Section 3: Contract Standards
Negotiations
Contracts must be negotiated in accordance with 43 TAC §9.40.
Administrative Qualification
Administrative qualification is a process the Professional
Engineering Procurement Services Division (PEPS) uses to verify
that a provider has a Federal Acquisition Regulation (FAR) compliant overhead.
Providers must submit information to TxDOT annually to maintain
Administratively Qualified (AQ) status. For federal selection processes,
firms that provide engineering or design related services must be
AQ on or before the solicitation closing date to be eligible to
perform those services.
Issuing Work and Monitoring Time
Issuing Work Authorizations for Indefinite Deliverable
Contracts
:The contract period in which initial work authorizations may
be issued may not be longer than four years after the date of contract
execution, unless the Texas Transportation Commission approves a longer
period to issue work authorizations prior to the solicitation posting
date. 43 TAC §9.32.
The execution date is the date of the last signature or initials
necessary to make the contract legally binding. Usually, the execution
date is the date that TxDOT signed the contract.
If a prime contract expires, each of its ongoing work authorizations
also terminates.
Specific Deliverable Contracts
: A specific
deliverable contract may be extended to the extent necessary to
complete all tasks specified in the project schedule.Required Insurance
The prime provider is required to
maintain
three
policies during the life of the contract:- workers’ compensation,
- commercial general liability, and
- Texas business automobile.
The provider must have a certificate of insurance on file
with Contract Services before the contract is executed. Subcontractors
are not required to maintain separate insurance.
A new certificate must be submitted each time a provider's
insurance policies are changed or renewed during the contract period.
The insurance policies must remain current during the entire
contract period.
Contract Administration
In accordance with 43 TAC §9.41:
- a prime provider shall perform at least 30 percent of the contract work with its own work force, unless otherwise approved by TxDOT,
- the prime provider project manager may not be replaced without the prior written consent of TxDOT,
- TxDOT may perform interim and final audits, and
- TxDOT will document the prime provider’s performance.
Supplemental Agreements
Supplemental agreements may be used to change the scope, schedule,
or amounts payable under an indefinite or specific deliverable agreement.
The contract period of an indefinite deliverable contract
may be extended with a supplemental agreement, but it may not be
extended to exceed the five year maximum contract term on federally funded
agreements. Extending time to complete an indefinite deliverable
contract only allows for the completion of work authorizations that
were issued within four years of the prime contract execution date
and does not authorize issuance of new work authorizations past
the four year period.
TxDOT may extend a specific deliverable contract until completion
of construction to enable the managing office to keep a provider
engaged to perform design revisions (not necessarily the fault of
the provider) during the project’s construction phase. This action:
- keeps a provider available that is already familiar with the project,
- averts TxDOT from performing the additional work in-house.
Additional work required because of a provider’s error or
omission must be performed by the provider without any cost to TxDOT,
whether or not the contract has expired.
With indefinite deliverable contracts, the managing office
may not supplement a work authorization with an unrelated task,
even if the contract is still open because of an unperformed deliverable on
one of the original work authorizations.
Increased labor rates are not sufficient justification for
an increase in the maximum amount payable. For
Specific
Deliverable
contracts, the maximum amount payable may
be increased only if the scope of work is increased or the time
schedule is extended.The managing office can amend the contract’s method of payment
only under compelling circumstances.
Name Changes
A name change occurs when a provider changes its name, but
not its legal identity. An individual may change their name through
marriage or a court order, for example. If a provider changes its name,
it must submit documentation showing that the name change has been
legally implemented. For most business entities, this will involve
changing the name legally through the Secretary of State.
Assignments
An assignment occurs when a new provider replaces the original
provider. This may result from a sale of underlying assets of the
original provider or from a change in the original provider's legal identity
because of a change of business form, as from a corporation to a
partnership. Only TxDOT, by written consent, may authorize assignment.
Therefore, the Assignment form must have the signature of an authorized
representative of the original provider, of an authorized representative
of the new provider (who may in some cases be the same person),
and of the authorized TxDOT representative.
Contract Services’ Role
Contract Services reviews documents, prior to execution, related
to engineering, architecture, and survey under the following circumstances:
- All contracts more than $1,000,000, unless:
- Approved TxDOT contract and scope templates are used without modifications, or
- Approved TxDOT contract and scope templates are used an all modifications are approved by Contract Services prior to execution.
- All work authorizations more than $1,000,000; and;
- All supplemental agreements and supplemental work authorizations with a cumulative value of more than $1,000,000.
Contract Services is the office of record for Engineering,
Surveying, Commercial Laboratory, and Architectural Services contracts.
Contract Services is the point of contact concerning legal
issues pertinent to procurement and management of services secured
through all negotiated contracts.