State of Texas
Department of Information Resources
Leadership for Texas Government Technology

Vendor Protest Procedures

1. Any actual or prospective bidder, offeror, or contractor who is aggrieved in connection with the solicitation, evaluation, or award of a contract may formally protest to the Director of Service Delivery. Such protests must be in writing and received in the director's office within 10 working days after such aggrieved person knows, or should have known, of the occurrence of the action which is protested. Formal protests must conform to the requirements of this subsection and subsection (3) of this section, and shall be resolved in accordance with the procedure set forth in subsections (4) and (5) of this section. Copies of the protest must be mailed or delivered by the protesting party to the agency and other interested parties. For the purposes of this section, "interested parties" means all vendors who have submitted bids or proposals for the contract involved.

2. In the event of a timely protest or appeal under this section, the state shall not proceed further with the solicitation or with the award of the contract unless the executive director, after consultation with the appropriate division director and the Director of Service Delivery, makes a written determination that the award of contract without delay is necessary to protect substantial interests of the state.

3. A formal protest must be sworn and contain:

1. a specific identification of the statutory or regulatory provision(s) that the action complained of is alleged to have violated;
2. a specific description of each act alleged to have violated the statutory or regulatory provision(s) identified in paragraph (A) of this subsection;
3. a precise statement of the relevant facts;
4. an identification of the issue or issues to be resolved;
5. argument and authorities in support of the protest; and
6. a statement that copies of the protest have been mailed or delivered to the agency and other identifiable interested parties.

4. The Director of Service Delivery shall have the authority, prior to appeal to the executive director of the department, to settle and resolve the dispute concerning the solicitation or award of a contract. The director may solicit written responses to the protest from other interested parties.

5. If the protest is not resolved by mutual agreement, the Director of Service Delivery will issue a written determination on the protest.

1. If the director determines that no violation of rules or statutes has occurred, he or she shall so inform the protesting party and other interested parties by letter which sets forth the reasons for the determination.
2. If the director determines that a violation of the rules or statutes has occurred in a case where a contract has not been awarded, he or she shall so inform the protesting party and other interested parties by letter which sets forth the reasons for the determination and the appropriate remedial action.
3. If the director determines that a violation of the rules or statutes has occurred in a case where a contract has been awarded, he or she shall so inform the protesting and other interested parties by letter which sets forth the reasons for the determination, which may include ordering the contract void.

6. The director's determination on a protest may be appealed by an interested party to the executive director of the department. An appeal of the director's determination must be in writing and must be received in the executive director's office no later than 10 working days after the date of the director's determination. The appeal shall be limited to review of the director's determination. Copies of the appeal must be mailed or delivered by the appealing party to the agency and other interested parties and must contain an affidavit that such copies have been provided.

7. The general counsel shall review the protest, director's determination, and the appeal and prepare a written opinion with recommendation to the executive director. The executive director may, in his or her discretion, refer the matter to the board for their consideration at a regularly scheduled open meeting or issue a written decision on the protest.

8. When a protest has been appealed to the executive director under subsection (6) of this section and has been referred to the board by the executive director under subsection (7) of this section, the following requirements shall apply.

1. Copies of the appeal, responses of interested parties, if any, and general counsel recommendation shall be mailed to the board, and copies of the general counsel's recommendation shall be mailed to the appealing party and other interested parties.
2. All interested parties who wish to make an oral presentation at the open meeting are required to notify the department general counsel at least 48 hours in advance of the open meeting.
3. The board may consider oral presentations and written documents presented by staff and interested parties. The chairman shall set the order and amount of time allowed for presentations.
4. The board’s determination of the appeal shall be by duly adopted resolution reflected in the minutes of the open meeting, and shall be final.

9. Unless good cause for delay is shown or the board determines that a protest or appeal raises issues significant to procurement practices or procedures, a protest or appeal that is not filed timely will not be considered.

10. A decision issued either by the board in open meeting, or in writing by the executive director, shall be the final administrative action of the department.

11. The department shall maintain documentation concerning complaints in the manner specified in Section 2054.036, Texas Government Code. The department shall maintain documentation about the purchasing process to be used by maintaining access to current information regarding applicable statutory law, administrative rules, and guidelines affecting the purchasing process.