(a) Purpose. Government Code, Chapter 2260, provides a resolution process for certain contract claims against the state. Chapter 2260 applies to purchase contracts of the Texas Department of Motor Vehicles entered into under the State Purchasing and General Services Act. This section governs the filing, negotiation, and mediation of a claim.     
      (b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.      
        (1) Claim--A claim for breach of a purchase contract between a vendor and the department.       
        (2) Department--Texas Department of Motor Vehicles.       
        (3) Executive director--The executive director of the department or the director's designee not below the level of division director.       
        (4) Purchase--A procurement action under Government Code, Title 10, Subtitle D, for commodities or non-professional services.       
        (5) Vendor--An individual, partnership, corporation, or other business entity that is a party to a written contract for a purchase with the department.       
      (c) Filing of claim. A vendor may file a notice of claim with the executive director within 180 days after the date of the event giving rise to the claim. The claim must contain the:      
        (1) nature of the alleged breach;       
        (2) amount the vendor seeks as damages; and       
        (3) legal theory of recovery.       
      (d) Negotiation.      
        (1) The executive director will begin negotiations with the vendor to resolve the claim. The negotiations will begin no later than the 120th day after the date the claim is received.       
        (2) The negotiation may be written or oral. The executive director may afford the vendor an opportunity for a meeting to informally discuss the disputed matters and provide the vendor an opportunity to present relevant information.       
      (e) Mediation.      
        (1) The department and the vendor may agree to nonbinding mediation. The department will agree to mediation if the executive director determines that the mediation may speed resolution of the claim or otherwise benefit the department.       
        (2) The executive director will appoint a department employee as mediator. The employee must not have had any previous involvement or participation in the administration of the contract or the resolution of the claim.       
        (3) If the vendor objects to the appointment of a department employee as mediator, the department will select and hire a private mediator from outside the department. The costs for the services of a private mediator will be apportioned equally between the department and the vendor.       
        (4) The role of a mediator is limited to assisting the parties in attempting to reach an agreed resolution of the issues.       
      (f) Final offer.      
        (1) The executive director will make a final offer to the vendor within 90 days of beginning negotiations.       
        (2) If the disposition is acceptable to the vendor, the vendor shall advise the executive director in writing within 20 days of the date of the final offer. The department will forward an agreed disposition involving payment to the vendor for a final and binding order on the claim.       
      (g) Contested case hearing. If the vendor is dissatisfied with the final offer, or if the claim is not resolved before the 270th day after the claim is filed with the department, the vendor may petition the executive director for an administrative hearing before the State Office of Administrative Hearings to litigate the unresolved issues in the claim under the provisions of Government Code, Chapter 2260, Subchapter C.     
     Source Note:        The provisions of this §210.1 adopted to be effective February 4, 2010, 35 TexReg 661; amended to be effective December 7, 2014, 39 TexReg 9369