TITLE 1.ADMINISTRATION

Part 5. TEXAS BUILDING AND PROCUREMENT COMMISSION

Chapter 113. PROCUREMENT DIVISION

Subchapter A. PURCHASING

1 TAC §113.4

The Texas Building and Procurement Commission proposes amendments to Title 1, §113.4 - Centralized Master Bidders List. The amendments will revise the current rule to correct administrative errors in the rule title and in the name of the catalog information systems vendors. An additional revision to the rule is proposed to add more specificity to the statutory authority for administratively removing a vendor from the Centralized Master Bidders List (CMBL).

Ms. Cindy Reed, Executive Director, has determined for the first five year period the rules are in effect there will be no fiscal implication for the state or local governments as a result of the administrative corrections made to the CMBL rule. An indirect positive fiscal implication is anticipated from the rule revision relating to the removal of vendors from CMBL who have, by their omissions or lack of responsibility, damaged the fiscal interests of the state. Although the overall positive fiscal impact on state and local governments cannot be quantified at present, the revision relating to statutory specificity will promote competition among responsible vendors for state business opportunities and enable the state to more readily identify and exclude business entities that are not responsible. The overall result will be that the procurement actions of the state will be accomplished in a more cost efficient manner.

Ms. Reed has further determined that for each year of the first five year period the amended rule is in effect, the public benefit anticipated as a result of enforcing the rule is compliance with the current statutory requirements of Texas Government Code, Chapters 2155 and 2157 as relates to the removal of non responsible vendors from the statewide bid list and the registration of catalog information systems vendors. There will be a positive effect on large, small or micro-businesses that routinely participate in state business opportunities in that statutory authority is clarified for policing the quality of the statewide centralized master bidders list and vendor performance expectations are referenced more exactly. There will be no anticipated economic costs to persons who are required to comply with these rules and there is no impact on local employment.

Comments on the proposals may be submitted to Elizabeth J. Boyt, Paralegal to the General Counsel, Texas Building and Procurement Commission, P.O. Box 13047, Austin, TX 78711-3047. Comments may also be sent via email to elizabeth.boyt@tbpc.state.tx.us. Comments must be received no later than thirty days from the date of publication of the proposal to the Texas Register .

The amendments to §113.4 are proposed under the authority of the Texas Government Code, Title 10, Subtitle D, §2152.003, which provides the Texas Building and Procurement Commission with the authority to promulgate rules necessary to implement the sections.

The following codes are affected by these rules: Texas Government Code, Title 10, Subtitle D, §§2152.003, 2155.070, 2155.077, 2155.262 through 2155.270 and §2157.062.

§113.4.Centralized Master Bidders List.

(a) The TBPC [ commission ] maintains the Centralized Master Bidders List (CMBL) of the names and addresses of vendors which have registered for inclusion on the CMBL. The CMBL is maintained for the state's use in obtaining competitive bids for purchases and for registering vendors who wish to be designated as catalog [ qualified ] information systems vendors (CISV) . Bid invitations and requests for proposals shall be transmitted to vendors on the CMBL for the solicited commodity and/or service designated by the vendor for open market, term contracts, competitive sealed proposal acquisitions and delegated purchases in excess of the non-competitive bid limit.

(b) Registration for the Centralized Master Bidders List is an on line process with a vendor managed web based system. The established fee is to be paid annually.

(c) It is the vendor's responsibility to maintain their CMBL profile to ensure correct information for receipt of bids based on products or services which can be provided for selected districts for the State of Texas.

(d) A vendor may be administratively removed from the CMBL for one or more of the following reasons:

(1) failing to pay or unnecessarily delaying payment of damages assessed by the TBPC [ commission ];

(2) failing to remit the annual CMBL fee; or

(3) any factor set forth in Texas Government Code, §2155.070 & §2155.077 [ Chapter 2155 ].

(e) A vendor which has been removed from the CMBL shall not be reinstated until expiration of the period for which the vendor was removed and approval is granted.

(f) An error in addressing a bid invitation or request for proposal or a failure of the post office to deliver the solicitation will not be sufficient reason to require the TBPC [ commission ] to reject all other bids or proposals.

(g) State agencies shall use the CMBL to select bidders for competitive bids or proposals and to the fullest extent possible for purchases exempt from the TBPC's [ commission's ] purchasing authority. This requirement does not apply to the Texas Department of Transportation or to an institution of higher education as defined by §61.003, Education Code, but an institution of higher education should use the CMBL when possible.

