1. (a) Any actual or prospective bidder, offeror, or contractor who is aggrieved in connection with the solicitation, evaluation, or award of a contract may formally protest to the Director of Business Services (the director). Such protests must be in writing and received in the director's office within 10 working days after such aggrieved person knows, or should have known, of the occurrence of the action which is protested. Formal protests must conform to the requirements of this paragraph and paragraph (c) of this section, and shall be resolved in accordance with the procedure set forth in paragraphs (d) and (e) of this section. Copies of the protest must be mailed or delivered by the protesting party to the other interested parties. For the purposes of this section, "interested parties" means all vendors who have submitted bids or proposals for the contract involved.
2. (b) In the event of a timely protest or appeal under this section, the Texas Higher Education Coordinating Board shall not proceed further with the solicitation or with the award of the contract unless the director makes a written determination that the award of contract is necessary to protect substantial interests of the state.

3. (c) A formal protest must contain:

   1. (1) a specific identification of the statutory or regulatory provision(s) that the action complained of is alleged to have violated;
   2. (2) a specific description of each act alleged to have violated the statutory or regulatory provision(s) identified in paragraph (1) of this section;
   3. (3) a precise statement of the relevant facts;
   4. (4) an identification of the issue or issues to be resolved;
   5. (5) argument and authorities in support of the protest; and
   6. (6) a statement that copies of the protest have been mailed or delivered to the other identifiable interested parties.
4. (d) The director shall have the authority to settle and resolve the dispute concerning the solicitation or award of a contract. The director may solicit written responses to the protest from other interested parties. The director may consult with the General Services Commission and the office of the General Counsel of the Texas Higher Education Coordinating Board concerning the dispute.

5. (e) If the protest is not resolved by mutual agreement, the director shall issue a written determination on the protest.

   1. (1) If the director determines that no violation of rules or statutes has occurred, he shall so inform the protesting party and other interested parties by letter which sets forth the reasons for the determination.
   2. (2) If the director determines that a violation of the rules or statutes has occurred in a case where a contract has not been awarded, he shall so inform the protesting party and other interested parties by letter which sets forth the reasons for the determination and the appropriate remedial action.
   3. (3) If the director determines that a violation of the rules or statutes has occurred in a case where a contract has been awarded, he shall so inform the protesting party and other interested parties by letter which sets forth the reasons for the determination, which may include ordering the contract void.
6. (f) The director's determination on a protest may be appealed by an interested party to the Assistant Commissioner for Administration. An appeal of the director's determination must be in writing and must be received in the Assistant Commissioner for Administration's office no later than 10 working days after the date of the director's determination. The appeal shall be limited to review of the director's determination. Copies of the appeal must be mailed or delivered by the appealing party to the other interested parties and must contain an affidavit that such copies have been provided.
7. (g) The Assistant Commissioner for Administration shall review the protest, director's determination, and the appeal, and issue a written decision on the protest.
8. (h) Unless good cause for delay is shown or the Assistant Commissioner for Administration determines that a protest or appeal raises issues significant to procurement practices or procedures, a protest or appeal that is not filed timely will not be considered.
9. (i) A decision issued in writing by the Assistant Commissioner for Administration shall be the final administrative action of the Texas Higher Education Coordinating Board.

Source Note:The provisions of this §1.11 adopted to be effective December 13, 1999, 24 TexReg 11102.