Establishing Expiration Dates to HHSC Open-Ended Contracts

The Texas Health and Human Services Commission is initiating a project to establish expiration dates for contracts without one. These are “open-ended” contracts.

• The purpose of the project is to amend HHSC open-ended contracts in scope to establish a contract term of no greater than five years, not including any extensions.
• The project needs rules changes in the Texas Administrative Code to establish expiration dates for most of the contracts in scope.
• The plan is to complete the project by the end of calendar year 2021.

Rules Changes:

• HHSC will amend rules in Title 40, Texas Administrative Code, Chapters 9, 42, 45 and 49 to support establishing expiration dates, such as revising the definition of a provisional contract and a standard contract.
• Draft rules will be posted for stakeholder comment, and stakeholder meetings will be held as necessary.
• Amended rules are expected to be submitted to the Texas Register for publication in the summer of 2020 and to be effective in the fall of 2020.

Contracts:

• HHSC may begin implementing end dates now with contractors who agree to sign the new agreement while HHSC waits on the proposed rules changes to go in effect.
• Over the next several months, contracts with updated terms and conditions, to include an expiration date, will be sent to contractors for a signature.
• HHSC will give the contractor a deadline by which they must sign and return the contract to HHSC.