1. (a) Funds appropriated to state agencies shall not be expended to enter into or renew contracts with telecommunications service providers of intercity telecommunications services without a determination from the TSD and the Department of Information Resources (DIR) that the state agency intercity telecommunications services requirement cannot be met by TEX-AN. The determination will be issued in writing as a grant of waiver.

2. (b) A state agency shall make a written request for a waiver to the TSD at least 90 days in advance of the state agency's scheduled date for initiation of non-TEX-AN services. The written request shall include the following information:

   1. (1) the reason for requesting a waiver;
   2. (2) addresses and a description of the type of facility, service and equipment at each state agency location for which a waiver is being requested;
   3. (3) a copy of the specifications, if the contract is to be bid competitively, the lowest and best bid, or copy of the existing service contract(s), whichever is applicable;
   4. (4) copies of all billing detail, including call detail, for the most recent billing period;
   5. (5) a summary of all other costs for ancillary equipment or services, including maintenance services, which the state agency currently pays for or will incur through lease, lease-purchase, or purchase that are directly attributable to providing the service requested in the waiver, regardless of funding sources;
   6. (6) verification of the availability of the ancillary service or equipment to the TSD for providing TEX-AN service and estimated costs the state agency proposes to bill to TSD for use of said services or equipment; and
   7. (7) any other information to demonstrate that the facilities or services are cost effective to Texas state government, not a particular facility or location.
3. (c) The TSD will evaluate the information provided by the state agency in its waiver request and determine if the intercity telecommunications services cannot be provided by the TEX-AN network at a reasonable cost. If it is determined that it is more cost effective and in the best interest of the State for the requesting state agency to acquire non-TEX-AN services, a waiver will be granted.
4. (d) If granted, a waiver will be for a specific time period determined by the TSD. A contract for services obtained under waiver may not extend beyond the expiration date of the waiver.
5. (e) A request for the extension of a waiver must be in writing and made no later than 90 days prior to the waiver's expiration date. The requirement for resubmission of all or part of the documentation listed in subsection (b) of this section is within the TSD's discretion.

Source Note:The provisions of this §121.4 adopted to be effective November 8, 1994, 19 TexReg 8541.