Texas State Procurement Processes and Regulations, Exams of Advanced Education

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Practice Questions and Answers

1 - ANSWER-The purchaser determines they cannot fill a need through the state or federal surplus program. 2 - ANSWER-The purchaser determines that the purchase is allowable with the designated funds available for the purchase. 3 - ANSWER-The purchaser checks the set aside contract with Work Quest and TCI found on TX Smart Buy. 4 - ANSWER-The purchaser must check if the product is available through a sister agency and if so, enter into an IAC with that agency. 5 - ANSWER-If an item cannot be found on WorkQuest or TCI, the purchaser may use SPD term, managed or TXMAS contracts to fulfill the need. 6 - ANSWER-The agency purchaser must make a request to SPD if it is for commodities with a purchase or contract value over $50K, or if it is for services with a contract value over $100K, agencies have delegated purchasing authority under TAC and may buy or contract on the open market. 7 - ANSWER-Once delegation request has been mage by an agency purchaser, SPD will either procure the product or service for the agency, or will delegate purchasing authority back to the agency. Commodity requests go through the Open Market Request Process, while delegation requests for services are submitted to the Procurement Oversight and Delegation portal. Acquisition Plan - ANSWER-Purpose is to ensure the procurement is solicited, negotiated, executed, and managed in a way that delivers the best value for the state.

• to identify the contract administration team'
• to assign roles and responsibilities
• a monitoring method to ensure that the contract requirements are met
• helps hand info from contract developer to contract manager Agency Procurement Plans - ANSWER-This plan must be submitted by November 30th annually. Benchmarking - ANSWER-Find industry standards and averages for the industry. Centralized Master Bidder's List (CMBL) - ANSWER-Master database that provides Texas procurement professionals the ability to foster competition between vendors. between 5 and $25k= must solicit at least 3 vendors, 2 must be HUBs

over $25K= must solicit all vendors Contract value - ANSWER-value of a contract includes total value over a contract's term including any modification, renewal, or extension of the contract. Cost-Reimbursement - ANSWER-reimbursement methodology: payment to vendor of direct or indirect costs actually incurred. use when project scope cannot be precisely defined and costs cannot be accurately determined. allows forward movement when the scope of work details are uncertain, purchaser obtains full cost information from vendor. Delegation - Automatic Authority - ANSWER-One time purchase of goods (cannot exceed the total contract value of $50K) Emergency Purchases Purchase of services (cannot exceed $100K) Distributor purchases Department of Information Resources (DIR) - ANSWER-A state agency created in 1989 that serves as the chief information office for the State of Texas. Agencies are required to purchase through DIR unless otherwise exempted. Design-based specification - ANSWER-What type of specifications do you need in order to do that? How do you want it built? DIR $1M-$5M - ANSWER-Must submit a price request to at least 6 vendors on DIRs list in the category to which the contract relates. If 6 vendors are unavailable, Price Request must be sent to all applicable vendors. DIR $50k- $1M - ANSWER-Must submit a price request to at least 3 vendors on DIRs list in the category to which the contract relates. DIR Over $5M - ANSWER-A state agency is required to submit its own solicitation via an RFO. DIR Less than $50K - ANSWER-Bidding requirements for DIR Cooperative Contracts: Can purchase without submitting a price request to multiple vendors. DIR contract $1M to $5M - ANSWER-Must submit request for pricing to at least 6 DIR vendors or resellers DIR contract $50K to $1M - ANSWER-Must submit request for pricing to at least 3 DIR vendors or resellers.