(h) As set forth in Texas Government Code, §2155.269, state agencies may waive the requirement to solicit only from bidders listed on the Centralized Master Bidders List (CMBL) by obtaining approval from the agency head or designee to add non-CMBL bidders to the final bid list. Non-CMBL bidders can be added to the final bid list for specific solicitations where the requirement to solicit only CMBL bidders is not warranted, such as to increase competition. This does not apply to purchases in §113.19 of this title, relating to Catalog of Information Systems Vendors (CISV).

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 April 22, 2005.

TRD-200501657

Ingrid K. Hansen

General Counsel

Texas Building and Procurement Commission

Earliest possible date of adoption: June 5, 2005

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


Subchapter C. SPECIFICATION

1 TAC §113.33, §113.34

The Texas Building and Procurement Commission (TBPC) proposes amendments to 1 TAC §113.33, Selection of Items for Development of Texas Uniform Standards and Specifications, and §113.34, Development of Texas Uniform Standards and Specifications. The amendments include changes that reflect current statutory responsibilities for developing Texas school bus specifications and clarify the role and responsibilities of TBPC in procurement of school buses, pursuant to Texas Local Government Code, Chapter 271.083. The proposed amendments also include minor revisions to remove a gender related reference to purchasers and reflect the correct name of the Commission and division that is responsible for procurement.

Ms. Cindy Reed, Executive Director, has determined for the first five-year period the rules are in effect there will be no fiscal implication for the state or local governments as a result of the revised and added rules. The revised text, added definitions and rules with facilitate the use and understanding of statutory requirements associated the selection and development of Texas Uniform Standards and Specifications.

Ms. Reed has further determined that for each year of the first five-year the amendments are in effect, the public benefit anticipated as a result of enforcing the revised rules will be positive with respect to the effect on large, small or micro-businesses that routinely participate in state business opportunities. There will be no anticipated economic costs to persons who are required to comply with the rules and there is no impact on local employment.

Comments on the proposals may be submitted to Elizabeth J. Boyt, Paralegal to the General Counsel, Texas Building and Procurement Commission, P.O. Box 13047, Austin, TX 78711-3047. Comments may also be sent via email to: elizabeth.boyt@tbpc.state.tx.us. Comments must be received no later than thirty days from the date of publication of the proposal to the Texas Register .

The amendments to §113.33 and §113.34 are proposed under the authority of the Texas Government Code, Title 10, Subtitle D, §2152.003 which provides the Texas Building and Procurement Commission with the authority to promulgate rules necessary to implement procurement related statutes.

The following codes are affected by these rules: Texas Government Code, Title 10, Subchapter B, §§2155.066, 2155.068, 2155.069, 2155.070, the Texas Government Code, Subchapter D, §2155.204, the Texas Local Government Code, §271.083, the Texas Education Code, §34.001 and the Texas Transportation Code, §547.7015.

§113.33.Selection of Items for Development of Texas Uniform Standards and Specifications.

Items are selected for specification development by or through one or more of the following methods.

(1) Required by statute.

(A) School buses. Pursuant to the Texas Education Code, §34.002, the Texas Department of Public Safety, with advice from the Texas Education Agency, establishes safety standards for school buses used to transport students. Pursuant to the Texas Education Code, §34.001, specifications developed by the Texas Department of Public Safety in compliance with the Texas Transportation Code, §547.7015, shall be referenced in solicitations and made a part of any contract awarded by the TBPC as result of a requisition received from a school district pursuant to the Texas Local Government Code, Chapter 271.083. For the convenience of qualified purchasing entities the specifications shall be posted on the TBPC website.

[ (A) School buses. Pursuant to the Texas Education Code, §34.002, the Texas Department of Public Safety, with advice from the commission and the Texas Education Agency, establishes safety standards for school buses used to transport students. Pursuant to the Transportation Code, §547.7015, the commission hereby delegates to the Director of the Central Procurement Division the authority to develop specifications governing the design, color, lighting and other equipment, construction, and operation of school buses. The specifications shall be posted on the commission's website].

(B) Prison-made products and raw materials. Pursuant to Texas Government Code, Subtitle G, Subchapter B, §7.027, an article or product produced under Subchapter B must meet specifications established by the TBPC [ commission ] that are in effect when the article or product is produced.

(2) Requests from using agencies. If a using agency finds that it is having difficulty in obtaining a certain item to meet a particular requirement, then the agency can communicate this need to the standards and specifications section of the [ Central ] Procurement Division.

(3) Requests from purchasers. If a state purchaser is having difficulty in securing bids on a particular item in the absence of adequate uniform standards and specifications, the purchaser [ he ] may request the standards and specification section to investigate the feasibility of developing a uniform standard and specification to cover the purchase of this item.

(4) Requests from vendors and/or bidders. Bidders may petition the standards and specification section to ascertain the feasibility of developing a specification on an article bid by agencies.

