CTCD
Change Control
A process whereby modifications to documents, deliverables, or baselines associated with the project are identified, documented, approved, or rejected.
Post Employment Restrictions
2 yr for state employees, agencies may not enter into a contract with a former executive head or employer for 4 years after leaving the agency; reduces conflict of interest, and avoid appearance of impropriety
Scope of Work
A description of the products or services to be provided by the vendor, include responsibilities, evaluation of vendor performance, communication protocol, tailored to the business need, set deliverables and milestones
Contacts
A start and end date, include termination for non-appropriations, recommend max duration without reissuing a competitive solicitation 4-5 years
Legal Elements of a Contract
Offer, acceptance, legal purpose, consideration, certainty of subject matter, competent parties
NASPO concepts
Acquisition plan and quantity assessment plans
TXMAS
Adapts existing competitively awarded gov't contracts to service the needs of the state agencies and SMARTBUY members ; adapted with state laws. Professional and consulting services are offered as part of program. Negotiations are not allowed, order are made through SMARTBUY, offline sales, incidental or off schedule items
Quality Assurance Team QAT
Agencies are required to inform QAT of any MIRP solicitations; review partially executed MIRP contracts of $10m or more and amendments greater than 10% of the contact value
DIR under $50k
Agency can award directly to vendor
Conflict of interest form
Agency specific for employee
Appropriated funds may not be used for for the following unless the procurement falls under a statutory exception
Alcohol, indoor artificial or live plants, audit of financial records or accounts of an agency, memberships in or dues for professional organizations, private facilities for meetings, conferences, or exams
Contract close out processes
All goods and services are received and accepted, reports here been delivered and accepted, Administrative actions have been accomplished, agency equipment or materials have been returned, all property inventory and ownership issues are resolved including disposition of any equipment or licenses purchased under the contract, final acceptance from the project manager, final payment made to the vendor, and VPTS reported, lessons learned documents
VPTS over $5m
Annual reporting and at milestones- may not extend the contract until the applicable vendor performance have been submitted to VPTS
Acquisition Plan
Document solicitation process, assign roles and responsibilities, create a calendar of events, identify high risk items *required for MIRP's subject to QAT
Purchasing Authority Letter of Delegation
Letters must be obtained by SPD prior to posting on the ESBD; the letter and a copy of the posting must be included in the procurement file
Records Retention
As of 9/1/2015, all documents retained for 7 years at close of contract
Payment and pricing terms
Based on industry specific research, included in the solicitation with clear contractual parameters of how costs will be paid reimbursement methods, early payment, or invoice requirements
Score A
Best value criteria and fully complied with all contract terms, customer satisfaction
Score B
Best value criteria and fully with all material terms or promptly remedied any minor incidents of noncompliance, customer satisfaction
Score C
Best value criteria, remedied substantially, but adequate customer satisfaction
Evaluation criteria for award
Best value for state, essential quality or performance requirements, other factors are qualifications, experience or financial capabily
Vendor Selection
Bid Tabs, evaluation committee, preferences, best value
Bilateral Amendment
Both parties agree to change
Internal Calendar of Events
Budget, kick off meeting, solicitation draft, agency approval, (CAT, SPD reviews and delegations), solicitation issued, pre bid/offer/proposal, due date for questions, date to answer questions, response due date, vendor selection evaluation committee(RFO, RFP, RFQ), bid tab for IFB, Negotiation and contract formation, contract contract award, transition meeting from CD to CM, post award meeting w/ contractor, schedule, contract end date
Needs assessment
Business need
Contractors who do not fulfill the requirements of the contract or that are on corrective action plans must not be given a score higher than a
C
Contract administration team
CD, CM, End User, project manager, and legal
Post award contract conference
CM , contractor, agency stakeholders
Replacement contractor
CM responsibilities, keep the states interest in mind, perform due diligence
Constructive Change
Change in cost
Substantive Change
Change in price or delivery
Post award kick off meeting
Clear and mutual understanding of the t &c's and responsibilities
Benchmarking
Comparing a particular item, service, or process with other entities or an established industry standard, to obtain a measure that can be used to identify opportunities for improvement.
