(a) When a contractor's goods or services fail to meet contract specifications, the comptroller shall consider:
  (1) the degree and nature of the variation between the contract specifications and the specifications of the goods or services actually delivered or offered for delivery;
  (2) whether the variation creates a hazard to life, health, safety, welfare or property;
  (3) whether the contractor knew of the variation when the bid was submitted or when the goods were delivered;
  (4) whether the failure to meet specifications adversely impacts the use of other goods or services;
  (5) the ability of the contractor to provide the goods or services that do comply with the required specifications;
  (6) the amount of economic loss to the state; economic loss includes, but is not limited to, costs arising from delay, training of employees, lost productivity, procuring substitute goods or services and any other cost, direct or indirect, arising out of the failure to meet specifications; and
  (7) any other factors the comptroller determines are relevant to ensure protection of the state's interest; the comptroller shall specify such other factors in a finding made pursuant to §20.586 of this title (relating to Procedures for Investigations and Debarment).
(b) In addition to the comptroller, any state agency, including an institution of higher education, may determine that goods and services fail to meet specifications. Where that determination is made by an entity other than the comptroller, the comptroller is authorized to act against the contractor without further testing and inspection of the goods and services.

Source Note: The provisions of this §20.583 adopted to be effective January 24, 2017, 42 TexReg 243