§113.34.Development of Texas Uniform Standards and Specifications.

(a) Preparation of Texas Uniform Standards and Specifications.

(1) The procedure used in developing uniform standards and specifications includes consultation, research, collection, and evaluation of data, and preparation of the specification. The standards and specification section consults with knowledgeable people in various state agencies, user advisory groups, purchasers, vendors, manufacturers, distributors, bidders, governmental and trade associations, colleges and universities, testing laboratories, and other experts.

(2) Uniform standards and specifications from federal, state, and local governments and standards agencies, such as ASTM, SAE, and others, and product literature from manufacturers, distributors, etc., are obtained, studied, and their contents evaluated.

(3) A proposed specification is then prepared by stipulating minimum requirements necessary to provide products of the level of quality required by various state agencies.

(4) This draft specification is then distributed to the individuals and groups initially contacted as well as other interested parties for their review, comments, and suggestions.

(5) Comments and suggestions received are reviewed, analyzed, and evaluated, and the proposed specification modified accordingly.

(6) If, as a result of this analysis and evaluation, major changes in the proposed specification are made, then a second proposed specification is prepared and distributed and the process outlined in paragraphs (4) and (5) of this subsection is followed.

(7) If no major change in the proposed specification is made, then the uniform standard and specification is finalized and distributed.

(8) Comments and suggestions received from the distribution of a second proposed specification are reviewed, analyzed, evaluated, and the process outlined in paragraphs (5) and (7) of this subsection is followed.

(9) This process is continued until a uniform standard and specification is developed that will provide the level of quality required by the state and that will provide competitive bidding.

(10) The agency user advisory groups provide the standards and specifications section with their individual requirements and otherwise assist in the preparation and development of specifications.

(b) Distribution of Texas uniform standards and specifications. The initial distribution of newly adopted or prepared uniform standards and specifications is to state agencies, vendors/distributors and manufacturers contacted during the development phase of the uniform standard and specification and subsequently to others upon request.

(c) Approved products list.

(1) A manufacturer, vendor, or distributor may submit a product for inclusion in an established approved product list to the standards and specifications section the [ Central ] Procurement Division, along with technical literature and product specifications. The product may then be tested and the results evaluated and compared with the minimum level of quality for the approved products list.

(2) A product can be removed from the approved products list if:

(A) the quality of a given product is decreased; or

(B) the minimum level of quality for the approved products list is increased in order to provide the quality of products required by state agencies.

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 April 22, 2005.

TRD-200501658

Ingrid K. Hansen

General Counsel

Texas Building and Procurement Commission

Earliest possible date of adoption: June 5, 2005

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


Subchapter F. VENDOR PERFORMANCE AND DEBARMENT PROGRAM

1 TAC §§113.101 - 113.108

The Texas Building and Procurement Commission (TBPC) proposes new 1 TAC §§113.101 - 113.108, concerning vendor performance and debarment. TBPC proposes the new rules to protect the interests of the state and to enhance public confidence in the integrity of the state's procurement policies and practices. The rules replace current §113.102, concerning vendor performance and debarment which is contemporaneously being proposed for repeal in this issue of the Texas Register . The new rules provide more detailed notice of the factors TBPC will consider when making a decision to debar a vendor. Vendors doing business with the state will have a clearer understanding of the expected performance and ethical standards. The rules also provide procedures to ensure that the vendor has an opportunity to be heard prior to a finding by TBPC.

Proposed §113.101, concerning the purpose and applicability of 1 TAC Chapter 113, Subchapter F, describes the reasons for the rules and that they apply to all procurement conducted under the authority of Government Code, Title 10, Subtitle D.

Proposed §113.102, concerning definitions provides definitions for terms not otherwise defined by statute or in §113.2, concerning definitions and in the case of the debarment definition, adds language to the definition in §113.2.

Proposed §113.103, concerning protecting the state's interest when there is a failure to meet specifications, lists the factors TBPC shall consider when proposing an action based on a vendor's failure to meet specifications.

Proposed §113.104, concerning protecting the state's interest when there is a failure to meet contract requirements, contains the factors TBPC shall consider when evaluating vendors' performance measured by the vendor performance tracking system and the categories listed therein.

Proposed §113.105, concerning debarment, describes actions TBPC may take and the general reasons for debarment including the time periods of debarment. Proposed §113.105(a) describes TBPC's potential actions. Proposed §113.105(b) requires notice of potential action. Proposed §113.105(c) provides that TBPC may assess actual damages and costs against a vendor who fails to perform as specified under a contract. Proposed §113.105(d) provides that a vendor may be debarred upon finding that the vendor has engaged in the conduct prohibited by that subsection. Proposed §113.105(e) provides that a vendor may be debarred upon a finding that the vendor's performance was substandard. Proposed §113.105(f), (g), and (h), concerning failure to meet specifications, describe actions upon a first and subsequent failures to meet specifications.

