Authority/Reference(s) Texas Government Code 2155.144(o); 2254.002; 2254.008
Revision Date June 1, 2026

Policy

A Direct Award is a method of contracting for goods and services that is determined to be noncompetitive in accordance with statute, for certain goods and services utilized by State Hospitals (SH), State Supported Living Centers (SSLC), and for certain contracts with physicians, optometrists, and registered nurses.

The Department of Family and Protective Services (DFPS) may pursue a direct award when a procurement receives no responsive bids or responses following an initial screening for SH or SSLC procurements in accordance with Texas Government Code (TGC) Section 2155.144 (o) or if DFPS needs contractors to provide physician, optometrist, or registered nurse services as defined by TGC Section 2254.002. The Direct Award must also follow all other applicable contracting laws and HHSC-PCS requirements.

A direct award must be limited in scope and duration, cannot exceed five years, unless allowable under state law, and all supporting documentation must be maintained in the official procurement file. The selected vendor must meet all qualifications in accordance with the relevant section of the Government Code and pricing must be fair and reasonable.

Prior to contract execution, DFPS staff must complete PCS 436 Direct Contract Award Determination Form and follow the requirements listed on the form and in HHS-PCS Operating Procedure 436.