86R10257 MTB-F
By: Capriglione H.B. No. 2459
A BILL TO BE ENTITLED
AN ACT
relating to oversight of and requirements applicable to information
resources technology procurement by state agencies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2054.003(10), Government Code, is
amended to read as follows:
(10) "Major information resources project" means:
(A) any information resources technology project
identified in a state agency's biennial operating plan whose
development costs exceed $5 [$1] million and that:
(i) requires one year or longer to reach
operations status;
(ii) involves more than one state agency;
or
(iii) substantially alters work methods of
state agency personnel or the delivery of services to clients; and
(B) any information resources technology project
designated by the legislature in the General Appropriations Act as
a major information resources project.
SECTION 2. Section 2054.055(b), Government Code, is amended
to read as follows:
(b) The report must:
(1) assess the progress made toward meeting the goals
and objectives of the state strategic plan for information
resources management;
(2) describe major accomplishments of the state or a
specific state agency in information resources management;
(3) describe major problems in information resources
management confronting the state or a specific state agency;
(4) provide a summary of the total expenditures for
information resources and information resources technologies by
the state;
(5) make recommendations for improving the
effectiveness and cost-efficiency of the state's use of information
resources;
(6) describe the status, progress, benefits, and
efficiency gains of the state electronic Internet portal project,
including any significant issues regarding contract performance;
(7) provide a financial summary of the state
electronic Internet portal project, including project costs and
revenues;
(8) provide a summary of the amount and use of
Internet-based training conducted by each state agency and
institution of higher education;
(9) provide a summary of agency and statewide results
in providing access to electronic and information resources to
individuals with disabilities as required by Subchapter M;
(10) assess the progress made toward accomplishing the
goals of the plan for a state telecommunications network and
developing a system of telecommunications services as provided by
Subchapter H; and
(11) identify proposed major information resources
projects for the next state fiscal biennium, including project
costs through stages of the project and across state fiscal years
from project initiation to implementation[;
[(12) examine major information resources projects
completed in the previous state fiscal biennium to determine the
performance of the implementing state agency, cost and value
effectiveness, timeliness, and other performance criteria
necessary to assess the quality and value of the investment; and
[(13) examine major information resources projects
after the second anniversary of the project's completion to
determine progress toward meeting performance goals and operating
budget savings].
SECTION 3. Section 2054.1181, Government Code, is amended
by amending Subsection (b) and adding Subsection (j) to read as
follows:
(b) In performing its duties under this section, the
department shall:
(1) develop policies for the additional oversight of
projects required by Subsection (a);
(2) implement project management standards;
(3) use effective risk management strategies;
(4) establish standards that promote the ability of
information resources systems to operate with each other; and
(5) use industry best practices and process
reengineering when feasible.
(j) A state agency may not amend a contract subject to
review under Section 2054.158(b)(4) if the contract is at least 10
percent over budget or the associated major information resources
project is at least 10 percent behind schedule unless the agency:
(1) conducts a cost-benefit analysis with respect to
canceling or continuing the project; and
(2) submits the analysis described by Subdivision (1)
to the quality assurance team.
SECTION 4. Section 2054.158, Government Code, is amended by
amending Subsection (b) and adding Subsections (d) and (e) to read
as follows:
(b) The quality assurance team shall:
(1) develop and recommend policies and procedures to
improve the development, implementation, and return on investment
for state agency information resources technology projects;
(2) except as provided by Subsection (e), review a
state agency's business case prepared for a major information
resources project under Section 2054.303 and make recommendations
[develop and recommend procedures] to improve the implementation of
the project [state agency information resources technology
projects by including considerations for best value and return on
investment]; [and]
(3) provide annual training for state agency
procurement and contract management staff on best practices and
methodologies for information technology contracts;
(4) review and provide recommendations on the final
negotiated terms of a contract for the development or
implementation of a major information resources project with a
value of at least $10 million; and
(5) provide a report to the governor, lieutenant
governor, speaker of the house of representatives, and presiding
officer of the standing committee of each house of the legislature
with primary jurisdiction over appropriations by December 1 of each
even-numbered year that includes:
(A) the performance indicator report required by
Section 2054.159(a);
(B) a summary of any major issues identified in
state agency reports submitted under Section 2054.159(f);
(C) an appendix containing any justifications
submitted to the quality assurance team under Section 2054.160(d);
and
(D) any additional information considered
appropriate by the quality assurance team.
