Texas Statutes
Subchapter A. Contracts With Private Vendors and Commissioners Courts
Section 495.003. Contract Proposals; Qualifications and Standards

Sec. 495.003. CONTRACT PROPOSALS; QUALIFICATIONS AND STANDARDS. (a) The board may not award a contract under this subchapter unless the board requests proposals and receives a proposal that meets or exceeds, in addition to requirements specified in the request for proposals, the requirements specified in Subsections (b), (c), and (d).
(b) A person proposing to enter a contract with the board under this subchapter must demonstrate:
(1) the qualifications and the operations and management experience to carry out the terms of the contract; and
(2) the ability to comply with the standards of the American Correctional Association and with specific court orders.
(c) In addition to meeting the requirements specified in the requests for proposals, a proposal must:
(1) provide for regular, on-site monitoring by the institutional division;
(2) acknowledge that payment by the state is subject to the availability of appropriations;
(3) provide for payment of a maximum amount per biennium;
(4) offer a level and quality of programs at least equal to those provided by state-operated facilities that house similar types of inmates and at a cost that provides the state with a savings of not less than 10 percent of the cost of housing inmates in similar facilities and providing similar programs to those types of inmates in state-operated facilities;
(5) permit the state to terminate the contract for cause, including as cause the failure of the private vendor or county to meet the conditions required by this subchapter and other conditions required by the contract;
(6) provide that cost adjustments may be made only once each fiscal year, to take effect at the beginning of the next fiscal year;
(7) have an initial contract term of not more than three years, with an option to renew for additional periods of two years;
(8) if the proposal includes construction of a facility, contain a performance bond approved by the board that is adequate and appropriate for the proposed contract;
(9) provide for assumption of liability by the private vendor or county for all claims arising from the services performed under the contract by the private vendor or county;
(10) provide for an adequate plan of insurance for the private vendor or county and its officers, guards, employees, and agents against all claims, including claims based on violations of civil rights arising from the services performed under the contract by the private vendor or county;
(11) provide for an adequate plan of insurance to protect the state against all claims arising from the services performed under the contract by the private vendor or county and to protect the state from actions by a third party against the private vendor or county, its officers, guards, employees, and agents as a result of the contract;
(12) provide plans for the purchase and assumption of operations by the state in the event of the bankruptcy of the private vendor or inability of the county to perform its duties under the contract; and
(13) contain comprehensive standards for conditions of confinement.
(d) Before the commissioners court of a county proposes to enter into a contract under this subchapter, the commissioners court of the county must receive the written approval of the sheriff of the county. A sheriff may not unreasonably withhold written approval under this subsection. A correctional facility provided by a county under this subchapter is subject to the same standards and requirements as a correctional facility provided by a private vendor.
(e) The Legislative Budget Board determines the costs and cost savings under Subsection (c)(4) and may consider any relevant factor, including additional costs to the state for providing the same service as a private vendor or county, indirect costs properly allocable to either the state or the private vendor or county, and continuing costs to the state directly associated with the contract.
Added by Acts 1989, 71st Leg., ch. 212, Sec. 2.01, eff. Sept. 1, 1989. Renumbered from Sec. 494.003 and amended by Acts 1991, 72nd Leg., ch. 16, Sec. 10.01(a), eff. Aug. 26, 1991. Amended by Acts 1991, 72nd Leg., 2nd C.S., ch. 10, Sec. 2.03, eff. Dec. 1, 1991.