TEC Disclosure of Interested parties (1295)
Completed by vendor and submitted to TEC Texas Ethnics Commission for contracts over $1M
Procurement Oversight and Delegation Portal POD
Conducts solicitation reviews and delegates purchasing authority to state agencies for service solicitations valued over $100k; coordinates with oversight teams CAT and QAT
Solicitation Submission Requirements
Content, format, Due date and time, delivery address, container labeling, acceptable delivery method
Risk Factors
Contractors previous experience, past performance, dollar value, reimbursement methodology, acquisition complexity, interdependency on other contracts
Interagency Contract
Contracts between 2 agencies-competitive bidding is not required; written agreement authorized by a representative from both agencies, the IAC must specify the type and amount of services or resources to be provided. A basis for computing reimbursable costs and the max cost of contracts term
Substantial Conflict of Interest
Controlling interest in a company, owns 10% voting interest, owns 25% of fair market value, member of board of directors or other governing body, participating interest in stocks, shares, or otherwise; 10% of profits, proceeds, or capital gains; elected official; employee at business entity
Risk mitigation measures
Financial capacity, insurance, bonds, warranties, extended warranty or maintenance agreements, licenses or certification, limitation on liability, cyber security training
CM should periodically review
Corrective action has taken place, identify common problem areas that might require training, improve contract requirements for future requirements, ensure vendors maintain licenses and certifications throughout the life of the contract
Termination for Cause
Cure notices-letter to the contractor to correct the deficiency or violation within a time period usually 30 days Corrective Action Plan- possible renegotiate that would identify specific activities that must be preformed by the contractor to restore compliance- address the deficiency, state the desired outcome, and establish a time frame
Solicitation or SOW
Defines limits and identifies the products or services delivered under the contract. Should describe the products or services outside the scope of work
Solicitation receipt of responses
Delivery by mail, fax or other electronic system, responses opened in error or to confirm identification
Monitoring methods
Desk reviews (progress, status, activity, financial, vendor reports), site visit, monitoring by a 3rd party, enhanced contract and performance monitoring
Procurement Planning
Develop a needs assessment, cost estimate, and an acquisition plan. Purchase requisition
Acquisition Plan
Developed early in the solicitation stage and contract development (needs assessment, justification of solicitation procurement method, contract goals and objectives, and SOW)
Statewide Contract Development Team
Develops and administers statewide contracts representing thousands of line of products and services; develops term, managed, and TXMAS contracts; process open market requisitions on behalf of state agencies, universities, and TX SmartBuy members
Required disclosures and vendor compliance verifications
Disclosure of interested parties form, conflict of interest form, debarment check, Iran Sudan or foreign terrorist organization check, boycott Israel, Sam check, warrant or payment hold, franchise tax check
State Employee code of conduct
Do not accept any gifts or other employments that could influence work duties; accept any benefit for exercising your official duties in favor of another; make personal investments that create a substantial conflict
Score D
Do not meet best value criteria, substantial noncompliance with material contract terms failed to remedy a majority of those instances
Agency Procurement Plan
Due 11/30 annually; identifies the management controls and purchasing oversight authority in accordance with policy guidance
LBB reporting $100-$10m-all contracts
Due prior to 1st payment but no later than 30 days after contract execution
LBB reporting $100-$1m-non-competitive/sole source/ emergency
Due prior to 1st payment, but no later than 30 days after contract execution, Emergency purchases are due 48 hours after 1st payment
Agency Contract Management Procedures
Each agency must develop and comply with purchasing accountability and risk analysis procedures; post on agency website and send to SPD
Agency Contract Management Handbook
Each agency must publish a handbook that comply with purchasing accountability and risk analysis procedures; establish policies and procedures
Goods greater than $50k
Email Open market requisition to SPD
Goods greater the $50k
Email open market requisition to SPD
Preferences
Established by statute and must be claimed by the vendor by marking the appropriate preference on the solicitation
Administrative review of responses
Examination of each response, is it responsive, technical assistance, single response
Extension
Extended the term beyond the original solicitation contract terms, allows time to complete the service
Agencies and institutions of higher learning cannot extend the contract beyond the initial term + optional extensions unless all of the following are met
Extension is limited in duration and does not cost more than 1 additional extension period, as defined in the contract, if not 1 year, notice of extension is provided to LBB within 30 days, all required information and documents have been uploaded to the LBB database
Request for Proposal RFP
