Authority/Reference(s) Texas Government Code 2054.0593(e); Texas Government Code 2054.138; State of Texas Procurement and Contract Management Guide; Texas 85th Legislative Session General Appropriations Act Section 17.10(b)(1)
Revision Date June 28, 2024

Policy

A contract renewal is executed through a bilateral amendment which continues the contract duration in accordance with the time frames specified in the contract. Renewals often include changes to the terms and conditions of the contract but must not alter the scope of the procurement or initial contract.

For a contract that has been in effect for more than five fiscal years as of August 31, 2019 and is valued at the lesser of $10 million or ten percent of the agency’s budget, competitive bids are required before a renewal or extension is executed, unless it is exempt. See Exemptions.

Exemptions

  • TxSmartBuy, term, and cooperative contracts administered by the Comptroller or Department of Information Resources (DIR);
  • Grants (subrecipient/recipient);
  • Interagency contracts;
  • Interlocal contracts;
  • Contracts that relate to developing information resource applications or information resource technologies; and,
  • Contracts that, by law, do not have to be competitively procured, such as Open Enrollment Contracts.

Vendor Performance Reporting Requirements

Contracts valued in excess of $5 million require vendor performance reporting requirements as referenced in Vendor Performance Reporting. A contract manager cannot extend a contract of over $5 million until all required vendor performance reports, including annual and milestone reports, are submitted to VPTS.

References

  • Managing Major Information Resource Projects
  • Consulting Services