An authority generally must use competitive sealed bids or proposals to award certain contracts, and the board of directors can approve negotiation without that process only in listed exceptions.
Sec. 460.406. PURCHASES: COMPETITIVE BIDDING. (a) Except as provided by Subsection (c), an authority may not award a contract for construction, services, or property, other than real property, except through the solicitation of competitive sealed bids or proposals ensuring full and open competition. (b) The authority shall describe in a solicitation each factor to be used to evaluate a bid or proposal and give the factor's relative importance. (c) The board of directors may authorize the negotiation of a contract without competitive sealed bids or proposals if: (1) the aggregate amount involved in the contract is less than the greater of: (A) $50,000; or (B) the amount of an expenditure under a contract that would require a municipality to comply with Section 252.021(a), Local Government Code; (2) the contract is for construction for which not more than one bid or proposal is received; (3) the contract is for services or property for which there is only one source or for which it is otherwise impracticable to obtain competition, including: (A) items that are available from only one source because of patents, copyrights, secret processes, or natural monopolies; (B) gas, water, and other utility services; and (C) captive replacement parts or components for equipment; (4) the contract is to respond to an emergency for which the public exigency does not permit the delay incident to the competitive process; (5) the contract is for personal, professional, or planning services; (6) the contract, without regard to form and which may include bonds, notes, loan agreements, or other obligations, is for the purpose of borrowing money or is a part of a transaction relating to the borrowing of money, including: (A) a credit support agreement, such as a line or letter of credit or other debt guaranty; (B) a bond, note, debt sale or purchase, trustee, paying agent, remarketing agent, indexing agent, or similar agreement; (C) an agreement with a securities dealer, broker, or underwriter; and (D) any other contract or agreement considered by the board of directors to be appropriate or necessary in support of the authority's financing activities; (7) the contract is for work that is performed and paid for by the day as the work progresses; (8) the contract is for the lease or purchase of an interest in land; (9) the contract is for the purchase of personal property sold: (A) at an auction by a state licensed auctioneer; (B) at a going out of business sale held in compliance with Subchapter F, Chapter 17, Business & Commerce Code; or (C) by a political subdivision of this state, a state agency, or an entity of the federal government; (10) the contract is for services performed by persons who are blind or have severe disabilities; (11) the contract is for the purchase of electricity; (12) the contract is one for an authority project and awarded for alternate project delivery using the procedures, requirements, and limitations under Subchapters E, F, G, H, and I, Chapter 2269, Government Code; or (13) the contract is for fare enforcement officer services under Section 460.1092. (d) For the purposes of entering into a contract authorized by Subsection (c)(12), an authority is considered a "governmental entity" as described by Section 2269.002, Government Code. Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1, 2001. Amended by: Acts 2007, 80th Leg., R.S., Ch. 326 (H.B. 2682), Sec. 16, eff. September 1, 2007. Acts 2011, 82nd Leg., R.S., Ch. 921 (S.B. 1422), Sec. 3, eff. September 1, 2011. Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 4.09, eff. September 1, 2011. Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.002(36), eff. September 1, 2013. Amended by: Acts 2013, 83rd Leg., R.S., Ch. 594 (S.B. 948), Sec. 7, eff. September 1, 2013. Acts 2015, 84th Leg., R.S., Ch. 114 (S.B. 678), Sec. 3, eff. September 1, 2015. Acts 2015, 84th Leg., R.S., Ch. 1236 (S.B. 1296), Sec. 17.004, eff. September 1, 2015. Acts 2017, 85th Leg., R.S., Ch. 228 (S.B. 1179), Sec. 1, eff. May 29, 2017. SUBCHAPTER G. BONDS AND NOTES