DIR contract up to $50K - ANSWER-May directly award contract to DIR Cooperative contract vendor or reseller DIR Cooperative contract Blanket Exemption - ANSWER-DIR may determine to grant a blanket exemption to all state agencies. these procurements must be in accordance with the exact scope, terms and requirements specified in the blanket exemtion DIR cooperative contracts - ANSWER-Master contracts awarded through an open and competitive procurement process, RFOs; These contracts are for hardware, software, technology based training, managed services, IT staff augmentation contracts, and deliverables- based IT services DIR One time exemption request - ANSWER-if blanket exemption does not exist, an agency must submit an exemption request through DIR portal using the Exemption request form. Justifications include cost, terms and conditions, funding source restrictions, compatibility with existing technology infrastructure, proprietary restrictions, or other circumstances. DIR Procurement method - ANSWER-RFO used to procure Automated information system and Information Technology services, these contracts are competitively bid, Cooperative contracts allow customer to directly order with the vendor by issuing PO with DIR contract number referenced. DIR request exceeds $5M - ANSWER-May not enter into a contract through the DIR cooperative contracts program to purchase a commodity item, must use RFO and post to ESBD. DIR SOWs NOT required - ANSWER-DIR Review not needed for IT staffing services, Support agreements, maintenance agreements, hardware or software only contracts DIR Statements of Work - ANSWER-Agencies are required to prepare and submit these to DIR for contracts that exceed $50K: Cloud services, Deliverables based information technology services, End user IT outsourcing, IT security services, and Comprehensive web development Electronic State Business Daily (ESBD) - ANSWER-A web portal to post solicitations and learn of contract awards. Greater than $25K fixed price - ANSWER-Reimbursement methodology: payment to vendor is total price for well defined product or service, use when requirements are precisely defined, vendor assumes most of the risk because vendor will be paid the same regardless of actual cost.

Historical Spend Analysis - ANSWER-What we've done in the past? What we're used to? What did you spend in the past? have agency needs changed? reach out to other agencies. Historically Underutilized Business (HUB) - ANSWER-Provides opportunities to disadvantaged groups in an effort to remedy disparity in state procurement contracting. $100,000 subcontracting opportunity, CMBL Invitation for Bid (IFB) - ANSWER-Use when Products and Services are standardized or uniform. Simple award process. best value determined by price and whether specifications are met. negotiations not allowed. market research - ANSWER-The activity of gathering information about consumers' needs and preferences. What are the standards? Setups? Specifications? and Scope of work? Mixed specifications - ANSWER-combination of performance based and design based. needs assessment - ANSWER-a determination of the customer's specific needs and wants and the range of options the customer has for satisfying them No competitive bidding required - ANSWER-PO/contract $5000 or less (SPOT purchases) Office of Vehicle Fleet Management (OVFM) - ANSWER-Manages and assists agencies with their vehicles Performance based specification - ANSWER-How you want it to function? Clear specifications but not too restrictive. PO/Contract $25,000 or more - ANSWER-Post on ESBD, all eligible vendors on CMBL must be solicited for formal bids PO/Contract $5000-$25000 - ANSWER-Must provide bid opportunities to vendors active on CMBL, 3 informal bids, solicit on CMBL Policy and Outreach (SPD) - ANSWER-Conducts policy research, training, and certification and customer support services. Procurement Oversight and Delegation - ANSWER-Reviews solicitations and issues a letter of delegation of purchasing authority for an anticipated contract value at $100, or greater. $5M or greater to CAT Team

Proprietary Purchases - ANSWER-the specifications or conditions of the proposed purchase allow only one product or service to be supplied and preclude any other product or supplier from meeting the specifications. relatively rare so subject to close scrutiny. Purchase Order Change Notice - ANSWER-Used when a change to an order is required. Needed for any change regardless of if initial purchase was through a managed contract or from TX Smart Buy. DO PROMPTLY! (within 30 days) Purchase Order Change Notice (POCN) - ANSWER-Only pertinent info to change should be placed in scope of change area. should not be used if issuance of new PO is needed. Purchasing authority for DIR - ANSWER-TGC 2157.068, 1 TAC 201.18: State agencies purchase hardware, software and technical services through DIR's cooperative contracts. Request for Information (RFI) - ANSWER-A formal research method used to gather info directly from the industry about a particular type of product or service. best practice as optional planning tool method.

