TITLE 1.ADMINISTRATION

Part 5. TEXAS BUILDING AND PROCUREMENT COMMISSION

Chapter 113. PROCUREMENT DIVISION

Subchapter A. PURCHASING

1 TAC §113.9

The Texas Building and Procurement Commission proposes amendments to 1 TAC §113.9, Contract Administration. The amendments are proposed to delete subsection (d)(3) that conflicts with proposed debarment rules §§113.101 - 113.108. Section 113.9 is also amended to substitute "TBPC" for "Commission".

Ms. Joanna B. Peavy, Deputy Executive Director for Procurement, has determined that, for each year of the first five-year period the amendments are in effect, there will be no fiscal implications for state and local governments as a result of enforcing or administering the section.

Ms. Peavy has further determined that, for the first five-year period the amendments are in effect, the public benefit anticipated will be a clearer understanding of the vendor debarment process and the length of time a vendor may be debarred. There will be no cost to small business and/or individuals. There will be no adverse effect on local employment.

Comments on the amendments may be submitted in writing to Elizabeth J. Boyt, TBPC, P.O. Box 13047, Austin, Texas 78711-3047. Comments may also be sent via email to elizabeth.boyt@tbpc.state.tx.us or by fax to (512) 236-6171. All comments must be received no later than thirty (30) calendar days after notice of the proposed amendments has been published in the Texas Register .

The amendments are proposed under the authority of the Gov't Code, §§2152.001, 2152.003, and 2156.077.

The following code is affected by these rules: Gov't Code, §2155.077.

§113.9.Contract Administration.

(a) Inspection of merchandise.

(1) Qualified ordering entities must inspect all shipments received against orders and report any discrepancies to the TBPC [ commission ] immediately.

(2) If unlisted shortages are discovered, the vendor and the TBPC [ commission ] must be notified immediately. Unless shipments are checked immediately upon arrival and such shortage reports are made within 15 days, the contractor cannot be held responsible for shortages.

(3) A contractor may be required to pick up any merchandise not conforming to specifications and replace the merchandise immediately.

(b) Substitutions. Substitution of items called for in a contract is not permitted without the TBPC's [ commission's ] prior approval. No such approval will be granted unless substituted items are of equal quality and are offered at the same or lower price.

(c) Cancellations.

(1) Cancellations on orders issued by the TBPC [ commission ], either on the part of the vendor or a qualified ordering entity, are not permitted without the TBPC's [ commission's ] prior written approval.

(2) Orders may be canceled without the contractor's consent due to unsatisfactory performance or nonperformance by the contractor.

(3) Orders may not be canceled without first obtaining the consent of the contractor if the reason for cancellation is not the fault of the contractor.

(4) A contract or a portion of a contract may be canceled on request of the contractor if the contractor is unable to perform due to circumstances beyond its control. In these instances, the TBPC [ commission ] will consider such requests when presented in writing with proper documentation.

(d) Damages for failure to perform.

(1) A vendor who fails to perform as required under a contract shall be liable for actual damages and costs incurred by the state.

(2) If any merchandise delivered under a contract has been used or consumed by an agency and on testing is found not to comply with specifications, no payment may be approved by the TBPC [ commission ] for such merchandise until the amount of actual damages incurred has been determined.

[ (3) A vendor who fails to pay damages assessed by the state may be removed from the Centralized Master Bidders List (CMBL) for not longer than one year. If complaints resume after the vendor is reinstated on the bidders list, the commission may bar the vendor from participating in state contracts pursuant to §113.102 of this title (relating to Vendor Performance and Debarment.) A vendor may not be awarded additional contracts until such damages have been paid or the matter has been otherwise resolved.]

(3) [ (4) ] The TBPC [ commission ] shall seek to collect damages by following the procedures established by the Office of the Attorney General for the collection of delinquent obligations.

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 May 20, 2005.

TRD-200502034

Ingrid K. Hansen

General Counsel

Texas Building and Procurement Commission

Earliest possible date of adoption: July 3, 2005

For further information, please call: (512) 463-4257