FY26 Request for Proposal - For External Audit Services- Efficiency Audits of State Agencies

Background
The State Auditor’s Office (SAO) is seeking proposals for external auditing services to conduct efficiency audits of state agencies scheduled for review by the Texas Sunset Advisory Commission during the 2028-2029 cycle. The goal of these audits is to evaluate the economy, efficiency, and effectiveness of state agency operations as mandated by Chapter 327 of the Texas Government Code. Contracts may be extended based on satisfactory contractor performance for subsequent audit cycles.

Work Details
The selected external auditor(s) will perform efficiency audits that include:

1. Evaluating whether agencies are managing resources economically and efficiently.
2. Identifying causes of inefficiencies or uneconomical practices.
3. Assessing whether financial and program reports are useful and accurately presented.
4. Determining if program objectives are achieved effectively under applicable statutes and plans.
5. Identifying any duplication or conflict with other state programs.

Audits must address all statutory elements outlined in Chapter 327, including recommendations for cost savings and improved service delivery through consolidation or outsourcing.

Period of Performance
The contract will commence no later than February 1, 2026, with draft reports due to the SAO by August 31, 2026, and final reports to be submitted to the Legislature by November 1, 2026.

Place of Performance
The audits will primarily take place at various state agency offices across Texas, with most entities headquartered in Austin.

Bidder Requirements
Proposers must demonstrate experience with efficiency audits of governmental entities and compliance with Government Auditing Standards. They must also provide a HUB Subcontracting Plan due to probable subcontracting opportunities. Additionally, proposers must complete cybersecurity training approved by Texas Cyber Command prior to engagement.