(d) The comptroller by rule shall develop guidelines for the
additional or reduced monitoring of major information resources
projects and associated contracts of state agencies based on the
risk criteria developed under Section 2155.091(f).
(e) The quality assurance team may waive the review
authorized by Subsection (b)(2) for a project that the team
determines to be low risk.
SECTION 5. Section 2054.159, Government Code, is amended by
amending Subsection (b) and adding Subsections (f) and (g) to read
as follows:
(b) The department by rule shall develop the performance
indicators the quality assurance team is required to monitor under
Subsection (a) and obtain the approval of each member of the quality
assurance team for the performance indicators. In adopting rules
under this subsection, the department shall consider applicable
information technology industry standards.
(f) For each major information resources project, a state
agency shall provide the quality assurance team any verification
and validation report or quality assurance report related to the
project not later than the 10th day after the date the agency
receives a request for the report.
(g) The quality assurance team may request any information
necessary to determine a major information resources project's
potential risk.
SECTION 6. Subchapter G, Chapter 2054, Government Code, is
amended by adding Section 2054.160 to read as follows:
Sec. 2054.160. REVIEW OF CONTRACT FOR MAJOR INFORMATION
RESOURCES PROJECT. (a) For each contract for the development or
implementation of a major information resources project with a
value of at least $10 million, a state agency shall:
(1) submit the proposed terms of the contract to the
quality assurance team before the start of negotiations; and
(2) submit the final negotiated unsigned contract to
the quality assurance team for review under Section 2054.158(b)(4).
(b) After the quality assurance team makes a recommendation
under Section 2054.158(b)(4), a state agency shall:
(1) comply with the recommendation; or
(2) submit to the quality assurance team a written
explanation regarding why the recommendation is not applicable to
the contract under review.
(c) Before amending a contract related to a major
information resources project, a state agency must notify the
governor, lieutenant governor, speaker of the house of
representatives, presiding officer of the standing committee of
each house of the legislature with primary jurisdiction over
appropriations, and quality assurance team if:
(1) the total value of the amended contract exceeds or
will exceed the initial contract value by 25 percent or more; or
(2) the amendment requires the contractor to provide
consultative services, technical expertise, or other assistance in
defining project scope or deliverables.
(d) A state agency shall provide to the quality assurance
team a justification for an amendment subject to Subsection (c).
SECTION 7. Section 2054.301, Government Code, is amended to
read as follows:
Sec. 2054.301. APPLICABILITY[; DEFINITION]. [(a)] This
subchapter applies only to[:
[(1)] a major information resources project[; and
[(2) a major contract].
[(b) In this subchapter, "major contract" means a major
contract as defined by Section 2262.001(4) under which a vendor
will perform or manage an outsourced function or process.]
SECTION 8. Section 2054.302, Government Code, is amended by
amending Subsection (b) and adding Subsection (d) to read as
follows:
(b) The department[, in consultation with the Legislative
Budget Board and state auditor's office,] shall develop and provide
guidelines and forms for the documents required by this subchapter.
(d) The guidelines and forms developed under Subsection (b)
must be approved by each member of the quality assurance team.
