SECTION 1.16. Contracts, Including Grants, for Materials and/or Services

(a) The Board delegates to the Commissioner authority to approve and enter into all payable and receivable Agreements, including contracts, grants, and other agreements, and interagency contracts for which the Agreement, inclusive of all amendments, totals $5 million or less.

(1) The Commissioner is authorized to approve and sign all Agreements that total up to $5 million, inclusive of all amendments subject to the notification requirements in paragraph (2) of this subsection.

(2) The Commissioner shall provide written notification to the Board Chair, Board Vice Chair, and Chair of the Agency Operations committee of any Agreement that totals $1 million or more, inclusive of all amendments, prior to execution of the Agreement.

(3) For each contract for the purchase of goods or services that has a value exceeding $1 million, there must be contract reporting requirements that provide information on the following:

(A) compliance with financial provisions and delivery schedules under the contract;

(B) corrective action plans required under the contract and the status of any active corrective action plan; and

(C) any liquidated damages assessed or collected under the contract.

(D) Verification is required of:

(i) the accuracy of any information reported under this subsection that is based on information provided by a contractor; and

(ii) the delivery time of goods or services scheduled for delivery under the contract.

(b) Any Agreement exceeding $5 million, inclusive of all amendments, requires Board approval prior to execution of the contract or other Agreement, except those described in paragraph (1) of this subsection. The Commissioner is authorized to sign an Agreement or amendment that totals more than $5 million that has been approved by the Board.

(1) Agreements exceeding $5 million that the agency is required by law to enter into, i.e., those that are appropriated to the agency as non-discretionary funding to a third party, do not require Board approval and are delegated to the Commissioner for approval and signature.

(2) For each contract for the purchase of goods or services that has a value totaling $5 million or more, the procurement director must:

(A) verify in writing that the solicitation and purchasing methods and contractor selection process comply with state law and agency policy; and

(B) submit to the Board information on any potentially significant issue that may arise in the solicitation, purchasing, or contractor selection process.

(c) In addition to the Commissioner, the following employees have authority to approve an Agreement:

(1) A Deputy or Associate Commissioner if the Agreement, inclusive of all amendments, totals $100,000 or less.

(2) An Assistant Commissioner, in addition to a Deputy or Associate Commissioner, with primary oversight of a particular Agreement if the Agreement, inclusive of all amendments, totals $10,000 or less.

(d) The Commissioner shall provide a report to the Board, at least quarterly, describing all Agreements entered into by the agency during the preceding quarter, the total of which, inclusive of all amendments, is $10,000 or greater.

(e) The Board shall, in an open meeting, consider any material change to all contracts for goods or services awarded under Texas Government Code, Chapter 2155. A material change to a contract includes extending the length or postponing the completion of a contract for six months or more; or increasing the total consideration to be paid under a contract by at least 10 percent, including by substituting certain goods, materials, products, or services. Goods are supplies, materials, or equipment. Services are the furnishing of skilled or unskilled labor or professional work but do not include a professional service subject to Subchapter A, Chapter 2254, Texas Government Code, service of a state employee, consulting service or service of a consultant as defined by Subchapter B, Chapter 2254, or the service of a public utility.

(f) Agency staff shall utilize THECB's Procurement and Contract Management Handbook or Grant Management guidelines and the THECB's Risk Assessment tool to determine which Agreements require enhanced contract or grant monitoring.

Source Note: The provisions of this §1.16 adopted to be effective May 19, 2022, 47 TexReg 2857