TDLR commissioners approve contract award for legacy-systems replacement project

The Texas Department of Licensing and Regulation (TDLR) commission voted to accept the department’s recommendation to contract for a multi‑year legacy systems replacement project and delegated authority to the executive director to finalize and sign the contract.

The project — described by staff as a Major Information Resource Project (MERP) because it exceeds $5 million — will replace multiple disparate licensing systems with a single, cloud‑based licensing platform. John Power, TDLR chief operations officer, told commissioners the agency issued a public request for offers (RFO), evaluated demonstrations from vendors and requested best and final offers before beginning contract negotiations.

The department said 12 vendors initially responded to the solicitation, eight progressed to demonstrations, and three were invited to submit best and final offers. John Power said evaluators included personnel from TDLR’s IT, security, licensing and enforcement teams and that vendor demonstrations and reference checks informed the selection. Commissioners were told the agency used an outside procurement advisor and that negotiations were completed with legal review; staff said no negotiated item compromised identified agency risk.

The department described project goals in public comments: consolidate multiple licensing systems into a single secure portal; improve customer experience for licensees and the public; keep state data hosted in the contiguous U.S.; and require a flexible, configurable solution that can adapt to regulation changes and added programs. John Fowler, chief information officer, described needs that included TextRAM (state security) certification for cloud services and integration with state payment services.

After staff discussion, the commission’s motion authorized the department to finalize the contract and delegated authority to the executive director to sign contract documents. The motion carried by voice vote; the minutes record that commissioners approved the motion and staff said they expected a signature by mid next week. Commissioners and staff discussed implementation oversight; TDLR said it will hire independent validation and verification (IV&V) services to monitor vendor performance during implementation and report to the executive director and the commission.

Why it matters: TDLR licenses and regulates hundreds of professions and currently operates multiple legacy licensing systems inherited over time. Staff told the commission these systems cause internal inefficiency and customer confusion, and the new platform is intended to consolidate systems, reduce duplicative maintenance and improve service delivery.

Implementation and next steps: TDLR said contract documents will be made public after signature. Staff told commissioners they will present an implementation cadence and reporting plan to the commission, and that they expect a phased rollout and ongoing reporting to oversight bodies including the state quality assurance team required for MERP projects.

Commission discussion emphasized vendor vetting, independent oversight and controlling agency risk during implementation. Several commissioners asked about long‑term operating costs, licensing and maintenance fees, staffing impacts and contract governance; staff said the RFO requested five‑year operating cost proposals and included options for maintenance and support. The department said licensing fees may increase over time as programs and user counts are added, and that work is underway to identify efficiencies and redeploy staff once legacy systems are sunsetted.

The commission’s action gives the executive director delegated authority to sign the contract and proceed into implementation once legal and procedural reviews are complete.