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1 | P a g e CTCM CERTIFIED TEXAS CONTRACT MANAGER CERTIFICATION EXAM QUESTIONS AND ANSWERS 2025 Contract Value - CORRECT ANSWER >>>>The initial value of the contract, plus any amendments, renewals and extensions for the contract's full existence. Statewide Procurement Division (SPD) - CORRECT ANSWER
The entity that delegates purchasing authority to state agencies for non-IT goods and services, Purchasing authority - CORRECT ANSWER >>>>The ability of an agency to purchase goods and services using state funds. Delegation of purchasing authority - CORRECT ANSWER Assigning purchasing authority to an agency Texas Department of Information Resources (DIR) - CORRECT ANSWER >>>>The entity that delegates purchasing authority to state agencies for IT goods and services
2 | P a g e Statewide contract management development team responsibilities - CORRECT ANSWER >>>>-develops and administers over 250 statewide contractors representing several thousand-line items of products/services -develops term, managed, and TXMAS contracts -Processes open market requisitions on behalf of state agencies, universities, and more than 1600+ Texas SmartBuy members -assists with reporting requirements and vendor performance issues Office of Vehicle and Fleet Management - CORRECT ANSWER
Assists state agencies in managing their vehicle fleet Statewide Travel Management Program - CORRECT ANSWER Manages travel expenditures, monitors travel activity, and provides discounted travel services Statewide mail operations - CORRECT ANSWER >>>>Processes approximately 14-17K pieces of mail per day (interagency mail) Historically Underutilized Business Program (HUB) - CORRECT ANSWER >>>>Promotes full and equal business opportunities subcontracting opportunity for any procurement with an estimated contract value of $100,000 or greater. For businesses owned by female, minority, or service disabled veterans.
4 | P a g e Electronic State Business Daily (ESBD) - CORRECT ANSWER
Where we advertise solicitations and notice of awards for contracts over $25, Centralized Master Bidder's List (CMBL) - CORRECT ANSWER Master database for purchasing entities to to receive bids for their products or services. If $10k-$25k, you must solicit 3 active vendors (2 HUBs). If over $25k, must solicit all eligible vendors on the list that services the geographic region. Centralized Master Bidder's List (CMBL) documentation - CORRECT ANSWER >>>>A copy of the bid list (with date) must be placed in the procurement file Vendor Performance Tracking System (VPTS) - CORRECT ANSWER >>>>Allows agencies to score vendors, track vendor performance, and provides information to contract developersCollects vendor performance reports from the agencies. When do you report to VPTS? - CORRECT ANSWER Contracts at or greater than $25k. Reporting is required in 30 days What are the VPTS reporting requirements for contracts valued over $5 million? - CORRECT ANSWER >>>>Vendor performance reports are required annually and at each key milestone. The contract can't be extended until the vendor performance reports have been submitted to VPTS
5 | P a g e Agency Procurement Plan - CORRECT ANSWER >>>>Due annually by November 30th. The plan identifies its management controls and purchasing oversight authority in accordance with the policy guidance contained in the Guide. Standards of Conduct for State Employees - CORRECT ANSWER
-should not accept gifts or other employment that could influence their work duties -should not accept any benefit for exercising their official duties in favor of another -should not make personal investments that create a substantial interest in a business How we define substantial interest in a business (ethics): - CORRECT ANSWER >>>>You have control/sway in the business. What financial interest would be of ethical concern for a contract manager? - CORRECT ANSWER >>>>-Owns or controls an ownership interest of at least 1 percent in the business -could reasonably foresee that a contract with the person could result in a financial benefit to the employee or official Consanguinity - CORRECT ANSWER >>>>A type of nepotism relationship. that involve individuals related by blood to the official or employee (i.e. parents, children, siblings)
7 | P a g e agency for employees involved in procurement or contract management Non-disclosure Agreement form: completed on social occasions, mostly for contract developers and manager to shut their mouths Ethics forms completed for contracts greater than or equal to $1 million - CORRECT ANSWER >>>>· SAO Nepotism Disclosure Statement- for purchasing personnel · TEC Disclosure of Interested Parties (1295 form)- completed by the vendor and submitted to the agency Five stages of the procurement cycle - CORRECT ANSWER >>>>· 1- Procurement Planning · 2- Procurement Method Determination · 3- Vendor Selection · 4- Contract Formation and Award · 5- Contract Management Activities falling within procurement planning (phase 1) - CORRECT ANSWER >>>>· Identify key business requirements and cost estimate · Creation of acquisition plan · Procurement file checklist Condensed purchasing process steps within phase 2 (procurement method determination): - CORRECT ANSWER
· 1- state and federal surplus · 2- set aside program TCI and WorkQuest
