Authority/Reference(s) Texas Government Code Ch. 783, Ch. 2105; Texas Constitution, Article 3, Section 44; Uniform Grant Guidance (UGG);FAR; Texas Contract Management Guide, Ch. 7
Revision Date January 15, 2019

Policy

Contract staff may allow or make modifications to a contract at any point during the life of the contract. Either the contractor or DFPS may identify the need for a contractual change, but all changes must be approved by DFPS. The procurement and contract documents serve as the primary guide in establishing whether a change is allowable. Contract changes must not alter the scope of the original procurement and a new procurement is required if the requested change is outside of the originally defined scope.

Examples of changes outside the scope of a procurement include:

  • Providing new or additional services that were not described in the original procurement;
  • Providing services in geographic areas not defined in the original procurement; or
  • Extending beyond the contract period established in the procurement.

Contract staff must consult with their contracting leadership and Contracts Legal if it is determined the change may alter the scope of the procurement. An amendment may not be made retroactively without legal approval. Contract changes are documented through bilateral or unilateral amendments.

For IT contracts, if the Statement of Work has been approved by DIR and incorporated into a PO issued under the authority of the DIR Master Contract, any substantive change to the SOW must be resubmitted to DIR for additional approvals.  Project Framework updates would also require approvals.

Bilateral Amendment 

DFPS must use a bilateral amendment when the change modifies an essential term in the contract. Examples include changes made to:

  • Statement of Work;
  • Terms and Conditions;
  • Contract period; and
  • Contract price (increase or decrease to the contract value)* or Encumbrance or annual encumbrance.

*Changes to negotiated service rates require a bilateral amendment. Rates changed by statute, rule, or legislation may be amended by a unilateral amendment (e.g., Residential daily rates, Medicaid rates, blended rate for the Single Source Continuum Contract (SSCC).

As a best practice, informing the contractor prior to creating a requisition in CAPPS 9.2, may avoid undue work in the requisition process.

Delegated Signature Authority

The same level of signature authority for the contract is responsible for signing subsequent bi-lateral amendments, including renewals, unless the commissioner or designee invokes the exclusive right to sign the contract or any succeeding modifications. When a bilateral amendment changes the total value to exceed the delegated authority threshold, the amendment must be signed by the higher delegated signatory. Contract staff are required to justify the reason for the change in value, and maintain the documentation on file.

Unilateral Amendment

A unilateral amendment is a notification using the Unilateral Contract Amendment Template (Form 5648) to notify the contractor that the contract is being modified as agreed to under Section V (B) of the DFPS Uniform Terms. The notification is sent and signed only by DFPS.

A unilateral amendment to:

  • Correct an obvious clerical erro
  • Modify a contract number or Agency ID Number;
  • Incorporate new or revised state or federal laws, regulations, rules, or policies;
  • Comply with a court order or judgment;
  • update service level description or daily rates;
  • Update Contractor's name as recorded by the Secretary of Stae, as required by law or as authorized by DFPS;
  • Change either Party's Contract Manager or legal notice designee or contact information;
  • Change any recorded license number based on information obtained from the agency or entity issuing the license; and
  • For Open Enrollments only, add or delete a geographic service area or DFPS Region as long as the geographic service area or DFPS Region is part of a current open enrollement.

For contractor initiated unilateral amendments, the contract manager must document the contractor’s request (email is acceptable) of this change before the contractor is sent the Unilateral Contract Amendment Template, Form 5648.

If the contractor disagrees with a DFPS-initiated unilateral amendment then they should notify the contract manager to determine if the contractor’s issue can be resolved.   The contractor can also initiate a contract termination if they do not agree or it cannot be resolved as provided for in Section VI of the DFPS Uniform Terms and Conditions.

Termination Amendment

At any time, either party (DFPS or contractor) may seek to terminate the contract prior to the contract expiration date. To terminate a contract, the request must be processed through CAPPS FIN 9.2.