Authority/Reference(s) State of Texas Procurement and Contract Management GuideTexas 85th Legislative Session General Appropriations Act Section 17.10(b)(1) 
Revision Date September 1, 2019


Contract renewals to extend the contract period are done using a bilateral amendment. 

Renewals must not alter the scope of the original procurement. A new procurement is required if the scope changes. See policy Contract Amendments for additional guidance regarding scope changes. 

Contract renewals are at the discretion of Contracting Leadership. Contract staff must comply with the Contract Lifecycle. 

A Contract that has been in effect for more than five fiscal years as of August 31, 2019, and is valued at less than $10 million, requires competitive bids before renewal or extension unless exempt.

Exemptions to this requirement include contracts that are:

  • TxSmartBuy, term, and cooperative contracts administered by the Comptroller or Department of Information Resources (DIR);
  • Grants (Subrecipient/Recipient);
  • Interagency/Interlocal contracts;
  • Contracts that relate to developing information resource applications or information resource technologies; and
  • Contracts not required by law to be competitively bid.

Contracts valued in excess of $5 million require additional VPTS reports as referenced in Vendor Performance Reporting. A contract with a total contract value in excess of $5 million may not be extended until all required VPTS reports have been reported including applicable annual and milestone reports.

For renewals of Major Information Technology Projects see:  Managing Major Information Technology Projects.