8 | P a g e · 3- Interagency contract · 4- SPD term contract · 5- SPD delegated by rule · 6- SPD review and delegation · **MUST go thru these steps before developing a solicitation What are the two ways that purchasing authority may be delegated by SPD? - CORRECT ANSWER >>>>· Delegation provided by SPD by rule · Delegation requested from SPD by agencies (open market requisition (OMR) or Procurement Oversight and Delegation (POD) portal) When SPD would provide delegation by rule: - CORRECT ANSWER >>>>· Purchases of $10,000 or less ("spot" purchases) · One-time purchase of goods of $50,000 or less · Purchases of services of $100,000 or less Examples of when SPD would give delegation by rule - CORRECT ANSWER >>>>· Direct publications, professional memberships, perishable goods purchases, distributor purchases, emergency purchases What if a procurement falls under the threshold of purchasing authority? - CORRECT ANSWER >>>>· Agencies may request assistance from SPD for procurements under the delegated threshold
10 | P a g e · Cons: defined specifications may be difficult to develop; does not encourage innovative solutions; negotiations are not allowed if there I more than one responsive bidder When to use RFP and RFOs? - CORRECT ANSWER >>>>· When we want folks to bid on a solution for us · When negotiations are desired · When the vendor is expected to provide innovative ideas or solutions Pros and cons of RFPs/RFOs - CORRECT ANSWER >>>>· Pros: allows for customized proposals and different approaches; allows for negotiations; considerations in addition to price are used to determine best value · Cons: lead time for procurement is much greater; evaluations tend to be more complex Difference between RFP and RFO - CORRECT ANSWER >>>>· RFO: IT related needs · RFP: non-IT related needs When to use Request for Qualifications (RFQ)? - CORRECT ANSWER >>>>· Selection is made solely on the skills and qualifications of the vendor · Price is not a factor until after the vendor is selected · Ex: lawyers, doctors, engineers. Qualifications and experience are judged before price
11 | P a g e Pros and Cons of Request for Qualifications (RFQ)? - CORRECT ANSWER >>>>· Pros: emphasizes the competency and experience of the vendor · Cons: vendor is selected before the price is negotiated. It is a 2 step process. Evaluation process steps within the vendor selection (phase 3 of the procurement cycle) - CORRECT ANSWER >>>>· Bid tabulation process · Evaluation: evaluation committee process (built for RFPs and RFOs) · Preferences Steps within Contract Formation and Award (phase 4 of the procurement cycle) - CORRECT ANSWER >>>>· Negotiations · Contract formation · Contract award and amendment · Contract and amendment notifications Post Award Internal Conference - CORRECT ANSWER >>>>· AKA kickoff meeting within the agency- includes all stakeholders · For high-risk or high-dollar procurements; communicate roles and responsibilities; CD passes off to CM Post award contractor conference - CORRECT ANSWER >>>>· Clear and mutual understanding of terms and conditions and respective responsibilities · Ex of major points reviewed: performance milestones, deliverables, monitoring methods
13 | P a g e Quality assessment plan (QAP) - CORRECT ANSWER >>>>· The tool to assist CMs in clearly understanding, monitoring, and mitigating risk during the administration of a contract · Includes deliverables by agency, deliverables by contractor, deliverable due dates, monitoring activities, performance methods, etc. Risk factors to consider in a contract: - CORRECT ANSWER
· Contractor's previous experience · Contractor's past performance · Dollar amount of the contract · Reimbursement methodology · Acquisition complexity · Interdependency with other contracts Risk mitigation measures - CORRECT ANSWER >>>>· Financial capability · Insurance · Bonds · Warranties · Cybersecurity training · Extended warranty; maintenance agreement · Licenses/certifications · Limitation of liability clauses Insurance standard to be listed in the solicitation - CORRECT ANSWER >>>>· The solicitation should specify that all insurance policies must be obtained from insurance companies licensed in Texas with at least an A- rating
14 | P a g e · Insurance must cover all claims against the contractor AND costs to the agency Warranties and maintenance agreements may protect the agency in cases of: - CORRECT ANSWER >>>>· poor workmanship · intellectual property violations of third parties · malfunctioning products · anything that may require repair or replacement Examples of monitoring methods - CORRECT ANSWER >>>>· desk reviews (i.e. reports): progress, status, activity, financial, vendor reports · site visits · monitoring by 3rd parties CMs should check in on monitoring periodically to: - CORRECT ANSWER >>>>· ensure corrective action has been taken · identify commons problem areas that might require training · ensure vendors maintain insurance, licenses, certifications, etc. · improve contract requirements for future contracts common informal monitoring best practices - CORRECT ANSWER >>>>· testing: making sure that the product works · shipping and receiving: making sure you get what you're supposed to · carrier shipping methods: making sure it was delivered in tact and handled carefully in transit before accepting
16 | P a g e -frequent undocumented or unapproved adjustments, credits, and write-offs -multiple remittance addresses for the same vendor -inconsistent invoicing time periods Types of reimbursement - CORRECT ANSWER >>>>-fixed price -time and materials cost reimbursement When would be appropriate to withhold payment? - CORRECT ANSWER >>>>-invoice errors -undocumented and/or unsupported costs -remediating overpayments to the vendor -contractor's performance is non-conforming or unacceptable An effective change management process would include: - CORRECT ANSWER >>>>-formal, written approval of all changes prior to the change taking place -evaluation of the impact of each change to the contracting objective -develop a plan for contingency allowances -documentation of all changes -establish a single point of contact (probably contract manager) Purchase order change notice (POCN) - CORRECT ANSWER
Can be used for changes to an agency-specific contract or a statewide contract. Used for non-complex procurements.
