New Contract Procurement Enforcer: The LBB.

Speaker Straus announced that the House budget will include provisions that require contracts with an agency or institution of higher education to meet new requirements. 

Which Contracts are affected?

• Contracts over $10 million,  or
• A contract or purchases over $1 million that didn’t go through a competitive bidding process.

What are the new contract transparency requirements?

• Notification, within 30 days, will be required to the following: 
  • ​ Legislative Budget Board
  • Governor
  • State Auditor
  • chair of the House Appropriations Committee
  • chair of the Senate Finance Committee and
  • chairs of any other committees with jurisdiction over contracting 
• Information about the nature of the contract and the vendor awarded it.
• Certification by the agency’s executive director that:
  • They complied with the state’s Contract Management Guide, State of Texas Procurement Manual and all applicable laws.
  • And, if they did not, why, with a legal justification.
  • A certification by the agency’s executive director that the agency can verify vendor performance and deliverables, payment of goods and services only within the scope of the contract, and other information.
• The LBB becomes the enforcer.
  • LBB must sign off before the Comptroller will release funds. 

Speaker Straus Press Release