1. (a) Purpose. This section describes contracting standards and related requirements for recipients of state and federal public transportation grant funds.
2. (b) Standards. The standards contained in the common rule apply to public transportation contracting activities. The department will monitor subrecipient compliance with those standards.

3. (c) Subcontracts. Subrecipients shall furnish the notice of the intent to award a purchase order or contract to any individuals or organizations not a part of the subrecipient's organization when the amount of the purchase meets or exceeds the threshold level in the Government Code or Local Government Code (or greater than $25,000 for those entities not covered by the Government Code or Local Government Code) requiring formal competitive procurement. Notice shall be given to the district or to the Public Transportation Division, whichever is responsible for administering the grant. Purchases shall not be split out to stay below the threshold amount. No subcontract will relieve the subrecipient of the subrecipient's legal responsibilities to the department. All subcontracts in excess of $25,000 shall contain the following required provisions from the pro forma grant contract between the department and the subrecipient:

   1. (1) financial management;
   2. (2) civil rights; and
   3. (3) disadvantaged business enterprise program requirements.

Source Note:The provisions of this §31.43 adopted to be effective August 11, 1994, 19 TexReg 5880; amended to be effective February 15, 2001, 26 TexReg 1365; amended to be effective April 17, 2003, 28 TexReg 3080; amended to be effective February 21, 2008, 33 TexReg 1380.