Frequently Asked Questions (FAQs) for Contracts
1. Our paper or yours?
Will the agency use our contract or require us to sign theirs? Short answer is: It depends. If the agency is paying money we will likely utilize our contracts. There may be times when component parts of your proposal or contract may be incorporated into the agency’s contract as an exhibit, but the agency’s contract will likely be the controlling document.
2. Why do I have higher insurance limits or additional insurance requirements?
It depends on the type of Service provided through the contract. An example is a construction contract, which has additional requirements because of the variable scopes of work and potential increased liability. The risk of liability is assessed in all contracts and the insurance is adjusted up or down accordingly.
3. What happens if I am not able to meet the insurance requirements?
It will depend on the type of services being provided under the contract. As stated above, all risks are evaluated and determined to be low or high risk for the agency. There are times when the risk is determined to be low so the contract will shift those risk to you in the event of any injury, incident or accident. In the event the risk are high the agency may decline to contract with you notwithstanding the award of a contract. In this instance we would likely notify the next company in line that responded to the procurement notice.
4. Why do I have to provide a copy of my business entity documents?
As a governmental unit, The Harris Center must ensure that the business entity is appropriately and legally established. This agency is authorized to do business with preferable Texas entities that operate within the territorial borders of the U.S. and are not debarred by any state or federal authority or owe any taxes to the state. The Harris Center utilizes the information to affirm that the business entity is what it represents that it is and appropriate for contracting purposes.
5. What is a 1295 and when do I submit the document?
“In 2015, the Texas Legislature adopted House Bill 1295 (HB 1295) that requires a written disclosure of interested parties by business entities that enter into certain contracts with governmental entities.” The codified law can be found in Texas Government Code section 2252.908. The form is called a Certificate of Interested Parties (Form 1295) and is filed electronically with the State. The 1295 is required for a contract that (1) requires an action or vote by the board of trustees; (2) has a value of at least $1 million; or (3) is for services that would require a person to register as a lobbyist under Chapter 305 of the Texas Government Code. This agency is a governmental unit and has a governing Board of Trustees. Board approval is required for any contract $50,000 and higher. The instructions on how to submit your 1295 will be included within the “Welcome Letter” from the CSD. View the 1295 FAQs.
6. Does my foreign entity need to file an application for registration?
The Texas requirements for registering as a foreign entity can be found in the Texas Business Organizations Code Section 9.001. An entity must file an application for registration, previously known as an application for certificate of authority, if it “transacts business” in Texas. Texas statutes do not specifically define “transacting business;” however, section 9.251 of the BOC lists 15 activities that do not constitute “transacting business.” Generally, a foreign entity is transacting business in Texas if it has an office or an employee in Texas or is otherwise pursuing one of its purposes in Texas. The secretary of state cannot give a legal opinion as to whether a particular foreign entity is “transacting business” in Texas. The Contract Services department will ask for documentation of foreign entity registration if the entity named in and/or submitting the bid response or contract has its principle business outside of Texas. If you are unsure whether registration is required, please consult with your legal counsel.