SECTION 9. Section 2054.303, Government Code, is amended by
amending Subsections (a) and (c) and adding Subsection (d) to read
as follows:
(a) For each proposed major information resources project
[or major contract], a state agency must prepare:
(1) a business case providing the initial
justification for the project [or contract, including the
anticipated return on investment in terms of cost savings and
efficiency for the project or contract]; and
(2) if the state agency meets the low risk criteria
developed under Section 2155.091(f):
(A) a statewide impact analysis of the project's
[or contract's] effect on the state's common information resources
infrastructure[, including the possibility of reusing code or other
resources]; and
(B) [(3) in consultation with the department,] a
technical architectural assessment of the project, if requested by
the quality assurance team [or contract].
(c) The department shall use the analysis to ensure that the
proposed project [or major contract] does not unnecessarily
duplicate existing statewide information resources technology.
(d) After the quality assurance team makes a recommendation
relating to a business case under Section 2054.158(b)(2), a state
agency shall:
(1) comply with the recommendation; or
(2) submit to the quality assurance team a written
explanation regarding why the recommendation is not applicable to
the project under review.
SECTION 10. Sections 2054.304(a) and (b), Government Code,
are amended to read as follows:
(a) A state agency shall develop a project plan for each
major information resources project [or major contract].
(b) The [Except as provided by Subsection (c), the] state
agency must file the project plan with the quality assurance team
and the department before the agency[:
[(1)] spends more than 10 percent of allocated funds
for the project [or major contract; or
[(2) first issues a vendor solicitation for the
project or contract].
SECTION 11. Section 2054.305, Government Code, is amended
to read as follows:
Sec. 2054.305. PROCUREMENT PLAN AND METHOD FOR MONITORING
CONTRACTS. Before issuing a [vendor] solicitation for a [project
or major] contract subject to review under Section 2054.158(b)(4),
the state agency must develop, consistent with any acquisition plan
provided in the guide developed under Section 2262.051 [department
guidelines]:
(1) a procurement plan with anticipated service levels
and performance standards for each contractor [vendor]; and
(2) a method to monitor changes to the scope of each
contract.
SECTION 12. Section 2054.307, Government Code, is amended
to read as follows:
Sec. 2054.307. APPROVAL OF DOCUMENTS AND CONTRACT CHANGES.
(a) A state agency's executive director, or the executive
director's designee, [information resources manager, designated
project manager, and the agency employee in charge of information
security for the agency] must approve [and sign]:
(1) each document required by this subchapter; and
(2) if the department requires the approval [and
signatures], any other document related to this subchapter.
(b) The state agency's executive director must approve a
proposed contract amendment or change order for a major information
resources project if the amendment or change order:
(1) changes the monetary value of the contract by more
than 25 [10] percent; or
(2) significantly changes the completion date of the
contract.
SECTION 13. Section 2155.091, Government Code, is amended
by adding Subsection (f) to read as follows:
(f) The chief procurement officer, in coordination with the
Contract Advisory Team created under Section 2262.101 and the
quality assurance team created under Section 2054.158,
shall develop criteria for the assessment of a state agency as
"high risk," "standard risk," or "low risk" in relation to major
information resources projects and associated contracts. In this
subsection, "major information resources project" has the meaning
assigned by Section 2054.003.
SECTION 14. The following provisions of the Government Code
are repealed:
(1) Section 2054.1181(f);
(2) Sections 2054.1183 and 2054.1184;
(3) Sections 2054.159(c) and (d); and
(4) Section 2054.304(c).
SECTION 15. As soon as practicable after the effective date
of this Act, the comptroller of public accounts, the Department of
Information Resources, and each affected state agency as necessary,
shall adopt the rules, processes, and procedures and take the
actions necessary to implement the changes in law made by this Act.
SECTION 16. This Act applies only in relation to a contract:
(1) for which a state agency first advertises or
otherwise solicits bids, proposals, offers, or qualifications on or
after the effective date of this Act;
(2) that is extended or modified on or after the
effective date of this Act; or
(3) for which a change order is submitted on or after
the effective date of this Act.
SECTION 17. This Act takes effect September 1, 2019.