Skip to content
Breadcrumbs

eXpendit

Note: To navigate this guide on a mobile device you must use the Table of Contents.

Consulting Services
Special Considerations

Or click on the headings below to open a topic individually.

Consulting Services Provided by Former State Employees [+]

Time Restrictions on Contracting With Former or Retired Employees

A state agency may not enter into a consulting services contract with a former or retired agency employee within one year after the employee left the agency. A state agency may enter into a professional services contract with a company that employs a former or retired employee of the agency within one year so long as the employee does not perform services on projects for the company the employee worked on while employed by the agency.

Example:

Adam Smith is a financial systems programmer for the Texas Department of Finance (TDF). Mr. Smith leaves the agency on July 31, 2024, and forms his own consulting company, Smith Consulting, Inc. Smith Consulting, Inc. gets a contract with the Texas Commission on Budget Resources (TCBR) beginning on Oct. 1, 2024, to advise on a financial systems program similar to one Mr. Smith had developed at TDF. In this example, TCBR can enter into a consulting services contract with Smith Consulting, Inc. as it is not the same agency that Mr. Smith worked for when he developed the financial systems program.

Note: TDF would not be able to enter into a consulting services contract with Mr. Smith before July 31, 2025.

Disclosure of Previous State Employment

An individual employed by a state agency at any time during the two years prior to offering consulting services to the agency must disclose the:

  • Nature of the previous employment with the agency or another state agency.
  • Date employment was terminated.
    –and–
  • Annual rate of compensation for the employment at the time of termination.

A state agency that enters into a consulting services contract with an individual who was employed by the agency within the previous two years must publish a notice in the Texas Register that includes a statement about the nature of the individual’s employment with the agency.

Source [+]

Texas Government Code, Section 2252.901(a), (d), 2254.033(a–b).

Requirement to Report a Financial Interest [+]

An >officer or employee of a state agency who has a financial interest (or is related to an individual who has a financial interest) in a consultant that submits an offer to provide consulting services must report this interest or relationship to the chief executive of the agency no later than the 10th day after the consultant submits the offer. This requirement applies to all consulting services contracts and renewals, amendments and extensions of those contracts.

Source [+]

Texas Government Code, Section 573.002, 2254.032.

Archiving and Reporting Requirements [+]

A state agency must file a copy of all materials produced by a consultant with the Texas State Library. If requested, a state agency must supply the Legislative Budget Board (LBB) and the Governor’s Budget and Planning Office (the Budget and Policy Division) with a copy of all materials produced by the consultant under the contract. A state agency must report to the LBB and the Governor’s Budget and Planning Office (the Budget and Policy Division) any actions taken by the agency in response to recommendations by a consultant during the previous two-year period.

Source [+]

Texas Government Code, Section 2254.036(a)–(b), 2254.037.

Emergency Procurement of Consulting Services [+]

A state agency that has an immediate need for consulting services due to an unforeseen emergency must comply with the governor’s rules regarding emergency waivers of these requirements. For more information, see the governor’s Consultant Contract Guidelines.

Source [+]

Texas Government Code, Section 2254.025.

Mixed Contracts [+]

When a contract involves both consulting services and other services, the requirements described in this section apply if the primary objective of the contract is to acquire consulting services.

Source [+]

Texas Government Code, Section 2254.038.

Procurement of Consulting Services by the Comptroller’s Office [+]

At the request of a state agency, the Statewide Procurement Division (SPD) of the Comptroller’s office may procure consulting services for the agency. The agency may be required to reimburse SPD for the costs incurred in procuring the services.

Sources [+]

Texas Government Code, Section 2254.040. See Texas Government Code, Section 2151.003.

Consequences of Non-Compliance [+]

If a state agency fails to comply with the rules on contracting for consulting services, the contract or any renewal, extension or amendment of the contract is void. If the contract is void, the Comptroller's office may not:

  • Draw a warrant or transmit money to satisfy an obligation under the contract, renewal, amendment or extension.
    –or–
  • Reimburse a state agency for a payment made under the contract, renewal, amendment or extension.

