Authority/Reference(s) HHSC Circular C-037; Texas Government Code §2155.144; Texas Government Code §531.0055; Texas Government Code §2155.063; 1 Texas Administration Code Chapter 391, Subchapter B
Revision Date April 15, 2024


Procurement planning and coordination is essential to achieving successful contract and grant outcomes and requires DFPS staff to work with both internal and external stakeholders. Contract managers should be involved in this process as needed as decisions made during procurement planning directly affect the contracts they execute and the requirements necessary throughout the duration of a contract or grant. Therefore, contract staff should be familiar with the key stakeholders, elements, and considerations of the procurement planning process before executing any a contract or grant.

Key Stakeholders in Procurement Planning

DFPS relies on the Procurement and Contracting Services (HHS-PCS) division of Health and Human Services (HHS) for the procurement of goods and services. While DFPS provides subject matter expertise for the goods and services it purchases, HHS-PCS provides the subject matter expertise for the procurement process.

To assist with procurement planning and ensure timely contract execution, DFPS submits the HHS Procurement and Forecast Action Plan (PFAP) to HHS annually and updates monthly as needed. This plan must be approved by the DFPS Deputy Commissioner prior to submitting to HHS. DFPS is also responsible for submitting the procurement requisition in CAPPS FIN.

DFPS Contracts Legal is an essential stakeholder in procurement planning and contract development and must be included in this process.

DFPS staff coordinate with the appropriate internal stakeholders during procurement planning and contract development which may include:

  • Program divisions;
  • Contract divisions;
  • Contract performance;
  • Contract Oversight and Support (COS)
  • Historically Underutilized Businesses (HUB) program;
  • Information Resource Management (IRM);
  • Office of Information Security (OIS); and
  • Executive Leadership.
  • DFPS is responsible for submitting the procurement requisition in CAPPS FIN 9.2.

Procurement Planning Elements

For a procurement to be processed timely, DFPS ensures the following essential elements are included and are accurate before submitting a requisition in CAPPS FIN:

  • Determination of Need;
  • Determination of Information Security Requirements;
  • Determination of the Contracting Relationship;
  • Determination of Payment Type; and,
  • Statement of Work.

Additional documentation is required for some procurements, including  Sole Source, Proprietary and Emergency purchases. These types of procurements require consultation with Contracts legal and Executive level approvals before submitting a requisition in CAPPS FIN.

Procurement Planning Considerations

Procurement planning requires timelines to ensure that a contract or grant is executed by the designated start date. DFPS must consider several factors to ensure enough time to plan and develop a procurement including dollar amount, scope, type, and complexity of the procurement. Additional time may be considered for external reviews, depending on the procurement type. It is important that procurement planning happens in coordination with the key stakeholders to ensure all required elements are included, sufficient time is given to procurement development and Contracts Legal is consulted throughout the process.

Coordination with external reviewers may include:

  • Contract Advisory Team (CAT) includes members from the Comptroller of Public Accounts, Department of Information Resources, HHSC, Office of the Governor, Texas Facilities Commission, and Department of Public Safety, and Texas Department of Transportation (TxDOT). The CAT reviews and makes recommendations about the procurement documents for contracts with an estimated value of $5 million or more.
  • Quality Assurance Team (QAT) includes members from the Legislative Budget Board (LBB), Department of Information Resources, Comptroller of Public Accounts, and State Auditor's Office. QAT is required for all Major Information Resources Projects.
  • Department of Information Resources (DIR) coordinates and supports the IT and telecommunications needs of the State, which includes procuring and managing statewide cooperative contracts for IT products and services. DIR reviews Statements of Work submitted by DFPS for specific contract types and processes notifications from DFPS for internet and native mobile applications when duplicating a state electronic internet portal function.