TITLE 22. EXAMINING BOARDS

PART 1. TEXAS BOARD OF ARCHITECTURAL EXAMINERS

CHAPTER 7. ADMINISTRATION

22 TAC §7.11

The Texas Board of Architectural Examiners (Board) proposes new §7.11, pertaining to Enhanced Contract and Performance Monitoring. The proposed rule implements Texas Government Code §2261.253, which requires state agencies to adopt a rule which establishes a procedure to identify contracts that require enhanced contract monitoring and submit information on such contracts to the agency's governing body.

Proposed §7.11 would require the Board to complete a risk assessment to identify procurement contracts for goods or services from a private vendor that require enhanced contract or performance monitoring. In implementing this requirement, the agency finance manager would be required to complete a risk assessment for all contracts over $25,000, and is authorized to complete a risk assessment for contracts of a lesser value. The proposed rule identifies factors that may be considered in determining whether enhanced contract or performance monitoring is required. Contracts identified for enhanced contract monitoring under the proposed rule would be reported to the Board, along with the basis for the determination, any serious risks or issues identified with the contract, and staff's plan for carrying out enhanced contract monitoring. Subsequently, the Board would be provided status reports on the contract, as directed by the Board.

FISCAL NOTE

Lance Brenton, General Counsel, Texas Board of Architectural Examiners, has determined that for the first five-year period the proposed rule is in effect, the rule would have no adverse fiscal impact upon state government, local government, or the Texas Board of Architectural Examiners.

PUBLIC BENEFIT/COST OF COMPLIANCE

For the first five-year period the proposed rule is in effect, the anticipated public benefit would be the creation of a process to efficiently and effectively identify agency contracts in need of enhanced contract monitoring, in furtherance of legislative directive. There is no anticipated cost of compliance with the proposed rule.

The proposed rules will have no negative fiscal impact on small or micro-business and no employment impact statement or regulatory flexibility analysis is required.

CROSS REFERENCE TO STATUTE

The proposed rule does not affect any other statutes.

PUBLIC COMMENT

Comments may be submitted to Lance Brenton, General Counsel, Texas Board of Architectural Examiners, P.O. Box 12337, Austin, Texas 78711-2337.

STATUTORY AUTHORITY

The rule is proposed under Section 1051.202, Texas Occupations Code, which provides the Texas Board of Architectural Examiners with authority to promulgate rules to implement Chapters 1051, 1052, and 1053 of the Texas Occupations Code, and Section 2261.253 of the Texas Government Code, which requires the Board to adopt a rule which establishes a procedure to identify contracts that require enhanced contract monitoring and submit information on such contracts to the agency's governing body.

§7.11.Enhanced Contract and Performance Monitoring.

(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.

(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) total cost of the contract, including contract renewals;

(2) risk of loss to the agency under the contract;

(3) risk of fraud, waste or abuse;

(4) scope of the goods or services provided;

(5) availability of agency resources;

(6) complexity of the contract;

(7) business process impact of failure or delay;

(8) vendor past performance; and

(9) whether the vendor is a foreign or domestic person or entity.

(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) the basis for the determination that enhanced contract or performance monitoring is appropriate;

(2) any serious issues or risks identified with the contract, if applicable; and

(3) the plan for carrying out the enhanced contract or performance monitoring.

(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.

(e) This section does not apply to a memorandum of understanding, interagency contract, interlocal agreement, or contract for which there is not a cost.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 3, 2017.

TRD-201700841

Lance Brenton

General Counsel

Texas Board of Architectural Examiners

Earliest possible date of adoption: April 16, 2017

For further information, please call: (512) 305-8519