(a) The department may enter into contracts or agreements with any person, including a federal, state, or other public or private agency, as necessary to perform any of the department’s powers or duties.
(b) A contract for the purchase of program-related client services must include:
(1) clearly defined goals and outcomes that can be measured to determine whether the objectives of the program are being achieved;
(2) clearly defined sanctions or penalties for noncompliance with contract terms; and
(3) clearly specified accounting, reporting, and auditing requirements applicable to money received under the contract.

(b-1) Repealed by Acts 2015, 84th Leg., R.S., Ch. 1, Sec. 4.465(a)(53), eff. April 2, 2015.
(c) The department shall monitor a contractor’s performance under a contract for the purchase of program-related client services. In monitoring performance, the department shall:
(1) use a risk-assessment methodology to ensure compliance with financial and performance requirements under the contract; and
(2) obtain and evaluate program cost information to ensure that all costs, including administrative costs, are reasonable and necessary to achieve program objectives.
(d) An agreement made under this section is not subject to Chapter 771 or 791, Government Code.
(e) This section does not prohibit the department from entering into a contract or agreement subject to Chapter 771 or 791, Government Code, for a purpose authorized in the applicable chapter.
(f) A contract for residential child-care services provided by a general residential operation or by a child-placing agency must include provisions that:
(1) enable the department and commission to monitor the effectiveness of the services;
(2) specify performance outcomes, financial penalties for failing to meet any specified performance outcomes, and financial incentives for exceeding any specified performance outcomes;
(3) authorize the department or commission to terminate the contract or impose monetary sanctions for a violation of a provision of the contract that specifies performance criteria or for underperformance in meeting any specified performance outcomes;
(4) authorize the department or commission, an agent of the department or commission, and the state auditor to inspect all books, records, and files maintained by a contractor relating to the contract; and
(5) are necessary, as determined by the department or commission, to ensure accountability for the delivery of services and for the expenditure of public funds.
(g) A contract with a private agency for the provision of substitute care or case management services for a child must include provisions that require the agency to provide access to the agency’s information and records relating to the child to the child’s attorney ad litem and guardian ad litem.
(h) In contracting with licensed child-placing agencies for residential child-care services, the department shall:
(1) determine and evaluate, using best practice standards, the home screening, assessment, and preservice training requirements used by substitute care providers before the verification and approval of caregivers, including:
(A) risk assessment evaluations used; and
(B) the curriculum and models used and topics covered in caregiver training; and
(2) publish on the department’s Internet website the information collected by the department regarding the curriculum and training models used and topics covered during caregiver training by substitute care providers.
(i) The department and the commission shall enter into contracts for the provision of shared administrative services, including payroll, procurement, information resources, rate setting, purchasing, and contracting.
(j) The department shall collaborate with the commission to ensure the efficient provision of administrative support services by the commission.