Procurement Terms

Question 1

What is contract value?

Answer 1

The initial value of the contract, including anticipated extensions and renewals for the contract’s full existence. It is determined by the total value of the contract over a contract’s term and includes modifications also.
NOTE: Contract value is determined differently for DIR contracts (which don’t include extensions/renewals)

Question 2

What would the contract value be for a contract with an initial value of 4 million, with 3 optional renewals for the same amount?

Answer 2

16 million

Question 3

What would the contract value be for a contract with an initial value of 200,000 with 2 optional renewals of the same amount?

Answer 3

600,000

Question 4

What is purchasing authority?

Answer 4

The ability of an agency to purchase goods and services using state funds

Question 5

What entity delegates purchasing authority to state agencies for non-IT goods and services?

Answer 5

Statewide Procurement Division

Question 6

What is Statewide Procurement Division?

Answer 6

1) central authority for state agency procurement guidance (the manual), education (training), and statewide contract development services, and delegates purchasing authority for non-IT goods and services

Question 7

What is the State of Texas Procurement and Contract Management Guide

Answer 7

1) aids public procurement professionals in the execution of their duties
2) provides step-by-step guidance
3) a framework for the continued development of public procurement processes and best practices

Question 8

What is procurement?

Answer 8

all aspects of the sourcing activities, including:

1) drafting and issuing the solicitation,
2) evaluation of responses,
3) selection of successful respondents,
4) the negotiation of contracts, and
5) the actual purchasing of goods or services.

Question 9

What is purchasing?

Answer 9

the transactional function of the procurement process; purchasing is under the umbrella of procurement

Question 10

What are goods?

Answer 10

supplies, materials, and equipment

Question 11

What are services?

Answer 11

furnishing of skilled or unskilled labor or professional work. Delegated purchases of services do NOT include the following: Professional or consulting services as defined by Chapter 2254 of the Texas Government Code (e.g. accounting, architecture), Services of an employee of an agency, or Services of public utilities.

Question 12

What is an Open Market Requisition

Answer 12

Form submitted by email to SPD to request delegation of authority to purchase goods greater than $50,000

Question 13

What must be placed in the procurement file regarding CMBL?

Answer 13

Copy of the vendors registered on CMBL that were sent notice of the solicitation

Question 14

Must a vendor be registered on CMBL to conduct business with state agencies?

Answer 14

No

Question 15

What is TEC Disclosure of Interested Parties?

Answer 15

Form 1295 that must be submitted by vendor through TEC at time entity submits signed contract and is required for contracts:

1) $1 million and over;
2) must be approved by governing body; or 3) For services that require a person to register as a lobbyist.

Question 16

For the Disclosure of Interested Parties, what is an interested party?

Answer 16

a person who has a controlling interest in a business entity or who actively participates in facilitating the contract or negotiating the terms of the contract, including a broker, intermediary, adviser, or attorney for the business entity.

Question 17

What is the Nepotism Disclosure Statement?

Answer 17

Disclosure by purchasing personnel of relationship with selected vendor (or any employee, partner, stockholder, paid consultant with value that exceeds $25,000, or owner of business) to the administrative head of agency

Question 18

Agencies use this class-item numbering and descriptions found in this book to properly code products or services on their requisitions and purchases, so informal and formal invitations for bid will reach vendors that have indicated they are capable of furnishing the required materials, equipment, supplies, and services.

Answer 18

National Institute of Governmental Purchasing (NIGP) Commodity Book