When a contract, renewal, amendment or extension is void, a state agency may not make any payments under the contract from any state or federal funds held in or outside the state treasury.

Source [+]

Texas Government Code, Section 2254.034.

See also: Professional services; Contracting with former or retired state employees; Contracting with former employees of regulatory agencies.

Documentation Requirements [+]

Purchase vouchers for consulting services payments must contain the following information in the descriptive legal text screen and be supported by the following documentation for each contract and any contract renewal, extension, or amendment:

  1. The reasonably foreseeable value of the contract.
  2. The cumulative total of prior payments made under the contract.
  3. A copy of the contract.

In addition to the above requirements, purchase vouchers must also include the following information depending on type of contract:

  1. Non-major consulting services contracts
    1. A statement that the payment complies with the requirements described in Necessity, Selection and Former Employees.

      Comptroller object 7240 must be used.
  2. Major consulting services contracts
    1. The ESBD posting in which the requirements described in Notification, Major Contracts and, if applicable, Agency Notice were fulfilled.
    2. A copy of the governor’s finding of fact that the consulting services are necessary.
    3. A statement that the payment complies with the requirements described in Necessity, Selection and Former Employees.

      Comptroller object 7239 must be used.
  3. Original contract is a major consulting services contract, but the renewal contract is not a major consulting services contract These requirements apply to a purchase voucher if: (1) the voucher requests a payment under a consulting services contract that was originally a major consulting services contract, and (2) the contract has been renewed, and (3) the renewal contract itself is not a major consulting services contract.
    1. The ESBD solicitation ID in which the requirements described in Notification, Major Contracts and, if applicable, Agency Notice were fulfilled when the original contract was entered into.
    2. The ESBD solicitation ID in which the requirements described in Major Contracts were fulfilled when the renewal contract was entered into.
    3. A copy of the governor’s finding of fact that the consulting services under the original contract are necessary.
    4. A statement that the payment complies with the requirements described in Necessity, Selection and Former Employees.

      Comptroller object 7239 must be used.
  4. Original contract was a major consulting services contract, and the renewal contract is also a major consulting services contract These requirements apply to a purchase voucher if: (1) the voucher requests a payment under a consulting services contract that was originally a major consulting services contract, and (2) the contract has been renewed, and (3) the renewal contract itself is a major consulting services contract.
    1. The ESBD solicitation ID in which the requirements described in Notification, Major Contracts and, if applicable, Agency Notice were fulfilled when the original contract was entered into.
    2. The ESBD solicitation ID in which the requirements of Notification were fulfilled when the renewal contract was entered into.
    3. A copy of the governor’s finding of fact that the consulting services under the original contract are necessary.
    4. A copy of the governor’s finding of fact that the consulting services under the renewal contract are necessary.
    5. A statement that the payment complies with the requirements described in Necessity, Selection and Former Employees.

      Comptroller object 7239 must be used.
  5. Original contract was not a major consulting services contract, and the original contract and the renewal contract have a reasonably foreseeable value totaling more than $15,000, or $25,000 for an institution of higher education, other than a public junior college These requirements apply to a purchase voucher if: (1) the voucher requests a payment under a consulting services contract that was originally not a major consulting services contract, and (2) the contract has been renewed, and (3) the original contract and the renewal contract have a reasonably foreseeable value totaling more than $15,000.
    1. The ESBD solicitation ID in which the requirements described in Notification were fulfilled when the renewal contract was entered into.
    2. A copy of the governor’s finding of fact that the consulting services under the renewal contract are necessary.
    3. A statement that the payment complies with the requirements described in Necessity, Selection and Former Employees.

      Comptroller object 7239 must be used.
  6. Original contract was not a major consulting services contract, and the original contract and the renewal contract have a reasonably foreseeable value totaling $15,000 or less, ($25,000 or less for an institution of higher education, other than a public junior college) These requirements apply to a purchase voucher if: (1) the voucher requests a payment under a consulting services contract that was originally not a major consulting services contract, and (2) the contract has been renewed, and (3) the original contract and the renewal contract have a reasonably foreseeable value totaling $15,000 or less ($25,000 or less for an institution or higher education, other than a public junior college).
    1. A statement that the payment complies with the requirements described in Necessity, Selection and Former Employees.

