Authority/Reference(s) Texas Government Code §2252.903
Revision Date July 1, 2014

Policy

DFPS contract staff must conduct the following required checks prior to the execution of a contract.  Requirements vary depending on whether the contractor is located in the state of Texas or outside of the State. Contract staff must follow specified procedures for in state and out of state contractors.

The table below is provided to serve as a snapshot of the checks that are required.  Contract staff must abide all policies detailed in the corresponding policy pages.

Policy (Links) Legal Entities that may Contract with DFPS Debarred or Excluded Parties Franchise Tax Account Status Vendor Hold

Requirement

Contract staff must verify the legal name of an entity.

Contract staff must verify that an entity has not been debarred or excluded from conducting business on a state or federal level.

Contract staff must verify that a potential contractor is not indebted to the state for any reason.

Contract staff must verify that a potential contractor is not indebted to the state.

For procurement card purchases over $500, DFPS staff are required to verify that an entity is not on a vendor hold unless the purchase meets the criteria for an emergency purchase.

Definitions

Legal Entity: An individual or organization which is legally permitted to enter into a contract, and be sued if it fails to meet its contractual obligations. Assumed Name or DBA (doing business as): A name, other than the legal or fictitious name, that a corporation, Limited Liability Company, limited partnership, or registered limited liability partnership uses to conduct business. Debarment: An exclusion from contracting or subcontracting with state agencies on the basis of any cause set forth in §113.102 relating to Vendor Performance and Debarment, in proportion to the seriousness of the offense, performance failure, or inadequacy to perform. Franchise tax: A privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas. Vendor Hold: Payments to a supplier of goods and services to the state are put on hold due to an outstanding debt to the state.

When?

No earlier than 90 days prior to the effective date in the contract.

No earlier than 90 days prior to the effective date in the contract.

No earlier than the 7th day before the effective date and no later than the effective date of the contract; and, annually in August throughout the duration of the contract.

Prior to issuing payment or entering into a contract, if applicable.

Where?

Secretary of State Texas Comptroller of Public Accounts Debarred Vendor List Texas Comptroller of Public Accounts Taxable Entity Search Texas Comptroller of Public Accounts TINS Vendor Hold Search

Out-of-State

DFPS staff must obtain the Out of State Contractor Certification Form, 4735 to verify that a contractor has the right to transact business in Texas  and is a legal entity. N/A DFPS staff must obtain the Out of State Contractor Certification Form, 4735 to verify that a contractor has the right to transact business in Texas  and is a legal entity. N/A