SECTION 55.101. Enhanced Contract Monitoring

(a) This section implements Government Code, §2261.253(c).

(b) For each contract entered into by the department, the financial services division director, or his or her designee, will determine if enhanced monitoring of the contract or the contractor's performance is required.

(c) In determining whether a contract requires enhanced monitoring, the following factors may be considered, to the extent applicable:

(1) The estimated dollar amount of the contract;

(2) The total contract period, including renewal options;

(3) The extent and number of persons impacted by the contract;

(4) The impact to the department and the state if contract deliverables are delayed, or if the contractor fails to deliver as required in the contract;

(5) The complexity of funding sources for the contract;

(6) The complexity of requirements and resources to be managed pursuant to the contract;

(7) The extent of department resources readily available to manage the contract;

(8) The impact of the contract on the health and safety of the general public;

(9) The impact on the department's business processes;

(10) The complexity of the methodology for calculating and making payments under the contract;

(11) The extent of training required for end users as a result of the contract;

(12) The vendor's experience delivering the contracted goods or services, and, if applicable, the vendor's performance under previous department contracts; and

(13) With regard to a technology contract, the level of software customization required and the impact on existing technology applications or infrastructure.

(d) The financial services division director, or his or her designee, shall maintain a record of all contracts requiring enhanced monitoring. Contracts identified for enhanced monitoring shall be reported to the commission at least quarterly.

(e) The financial services division director shall notify the commission immediately of any serious issue or risk that is identified with respect to a contract requiring enhanced monitoring.

Source Note: The provisions of this §55.101 adopted to be effective March 1, 2017, 42 TexReg 674