31 Tex. Admin. Code § 51.61 - Enhanced Contract Monitoring

(a) Except as otherwise provided in this section, before the department enters into a contract, the department will determine if enhanced monitoring of the contract and the contractor's performance is required.

(b) In determining if a contract requires enhanced contract monitoring, the department will consider the following factors, to the extent applicable:

(1) Total Contract Price. The department will consider the estimated dollar amount of the contract. Contracts with a higher dollar amount are more likely to require enhanced contract monitoring.

(2) Total Contract Duration. The department will consider anticipated overall contract period including renewal options. Longer term contracts are more likely to require enhanced contract monitoring.

(3) Funding Source. The department will consider the complexity of and restrictions associated with funding sources for the contract. Contracts funded from multiple types or sources of funding and contracts funded with restricted or time-limited funds are more likely to require enhanced contract monitoring.

(4) User Impacts. The department will consider the extent and number of persons impacted by this contract. Contracts with wider impacts are more likely to require enhanced contract monitoring.

(5) Criticality of Deliverable Timing. The department will consider the impact to the agency if contract deliverables are delayed. Contracts for which timely completion is critical are more likely to require enhanced contract monitoring.

(6) Impact of Contract Failure. The department will consider the impact to the department and the state if the contractor fails to deliver as required in the contract. Contracts for which failure would have statewide impacts, would result in violation of state or federal mandates, or would result in the loss of substantial funds are more likely to require enhanced contract monitoring.

(7) Locations Impacted. The department will consider the number of locations impacted by the contract. Contracts that will be implemented in multiple locations around the state are more likely to require enhanced contract monitoring.

(8) Availability of Resources for Contract Management. The department will consider the extent of resources readily available to manage the contract. Contracts for which resources are limited or for which consultants or temporary staff are required to manage the contract are more likely to require enhanced contract monitoring.

(9) Complexity of Project. The department will consider the complexity of requirements and resources to be managed. Contracts with more complex requirements involving external experts or evaluators are more likely to require enhanced contract monitoring.

(10) Health and Safety Risk. The department will consider how the contract would impact the health and safety of department employees and the general public. Contracts that are required to reduce or eliminate health and safety risks are more likely to require enhanced contract monitoring.

(11) Business Process Impact. The department will consider the level of impact to the department's business processes. Contracts that will have department-wide business impacts are more likely to require enhanced contract monitoring.

(12) Payment Methodology Risks. The department will consider the complexity of the methodology for calculating and making payments under the contract. Contracts with more complex payment methodology are more likely to require enhanced contract monitoring.

(13) End Users' Training Needs. The department will consider the extent of training required for end-users as a result of the contract. Contracts requiring extensive training by a vendor or external trainers are more likely to require enhanced contract monitoring.

(14) Software Technology Customization. With regard to a technology contract, the department will consider the level of software customization required. Technology contracts that involve a fully customized software solution are more likely to require enhanced contract monitoring.

(15) Impact on Existing Technology. With regard to a technology contract, the department will consider whether the technology application which is the subject of the contract is an enhancement, replacement or new technology and the impact on existing technology applications or infrastructure. Contracts for a new technology service or product that will impact existing technology applications or infrastructure are more likely to require enhanced contract monitoring.

(16) Interface Connectivity. With regard to technology contracts, the department will consider the number of existing technology applications with which any new technology will need to interface. Technology contracts that will interface with multiple department systems are more likely to require enhanced contract monitoring.

(17) Additional Factors. The department will consider additional factors that it determines appropriate, in accordance with Government Code, § 2261.253(c).

(c) The department may determine, after considering the factors listed in subsection (b) of this section, that certain types or classes of contracts are low risk and have a low likelihood of serious issues, and are not required to be individually considered for enhanced contract monitoring.

(d) The department's director of contracting and procurement will notify the executive director who will notify the Parks and Wildlife Commission regarding any serious risk or issue identified in connection with a contract subject to enhanced contract monitoring.

Notes

31 Tex. Admin. Code § 51.61

Adopted by Texas Register, Volume 41, Number 33, August 12, 2016, TexReg 6046, eff. 8/16/2016; Amended by Texas Register, Volume 50, Number 02, January 10, 2025, TexReg 0426, eff. 1/19/2025