Proposed §113.106, concerning procedures for investigations and debarment, provides that TBPC shall provide notice to the vendor of a proposed action and also describes the time periods for vendor response, investigations, and TBPC finding. The proposed section also contains mitigating circumstances and remedial measures TBPC may consider when determining the appropriate action.

Proposed §113.107, concerning request for review, provides a process for a review of TBPC action. The Executive Director conducts the review and has discretion to revise the finding.

Proposed §113.108, concerning the vendor performance tracking system, describes the parameters for the system and requires state agencies to report vendor performance for contracts over $25,000.

Cindy Reed, Executive Director, has determined that for the first five year period that the new rules are in effect there will be no fiscal implication for the state or local governments as a result of enforcing or administering the new rules. An indirect positive fiscal implication is anticipated to result from improving the state's ability to hold vendors accountable. Although the impact cannot be presently quantified, the revised rules will enable the state to more readily identify and exclude poorly performing vendors. Overall, this will improve the efficiency of the state procurement process.

Ms. Reed has further determined that for each year of the first five year period the new rules are in effect, the anticipated benefit to the public will be more efficient and effective statewide compliance with the state statute, Government Code §2155.070 and §2155.077, relating to the debarment of non responsible vendors (contractors). There will be a positive impact on large, small and micro-businesses that routinely participate in business because the new rules provide more detail regarding required standards of performance and behavior and provide procedures that give vendors an opportunity to be heard prior to debarment. There will be no anticipated economic costs to persons who are required to comply with the rules because the standards of performance are already required under state laws and contracts. Additionally these proposed rules provide notice to vendors that assist them in proper performance under state contracts; the rules also describe the vendor's opportunities to perform remedial measures and to be heard during the debarment proceedings.

Ms. Reed has determined that these proposed rules do not affect a local economy and therefore TBPC has not prepared a local employment impact statement under Government Code §2001.022.

Comments on the new rules may be submitted to Elizabeth J. Boyt, Paralegal to the General Counsel, Texas Building and Procurement Commission, P.O. Box 13047, Austin, Texas 78711-3047. Comments may also be sent via e-mail to elizabeth.boyt@tbpc.state.tx.us. All comments must be received no later than thirty days from the date of publication of the proposal in the Texas Register .

The proposed new §§113.101 - 113.108, are proposed under the authority of the Texas Government Code, §2155.070 and §2155.077(c).

The following codes are affected by the new sections: Texas Government Code, Chapter 2155, 2156, 2157, 2158, 2161, 2162, 2163, 2165, 2166, 2167, 2170, 2171, 2172, 2175, 2177; Local Government Code, Chapter 271; and the Transportation Code, Chapters 223 and 224.

§113.101.Purpose and Applicability.

(a) The purpose of this subchapter is to protect the interests of the state and to ensure public confidence in the integrity of the State's procurement laws, policies and practices. Debarment is a discretionary action and shall be undertaken only for the reasons in, and under the procedures of, this subchapter.

(b) This subchapter applies to all vendors and contractors who sell goods and services to the state through any purchasing method authorized by Government Code, Title 10, Subtitle D, Chapters 2155 through 2177. This subchapter applies to vendors and contractors who sell goods and services to a governmental entity whether that entity has been delegated authority by the Commission or is exempt from the Commission's procurement rules and procedures.

§113.102.Definitions.

(a) The definitions in Government Code §§2155.001, 2157.001, 2158.001 and in §113.2 of this title apply to this subchapter, except as defined in subsection (b) of this section.

(b) In this subchapter, the following definitions apply.

(1) Bidders Lists: the centralized masters bidders list maintained by the Commission and all other state bidders lists.

(2) Contractor: any private sector person selling goods and services to the State and all successors-in-interest to that contractor.

(3) Debarment: an exclusion from contracting or subcontracting with state agencies on the basis of any cause set forth in this subchapter, commensurate with the seriousness of the offense, performance failure, or inadequacy to perform. Debarment includes removal of a vendor's name and the vendor's goods and services from all state bidders lists and a prohibition on that vendor and its successors in interest from bidding on and receiving any contracts from the state for a specified period of time.

(4) Successors in interest: any person with interlocking management or ownership, identity of interests among family members, shared facilities and equipment, common use of employees, or a business entity organized subsequent to the debarment or other action under this subchapter that has the same or similar management, ownership or principal employees as the debarred vendor.

