For covered public works projects over $1 million, the commission must run a small contractor assistance program with specified insurance, outreach, technical assistance, financing, and bond-help components.
Sec. 2166.259. SMALL CONTRACTOR PARTICIPATION ASSISTANCE PROGRAM. (a) This section applies only in relation to a public works project that will involve a contract or aggregated multiple contracts with an estimated cost of more than $1 million. (b) The commission shall maintain a small contractor participation assistance program to ensure full opportunity for participation in public works projects by small contractors. The program must include a: (1) system for the centralized purchase of necessary insurance coverage for the public works project that is required under Subsection (c); (2) public outreach plan to: (A) provide public information about the program; and (B) encourage small contractors to participate in the program; (3) technical assistance plan to aid small contractors in developing the skills necessary to participate in the program in accordance with Subsection (d); (4) financing assistance plan to provide administrative and other assistance to small contractors in obtaining necessary financing arrangements to make the participation of those contractors possible; and (5) method developed with guidance from the Texas Department of Insurance to assist small contractors in: (A) preparing bond application packages for public works projects in a format acceptable to bond underwriters; and (B) obtaining bonds required to participate in public works projects. (b-1) The commission shall designate a commission employee to serve as small contractor participation assistance coordinator. In addition to any other responsibilities, the coordinator shall: (1) administer the small contractor participation assistance program established under this section; (2) with the assistance of the Texas Department of Insurance, provide to small contractors technical assistance and training related to preparing bond application packages and obtaining bonds; and (3) with the assistance of the facilities construction and space management division of the commission, provide to small contractors technical assistance related to participation in the program. (b-2) The small contractor participation assistance coordinator shall submit an annual report describing the activities and progress of the program to the governor, the lieutenant governor, and the speaker of the house of representatives. (b-3) Funding appropriated to the commission for the small contractor participation assistance program may only be used for that program. (c) The commission shall provide for the centralized purchasing of: (1) workers' compensation insurance coverage; (2) employer's liability insurance coverage; (3) commercial general and excess liability coverage; (4) payment and performance bonds; and (5) other similar coverage the commission considers necessary and reasonable for the public works project. (d) A technical assistance plan adopted by the commission must include information on and assistance in: (1) bid estimation, the bidding process, scheduling, and the understanding of bid documents; (2) the reading of construction drawings and other analogous documents; (3) business accounting, bonds, and bond requirements; (4) negotiation with general contractors; (5) other technical and administrative matters considered appropriate and necessary given the complexity and scope of the public works project; and (6) small contractor safety training to ensure compliance with federal jobsite safety standards. (e) The commission shall negotiate contracts with persons or firms having expertise and any required license in the areas that must be included in the commission's technical assistance plan to provide the information and assistance. (f) In this section: (1) "Public works project" means a construction project designed to serve the public necessity, use, or convenience that is undertaken and executed by the commission, including a project for the construction, alteration, or repair of a public building. (2) "Small contractor" means a contractor that operates as a small-business concern as defined by the Small Business Act (15 U.S.C. Chapter 14A). Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1, 1995. Amended by: Acts 2007, 80th Leg., R.S., Ch. 521 (S.B. 704), Sec. 1, eff. September 1, 2007.