TITLE 43.TRANSPORTATION

Part 1. TEXAS DEPARTMENT OF TRANSPORTATION

Chapter 5. FINANCE

Subchapter D. PAYMENT OF FEES FOR DEPARTMENT GOODS AND SERVICES

43 TAC §5.43, §5.44

The Texas Department of Transportation adopts amendments to §5.43 and §5.44, concerning the payment of fees for department goods and services. The amendments are adopted without changes to the text as proposed by publication in the December 29, 2000, issue of the Texas Register (25 TexReg 12926), and will not be republished.

EXPLANATION OF ADOPTED AMENDMENTS

Transportation Code, §201.208 authorizes the commission to adopt rules regarding the method of payment of a fee for any goods sold or services provided by the department or for the administration of any department program. Pursuant to that authority, the commission has adopted §§5.41-5.44 to include a requirement that a person paying a fee by credit card also pay a $1.00 service charge.

Section 23.27 of the department's rules prescribes requirements for the sale of travel promotional materials by the department through Texas Highways , including requirements relating to payments. Section 23.27 does not require the payment of a service charge for a credit card payment. Fees for subscriptions to Texas Highways and single issues of Texas Highways also do not include a service charge, and are processed directly by the magazine. Payments by check or money order are made payable to Texas Highways, instead of the department. Payments by credit card may be for a lesser or greater amount than the minimum and maximum amounts prescribed by §5.43.

The cost of Texas Highways and products sold through Texas Highways are publicized to readers and customers through Texas Highways and other methods. Charging an additional service charge to customers will increase the publicized price of those products and the magazine, which may result in an adverse impact on sales and revenues.

Section 5.43 is amended to clarify the requirements for payments for subscriptions to and single issues of Texas Highways . The amendments specify that minimum and maximum charges for payments by credit card do not apply, nor is there a requirement for a $1.00 service charge if paying by credit card. Payments by check or money order for subscriptions to or single issues of the magazine are payable to Texas Highways.

Section 5.44 is amended to specify that the requirements of Subchapter D of Chapter 5 (§§5.41-5.44) do not apply to the payment of fees for products sold through Texas Highways . That section is also restructured to improve its readability.

COMMENTS

No comments were received on the proposed amendments.

STATUTORY AUTHORITY

The amendments are adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation and, more specifically, Transportation Code, §201.208, which authorizes the commission to adopt rules regarding the method of payment of a fee for any goods sold or services provided by the department.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2001.

TRD-200101119

Richard D. Monroe

General Counsel

Texas Department of Transportation

Effective date: March 15, 2001

Proposal publication date: December 29, 2000

For further information, please call: (512) 463-8630


Chapter 9. CONTRACT MANAGEMENT

Subchapter C. CONTRACTING FOR ARCHITECTURAL, ENGINEERING, AND SURVEYING SERVICES

43 TAC §§9.31, 9.33-9.38, 9.41-9.43

The Texas Department of Transportation adopts amendments to §§9.31, 9.33-9.38, and 9.41-9.43, concerning contracting for architectural, engineering, and surveying services. The amendments are adopted without changes to the text as proposed by publication in the December 29, 2000, issue of the Texas Register (25 TexReg 12927), and will not be republished.

EXPLANATION OF ADOPTED AMENDMENTS

The amendments are needed to streamline procedures for selection, negotiation, management, and evaluation of contracts with architects, engineers, and surveyors. Accordingly, §§9.31, 9.33-9.38, and 9.41-9.43 are amended for readability and substance.

An amendment to §9.31 adds a definition for "Interview and Contract Guide."

Amendments to §9.33(a) require that initial notices advertising the contract include the selection criteria used by department selection committees to reduce the long list to the short list.

Amendments to §9.33(b) revise letter of interest requirements by limiting its length to no fewer than three pages and no more than five pages plus attachments. The Consultants Review Committee (CRC) chair or his designee may authorize a variance from this restriction, and the notice must specify the number of pages. The CRC chair may designate approval authority to a staff member having a title of office director or higher. Attachments are to be used only to provide precertification information. The contents of the letter of interest are revised to eliminate the team capabilities information and to require information addressing selection criteria as well as the name and contact information for provider references.

