81R3728 PMO-F
By: West S.B. No. 624
A BILL TO BE ENTITLED
AN ACT
relating to competitive procurement and change order requirements
for local governments.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 44.031(a), Education Code, is amended to
read as follows:
(a) Except as provided by this subchapter, all school
district contracts, except contracts for the purchase of produce or
vehicle fuel, valued at $50,000 [$25,000] or more in the aggregate
for each 12-month period shall be made by the method, of the
following methods, that provides the best value for the district:
(1) competitive bidding;
(2) competitive sealed proposals;
(3) a request for proposals, for services other than
construction services;
(4) an interlocal contract;
(5) a design/build contract;
(6) a contract to construct, rehabilitate, alter, or
repair facilities that involves using a construction manager;
(7) a job order contract for the minor construction,
repair, rehabilitation, or alteration of a facility;
(8) the reverse auction procedure as defined by
Section 2155.062(d), Government Code; or
(9) the formation of a political subdivision
corporation under Section 304.001, Local Government Code.
SECTION 2. Subchapter B, Chapter 44, Education Code, is
amended by adding Section 44.0313 to read as follows:
Sec. 44.0313. PROCEDURES FOR ELECTRONIC BIDS OR PROPOSALS.
(a) A school district may receive bids or proposals under this
chapter through electronic transmission if the board of trustees of
the school district adopts rules to ensure the identification,
security, and confidentiality of electronic bids or proposals and
to ensure that the electronic bids or proposals remain effectively
unopened until the proper time.
(b) Notwithstanding any other provision of this chapter, an
electronic bid or proposal is not required to be sealed. A
provision of this chapter that applies to a sealed bid or proposal
applies to a bid or proposal received through electronic
transmission in accordance with the rules adopted under Subsection
(a).
SECTION 3. Section 252.048, Local Government Code, is
amended by amending Subsection (c) and adding Subsection (e) to
read as follows:
(c) If a change order involves a decrease or an increase of
$50,000 [$25,000] or less and is for work within the original bid,
the governing body may grant general authority to an administrative
official of the municipality to approve the change orders.
(e) Compensation for a contract awarded on a unit price
basis may not exceed the actual quantity of items supplied or
services provided.
SECTION 4. Section 262.003(a), Local Government Code, is
amended to read as follows:
(a) Any law that requires a county to follow a competitive
procurement [bidding] procedure in making a purchase requiring the
expenditure of $50,000 [$25,000] or less does not apply to the
purchase of an item available for purchase from only one supplier.
SECTION 5. Section 262.023(a), Local Government Code, is
amended to read as follows:
(a) Before a county may purchase one or more items under a
contract that will require an expenditure exceeding $50,000
[$25,000], the commissioners court of the county must:
(1) comply with the competitive bidding or competitive
proposal procedures prescribed by this subchapter;
(2) use the reverse auction procedure, as defined by
Section 2155.062(d), Government Code, for purchasing; or
(3) comply with a method described by Subchapter H,
Chapter 271.
SECTION 6. Section 262.0245, Local Government Code, is
amended to read as follows:
Sec. 262.0245. COMPETITIVE PROCUREMENT [BIDDING]
PROCEDURES ADOPTED BY COUNTY PURCHASING AGENTS. A county
purchasing agent shall adopt procedures that provide for
competitive procurement [bidding], to the extent practicable under
the circumstances, for the county purchase of an item [under a
contract] that is not subject to competitive procurement [bidding
under Section 262.023].
SECTION 7. Section 262.025(d), Local Government Code, is
amended to read as follows:
(d) A [In a county with a population of 3.3 million or more,
the] county and any district or authority created under Article
XVI, Section 59, of the Texas Constitution of which the governing
body is the commissioners court may require that a minimum of 25
percent of the work be performed by the bidder and, notwithstanding
any other law to the contrary, may establish financial criteria for
the surety companies that provide payment and performance bonds.
SECTION 8. Section 271.024, Local Government Code, is
amended to read as follows:
Sec. 271.024. COMPETITIVE PROCUREMENT [BIDDING] PROCEDURE
APPLICABLE TO CONTRACT. If a governmental entity is required by
statute to award a contract for the construction, repair, or
renovation of a structure, road, highway, or other improvement or
addition to real property on the basis of competitive bids, and if
the contract requires the expenditure of more than $50,000
[$25,000] from the funds of the entity, the bidding on the contract
must be accomplished in the manner provided by this subchapter.
