An Audit Report on Information and Communications Technology Cooperative Contracts at the Health and Human Services Commission Page: 8 of 38
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Chapter 1
The Commission Should Ensure That Its Purchases of Information
Technology Goods and Services Provide the Best Value and Are Free of
Real and Apparent Conflicts of Interest
The Health and Human Services Commission's (Commission) procurement
processes are designed to help ensure that it complies with requirements that
Program Purchases help to provide assurance that the State obtains best
value on Department of Information Resources'
State agencies can make the following types of information- n a ion a n omunication Te ology
technology-related purchases through the Program: Information and Communications Technology
m Goods and services. Examples include computers, Cooperative Contracts Program (Program) purchases.
computer devices, hardware, software, telecommunication (See text box for more information on the types of
devices, and maintenance services.
m Staffing services. Examples include temporary staff and purchases agencies can make through the Program.)
contract workers that provide information-technology- Texas Government Code, Section 2157.003, defines
related services. best value as the lowest overall cost for a Program
Deiverables -based nformatn technolo s services for good or service. (See text box for more information on
which a vendor is paid for the satisfactory delivery of best value.) However, opportunities exist for the
agreed-upon deliverables such as the development of new Commission to strengthen assurance that the State
information systems, assessments, or analyses.
Source: The Department of Information Resources. receives best value for its Program purchases.
In addition, the Commission should ensure that its
Best Value procurement staff consistently complete documents
Texas Government Code, Section 2157.003, states that "best that provide assurance that information-technology-
value means the lowest overall cost of an automated
information system. In determining the lowest overall cost for a related purchases are free from real and apparent
purchase or lease of an automated information system, the conflicts of interests.
statute specifies that following factors should be considered:
- Purchase price. The Commission should ensure that it obtains best
- Compatibility to facilitate the exchange of existing data. value on its Program purchases.
- Capacity for expanding and upgrading to more advanced
levels of technology. For all 32 purchases of Program goods and services
- Quantitative reliability factors. tested, the Commission did not have documentation to
- Level of training required to bring persons using the system support that the purchase provided best value. Those
to a stated level of proficiency.
m Technical support requirements for the maintenance of 32 purchases totaled $26 million. Specifically:
data across a network platform and the management of the
network's hardware and software. - For 30 purchase orders tested for Program good
m Compliance with applicable Department of Information and services, the Commission did not have
Resources' statewide standards validated by criteria
adopted by the Department of Information Resources by documentation to show that it attempted to negotiate
rule. further discounts beyond the discounts offered by the
m Applicable factors listed in Texas Government Code, Program contracts. The Commission accepted the
Sections 2155.074 and 2155.075.
initial vendor quote provided for those purchase
orders, which totaled $25.4 million. The Department of Information
Resources' Program contracts with vendors allow agencies to negotiate
discount rates that exceed the discount rates in Program contracts.
An Audit Report on Information and Communications Technology Cooperative Contracts at
The Health and Human Services Commission
SAO Report No. 14-013
December 2013
Page 1
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Texas. Office of the State Auditor. An Audit Report on Information and Communications Technology Cooperative Contracts at the Health and Human Services Commission, report, December 2013; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth518140/m1/8/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.