TITLE 1.ADMINISTRATION

Part 5. TEXAS BUILDING AND PROCUREMENT COMMISSION

Chapter 113. PROCUREMENT DIVISION

Subchapter A. PURCHASING

1 TAC §113.11

The Texas Building and Procurement Commission proposes amendments to 1 TAC §113.11, concerning Delegated Purchases.

The amendments to §113.11 are proposed to change the requirement to reflect that of three bids that must be taken, two must come from HUB vendors. The current rule requires three bids, including one from a woman owned business and one from a HUB. This recommendation for change is based on information received from the Statewide HUB Program which indicates that women are the most utilized of all HUB vendors.

Cindy Reed, Deputy Executive Director, has determined for the first five year period the rule is in effect, there will be no fiscal implication for the state or local governments as a result of enforcing or administering the amendments.

Ms. Reed has further determined that for each year of the first five-year period the amendments are in effect, the public benefit anticipated as a result of enforcing the amendments to 1 TAC §113.11 is the increased involvement of a wider variety of HUB vendors in the state procurement process. There is no anticipated effect on large, small or micro-businesses. There is no anticipated economic costs to persons who are required to comply with the amendments and there is no adverse impact on local employment.

Comments on the proposed amendments may be submitted to Robert F. Moreland, Attorney, Texas Building and Procurement Commission, P.O. Box 13047, Austin, Texas 78711-3047. Comments must be received no later than 30 days from the date of publication of the proposal in the Texas Register .

The amendments to 1 TAC §113.11 is proposed under the authority of the Texas Government Code, Title 10, Subtitle D, Chapter 2155, §2155.132, which provides the Texas Building and Procurement Commission with the authority to promulgate rules necessary to implement the sections related to delegated purchases.

The following code is affected by the amendments: Government Code, Title 10, Subtitle D, Chapter 2155.

§113.11.Delegated Purchases.

(a) - (d) (No change.)

(e) Provisions applicable to particular delegated purchases.

(1) Commodity purchases. Commodity purchases may be made in accordance with the following provisions:

(A) Agencies must attempt to obtain at least three informal bids, including a minimum of two bids from historically underutilized businesses (HUBs) [ (including at least one bid each from a minority owned business and a woman owned business) ], on all commodity purchases in excess of $2,000 and not over $10,000. Agencies must meet competitive bidding requirements and may supplement the list of bidders obtained from the CMBL and HUBs [ Historically Underutilized Business (HUB) ] Directory with non-CMBL bidders if the purchase price does not exceed $5,000. Agencies must attempt to obtain at least three formal bids, including a minimum of two bids from HUBs [ (including at least one bid each from a minority-owned business and a woman-owned business) ], on all commodity purchases in excess of $10,000 and not over $25,000. Agencies may refer to the commission's HUB Directory, which is maintained and accessible electronically, to locate HUBs [ historically underutilized businesses ]. If an agency is unable to locate two HUBs [ a minority-owned business and/or a woman-owned business ] from the commission's HUB Directory or other available sources, the agency must make a written notation in the purchase file of all reference sources used.

(B) (No change.)

(2) - (3) (No change.)

(4) Services. Purchases of services estimated to cost no more than $100,000 per year per contract are delegated and must be obtained through a competitive selection process, and appropriate documentation must be forwarded to the commission for approval.

(A) (No change.)

(B) Agencies must attempt to obtain at least three informal bids, including a minimum of two bids from HUBs [ (including at least one bid each from a minority-owned business and a woman-owned business) ], on all service purchases in excess of $2,000 and not over $10,000.

(C) Agencies must meet competitive bidding requirements and may supplement the list of bidders obtained from the CMBL and HUBs [ Historically Underutilized Business (HUB) ] Directory with non-CMBL bidders if the purchase price does not exceed $5,000.

(D) Agencies must attempt to obtain at least three formal bids, including a minimum of two bids from HUBs [ (including at least one bid each from a minority-owned business and a woman-owned business) ], on all service purchases in excess of $10,000 and not over $25,000. Agencies may refer to the commission's HUB Directory, which is maintained and accessible electronically, to locate HUBs [ historically underutilized businesses ]. If an agency is unable to locate two HUBs [ a minority-owned business and/or a woman-owned business ] from the commission's HUB Directory or other available sources, the agency must make a written notation in the purchase file of all reference sources used. For purchases of services estimated up to $25,000, state agencies shall solicit a minimum of three bids (two must be HUBs[ , one minority and one woman-owned business ]) from CMBL and HUB Directory Vendors located in the agencies' geographic region.

(E) - (F) (No change.)

(5) - (7) (No change.)

(f) - (j) (No change.)

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 March 25, 2003.

TRD-200301994

Cynthia de Roch

General Counsel

Texas Building and Procurement Commission

Earliest possible date of adoption: May 11, 2003

For further information, please call: (512) 475-2400