SECTION 9. Section 271.054, Local Government Code, is
amended to read as follows:
Sec. 271.054. COMPETITIVE PROCUREMENT [BIDDING]
REQUIREMENT. Before the governing body of an issuer may enter into
a contract requiring an expenditure by or imposing an obligation or
liability on the issuer, or on a subdivision of the issuer if the
issuer is a county, of more than $50,000 [$25,000], the governing
body must submit the proposed contract to competitive procurement
[bidding].
SECTION 10. Section 271.060, Local Government Code, is
amended by adding Subsection (c) to read as follows:
(c) A governing body may grant authority to an official or
employee responsible for purchasing or administering a contract to
approve a change order that is within the scope of the original
contract and involves $50,000 or less.
SECTION 11. Section 281.046, Local Government Code, is
amended by adding Subsection (f) to read as follows:
(f) The board may grant authority to an official or employee
responsible for purchasing or administering a contract to approve a
change order that is within the scope of the original contract and
involves $50,000 or less.
SECTION 12. The heading to Section 281.047, Local
Government Code, is amended to read as follows:
Sec. 281.047. CONTRACTS OVER $50,000 [$10,000].
SECTION 13. Section 281.047(a), Local Government Code, is
amended to read as follows:
(a) This section applies to a contract that is for materials
for, or construction of, facilities and that is for an amount
greater than $50,000 [$10,000].
SECTION 14. Section 325.040, Local Government Code, is
amended to read as follows:
Sec. 325.040. CHANGE ORDERS. After a construction contract
is awarded, if the district determines that additional work is
needed or if the character or type of work, facilities, or
improvements should be changed, the board may authorize change
orders to the contract on terms the board approves. A change made
under this section may not increase or decrease the total cost of
the contract by more than 25 percent. The board may grant authority
to an official or employee responsible for purchasing or
administering a contract to approve a change order that is within
the scope of the original contract and involves $50,000 or less.
SECTION 15. Sections 351.137(b) and (c), Local Government
Code, are amended to read as follows:
(b) Construction contracts requiring an expenditure of more
than $50,000 [$15,000] may be made only after competitive bidding
as provided by Subchapter B, Chapter 271.
(c) After a construction contract is awarded, if the
district determines that additional work is needed or if the
character or type of work, facilities, or improvements should be
changed, the board may authorize change orders to the contract on
terms the board approves. The board may grant authority to an
official or employee responsible for purchasing or administering a
contract to approve a change order that is within the scope of the
original contract and involves $50,000 or less. A change made under
this subsection may not increase or decrease the total cost of the
contract by more than 25 percent.
SECTION 16. Section 375.221, Local Government Code, is
amended to read as follows:
Sec. 375.221. COMPETITIVE BIDDING ON CERTAIN PUBLIC WORKS
CONTRACTS. (a) A contract, other than a contract for services,
for more than $50,000 [$15,000] for the construction of
improvements or the purchase of material, machinery, equipment,
supplies, and other property, except real property, may be entered
into only after competitive bids. Notice of the contract for the
purpose of soliciting bids shall be published once a week for two
consecutive weeks in a newspaper with general circulation in the
area in which the district is located. The first publication of
notice must be not later than the 14th [15th] day before the date
set for receiving bids. The board may adopt rules governing receipt
of bids and the award of the contract and providing for the waiver
of the competitive bid requirement if:
(1) there is an emergency;
(2) the needed materials are available from only one
source;
(3) in a procurement requiring design by the supplier
competitive bidding would not be appropriate and competitive
negotiation, with proposals solicited from an adequate number of
qualified sources, would permit reasonable competition consistent
with the nature and requirements of the procurement; or
(4) after solicitation, it is ascertained that there
will be only one bidder.
(b) If a proposed contract for works, plant improvements,
facilities other than land, or the purchase of equipment,
appliances, materials, or supplies is for an estimated amount of
more than $50,000 [$15,000 but less than $25,000] or for a duration
of more than two years, competitive sealed proposals [bids] shall
be asked from at least three persons.
SECTION 17. Section 1433.025(a), Government Code, is
amended to read as follows:
(a) A contract for construction or purchase under this
chapter involving the expenditure of more than $50,000 [$2,000] may
be made only after advertising in the manner provided by Chapter
252, Local Government Code, or Subchapter C, Chapter 262, Local
Government Code, as applicable.
SECTION 18. Sections 44.031(k) and 44.033, Education Code,
are repealed.
SECTION 19. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2009.