Authority/Reference(s) Texas Government Code 261.252
Revision Date September 7, 2018

Policy

DFPS may allow an entity (primary contractor) contracting with DFPS to use subcontracts to provide part or all of the services procured under the prime contract. Subcontracting does not relieve the primary contractor of responsibility for ensuring goods or services are provided. Subcontracts are separate contractual agreements in which DFPS has no direct legal relationship with subcontractors.

The primary contractor is selected for its technical and management abilities, including the right to manage contractual deliverables and performance through subcontractors. Contract staff should focus on a primary contractor's ability to ensure a subcontractor meets required minimum qualifications to perform and meet the standards fixed by the prime contract. Contract staff must review the primary contractor's subcontracting policies and processes (e.g. through use of a tool like the PCS-107) to establish the ability to fulfill the standards set out in the prime contract.

DFPS retains the right to disapprove a subcontract at its discretion; however, contract staff must consult with Contracts Legal when making such a decision.

If a subcontract is used to deliver any or all of the work required under a contract, the following conditions apply:

  • Primary contractors must identify the proposed subcontractors to DFPS in a manner agreeable to the contract division involved;
  • Subcontracting will be solely at the primary contractor’s expense, including remedies, penalties and incentives as applicable;
  • A payment to a subcontractor is overdue on the 31st day after the primary contractor receives remittance from DFPS for the contracted goods or service;
  • DFPS retains the right to check subcontractor’s background and approve or reject the use of submitted subcontractors;
  • Primary contractor will determine a designated point of contact for all DFPS inquiries;
  • Primary contractor must include a term in all subcontracts that incorporates the prime contract by reference and binds the subcontractor to all the requirements, terms, and conditions of the contract related to the service being provided by the subcontractor, as well as explicitly hold that the contract controls in the event of any conflict with subcontract;
  • The subcontractor is held to requirements under applicable state and federal requirements;
  • Use of any subcontractor is conditioned upon the extent that any subcontract does not conflict with any requirements of the contract between DFPS and primary contractor; and
  • Complaints received against subcontractors are the primary responsibility of the contractor but does not prohibit DFPS staff to investigate.