• Not a procurement method Request for Offer (RFO) - ANSWER-Must be used for IT Procurements, if cannot use DIR contracts. Request for Proposal (RFP) - ANSWER-Use when negotiations are desired, vendor is expected to provide innovative ideas or solutions. Allows for customized proposals and negotiations. other considerations besides prices are used to determine best value. procurement lead time is longer and evaluations more complex Request for Qualifications (RFQ) - ANSWER-Use when selection is made solely on the skills and qualifications of the vendor. Price is not a factor until after vendor is selected. emphasis on competency and experience of vendors. Two step process. Used for professional services. Set Aside programs - ANSWER-step 2 of purchasing goods Must be determined to be unsuitable before beginning a procurement from another source. Texas Correctional Industries Texas Workforce Commission (WorkQuest and TPPD) Must file a vendor performing report State Travel Management Program (STMP) - ANSWER-Manages travel expenditures, including hotel, car rentals, airlines, and travel agencies.

Statewide Contract Development and Contract Management - ANSWER-Develops and manage statewide contracts for use by state agencies with a broad range of contracts for commodities and services. Open market requests and delegation of purchasing authority. Statewide Mail Operations - ANSWER-Provides state agencies and universities a variety of mail operations services. Statewide Term Contracts and Managed Contracts - ANSWER-Established by SPD as a source for procurement of goods and services. Go here first before going to open market. See contracts already created to use. Submitting a delegation request for services - ANSWER--anticipated contract value of $100,000 or greater, a state agency must submit the solicitation to the Procurement Oversight and Delegation Team.

• once submitted, the procurement is analyzed from contract management and business perspective. -review includes suggestions on best contracting practices, clarity, and identification & mitigation of risk. -could take 30 days to complete review submitting delegation request for goods - ANSWER-SPD considers factors such as: -capabilities of the agency's purchasing staff -Certification levels held by the agency's purchasing personnel
• results of the comptroller's procurement review audits of an agency's purchasing practices -whether the agency has adopted and published protest procedures as part of purchasing rules Surplus Programs - ANSWER-Purchasing Goods, go here first. Federal surplus: comes from US govt, no public sales, usually lower fees than state. State surplus: Property from state agencies, available for direct transfer to agency, eventually available for sale to public. TCI Waiver Process - ANSWER-Process used to request not using TCI. TCI evaluates and approves or denies waiver. Keep waiver in procurement file. Telecommunication services - ANSWER-TGC 2170 requires state agencies to procure these services through DIR Texas Correctional Industries (TCI) - ANSWER-a division of TDCJ that manufactures goods and services using primarily offender labor for purchase by TX govt entities. Competitive bidding not required,

Available through TX Smart Buy, Complete VPTS Texas Multiple Award Schedule (TXMAS) - ANSWER-contracts to supplement the term contracts issued and negotiated by SPD. Awarded with SPD terms and conditions overlaying existing federal govt or other govt entity base contract. Agencies may use without obtaining delegated authority from SPD. Texas Multiple Award Schedule (TXMAS) thresholds - ANSWER-$0- 50,000: go directly to TXMAS vendor $50,000- 1M: obtain a price quote from 3 vendors $1M or greater: Minimum of 6 vendors If not enough vendors available, then document the limited number. Texas Purchasing from People with Disabilities Exception Reporting - ANSWER-must report through CPA TPPD reporting tool the reason commodities or services that could have been purchased through WorkQuest but were instead purchased from another vendor. Exceptions include: quality, quantity, life-cycle costs, delivery time. Texas Smart Buy - ANSWER-Statewide contracts procured and managed by SPD must use a purchase order through this system. Time and Materials - ANSWER-Reimbursement methodology: payment to vendor of a pre-determined amount per unit, use when project scope cannot be precisely defined, off the shelf products or standard services are required but quantity is uncertain. large quantities may lead to volume price discounts, required significant monitoring effort by purchaser. Vendor Communication - ANSWER-Communication between vendors and public procurement professionals is vital and encouraged. All communication must cease once the solicitation drafting process commences to ensure integrity of procurement. There are allowable and unallowable vendor-procurement interactions. Vendor Performance Tracking System - ANSWER-Use this statutorily required method of reporting vendors once the contracts are completed or closed out and /or throughout the life cycle of the contract. Waiver is needed - ANSWER-In order to not use DIR a