85R13137 AAF-F By: Capriglione H.B. No. 3598 A BILL TO BE ENTITLED AN ACT relating to the contract management guide for state agencies. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 2262.005, Government Code, is amended to read as follows: Sec. 2262.005. CONSULTATION WITH INTERESTED PARTIES [STATE AGENCIES]. The comptroller shall consult with state agencies, vendors, and other interested parties in developing rules, forms, contract terms, guides, manuals, and criteria required under this chapter. SECTION 2. Section 2262.051, Government Code, is amended by amending Subsections (a), (b), (c), (d), and (g) and adding Subsections (i) and (j) to read as follows: (a) In consultation with the attorney general, the Department of Information Resources, the [comptroller, and the] state auditor, and state agencies that award major contracts, the comptroller [commission] shall develop and [or] periodically update a contract management guide for use by state agencies. Participation by the state auditor under this subsection is subject to approval by the legislative audit committee for inclusion in the audit plan under Section 321.013(c). (b) The comptroller [commission] may adopt rules necessary to develop or update the guide. (c) The guide must provide information regarding the primary duties of a contract manager, including how to: (1) develop and negotiate a contract; (2) select a contractor; [and] (3) monitor contractor and subcontractor performance under a contract; and (4) encourage competition for goods and services purchased by this state. (d) The guide must include model provisions for state agency contracts. The guide must: (1) distinguish between essential provisions that a state agency must include in a contract to protect the interests of this state and recommended provisions that a state agency may include in a contract; (2) recognize the unique contracting needs of an individual state agency or program based on the size, nature, and type of goods or services purchased by the state agency or program and provide sufficient flexibility to accommodate those needs, consistent with protecting the interests of this state; (3) include maximum contract periods under which a new competitive solicitation is not necessary; and (4) include the model contract management process developed under Section 2262.104 and recommendations on the appropriate use of the model. (g) The guide must establish procedures under which a state agency is required to: (1) analyze the reasons [solicit explanations from qualified potential respondents who did not respond to] a competitive solicitation for a contract received fewer than two qualified bids; and (2) develop and implement improved procurement practices, including: (A) providing earlier notice to prospective vendors of the state agency's intent to issue a competitive solicitation; (B) expanding the time in which a prospective vendor may respond to a competitive solicitation; (C) improving up-front communication between a state agency and a prospective vendor about the state agency's needs and objectives; and (D) improving educational efforts by the state agency to understand vendor capabilities, skills, and benefits [on which fewer than two qualified bids were received by the agency]. (i) The guide must suggest best practices related to procurement metrics used by a state agency to measure and monitor the effectiveness of the state agency's procurement methods, including the: (1) number and value of procurements made by the state agency; (2) number of canceled procurements by the state agency; (3) reasons for canceled procurements; (4) common exceptions to the state agency's terms and conditions by a respondent; (5) number of responses per competitive solicitation; and (6) average length of time for each phase of the state agency's procurement processes, including the length of time: (A) between the date the state agency issues the competitive solicitation and the date the state agency begins receiving responses to the solicitation; (B) for the evaluation of responses to a competitive solicitation; (C) of the negotiation between the state agency and a vendor; and (D) between the date the state agency issues the competitive solicitation and the date the state agency awards a contract to a vendor. (j) The guide may include references to procurement maturity models and procurement readiness assessments used by other large public and private enterprises. SECTION 3. This Act takes effect September 1, 2017.