(5) State: any agency of the State of Texas, including institutions of higher education, and any governmental entity authorized to purchase goods and services under Government Code, Title 10, Subtitle D.

(6) Vendor: any person selling goods and services to the State and all successors-in-interest to that vendor.

§113.103.Protecting the State's Interest: Failure to Meet Specifications.

(a) When a vendor's goods or services fail to meet contract specifications, TBPC shall consider:

(1) the degree and nature of the variation between the contract specifications and the specifications of the goods or services actually delivered or offered for delivery;

(2) whether the variation creates a hazard to life, health, safety, welfare or property;

(3) whether the vendor knew of the variation when the bid was submitted or when the goods were delivered;

(4) whether the failure to meet specifications adversely impacts the use of other goods or services;

(5) the ability of the vendor to provide the goods or services that do comply with the required specifications;

(6) the amount of economic loss to the state; economic loss includes, but is not limited to, costs arising from delay, training of employees, lost productivity, procuring substitute goods or services and any other cost, direct or indirect, arising out of the failure to meet specifications; and

(7) any other factors TBPC determines are relevant to ensure protection of the state's interest; the Commission shall specify such other factors in a finding made pursuant to §113.106 of this subchapter.

(b) In addition to TBPC, any state agency, including an institution of higher education, may determine that goods and services fail to meet specifications. Where that determination is made by an entity other than TBPC, TBPC is authorized to act against the vendor without further testing and inspection of the goods and services.

§113.104.Protecting the State's Interest: Failure to Meet Contract Requirements.

(a) When a vendor's goods or services fail to meet contract requirements, TBPC shall consider whether the failure was:

(1) a complete failure to deliver the goods and services or failure to deliver

(A) in the time period specified in the contract;

(B) to the location specified in the contract; and

(C) in the manner specified in the contract.

(2) a failure to deliver goods

(A) in the specified quantity;

(B) with the specified invoices or other necessary documentation;

(C) in specified packaging;

(D) in good and usable condition;

(E) without unauthorized substitutions; and

(F) with specified installation including specified repair and replacement parts.

(3) a failure to deliver services

(A) within the time period specified in the contract;

(B) in the manner or at the level specified in the contract considering;

(i) unsuitability of the final product for the purpose intended;

(ii) lack of integration into or compatibility with other pre-existing systems or processes;

(iii) repeated failure of the final product to reliably operate;

(iv) repeated cost overuns due to circumstances within the control of the vendor;

(v) failure to adhere to contract schedules or ensure timely completion;

(vi) failure to provide specified employee training;

(vii) failure to provide specified reports;

(viii) misrepresentation of qualifications of assigned personnel; and

(ix) any other failure to perform that materially affects the quantity or quality of the service.

(C) in conformance with

(i) professional standards of care and codes of conduct;

(ii) generally accepted principles of the business or profession; and

(iii) laws and regulations governing the service, including any proper and necessary licenses, permits, certifications, or other approvals required for the vendor to lawfully perform the services.

(b) TBPC also may evaluate the vendor's performance by considering whether the vendor:

(1) provided accurate and timely invoices;

(2) provided and maintained proof of insurance, bonds, guarantees, letters of credit or other required documents;

(3) provided timely notice of unanticipated factors that may cause delay;

(4) responded appropriately to emergencies;

(5) maintained sufficient financial responsibility; and

(6) any other factors TBPC determines are relevant to ensure protection of the state's interest; TBPC shall specify such other factors in a finding made pursuant to §113.106 of this subchapter.

§113.105.Debarment.

(a) TBPC Actions. Under this subchapter, TBPC may, in order to protect the interests of the State:

(1) conduct an investigation upon a complaint regarding a vendor's acts and omissions in procurement or performance of that contract where the complaint may constitute cause for debarment;

(2) cancel one or more of the vendor's active or pending contracts upon a complaint regarding the vendor's acts and omissions in procurement or performance of that contract where the complaint may constitute cause for debarment;

(3) assess actual damages and costs incurred due to vendor's failure to perform as specified in the contract;

(4) debar a vendor for a specified period of time; and

(5) take any other action authorized by law.

(b) Any action under subsection (a) of this section shall occur upon notice as required under §113.106 of this subchapter. TBPC may, in its sole discretion, find that more than one of the actions in subsection (a) of this section is appropriate and necessary to protect the state's interests.

(c) Damages for Failure to Perform. TBPC may assess actual damages and costs incurred by the state when a vendor fails to perform as specified under a contract. The damages and costs may be assessed whether or not the vendor received notice of investigation or debarment under this subchapter. TBPC shall consider a failure to pay assessed damages in determining whether to debar a vendor under this subchapter.

