Under Government Code §2261.253, the Texas Department of Insurance implements the following procedures for contracts for the purchase of goods or services from private vendors until the contract expires or is completed.

1. (1) For each contract with a value greater than $25,000, the procurement director will evaluate whether enhanced contract or performance monitoring is appropriate. The procurement director may evaluate whether enhanced contract or performance monitoring is appropriate for contracts with a value less than $25,000. Criteria that may be considered include:

   1. (A) total cost of the contract, including contract renewals;
   2. (B) risk of loss to the department under the contract;
   3. (C) department resources available for enhanced contract or performance monitoring; and
   4. (D) whether the vendor is a foreign or domestic person or entity.

2. (2) After evaluation of the contract, if enhanced contract or performance monitoring is appropriate, the procurement director or designee will immediately report to the commissioner of insurance, the commissioner of workers' compensation, or both commissioners, as appropriate, based on the subject matter of the contract:

   1. (A) the basis for determination as to whether enhanced contract or performance monitoring is appropriate;
   2. (B) include any serious issues or risks identified with the contract, if applicable; and
   3. (C) if enhanced contract or performance monitoring is appropriate, the department's plan for carrying out the enhanced contract or performance monitoring.

Source Note:The provisions of this §1.2201 adopted to be effective July 26, 2016, 41 TexReg 5427.