1. (a) The Board will complete a risk assessment to identify procurement contracts for goods or services from a private vendor that require enhanced contract or performance monitoring.

2. (b) For all contracts with a value greater than $25,000, the finance manager will complete a risk assessment to evaluate whether enhanced contract or performance monitoring may be required. For contracts of a lesser value, the finance manager may complete a risk assessment to evaluate whether enhanced contract or performance monitoring is indicated. The risk assessment may consider the following factors:

   1. (1) total cost of the contract, including contract renewals;
   2. (2) risk of loss to the agency under the contract;
   3. (3) risk of fraud, waste or abuse;
   4. (4) scope of the goods or services provided;
   5. (5) availability of agency resources;
   6. (6) complexity of the contract;
   7. (7) business process impact of failure or delay;
   8. (8) vendor past performance; and
   9. (9) whether the vendor is a foreign or domestic person or entity.

3. (c) Contracts identified for enhanced contract and/or performance monitoring will be reported to the Board at the first regular Board meeting after the contract is executed. The report shall include:

   1. (1) the basis for the determination that enhanced contract or performance monitoring is appropriate;
   2. (2) any serious issues or risks identified with the contract, if applicable; and
   3. (3) the plan for carrying out the enhanced contract or performance monitoring.
4. (d) For any contract subject to enhanced contract or performance monitoring, the finance manager shall provide the Board with progress reports, as directed by the Board.
5. (e) This section does not apply to a memorandum of understanding, interagency contract, interlocal agreement, or contract for which there is not a cost.

Source Note:The provisions of this §7.11 adopted to be effective July 2, 2017, 42 TexReg 3373.