The Quality Texas Foundation is a non-profit 501(c) 3 corporation that evolved from a concept introduced by  Governor Ann Richards in the early 1990s.  Cooperative efforts between the Governor's office, the Texas Department of Commerce, and Texas businesses made it possible for the new Quality Texas Foundation to organize and deliver quality awareness seminars across the state.  In the first two years, seminars were presented to 1,800 individuals representing more than 700 organizations.

At the same time, EDS Corporation assigned an executive to lead development of the state quality award.  A committee was formed with representatives from organizations across Texas. The committee created the Texas Quality Award (later the Texas Award for Performance Excellence), open to government, education, healthcare, nonprofit, and business organizations. The American Productivity & Quality Center was chosen as the original award administrator and applications were first accepted in 1993.

The Quality Texas Foundation now administers the Texas Award for Performance Excellence as an independent non-profit corporation.