      Comptroller object 7240 must be used.
  7. Original contract was a major consulting services contract and is still a major consulting services contract after being extended or amended These requirements apply to a purchase voucher if: (1) the voucher requests a payment under a consulting services contract that was originally a major consulting services contract, and (2) the contract has been extended or amended, and (3) the contract after the extension or amendment is still a major consulting services contract.
    1. The ESBD solicitation ID in which the requirements described in Notification, Major Contracts and, if applicable, Agency Notice were fulfilled when the original contract was entered into.
    2. The ESBD solicitation ID in which the requirements described in Notification were fulfilled when the extension or amendment was entered into.
    3. A copy of the governor’s finding of fact that the consulting services under the original contract are necessary.
    4. A copy of the governor’s finding of fact that the consulting services under the contract after the extension or amendment are necessary.
    5. A statement that the payment complies with the requirements described in Necessity, Selection and Former Employees.

      Comptroller object 7239 must be used.
  8. Original contract was a major consulting services contract but is no longer a major consulting services contract after being extended or amended These requirements apply to a purchase voucher if: (1) the voucher requests a payment under a consulting services contract that was originally a major consulting services contract, and (2) the contract has been extended or amended, and (3) the contract after the extension or amendment is no longer a major consulting services contract.
    1. The ESBD solicitation ID in which the requirements described in Notification, Major Contracts and, if applicable, Agency Notice were fulfilled when the original contract was entered into.
    2. The ESBD solicitation ID in which the requirements described in Major Contracts were fulfilled when the extension or amendment was entered into.
    3. A copy of the governor’s finding of fact that the consulting services under the original contract are necessary.
    4. A statement that the payment complies with the requirements described Necessity, Selection and Former Employees.

      Comptroller object 7240 must be used.
  9. Original contract is not a major consulting services contract, and the original contract and the extension or amendment have a reasonably foreseeable value totaling more than $15,000, or $25,000 for an institution of higher education other than a public junior college These requirements apply to a purchase voucher if: (1) the voucher requests a payment under a consulting services contract that was originally not a major consulting services contract, and (2) the contract has been extended or amended, and (3) the original contract and the extension or amendment have a reasonably foreseeable value totaling more than $15,000, or $25,000 for an institution of higher education other than a public junior college.
    1. The ESBD solicitation ID in which the requirements described in Notification were fulfilled when the extension or amendment was entered into.
    2. A copy of the governor’s finding of fact that the consulting services under the extension or amendment are necessary.
    3. A statement that the payment complies with the requirements described in Necessity, Selection and Former Employees.

      Comptroller object 7239 must be used.
  10. Original contract is not a major consulting services contract, and the original contract and the extension or amendment have a reasonably foreseeable value totaling $15,000 or less ($25,000 or less for an institution of higher education other than a public junior college). These requirements apply to a purchase voucher if: (1) the voucher requests a payment under a consulting services contract that was originally not a major consulting services contract, and (2) the contract has been extended or amended, and (3) the original contract and the extension or amendment have a reasonably foreseeable value totaling $15,000 or less ($25,000 or less for an institution of higher education other than a public junior college).
    1. A statement that the payment complies with the requirements described in Necessity, Selection and Former Employees.

      Comptroller object 7240 must be used.
  11. Emergency waiver from the governor A state agency that has received the governor’s emergency waiver of the requirements described in this section must submit a copy of the emergency waiver with each purchase voucher submitted to the Comptroller’s office to request a payment under the consulting services contract covered by the waiver.

Sources for definitions [+]

Texas Government Code, State Purchasing and General Services Act, Section 2151.002(2); Texas Government Code, Section 2254.021; Texas Government Code, Code Construction Act, Section 311.005(2); Texas Administrative Code, Title 34, Pt 1, Ch. 5 (E), Section 5.54(a)(2)-(3) (2004).