HB 15

84(R) - 2015
House Government Transparency & Operation
House Government Transparency & Operation

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral


John Otto


Cindy Burkett
Armando Walle

Bill Caption

Relating to the management and oversight of state contracts, including contracts for information technology commodity items.

Fiscal Notes

HB 15 would have a negative impact of ($2,644,021) on the General Revenue Fund through the biennium ending August 31, 2017. This negative impact is expected to increase through the next three years after the biennium. The costs associated with HB 15 comes from hiring new State employees.

Bill Analysis

HB 15 seeks to repeal the provisions regarding the Contract Advisory Team created under statutory provisions regarding statewide contract management and abolishes the advisory team. HB 15 transfers all powers and duties of the advisory team to the Contract Management and Oversight Team (CMOT)  and specifies that a rule, form, policy, procedure, or decision of the advisory team continues in effect as a rule, form, policy, procedure, or decision of the Contract Management and Oversight Team until superseded by an act of the Contract Management and Oversight Team.

HB 15 prohibits a state agency from entering into a contract to purchase an information technology commodity item if the value of the contract exceeds $1 million and requires a state agency that enters into such a contract to obtain at least three competitive offers from vendors selected by Department of Information Resources if at least three vendors selected by DIR offer the item.

HB 15 seeks to require a state agency, for a contract with a value of more than $50,000 for the purchase of information technology commodity items that is awarded by DIR and requires the state agency to develop and execute a statement of work to consult with DIR before submission of the statement of work to a vendor.

HB 15 would increase the minimum threshold amount of certain construction projects, professional services, and consulting services contracts that triggers the requirement that a certain written notification be provided to the Legislative Budget Board from $14,000 to $50,000. 

The new Contract Management and Oversight Team shall develop criteria to identify high-risk factors in contracts, consult with state agencies on and approve an action related to a high-risk contract, provide recommendations and assistance to state agency personnel throughout the contract management process, and coordinate and consult with the quality assurance team created by the state auditor, the Legislative Budget Board, and the Department of Information Resources. "High-risk contracts" are defined as a contract or purchase order having a value of at least $10 million, a value of less than $10 million but with factors identified by the CMOT, is entered into with an entity that is incorporated outside of the United States, has entered into with an entity that, during the five-year period preceding the date of the purchase or award of the contract, has had a contract with a state agency or federal governmental entity terminated or canceled, or meets other criteria as established by the team.

HB 15 requires each state agency to provide written notice to the team not later than the 30th day before the date the agency publicly releases solicitation documents for a high-risk contract and  requires each state agency to receive a separate prior approval from the team before spending money under an executed high-risk contract and to make a payment or a series of payments that exceeds half of the high-risk contract value

Vote Recommendation Notes

HB 15 would create the Contract Management and Oversight Team whose main priority would be monitoring high-risk, high-value contracts in which state agencies engage. The increased oversight theoretically provides state contracting better protection from abusive practices and shady dealings. Though it only applies to high-value contracts, this bill would create another level of government contractors must go through. Any potential savings in a program to "save money while spending money" are purely speculative (see fiscal note). For this reason we remain neutral on this bill.