Source: https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=T&app=9&p_dir=F&p_rloc=182545&p_tloc=14529&p_ploc=1&pg=2&p_tac=&ti=34&pt=1&ch=20&rl=285
Timestamp: 2020-01-22 11:50:41
Document Index: 756460000

Matched Legal Cases: ['§20', '§20', '§20', '§20', '§20', '§20']

RULE §20.285 Subcontracts
(e) Reviewing the HUB subcontracting plan. The HUB subcontracting plan shall be reviewed and evaluated prior to contract award and, if accepted, shall become a provision of the state agency's contract. Revisions necessary to clarify and enhance information submitted in the original HUB subcontracting plan may be made in an effort to determine good faith effort. State agencies shall review the documentation submitted by the respondent to determine if a good faith effort has been made in accordance with this section. If the state agency determines that a submitted HUB subcontracting plan was not developed in good faith, the state agency shall treat that determination as a material failure to comply with advertised specifications, and the subject response (bid, proposal, offer, or other applicable expression of interest) shall be rejected. The reasons for rejection shall be recorded in the procurement file.
(f) Maintaining records.
(1) Prime contractors shall maintain business records documenting compliance with the HUB subcontracting plan and shall submit a compliance report to the contracting state agency monthly, in the format required by the comptroller. The compliance report submission shall be required as a condition for payment.
(2) During the term of the contract, the state agency shall monitor the HUB subcontracting plan monthly to determine if the value of the subcontracts to HUBs meets or exceeds the HUB subcontracting provisions specified in the contract. Accordingly, state agencies shall audit and require a prime contractor to report to the state agency the identity and the amount paid to its subcontractors in accordance with §20.287(b) of this title (relating to State Agency Reporting Requirements). If the prime contractor is meeting or exceeding the provisions, the state agency shall maintain documentation of the prime contractor's efforts in the contract file. If the prime contractor fails to meet the HUB subcontracting provisions specified in the contract, the state agency shall notify the prime contractor of any deficiencies. The state agency shall give the prime contractor an opportunity to submit documentation and explain to the state agency why the failure to fulfill the HUB subcontracting plan should not be attributed to a lack of good faith effort by the prime contractor.
(g) Monitoring HUB subcontracting plan during the contract.
(1) If the selected respondent decides to subcontract any part of the contract in a manner that is not consistent with its HUB subcontracting plan, the selected respondent must comply with provisions of this section and submit a revised HUB subcontracting plan before subcontracting any of the work under the contract. If the selected respondent subcontracts any of the work without prior authorization and without complying with this section, the selected respondent is deemed to have breached the contract and is subject to any remedial actions provided by Government Code, Chapter 2161, other applicable state law and this section. Agencies shall report nonperformance relative to its contracts to the comptroller in accordance §20.509 of this title (relating to Performance Reporting).
(2) If at any time during the term of the contract, the selected respondent desires to make changes to the approved HUB subcontracting plan, proposed changes must be received for prior review and approval by the state agency before changes will be effective under the contract. The selected respondent must comply with provisions of this section, relating to developing and submitting a subcontracting plan for substitution of work or of a subcontractor, prior to any alternatives being approved under the HUB subcontracting plan. The state agency shall approve changes by amending the contract or by another form of written state agency approval. The reasons for amendments or other written approval shall be recorded in the procurement file.
(3) If a state agency expands the original scope of work through a change order or contract amendment, including a contract renewal that expands the scope of work, the state agency shall determine if the additional scope of work contains additional probable subcontracting opportunities not identified in the initial solicitation. If the state agency determines probable subcontracting opportunities exist, the state agency will require the selected respondent to submit a HUB subcontracting plan/revised HUB subcontracting plan for the additional probable subcontracting opportunities.
(4) To determine if the prime contractor is complying with the HUB subcontracting plan, the state agency may consider the following:
(A) whether the prime contractor gave timely notice to the subcontractor regarding the time and place of the subcontracted work;
(B) whether the prime contractor facilitated access to the resources needed to complete the work; and
(C) whether the prime contractor complied with the approved HUB subcontracting plan.
(5) If a determination is made that the prime contractor failed to implement the HUB subcontracting plan in good faith, the state agency, in addition to any other remedies, may report nonperformance to the comptroller in accordance with §20.585 of this title (relating to Debarment) and §20.586 of this title (relating to Procedures for Investigations and Debarment). In addition, if the prime contractor failed to implement the HUB subcontracting plan in good faith, the state agency may revoke the contract for breach of contract and make a claim against the prime contractor.
(6) State agencies shall review their procurement procedures to ensure compliance with this section.
Source Note: The provisions of this §20.285 adopted to be effective January 24, 2017, 42 TexReg 235