The mission of DFPS and the goals of our programs are supported through a wide variety of contracted goods and services. The Procurement and Contracting Services (HHSC-PCS) division of the Health and Human Services Commission (HHSC) purchases goods and services for direct DFPS client use or benefit and for DFPS support services. Within DFPS, purchased client services are defined as the services provided by outside entities under contract.

DFPS is committed to the application of the Guiding Principles for Business Decisions that have been developed by the Texas Health and Human Services Commission (HHSC). The Guiding Principles support consistent decision-making across the state's health and human services enterprise and the provision of quality services to Texans.


The purpose of these policies is to provide clear guidance to DFPS staff who perform functions related to the purchase of goods and services and resulting contracts.


The DFPS Contracting Policies serve as a central organizational framework for DFPS contracting. The policies provide guidance to both client services and administrative contracts.

The functions described include planning for services, procurement, contracting, contract administration, contract monitoring, and resolution of contracting issues.

DFPS divisions responsible for contracting functions include:

Chapter 1:  Overview

Handbook Page Last Revision Date
Contract Oversight and Support (COS) October 14, 2016
Basic Government Contracting Law November 1, 2011
Contract Reporting Requirements July 1, 2016
Open Records N/A
HCATS November 1, 2011
Contracting with DFPS December 15, 2014

Chapter 2: Contract and Procurement Planning

Handbook Page Last Revision Date
Contract and Procurement Planning October 14, 2016

Chapter 3: Procurement Development

Handbook Page Last Revision Date
Determination of Need September 15, 2015
Protection of Confidential Information and Data Use Agreements (DUA) July 1, 2015
Ethics and Standards of Conduct January 15, 2014
Statement of Work January 15, 2014
Best Value Factors January 15, 2014
Performance Measures January 15, 2014
Contract Insurance Requirements October 14, 2016
Historically Underutilized Businesses (HUBs) January 15, 2014

Chapter 4: Agreements Secured by DFPS

Handbook Page Last Revision Date
Memorandum of Understanding (MOU) Client Services and Administrative May 15, 2017
Interlocal Agreements April 1, 2016
Interagency Contracts April 1, 2016
Title IV-E Overview October 14, 2016

Chapter 5: Contract Execution

Handbook Page Last Revision Date
Required Checks July 1, 2014
Legal Entities that May Contract with DFPS June 10, 2015
Debarred or Excluded Parties July 1, 2014
Franchise Tax Account Status June 1, 2015
Vendor Hold July 1, 2014
Subcontracts December 15, 2014
Indirect Cost Rates June 1, 2015
Cost Allocation November 1, 2011
Background Check Policy  
Effective Dates and Duration of the Contract September 15, 2015
Electronically Transmitted and Electronically Signed Contracting Records April 1, 2016

Chapter 6: Contract Management

Handbook Page Last Revision Date
Contract Management September 15, 2014
Subrecipient, Recipient Determination, and Single Audit Requirements May 15, 2017
Miscellaneous Claims November 16, 2012
Records Management July 1, 2016
Changes to Contracts July 1, 2016
Client Service Contract Renewal May 31, 2013
Internal Control Structure Questionnaire (ICSQ) September 15, 2014
Risk Assessment Instrument (RAI) July 1, 2015
Federal Funding Accountability and Transparency Act (FFATA) September 15, 2015

Chapter 7: Contract Monitoring

Handbook Page Last Revision Date
Contract Monitoring April 1, 2016
Statewide Monitoring Plan (SMP) May 15, 2017
Sampling Methodology May 31, 2013
Child-Specific Contracts Monitoring Process August 8, 2013
Salaries November 1, 2011
Fringe Benefits November 1, 2011
Travel September 15, 2015
Supplies September 15, 2015
Other Costs September 15, 2015
Equipment September 15, 2015
Related-Party Lease/Rental November 1, 2011
Using Outputs and Outcomes in Monitoring November 1, 2011
Verification of Mental Health Professional Licenses November 1, 2011
Questioned Costs January 14, 2013
Disallowed Costs January 14, 2013
Collections March 15, 2013
Corrective Action November 1, 2011
Conducting a Follow-Up Visit July 1, 2014

Chapter 8: Performance Based Contracting

Handbook Page Last Revision Date
Performance Based Contracts July 1, 2013
Performance Based Monitoring December 15, 2014

Chapter 9: Contract Closeout and Termination

Handbook Page Last Revision Date
Contract Closeout September 15, 2015
Contract Termination July 1, 2016
Disposition of Equipment Valued Over $5,000 September 15, 2015

Chapter 10: Contract Dispute Resolution /Contract Remedy

Handbook Page Last Revision Date
Contractor Noncompliance and Contract Remedies July 1, 2013
Contract Dispute Resolution December 31, 2009
Reporting Fraud, Waste, or Abuse  
Vendor Performance Reporting for DFPS Contracts October 14, 2016

Chapter 11: Administrative Contracts

Handbook Page Last Revision Date
Administrative Contract Management Guidelines September 15, 2015
Administrative Interagency Contracts June 1, 2012
Administrative Interlocal Contracts June 1, 2012
Administrative Contract Renewals June 1, 2012
Risk Assessment and Monitoring for Administrative Contracts July 1, 2016
Administrative Contracts Statewide Monitoring Plan (ADMIN SMP) September 15, 2015
Administrative Contract Closeout September 15, 2015