(d) TBPC may debar a vendor for a period of no more than five years upon a finding that:

(1) continued acceptance of goods or services or vendor performance under the contract may constitute a hazard to health, safety, welfare or property;

(2) the vendor committed fraud in the procurement or performance of the contract, including submission of falsified documents by the vendor or any person under the direction or control of the vendor;

(3) there was financial participation by a person who received compensation from the governmental entity to participate in preparing the specifications or request for proposals on which the contract is based or there was any other violation of state ethics laws;

(4) the vendor has been debarred by another state or by the federal government;

(5) the vendor has been convicted of a crime related to fraud in the procurement or performance of any governmental contract including, but not limited to, a conviction for violation of antitrust, collusion, conspiracy, larceny, theft of services, bribery, coercion laws or any other criminal act based on an intent to defraud any governmental entity in the provision of goods or services; and

(6) the vendor has publicly indicated an unwillingness to honor a bid award.

(e) TBPC may debar a vendor for a period of no more than five years upon a finding that the vendor's performance was substandard. TBPC shall consider:

(1) the accumulated scoring measured by the Vendor Performance Tracking System and:

(A) the number and severity of the vendor's performance failures in relation to the volume of goods and services provided;

(B) the effectiveness of remedial measures taken by the vendor; and

(C) the age and relevance of past performance information.

(2) the vendor's breach of contract where the breach results in:

(A) significant economic loss to the state; significant economic loss includes, but is not limited to, costs of delay, procurement from a different vendor, costs of initial procurement, contract administration and any other cost, direct or indirect, arising from or attributable to the breach;

(B) a hazard to health, safety, welfare or property; or

(C) damage to the state's reputation for integrity in procurement or honest, efficient administration.

(f) Failure to Meet Specifications: General. TBPC shall remove a vendor's name from all bidders lists and prohibit the vendor from bidding on and receiving any contracts from the state when the vendor's goods or services fail to meet specifications. The period of removal shall be less than one year. The period of time for removal shall be determined by evaluating the factors listed in §113.103 of this subchapter, relating to failure to meet specifications.

(g) Failure to Meet Specifications: Repeated Complaints. If after the period of removal determined under subsection (f) of this section, TBPC determines that the same vendor or a successor in interest to the vendor has again responded to a contract with goods or services that do not meet specifications, TBPC shall remove the vendor's name and the vendor's goods and services from all bidders lists for a period of one year.

(h) Failure to Meet Specifications: Debarment. If after the expiration of the one year removal under subsection (g) of this section, TBPC determines that the same vendor or a successor in interest to the vendor has again responded to a contract with goods or services that do not meet specifications, TBPC shall debar the vendor for a period of no more than five years.

§113.106.Procedures for Investigations and Debarment.

(a) Method and Content of Notice. TBPC shall notify the vendor by the most expeditious method available, including but not limited to telephone, e-mail, and fax, of an action under this subchapter. In addition to the most expeditious method, TBPC shall also notify the vendor in writing, via certified mail, return receipt requested. The notice shall be in terms sufficient to apprise the vendor of the conduct or transactions upon which it is based. TBPC shall notify a vendor when:

(1) a vendor is being investigated for potential debarment;

(2) a vendor's contracts have been cancelled; or

(3) a vendor will be disbarred.

(b) Investigation. TBPC shall investigate a complaint that a vendor has failed to perform under the contract for any of the reasons in this subchapter.

(1) TBPC shall complete its investigation within 120 days of the receipt of the complaint. TBPC may, upon receipt of a complaint, cancel the vendor's contracts or cease payments under the vendor's contracts during the period the vendor is under investigation.

(2) Participation of Receiving State Agency. TBPC, in conjunction with the receiving agency, shall decide whether to cancel the vendor's contracts by considering:

(A) the effects of a work stoppage on the state agency;

(B) the seriousness of the breach of contract;

(C) any hazard to health, safety, welfare or property; and

(D) any other reason TBPC and the state agency determine is relevant to the particular circumstances.

(c) Vendor Response. A vendor shall submit a written response to TBPC within ten (10) days of receipt of the notice received under subsection (a) of this section. The vendor is presumed to have received the notice upon TBPC's receipt of fax confirmation or receipt returned by U.S. mail, whichever period is shorter. TBPC may, for good cause shown, allow the vendor one ten (10) day extension of time to provide the vendor's response.

(d) Contents of Vendor Response. The vendor shall respond to each reason TBPC cites in the notice and shall include all facts the vendor believes are relevant, including any applicable mitigating circumstances and remedial measures.

