SECTION 20.306. Preferences

(a) Texas and United States products and Texas services. The terms used in this section are as defined by Government Code, §2155.444(c).

(1) If goods, including agricultural products, produced or grown in this state or offered by Texas bidders are not equal in cost and quality to other products, then goods, including agricultural products, produced or grown in other states of the United States shall be given preference over foreign products if the cost to the state and quality are equal. However, a preference shall be given to those goods produced or grown in this state or offered by Texas bidders as follows:

(A) goods produced or offered by a Texas bidder that is owned by a service-disabled veteran who is a Texas resident shall be given a first preference and goods produced in this state or offered by other Texas bidders shall be given second preference, if the cost to the state and quality are equal; and

(B) agricultural products grown in this state shall be given first preference and agricultural products offered by Texas bidders shall be given second preference, if the cost to the state and quality are equal.

(2) A preference shall be given for purchases of Texas vegetation native to the region for landscaping purposes, including plants, if the cost to the state is not greater and the quality is not inferior.

(3) A first preference shall be given to services offered by a Texas bidder that is owned by a service-disabled veteran who is a Texas resident and a second preference shall be given to services offered by other Texas bidders if:

(A) the services meet state requirements regarding the service to be performed and expected quality; and

(B) the cost of the service does not exceed the cost of other similar services of similar expected quality that are offered by a bidder that is not entitled to a preference under this subsection.

(4) When an agency conducts an advertising campaign that involves the creation or production of a commercial, in accordance with any additional guidance or rules from the Music, Film, Television, and Multimedia Office within the office of the governor, a preference shall be given to a commercial production company and advertising agency located in this state if:

(A) the services meet state requirements regarding the service to be performed and regarding expected quality; and

(B) the cost of the service does not exceed the cost of other similar services of similar expected quality that are offered by a bidder that is not entitled to a preference.

(b) Products of persons with mental or physical disabilities. A preference shall be given to manufactured products of workshops, organizations, or corporations whose primary purpose is training and employing persons with mental or physical disabilities, if the products meet state specifications as to quantity, quality, and price. Competitive bids are not required for purchases of blind-made goods or services offered as a result of efforts by the Texas Council on Purchasing from People with Disabilities, if the goods or services meet state specifications as to quantity, quality, price, delivery, life cycle costs, and costs no more than the fair market price of similar items.

(c) Recycled, remanufactured or environmentally sensitive products. A preference shall be given to recycled, remanufactured or environmentally sensitive products, including recycled steel products, if the products meet state specifications as to quantity and quality and the average price of the product is not more than 10 percent greater than the price of comparable non-recycled products. The preference for recycled steel products applies also to products purchased in connection with projects described in Government Code, §2166.003.

(d) Covered television equipment. In accordance with Health & Safety Code, §361.991, and 30 TAC Chapter 328, Subchapter J, and in addition to any other preferences under other Texas laws, a preference shall be given to a television manufacturer that:

(1) through its recovery plan collects more than its market share allocation; or

(2) provides collection sites or recycling events in any county located in a council of governments region in which there are fewer than six permanent collection sites open at least twice each month.

(e) Energy efficient products. A preference shall be given to energy efficient products if they meet state requirements as to quantity and quality, and are equal to or less than the cost of other products offered. This preference shall be applied by evaluating the energy use of the products offered and considering the costs of such energy use over the expected life of the equipment. The methodology for evaluating energy use and costs shall be included in the bid invitation.

(f) Rubberized asphalt paving material. A preference shall be given to rubberized asphalt paving material made from scrap tires by a facility in this state if the cost, as determined by life-cycle cost benefit analysis, does not exceed the bid cost of alternative paving materials by more than 15%.

(g) Recycled motor oil and lubricants. In the purchase of motor oil and other automotive lubricants for state-owned vehicles, a preference shall be given to motor oils and lubricants that contain at least 25% recycled oil if the quality is comparable and the cost is equal to or less than new oil and lubricants.

(h) Products and services from economically depressed or blighted areas as defined in Government Code, §2306.004 or that meet the definition of a historically underutilized business zone as defined by 15 U.S.C. §632(p). Preference shall be given to goods and services produced in economically depressed or blighted areas if they meet state requirements as to quantity and quality, and are equal to or less than the cost of other similar goods or services offered that are not produced in an economically depressed or blighted area.

(i) Products of facilities on formerly contaminated property. A preference shall be given to goods produced at a facility located on property for which the owner has received a certificate of completion under Health and Safety Code, §361.609, if the goods meet state specifications regarding quantity, quality, delivery, life cycle costs, and price.

(j) Vendors that meet or exceed air quality standards.

(1) For contracts to be performed, in whole or in part, in a designated nonattainment area or an affected county, as those terms are defined by Health and Safety Code, §386.001, the comptroller and state agencies procuring goods and services may:

(A) give preference to goods or services of a vendor that demonstrates that the vendor meets or exceeds any state or federal environmental standards, including voluntary standards, relating to air quality; or

(B) require that a vendor demonstrate that the vendor meets or exceeds any state or federal environmental standards, including voluntary standards, relating to air quality.

(2) The preference may be given only if the cost to the state for the goods and services would not exceed 105% of the cost of the goods or services provided by a vendor who does not meet the standards.

(3) When this preference is made available, the methodology for claiming, evaluating and granting the preference shall be included in the comptroller's and other state agencies' solicitations. The application of the preference should encourage vendor innovation to achieve the clean air objectives as described in the solicitation.

(k) Paper containing recycled fibers. In accordance with Government Code, §2155.446, a preference shall be given to paper containing the highest proportion of recycled fibers for all purposes for which paper with recycled fibers may be used and to the extent that the paper is available at a reasonable price through normal commercial sources to supply the state's needs. The preference does not apply if the average price of paper with recycled fibers exceeds by more than 10 percent the price of comparable non-recycled paper.

(l) Recycled computer equipment of other manufacturers. In accordance with Health and Safety Code, §361.965(d), a preference shall be given to a manufacturer that has a program to recycle the computer equipment of other manufacturers, including collection events, recycling grants, and manufacturer initiatives to accept computer equipment labeled with another manufacturer's brand.

(m) Foods of higher nutritional value. In accordance with Government Code, §2155.442 and the Department of Agriculture's nutrition standards, a preference may be given for contractors who provide foods of higher nutritional value without trans fatty acids for consumption in a public cafeteria.

(n) Travel agents residing in Texas. In accordance with Government Code, §2171.052, the comptroller may make contracts with travel agents that meet certain reasonable requirements prescribed by the central travel office, with preference given to resident entities of this state.

Source Note: The provisions of this §20.306 adopted to be effective January 24, 2017, 42 TexReg 236