1. (a) The commission shall establish the Small Contractor Participation Assistance Program as set forth in this section.
2. (b) Assistance under the program shall be available on projects performed by the commission for construction, alteration, or repair of public buildings for which the estimated cost exceeds $20 million. In determining the estimated cost of a project, all work financed under a single bond issue or schedule of appropriated projects may be aggregated.
3. (c) To be eligible for assistance under the program, a contractor must be eligible for assistance from the United States Small Business Administration.

4. (d) The commission shall establish a technical assistance plan as set forth below:

   1. (1) The commission may contract with one or more entities to provide technical assistance to aid small contractors to develop the skills necessary to participate in the program.

   2. (2) The technical assistance plan shall include information and assistance in:

      1. (A) estimating bids, the bidding process, scheduling, and understanding bid documents;
      2. (B) reading construction drawings and other analogous documents;
      3. (C) business accounting, bonds, and bond requirements;
      4. (D) negotiations with general contractors;
      5. (E) safety training; and
      6. (F) any other technical and administrative assistance considered appropriate and necessary given the complexity and scope of the particular public works project.

   3. (3) In awarding contracts for technical assistance, the commission may use a competitive bid process, a competitive proposal process, or may negotiate directly with service providers. If the commission negotiates directly with service providers, it shall:

      1. (A) select a qualified provider of the services on the basis of demonstrated competence and qualifications; and
      2. (B) then attempt to negotiate a contract at a fair and reasonable rate.

5. (e) The commission shall establish a financing assistance plan as set forth below:

   1. (1) The commission may contract with one or more entities to provide financing assistance to small contractors. Financing assistance shall not include loans, grants, loan guarantees, or other forms of direct financial aid. Financing assistance shall include assistance in identifying and obtaining financing arrangements from other sources.
   2. (2) In awarding financing assistance contracts, the commission may use a competitive bid process or a competitive proposal process, as may be appropriate to the project in question.
6. (f) Any party awarded a contract to provide technical or financing assistance shall be an independent advisor and not a representative of the commission, and none of such party's advice or assistance shall necessarily be the position of the commission on any matter in question. Whenever a technical or financing assistance provider gives advice or assistance to a small contractor, the provider shall, in writing, inform the small contractor that the provider's advice and services are those of the provider and do not necessarily set forth the position of the commission on any given issue.

7. (g) The commission shall establish a public outreach plan as set forth below:

   1. (1) The commission shall publish notices annually in five newspapers of general circulation describing the program and giving the names, addresses, and telephone numbers of the technical and financing assistance providers.
   2. (2) For each project covered by the program, the names, addresses, and telephone numbers of the technical and financing assistance providers shall be published in the specifications, together with a description of the program.
   3. (3) All advertisements and notices concerning projects covered by the program shall include the names, addresses, and telephone numbers of the technical and financing assistance providers.
   4. (4) In each project covered by the program, the general contractor shall be required, as a term of the contract with the state, to provide to all subcontractors the names, addresses, and telephone numbers of the technical financing assistance providers.

8. (h) The commission shall provide for centralized purchasing of required insurance and bond coverage as set forth below:

   1. (1) For each project under the program, the commission shall make centralized purchases of:

      1. (A) workers' compensation insurance coverage;
      2. (B) employers' liability insurance coverage;
      3. (C) commercial general and excess liability coverage;
      4. (D) payment and performance bonds; and
      5. (E) any other analogous coverage the commission considers necessary and reasonable for the particular project.
   2. (2) Such centrally purchased coverages shall be incorporated into the contract with the state, and any contractor who enters into a contract with the state under a project covered by the program shall be required to pay premiums and fees as set forth in the central purchase contracts.

Source Note:The provisions of this §123.23 adopted to be effective October 19, 1994, 19 TexReg 8029.