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Professional Services

Professional Services Procurement Act

A state agency may purchase professional services as needed. An agency:

  • Is responsible for following procurement requirements and resolving any complaints or protests.
  • May consult its legal counsel for guidance in procuring professional services.

When selecting a provider or when awarding a contract for professional services, a state agency must base its selection on:

  • Demonstrated competence and qualifications of the provider.
    – and –
  • A fair and reasonable price.

A contract or an arrangement made in violation of the Professional Services Procurement Act is prohibited and void. Professional services do not fall under the State Purchasing and General Services Act and therefore are not allowed to be awarded on the basis of competitive bids.

When the amount of a contract, renewal or modification exceeds $50,000, the agency or institution of higher education must provide written notice to the Legislative Budget Board (LBB). The notice is required to be on a form prescribed by the LBB and filed within 30 days of award. See Major Contract Reporting on the LBB website for instructions on this process.

Documentation Requirements [+]

A state agency must retain documentation in its files showing the type of services performed and how the agency’s award of a contract for those services complied with the Professional Services Procurement Act.

Professional Services Contracts With Former or Retired Employees

A state agency may not use appropriated money to make payments under a professional services contract with a former or retired employee of the agency within one year after the employee leaves the agency.

However, the agency may enter into a professional services contract with a corporation, firm or other business entity that employs a former or retired employee of the agency within one year of the employee leaving the agency, provided the former or retired employee does not perform services on projects the employee worked on for the corporation, firm or other business entity while employed by the agency.

See also: Consulting Services, Contracting with Former or Retired State Employees, Contracting with Former Employees of Regulatory Agencies.

Sources [+]

Texas Government Code, Sections 2252.901(a), (d)(2)-(3), 2254.001, 2254.002-2254.003, 2254.004-2254.006.
Texas Government Code, State Purchasing and General Services Act, Section 2155.001(2)(a).
Texas Education Code, Section 61.003(8).
Texas Attorney General Opinions JC-374 (2001), JC-266 (2000) and JM-1189 (1990).