17 | P a g e What are the two ways to change a contract? - CORRECT ANSWER >>>>Bilateral amendments and unilateral amendments Bilateral amendments - CORRECT ANSWER >>>>-used when there are substantive change (ex: changes in the delivery timeline, quantity, etc. but the work completed is still the same) -used when there are constructive changes (ex: changes that are outside of the scope of the contract, additional costs) Unilateral amendments - CORRECT ANSWER >>>>-used when there are administrative changes (ex: typo, billing issue) Assignment by contractor - CORRECT ANSWER >>>>-When one party of a contract (assignor) transfers its rights under a contract to another party (asignee). -must include payment assignment, name change, buyout or sale, replacement contractor Renewal - CORRECT ANSWER >>>>when the contractual parties have the option to renew the contract for another term extension - CORRECT ANSWER >>>>-extended term beyond the original solicitation contract terms, which allows time needed to complete the services. -should not extend beyond 5 years
19 | P a g e -used as a remedy when things are off track. Somewhere between a slap on the wrist and jail time Compensatory damanges - CORRECT ANSWER >>>>-a monetary amount to compensate the injured party. Used as a remedy of a situation with the contractor. -ex: discounts, refunds, credits, waiver of fees Dispute resolution - CORRECT ANSWER >>>>-an effort to resolve problems before they escalate -initial steps include identification of the problem, researching the facts, evaluation -may want to loop in legal at this point Termination - CORRECT ANSWER >>>>-scrapping and ending the contract -want to avoid this if possible- there is a lot of work that goes into developing a contract -4 types: termination by mutual agreement, termination for convenience, termination for cause, termination for non-appropriation Define the 4 types of termination - CORRECT ANSWER
-termination by mutual agreement -termination for convenience (ex: the agency isn't doing this work anymore and needs to cancel) -termination for cause (ex: despite all of our best efforts, when the contractual parties have the option to renew the contract for another term extension - CORRECT ANSWER >>>>-extended term beyond the original solicitation contract terms, which allows time needed to complete the services. -should not extend beyond 5 years 19 | P a g e -used as a remedy when things are off track. Somewhere between a slap on the wrist and jail time Compensatory damanges - CORRECT ANSWER >>>>-a monetary amount to compensate the injured party. Used as a remedy of a situation with the contractor. -ex: discounts, refunds, credits, waiver of fees Dispute resolution - CORRECT ANSWER >>>>-an effort to resolve problems before they escalate -initial steps include identification of the problem, researching the facts, evaluation -may want to loop in legal at this point Termination - CORRECT ANSWER >>>>-scrapping and ending the contract -want to avoid this if possible- there is a lot of work that goes into developing a contract -4 types: termination by mutual agreement, termination for convenience, termination for cause, termination for non-appropriation Define the 4 types of termination - CORRECT ANSWER >>>>-termination by mutual agreement -termination for convenience (ex: the agency isn't doing this work anymore and needs to cancel) -termination for cause (ex: despite all of our best efforts, the contractor is not adequately completing their work.)
20 | P a g e -termination for non-appropriation (ex: legislative funds are reallocated, and we no longer have funding for the contract) 2 steps that should be taken before termination for cause - CORRECT ANSWER >>>>-cure notice: similar to an ultimatum -corrective action plan: hand holding, more meetings and reports When is it time for a contract close out? - CORRECT ANSWER
When both parties have fulfilled contractual obligations, including: -all goods and services have been received and accepted -all reports/desk reviews have been delivered and accepted - all administrative actions have been accomplished -all agency-furnished equipment and materials have been returned -all property inventory and ownership issues are resolved - final acceptance from the PM has been received -final payment has been made to the contractor within 30 days VPTS Reporting requirements - CORRECT ANSWER >>>>- contractor's performance must be reported within 30 days to VPTS once a contract with a value of over $25,000 is completed or terminated -if the value of the contract exceeds $5 million, the agency must review the contractor's performance at least once each year during the term of the contract and at each key milestone identified for the contract
