1. (a) The Board shall approve all requests for the purchase or acquisition of materials and/or services if the cost for those materials and/or services is expected to exceed $750,000. After a vendor or grantee is selected, a majority of the Chair and Vice Chair of the Board and the Chair of the responsible Board committee shall provide final approval of the contract with the selected vendor or grantee.
2. (b) The Board shall, in an open meeting, consider any material change to all contracts for goods or services awarded under Texas Government Code, Chapter 2155. A material change to a contract includes extending the length or postponing the completion of a contract for six months or more; or increasing the total consideration to be paid under a contract by at least 10 percent, including by substituting certain goods, materials, products, or services. Goods are supplies, materials, or equipment. Services are the furnishing of skilled or unskilled labor or professional work but do not include a professional service subject to Subchapter A, Chapter 2254, Texas Government Code, service of a state employee, consulting service or service of a consultant as defined by Subchapter B, Chapter 2254, or the service of a public utility.
3. (c) The Board committee to which an item is assigned shall approve all requests relating to that item for the purchase or acquisition of materials and/or services if the cost for those materials and/or services is greater than $100,000 but less than or equal to $750,000. After a vendor or grantee is selected, a majority of the Chair and Vice Chair of the Board and the Chair of the responsible Board committee shall provide final approval of the contract with the selected vendor or grantee.

4. (d) All contracts, including grants, whose amounts payable are less than or equal to $100,000 must be approved in accordance with this subsection (d) of this section unless the Board or a Board committee or the Board Chair, Vice Chair, and Chair of the responsible Board committee has approved such agreements.

   1. (1) The Commissioner or the Deputy Commissioner with primary oversight of a particular contract shall approve every such contract, including grants, for the purchase or acquisition of materials and/or services if the contract or grant amount is less than or equal to $100,000 but greater than $5,000.
   2. (2) Assistant Commissioners, in addition to the Commissioner and Deputy Commissioners, may approve contracts, including grants, within their area of responsibility, if the amount payable is less than or equal to $5,000.
5. (e) The Commissioner shall provide a report to the Board, at least quarterly, describing all contracts, including grants, for the purchase or acquisition of materials and/or services that were executed pursuant to subsection (d) of this section and not considered by the Board or a Board committee or by the Board Chair, Vice Chair, and Chair of the responsible Board committee.
6. (f) The Chair and Vice Chair of the Board have the authority to approve emergency purchase requests and contracts for materials and/or services over $100,000 that must be entered into in order to prevent a hazard to life, health, safety, welfare, property or to avoid undue additional cost to the state. Emergency purchase requests and contracts are exempt from subsections (a) and (c) of this section.
7. (g) In the event that the agency is required by statute to enter into a contract or grant for the purchase or acquisition of materials and/or services with a value of over $100,000, approval of such a request or contract or grant by the Board or a Board committee pursuant to subsection (a) or (c) of this section, as appropriate, shall not be required when such a contract or grant award involves no discretion by the Board or agency staff. The Commissioner or a Deputy Commissioner, in accordance with subsection (d) of this section, shall approve such contracts or grants and report them to the Board at the next quarterly Board meeting following the approval.
8. (h) In the event that a contract or grant for a given amount has been approved by either the Board or a Board committee, as applicable, and circumstances alter such that the expenditure necessary under the contract or grant increases by less than ten percent, the Commissioner or a Deputy Commissioner, in accordance with subsection (d) of this section, may approve such an increase. Should the increase in expenditure equal or exceed ten percent or extend the length of or postpone completion of the contract by six months or more for contracts for goods or services awarded under Texas Government Code, Chapter 2155, approval must be sought in accordance with subsection (b) of this section. Should the increase in expenditure equal or exceed ten percent for contracts or grants not covered by Chapter 2155 but which were approved by either the Board or a Board committee or by a majority of the Board Chair, Vice Chair, and the Chair of the responsible Board committee, the contract or grant must be submitted for approval by a majority of the Board Chair, Vice Chair, and the Chair of the responsible Board committee.
9. (i) In the event that the Board or a Board committee, as applicable, has approved the issuance of a solicitation request for the purpose of obtaining materials and/or services that will result in the letting of contracts, including grants, to multiple vendors or providers of services, any resulting contract or grant which by itself shall have a cost greater than $100,000 must be approved by a majority of the Chair and Vice Chair of the Board and the Chair of the responsible Board committee unless such contracts are approved by the Board or the responsible Board committee, as appropriate. The Commissioner or a Deputy Commissioner, in accordance with subsection (d) of this section, shall provide final approval of contracts or grants with the selected vendors or grantees if the contract amount is less than or equal to $100,000; the Board Chair, Vice Chair and the Chair of the responsible Board committee shall be notified in such event.

10. (j) For each contract for the purchase of goods or services that has a value exceeding $1 million:

    1. (1) there must be contract reporting requirements that provide information on the following:

       1. (A) compliance with financial provisions and delivery schedules under the contract;
       2. (B) corrective action plans required under the contract and the status of any active corrective action plan; and
       3. (C) any liquidated damages assessed or collected under the contract.

    2. (2) Verification is required of:

       1. (A) the accuracy of any information reported under paragraph (1) of this subsection that is based on information provided by a contractor; and
       2. (B) the delivery time of goods or services scheduled for delivery under the contract.
    3. (3) Any such contract for the purchase of goods or services that has a value exceeding $1 million may be entered into only if the contract is approved and signed by the Commissioner, to whom the Board hereby delegates such approval and signature authority. In exercising such approval authority, the Commissioner shall use the approval process established in subsection (a) of this section.
    4. (4) For purposes of this subsection, "contract" includes a grant, other than a grant made to a school district or a grant made for other academic purposes, under which the recipient of the grant is required to perform a specific act or service, supply a specific type of product, or both.

11. (k) For each contract for the purchase of goods or services that has a value exceeding $5 million, the contract management office or procurement director must:

    1. (1) verify in writing that the solicitation and purchasing methods and contractor selection process comply with state law and agency policy; and
    2. (2) submit to the Board information on any potential issue that may arise in the solicitation, purchasing, or contractor selection process.
    3. (3) For purposes of this subsection, "contract" includes a grant, other than a grant made to a school district or a grant made for other academic purposes, under which the recipient of the grant is required to perform a specific act or service, supply a specific type of product, or both.

Source Note:The provisions of this §1.16 adopted to be effective August 15, 2006, 31 TexReg 6325; amended to be effective February 18, 2007, 32 TexReg 525; amended to be effective November 29, 2007, 32 TexReg 8482; amended to be effective February 28, 2008, 33 TexReg 1526; amended to be effective November 18, 2008, 33 TexReg 9228; amended to be effective August 26, 2009, 34 TexReg 5675; amended to be effective December 3, 2009, 34 TexReg 8505; amended to be effective May 20, 2013, 38 TexReg 2998; amended to be effective March 5, 2015, 40 TexReg 919; amended to be effective August 17, 2015, 40 TexReg 5150.