(e) TBPC Finding. Upon completion of its investigation or upon receipt of the vendor's response, TBPC shall determine whether the vendor should be debarred. TBPC shall consider the seriousness of the vendor's acts or omissions and any mitigating factors or remedial measures. TBPC shall inform the vendor of its finding within ninety (90) days of the original notice provided in subsection (a) of this section. If TBPC is conducting an investigation under subsection (b) of this section, then the time periods in this subsection are extended by the length of the investigation.

(f) Mitigating Circumstances. TBPC shall consider whether the vendor's failure to perform was caused, in whole or in part, by:

(1) an act of God or force majeure ; TBPC shall review whether the vendor provided TBPC with timely notification of the event and the reasonableness of the duration of the vendor's failure to perform after the event;

(2) mutual mistake;

(3) legal impossibility; or

(4) significant economic disruption affecting a particular industry.

(g) Remedial Measures. TBPC may consider whether the vendor:

(1) immediately identified and remedied the cause of the failure to perform;

(2) brought the offending conduct to the attention of TBPC and fully investigated the circumstances surrounding that conduct;

(3) cooperated fully in TBPC's investigation;

(4) recognizes and understands the seriousness of the misconduct giving rise to the cause for debarment; and

(5) any other remedial measures, including implementation of control procedures, ethics training, or other disciplinary actions against responsible individuals, that the vendor has instituted.

§113.107.Request for Review.

(a) A finding that a vendor should be debarred may be reviewed by the Executive Director at the request of the vendor. A vendor shall submit a written request for review by the Executive Director within ten (10) days of receipt of the TBPC finding.

(b) The Executive Director may reinstate the vendor to bidders lists; reduce the period of debarment; affirm the finding of TBPC; or reinstate the vendor to a particular contract. The Executive Director may take one or more of the actions listed herein and shall specify, in writing, the reasons for the decision.

(c) The Executive Director shall issue the decision on the request for review within sixty (60) days of the receipt of the vendors' request for review.

(d) No person who has an interest in the outcome of the Executive Director's review may communicate directly or indirectly upon the merits of an investigation or debarment with any commission employees prior to the Executive Director's decision unless the Executive Director specifically authorizes such communication.

§113.108.Vendor Performance Tracking System.

(a) TBPC shall utilize the vendor performance tracking system, available at http://www.tbpc.state.tx.us/stpurch/venvpts.html. The system measures vendor performance for purchases over $25,000, and is used by TBPC to score vendor performance in the areas of commodity delivery and service and service delivery and performance.

(b) State agencies shall report a vendor's performance on any purchase of $25,000 or more from contracts administered by the commission or any other purchase made through an agency's delegated authority or a purchase made pursuant to the authority in Government Code, Title 10, Subtitle D or a purchase exempt from TBPC's procurement rules and procedures.

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 April 22, 2005.

TRD-200501660

Ingrid K. Hansen

General Counsel

Texas Building and Procurement Commission

Earliest possible date of adoption: June 5, 2005

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


1 TAC §113.102

(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 Texas Building and Procurement Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Building and Procurement Commission proposes the repeal of 1 TAC §113.102, concerning vendor performance and debarment. New §§113.101 - 113.108 will replace the repealed section and are contemporaneously proposed in this issue of the Texas Register .

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

Ms. Reed has further determined that for each year of the first five year period the repeal is in effect, the anticipated benefit to the public will be more efficient and effective statewide compliance with the state statute, the Texas Government Code, §2155.077, relating to the debarment of non-responsible vendors (contractors). There will be a positive impact on large, small and micro-businesses that routinely participate in business because the repeal will make possible greater clarity in the debarment rule. There will be no anticipated economic costs to persons who are required to comply with the repeal and there is no impact on local employment.

Comments on the repeal may be submitted to Elizabeth J. Boyt, Paralegal to the General Counsel, Texas Building and Procurement Commission, P.O. Box 13047, Austin, Texas 78711-3047. Comments may also be sent via e-mail to elizabeth.boyt@tbpc.state.tx.us. All comments must be received no later than thirty days from the date of publication of the proposal in the Texas Register .

The repeal of §113.102 is proposed under the authority of the Texas Government Code, §2152. 003 and §2155.077.

The following codes are affected by this repeal: Texas Government Code, Chapter 2155, 2156, 2157, 2158, 2161, 2162, 2163, 2165, 2166, 2167, 2170, 2171, 2172, 2175, 2177; Local Government Code, Chapter 271; and the Transportation Code, Chapters 223 and 224.

§113.102.Vendor Performance and Debarment.

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 April 22, 2005.

