34 Tex. Admin. Code § 20.583 - Protecting the State's Interest
(a) When a
contractor's goods or services fail to meet contract specifications, the
comptroller shall consider:
(1) the degree
and nature of the variation between the contract specifications and the
specifications of the goods or services actually delivered or offered for
delivery;
(2) whether the
variation creates a hazard to life, health, safety, welfare or property;
(3) whether the contractor knew of
the variation when the bid was submitted or when the goods were delivered;
(4) whether the failure to meet
specifications adversely impacts the use of other goods or services;
(5) the ability of the contractor to provide
the goods or services that do comply with the required specifications;
(6) the amount of economic loss to
the state; economic loss includes, but is not limited to, costs arising from
delay, training of employees, lost productivity, procuring substitute goods or
services and any other cost, direct or indirect, arising out of the failure to
meet specifications; and
(7) any
other factors the comptroller determines are relevant to ensure protection of
the state's interest; the comptroller shall specify such other factors in a
finding made pursuant to §
20.586 of this title (relating to
Procedures for Investigations and Debarment).
(b) In addition to the comptroller, any state
agency, including an institution of higher education, may determine that goods
and services fail to meet specifications. Where that determination is made by
an entity other than the comptroller, the comptroller is authorized to act
against the contractor without further testing and inspection of the goods and
services.
Notes
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