1. (a) The commission shall assess each contract to determine whether enhanced contract monitoring is necessary.

   1. (1) The commission shall use the following factors to determine whether enhanced contract monitoring is necessary:

      1. (A) the complexity of the services,
      2. (B) the contract amount,
      3. (C) whether the services or contractor are new or changed significantly,
      4. (D) whether the project involved is a high profile project, and
      5. (E) any other factors that may impact the project.
   2. (2) Projects deemed medium or high risk shall be co-monitored by contract and program staff and may involve additional team members such as legal, fiscal, and auditing staff members.

2. (b) If a contract is determined to need enhanced monitoring, the commission will require the vendor to provide specific programmatic information on a scheduled basis to determine if performance measures are being met.

   1. (1) Programmatic reports shall include information related to the performance measures in the contract, as well as any other deliverables.
   2. (2) Enhanced monitoring may also include site visits, additional meetings with the vendor's staff and other documentation determined to assess progress by the agency towards meeting performance requirements.
3. (c) The director of fiscal division shall notify agency executive staff of contracts needing enhanced monitoring through this process.
4. (d) This process does not apply to interagency agreement, interlocal agreement, a memorandum of understanding with another state agency, or a contract for which there is not a cost.

Source Note:The provisions of this §27.170 adopted to be effective October 13, 2016, 41 TexReg 8061.