TRD-200501656

Ingrid K. Hansen

General Counsel

Texas Building and Procurement Commission

Earliest possible date of adoption: June 5, 2005

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


Subchapter G. BUYING UNDER CONTRACT ESTABLISHED BY AN AGENCY OTHER THAN THE TEXAS BUILDING AND PROCUREMENT COMMISSION

1 TAC §113.125, §113.126

The Texas Building and Procurement Commission (TBPC) proposes amendments to 1 TAC §113.125, Buying under Contract Established by an Agency Other Than the General Services Commission and §113.126, Purchasing from Interstate Compacts and Cooperative Agreements. The proposed amendments to §113.125 and §113.126 are needed to update the current rules to reflect the correct name of the Commission in the rules as well as in the Subchapter Table of Contents. The proposed amendments also include a revision of §113.125(b), relating to the agency notification process. The revisions will add clarity and a sequential approach to the entire agency notification process and the responsibilities of the Commission.

Ms. Cindy Reed, Executive Director, has determined for the first five-year period the rules are in effect there will be no fiscal implication for the state or local governments as a result of the revised rules.

Ms. Reed has further determined that for each year of the first five-year the amendments are in effect, the public benefit anticipated as a result of enforcing the revised rules will be positive with respect to the effect on large, small or micro-businesses that routinely participate in state business opportunities. There will be no anticipated economic costs to persons who are required to comply with the rules and there is no impact on local employment.

Comments on the proposals may be submitted to Elizabeth J. Boyt, Paralegal to the General Counsel, Texas Building and Procurement Commission, P.O. Box 13047, Austin, TX 78711-3047. Comments may also be sent by email to: elizabeth.boyt@tbpc.state.tx.us. Comments must be received no later than thirty days from the date of publication of the proposal to the Texas Register .

The amendments to §113.125 and §113.126 are proposed under the authority of the Texas Government Code, Title 10, Subtitle D, §2152.003 which provides the Texas Building and Procurement Commission with the authority to promulgate rules necessary to implement procurement related statutes.

The following codes are affected by these rules: Texas Government Code, Title 10, Subchapter B, §2155.079, Subchapter C, §2155.132 and Subchapter I, §2155.502.

§113.125.Buying under Contract Established by an Agency Other Than Commission.

(a) A state agency may purchase goods or services under a contract made by another state agency other than the Texas Building and Procurement Commission (TBPC) [ commission ] by complying with this rule.

(b) Before making a particular purchase from a contract made by another state agency, the requesting state agency must notify the TBPC in writing that the purchase is being considered. The notification must be signed by the chief purchasing officer for the agency and include a confirmation that a TBPC contract does not exist for similar goods or services. The agency notification should also disclose the terms of the other agency contract and capabilities of the vendor. The agency notification should include a justification that addresses how using the other agency contract will be more advantageous than creating a new contract. Relevant factors that may be considered in the justification are reduced administrative costs, increased responsiveness, and aggregate purchasing power, among others.

[ (b) A state agency, including the commission, must state a justification on how using the existing contract will be more advantageous than creating another contract. Circumstances for this would include reduced administrative costs and aggregate purchasing power. Before making a particular purchase, the requesting state agency must notify the commission in writing that the purchase is being considered. The notification must be signed by the chief purchasing officer for the agency.]

(c) The authority to authorize a purchase under a contract made by another state agency other than the TBPC [ commission ] resides with the director. If the director determines that a lower price and overall best value is available through the TBPC [ commission ] or the goods or services are already available through a contract administered by the TBPC [ commission ], it will so inform the requesting agency after receipt of the notification. Upon approval to use the other contract, the requesting agency shall utilize established purchasing procedures for the procurement.

(d) When a contract created by another agency fulfills an unmet need for more than one agency, the director may endorse the contract of the other agency as a TBPC [ GSC ] contract, and make it generally available to state agencies and other qualified ordering entities as appropriate.

§113.126.Purchasing from Interstate Compacts and Cooperative Agreements.

(a) Pursuant to Government Code, Section 2156.181, the TBPC [ commission ] may enter into compacts or cooperative purchasing agreements with one or more state governments, agencies of other states, or other governmental entities for the purchase of goods or services if the TBPC [ commission ] determines that entering into an agreement would be in the best interest of the state.

(b) Before entering into such compacts or cooperative purchasing agreements, the Director of [ Central ] Procurement [ Services ] shall present the proposal to the Executive Director [ commission ] for approval. The proposal must state why it is advantageous for the TBPC [ commission ] to authorize a compact or cooperative purchasing agreement with other states.

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 April 22, 2005.

TRD-200501659

Ingrid K. Hansen

General Counsel

Texas Building and Procurement Commission

Earliest possible date of adoption: June 5, 2005

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