Amendments to §9.34 address how the short list is determined. The composition of a Consultant Selection Team (CST) is revised to allow a managing officer to designate at least one other (instead of only one) department employee. Amendments to this section also allow a CST to compile a long list of providers based upon letters of interest meeting precertification requirements of §9.33. The CST then determines the short list of providers by evaluating each letter of interest on the long list using the advertised evaluation criteria. Amended evaluation criteria include project understanding and approach; the project manager's experience with similar projects; major work categories' task leaders' experience with similar projects; and other criteria approved by the CRC chair or designee not below an office director title. Criteria using past performance, team capabilities, and general project-related experience have been eliminated.

Amendments to §9.34(f) enhance readability of instructions for individual and multiple contract selections.

Section 9.34(g) is amended to instruct the department to furnish an Interview and Contract Guide to short-listed firms along with any additional required information and the deadline for submission.

In addition to enhancing readability, amendments to §9.35 provide guidance on the use of an interview in place of a proposal. The amendments give contract managers flexibility to proceed with written proposals or interviews or both. If a written proposal will be required, the managing office will give an RFP to the short list of providers. The RFP will specify if interviews will also be conducted and include the interview format and requirements. Proposal evaluation criteria are revised to allow a CST to use performance scores from other department contracts or references from department or other sources if interviews are not required. This amendment also eliminates "unique or innovative methods of approaching the proposed work" as an evaluation criterion.

Section 9.36 is amended to introduce the required use of an Interview and Contract Guide when interviews are used instead of written proposals. This guide describes the interview format and the content and subject matter of any required presentation. The contract scope of services is described and other contract documents identified. The CST is authorized to evaluate the provider as a whole rather than just the interview. Evaluation criteria are revised to allow a CST to use performance scores from other department contracts or references from department or other sources and to consider responses to interview questions. "Unique or innovative methods of approaching the proposed work" is no longer an evaluation criterion.

Section 9.37 is amended to allow the CRC chair rather than the committee to approve a 10-day extension of the negotiation process. It is also amended to allow the CRC chair rather than the executive director or deputy executive director to approve a unique negotiating schedule for multiple contract selections. The stipulation that large corridor development projects be the sole requirement for unique negotiating status is deleted.

Section 9.37(g)(3) is amended to address situations where the department cannot negotiate a satisfactory contract with the selected provider within the allotted time period. The amendment enhances readability and allows managing officers involved in a single contract selection to end unsuccessful negotiations with the selected provider and to begin negotiations with the next highest ranked provider through the third highest ranked provider. If a contract still cannot be negotiated, the contract will be canceled subject to readvertisement. Managing officers involved in multiple contract selections will begin negotiations with the next highest provider within the acceptable range of scores as required by §9.39. If a contract cannot be negotiated with any of the providers included in the acceptable range of scores, the contract will be canceled, subject to readvertisement.

Section 9.38 is revised for readability and to authorize the CRC chair, rather than the committee, to authorize a subprovider to perform a higher percentage of work than the prime provider. Instead of being the person requesting the contract, the department's project manager is identified as being designated by the managing officer.

Amendments also revise the provider performance evaluation requirements of §9.38(g). The original section is amended in its entirety to allow the department to document a prime provider's demonstrated competence and qualifications through required and optional performance evaluations of the project manager as well as the firm. The project manager will be evaluated in the categories of management, innovation, quality, and timeliness. The firm will be evaluated in the categories of cost administration and the firm's expertise. Evaluation of a subprovider's performance is optional but may be conducted upon completion of work by the subprovider, exemplary performance, if it is delaying progress or completion of the work, or if work is not being performed in accordance with the terms of the contract.

Section 9.41 is revised to eliminate the annual renewal of provider and subprovider precertification and to allow providers and subproviders to report changes 45 days after the change occurs.

