COMPETITIVE BIDS FOR AND PURCHASE OF TRANSIT SERVICES.

(a) Except as provided by Subsection (f), after providing notice of a proposal, a board must submit to competitive bids a contract for and must purchase transit services that:

(1) include:

(A) administration of motor bus or sedan transit services;

(B) motor bus or sedan driving, maintenance, or repair;

(C) transit services for persons who have disabilities, including through a program established under Section 451.254; or

(D) rail transit services; and

(2) are not provided wholly by an employee of the authority who is directly paid by the authority and works under the daily supervision of the authority's general manager.

(b) For the purposes of Subsection (a)(2), services are not provided wholly by an employee of the authority if the person is an employee of an entity incorporated as a state nonprofit by the board of the authority and with which the authority contracts for transit or employee services.

(c) Notice under Subsection (a) must be published in a newspaper of general circulation in the area in which the authority is located at least once each week for eight consecutive weeks before the date set for receiving the bids. The first notice must be published at least 60 days before the date set for receiving bids.

(d) A contract let under this section must include:

(1) performance control measures;

(2) incentives for performance;

(3) penalties for noncompliance; and

(4) a contract termination date.

(e) The board shall adopt rules on:

(1) the taking of bids;

(2) the awarding of contracts; and

(3) the waiver of the competitive bidding requirement if there is:

(A) an emergency; or

(B) only one source for the service or purchase.

(f) Subsection (a) does not apply to a contract or purchase:

(1) in an amount of $25,000 or less;

(2) for personal or professional services; or

(3) for the acquisition of an existing transit system.