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 July 1, 2016

Policy

The Texas Department of Family and Protective Services (DFPS) may allow or make limited modifications to a contract to meet unanticipated needs at any point during the life of the contract. Either the contractor or DFPS may identify the need for such a change to be made. Most post-award changes to contracts will require a documented request and prior written approval.

Any post-award contract changes must not alter the scope of the contract from that for which the contract was originally procured. A new procurement is required if the proposed change is outside of the scope of the original procurement. Examples of changes that may be outside the scope of a procurement include:

  • Providing new or additional services that were not described in the original procurement; or
  • Providing services in geographic areas not defined in the original procurement.

The procurement and contract documents serve as the primary guide in establishing whether or not a change is allowable.

Plan change: DFPS may use a plan change to:

  • Change the budget narrative;
  • Make an authorized transfer of funds (referred to as budget transfers below) within the approved budget established in the contract;
  • For open enrollment (PEN), change areas or services as long as the change is consistent with the original scope of the procurement. For example, a plan change cannot be used if the procurement requires five services to be performed and the contractor wants to drop a service, resulting in four services; or
  • For Title IV-E pass through contracts, a plan change is appropriate to document change in contract dollar amount when identified during the annual and post annual review process. Visit Title IV-E Overview to follow procedures.

Bilateral amendment: DFPS must use a bilateral amendment when the proposed change modifies any of the essential terms in a contract, including changes to the:

  • The contract terms and conditions;
  • A statement of work or plan of operation;
  • Performance measures;
  • Contract price**;
  • Approved services***; and
  • Geographic area to be served***

**Negotiated rates require a bi-lateral 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)).

***If all geographic areas to be served and approved services are included within the original scope of the procurement of an open enrollment (PEN), a bilateral amendment to add additional areas or services is not necessary. A plan change or unilateral amendment is acceptable.

Unilateral amendment: DFPS may use a unilateral amendment to amend a contract under the following circumstances:

  • Make a change after contract execution to the open enrollment (PEN) posted on the electronic state business daily (ESBD), including open enrollment (PEN) attachments;To correct an obvious clerical error in the contract document
  • To change the contract number;
  • To incorporate new or revised federal or state laws, regulations, rules, or policies;
  • To comply with a court order or judgment;
  • To update service level descriptions;
  • To update daily rates based on statute, rule or legislation;
  • To change the name of the contractor in order to reflect the contractor's name as recorded by the Texas Secretary of State or as required by law;
  • To change the designated DFPS mailing address for the contract;
  • To change the designated contractor mailing address for the contract; or
  • To change the recorded license number of any license needed under the contract in order to reflect the current number as issued by the licensing authority.

The following is a summary of all applicable requirements when considering an amendment or a plan change to a DFPS contract:

Requirements Table
TYPE OF CHANGE PROGRAMMATIC REQUIREMENTS FISCAL REQUIREMENTS

Bilateral Amendment

  • Prior DFPS approval for all program-related changes
  • Ensure that the change is within scope of the original procurement
  • Obtain Legal approval
  • Consultation with internal management
  • Internal routing process (e.g., Form 2044, 2044a)
  • Signed by both parties

*Bilateral amendments that equal $1 million or greater require HHSC routing for signature through Form PCS201 and 2044-1 processes.

For amendments under $1 million, follow the same as in Programmatic column on left

Unilateral Amendment

 

  • Meets specific requirements noted in policy
  • Executed by the contract manager
  • Notice given to the contractor prior to change.

Same as in Programmatic column

Plan Change

  • Prior DFPS approval for all changes
  • Cannot affect contract’s essential terms and program objectives

Contracts for less than $100,000

  • A plan change is not required and therefore the following applies:
    • No prior approval required, unless applicable by federal/state cost principles in Office of Management and Budget (OMB) Uniform Grant Guidance (UGG)/ or UGMS
    • Contractor must report the change in writing within 30 calendar days of the effective date
    • Transfers must abide by applicable cost principles and regulations

Changes not requiring DFPS approval are subject to disallowances by DFPS

Contracts for $100,000 or more

  • For transfers within an approved budget under a cumulative amount of 10% of FY budget:
    • Requirements same as “Contracts for less than $100,000.
  • For transfers equal to or greater than 10% of FY budget:
    • Prior DFPS approval required: Contractor must request the change at least 30 calendar days prior to effective date of the change
    • May require copies of modified budget pages
    • Subject to applicable cost principles

Contract staff review and respond to requests for budget revisions within 30 calendar days of receipt of the request from the contractor

*Bilateral amendments that total $1M or more must be routed for HHSC Executive Signature based on the Signature Authority policy.