Section 9.42 is revised to clarify that a provider/subprovider may submit information for administrative qualification before or after selection but before contract execution. The 8th floor location of the Audit Office is deleted in light of a pending move and because it is not critical to the address. The amendment also specifies that the time period covered by an overhead rate audit can include the 18 months prior to selection rather than the most recently completed fiscal year. The amendment further specifies that the department will consider current salary ranges as well as salaries by classification.

Section 9.43 is revised to add subsurface utility engineering to the work categories in the precertification process.

COMMENTS

The Design Division received two comments on the proposed amendment to Chapter 9, Subchapter C. Neither comment will require a change in the language of the proposed amendment.

Comment: Mr. Steve Stagner, Executive Director of the Consulting Engineers Council of Texas, indicated support of the amendments and commended TxDOT for taking steps to streamline the precertification selection process, improve the consistency in the letter of interest, provide greater subjectivity in the shortlisting process, and modify the use and function of the consultant contract database.

Response: No TxDOT response required.

Comment: The City of Amarillo expressed concern that TxDOT's ability to select providers with proven ability to provide the best, most expeditious, and cost effective service might be adversely affected by striking all references to consideration of past performance scores in the consultant contract database. The City of Amarillo further stated that using past performance scores for previous TxDOT or other entities' work is a way to determine if the prime provider has adequately met project requirements for the past three years. Providers that don't receive good performance scores should be dropped from consideration for new work for a period of time or until they demonstrate an ability to provide a high level of service.

Response: The department does agree with the city regarding the importance of using past performance scores as a selection criterion in order to select the best, most expeditious, and cost effective services. However, TxDOT disagrees with the city's comment that the proposed rule strikes all references to consideration of past performance scores in the consultant contract database. The proposed amendment to §9.34(d)(1) will eliminate the use of past performance scores in the TxDOT consultant contract database as an evaluation criteria of a provider's letter of interest, but TxDOT will use past performance scores in the evaluation of short list provider proposals (amendment to §9.35(e)(4)) or interviews (amendment to §9.36(d)(5)).

Regarding the city's recommendation to drop non-performing firms for a period of time, the department does not want to limit competition at this stage and wants to maximize the number of firms competing for work. The department is confident that the selection procedure will identify the most competent and qualified firm.

TxDOT will continue to use past performance as an evaluation criterion to select qualified and competent firms. The department will not be adversely affected by the amendments.

STATUTORY AUTHORITY

The amendment is adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically, Government Code, Chapter 2254, Subchapter A, which sets forth requirements governing the procurement of professional services.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2001.

TRD-200101121

Richard D. Monroe

General Counsel

Texas Department of Transportation

Effective date: March 15, 2001

Proposal publication date: December 29, 2000

For further information, please call: (512) 463-8630


Chapter 21. RIGHT OF WAY

Subchapter C. UTILITY ACCOMMODATION

43 TAC §§21.31, 21.43, 21.44, 21.48, 21.50, 21.51, 21.53, 21.54

The Texas Department of Transportation adopts amendments to §§21.31, 21.43, 21.44, 21.48, 21.50, 21.51, 21.53, and 21.54, concerning utility accommodation. The amendments are adopted without changes to the text as proposed by publication in the December 29, 2000, issue of the Texas Register (25 TexReg 12944) and will not be republished.

EXPLANATION OF ADOPTED AMENDMENTS

Amendments to §21.31 delete certain definitions that relate to manager titles that are no longer used in this department. Other changes to this section are strictly grammatical in nature.

The remaining amendments to §§21.43, 21.44, 21.48, 21.50, 21.51, 21.53, and 21.54 reflect changes in the department's organizational structure and grammatical corrections.

COMMENTS

No comments were received on the proposed amendments.

STATUTORY AUTHORITY

The amendments are adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2001.

TRD-200101120

Richard C. Monroe

General Counsel

Texas Department of Transportation

Effective date: March 15, 2001

Proposal publication date: December 29, 2000

For further information, please call: (512) 463-8630