On January 28, 2015 Governor Greg Abbott called on all state agencies to reform their contracting and procurement process. In response, TDLR created a Contracting Disclosure and Accountability Initiative.
The actions outlined below are in addition to the safeguards TDLR currently uses to ensure the open and competitive procurement of goods and services. TDLR's enhanced procurement policy will include the following:
TDLR’s Financial Services Division has developed and will maintain a list of all no-bid contracts with a value in excess of $5,000. The list will be updated as necessary and will be published and downloadable from the agency’s website as a searchable PDF file.
In addition to the conflict of interest provision in the Personnel Manual, the Office of the General Counsel is developing signature certifications that must be executed by each employee participating in the procurement process (solicitation preparation, bid evaluation and contract management). The certifications will require disclosure of potential conflicts of interest and financial interests between the employee, family members and the potential vendor. While current policy requires all purchasers to execute an annual conflict of interest certification, the certifications will be extended to and executed by all employees involved in the procurement regardless of job classification.
TDLR’s Financial Services Division will work with each division seeking procurement in excess of $5,000 to certify compliance with proper protocols. Financial Services will modify the Purchase Order system to track and report statutory authority for any purchase in excess of $5,000. In addition, for procurements valued at more than $5 million, the Director of Financial Services will:
· Review and approve the procurement method; and
· Prepare a risk assessment for the Executive Director and Commission to include potential issues that could arise during the contract term.
These enhanced procedures will ensure that competitive bidding is used in all non-emergency procurements. The mandatory certifications and disclosures will identify agency leadership with a possible conflict or financial interest and stop those transactions.
