1998.

TRD-9817703

Chester Beattie

Legal Counsel

State Council on Competitive Government

Earliest possible date of adoption: January 3, 1999

For further information, please call: (512) 463-3960


Subchapter F. Monitoring of Services

1 TAC §§401.102-401.105

The amended sections and new section are proposed under Government Code, Title 10, Subtitle D, Chapter 2162, Subchapter B, Section 2162.101 (General Powers) which provide the State Council on Competitive Government with the authority to adopt a rule governing any aspect of the Council's duties or responsibilities.

The following code is affected by the proposed amendments: Government Code, Title, Subtitle D, Chapter 2162.

§401.102.Minimum Monitoring Guidelines.

Guidelines for monitoring must include, at a minimum, provisions for:

(1)

periodic reporting in a council approved format by the service provider on [ regarding ] any performance standards, benchmarks, and requirements established under its contract[ , which reports shall be reviewed by the council or its staff ];

(2)

(No change.)

(3)

verifying that all services, material, labor, and equipment were actually received, used, or consumed in accordance with [ the ] contract provisions;

(4)

(No change.)

(5)

making on-site inspections, where possible, and reporting and comparing [ the ] findings with [ the ] contract provisions;

(6) - (8)

(No change.)

(9)

receiving agency input.

§401.103.Security Requirements.

When directing a state agency to contract for [ enter into contracts relating to ] an identified state service, the council may require the state agency to use [ utilize ] reasonable methods of securing the successful proposer's performance, including, but not limited to, requiring performance bonds, letters of credit, or payment provisions providing [ that provide ] for retainage. The council shall consider the quality of any alternative security proposed relating to [ in connection with ] the proposal.

§401.104.Historically Underutilized Businesses.

The council [ Council ] is committed to assisting Historically Underutilized Businesses (HUBs) , as defined by Government Code, Chapter 2161, and further clarified by Chapter 111 of this title (relating to Executive Administration Division) in their efforts to participate in contracts [ to be ] awarded by the council. This includes assisting HUBs to meet or exceed [ the ] procurement utilization goals set forth in the form of Texas Administrative Code rules at Chapter 111 of this title (relating to Executive Administration Division). These rules, which became effective October 4, 1995, were promulgated by the General Services Commission and address the State's Historically Underutilized Business Certification Program. The council shall take positive steps to inform historically underutilized businesses of opportunities to provide identified state services that it determines may better be provided through a competitive process.

§401.105.Contract Modification Notification by Contracting Agency to the Council.

(a)

After a contract is executed by a state agency or by the council on behalf of a state agency based on a council award, the council retains authority to monitor the progress and development of the contract. The executing agency must notify the council of any contract awarded by the council, that will expire, be amended, or be renewed no later than 90 calendar days prior to any action to amend, terminate, or renew the contract. The council may then determine whether the agency's decision regarding the contract warrants further determination by the council of the need to resubmit the state service to competitive bidding.

(b)

As an exception to subsection (a) of this section, executing agencies may notify the council of technical or correcting amendments to contracts after the 90th calendar day prior to any action to amend, terminate, or renew a contract provided that sufficient time is given to the clerk of the council to poll council members to determine whether the amendment warrants any action by the council. The clerk of the council, in consultation with the presiding officer, shall determine the time deemed sufficient for each notification on a case-by-case basis.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on November 19, 1998.

TRD-9817706

Chester Beattie

Legal Counsel

State Council on Competitive Government

Earliest possible date of adoption: January 3, 1999

For further information, please call: (512) 463-3960