Factors other than price, competitive sealed proposals, negotiations are allowed, requirements are not detailed specifications, vendor is expected to provide innovative ideas
Benefits of a post award conference
Familiarity with the procurement process, smooth transition from CD to CM, roles and responsibilities are defined, insure the contract is set for success
Risk mitigation measures
Financial capability, insurance, surety bonds, warranties, extended warranty or maintenance agreement, limitations of liability clauses LOL
Non-Disclosure Agreement (NDA) form
For evaluation committee members, signed prior to receiving responses or committee activities
Informal Bidding
For purchases $5k-$25k, solicit in the CMBL 3 vendors 2 being HUB, IN THE NIGP class/item code, no negotiations - lowest bidder WINS
Effective change management process
Formal written approval prior to the change, evaluation of the impact of each change to the contracting objective, develop a plan for contingency allowances, document all changes, establish a single point of contact
Invitation for Bib IFB
Formal written competitive sealed bid method for procurement over $25k, clearly defined specifications, negotiations not allowed-unless only bidder- lowest bidder WINS
Funding Source
Funds used to pay the vendor, ie. general revenue, general revenue-dedicated accounts, federal funds, or other funds. The agency must comply with the laws and limitations applicable to the type of funding
End User
Gather requirements, support to both CD and CM, provides feedback on process change requests
Consanguinity 2nd Degree
Grandparents, grandchildren, brothers, and sisters
Request for Applications - RFA
Grants-include objective, guidelines, and limitations, specify evaluation criteria and other information needed to submit the application, agencies can refer to the UGMS-Uniform Grant Management System
Consanguinity 3rd degree
Great Grandparents, great grandchildren, nephews, nieces, aunts, and uncles
Technical Leveling
Helping respondents bring there responses up to par-against the law
Contract Level Risk Assessment
High level or overarching, identifies risk with each contract, identifies high risk contracts that may need extra attention and frequent monitoring
Post award external meeting
High risk or high dollar procurements, CD, CM, end user, and project manager
Unilateral Amendment
I sided change
Bid tabulations are for
IFB invitation for bids
Negotiations not permitted
IFB-exception is if there is only 1 bid
Major Information Resource Project MIRP
Identified by legislator or valued at $5m or more, a year or more to reach operational status, involves more than 1 agency, and significantly impacts the work processes of employees and how services are provided
Resolicite
If changes need to be made to the solicitation
Informal Budget Quotes
Informal and not a solicitation to obtain pricing information, care to not give the vendor a competitive advantage on future procurements
Market Research
Information related to vendor pool size, pricing, applicable industry standards, market trends, to determine if the item or service is readily available to the commercial marketplace. Online research, industry periodicals, and information from professional organizations, attendance at trade shows, discussions with other customers and consultations with industry representatives
Solicitation control responses
Internal procedures, cancellation of solicitation, late responses, withdrawal of responses
Circumstances where withholding payment may be necessary
Invoice errors, undocumented or unsupported costs, remediating overpayments to vendor, contractor performance is nonconforming or acceptable
No physical address, undocumented or unapproved credit or write offs, invoice for goods or services not rendered, payments have increased for no reason, multiple remitted addresses for the same vendor, inconsistent invoicing
Invoice red flags
Project Manager
Leads the planning and development of the projects deliverables, actively monitors progress and quality. Communicates project status, issues, risks to the chain of command and the CM and recommends corrective action if necessary..
Remedies
Liquidated damages, compensatory damages, restitution damages, or punitive damages
Statewide Contract Management Team
Manage, day to day contracts; manages term, managed, and TXMAS contracts; contract administration; reporting requirements; and vendor performance issues
Managed Term Contracts
Manually processing by the ordering entity, typically different pricing, require a quote based on discount % or scheduled deliveries and flexible delivery dates. PO is issued directly to the awarded vendor, the purchase cannot be made through the online ordering system
Deliverable
Measurable task or outcome
Internal Calendar of Events
Milestone dates of activities, pre and post solicitation, dates included
Needs Assessment
Must contain sufficient detail to identify a key business requirement, may conduct market research, historical spending, benchmarking, and request for information (RFI) from the vendor.
TXMAS contracts over $50k
Must obtain price quote from 3 TXMAS vendors
Contract Termination
Mutual agreement, for convenience (no fault), for cause, non-appropriation
NASPO
National association of state procurement officials
Solicitation overview
Needs assessment, justification, goals and objectives, solicitation/SOW, success factors, assumptions, constraints, risks, insurance and bonds
Contract Formation and Award
Negotiations, contract formation, contract award and amendment, contract award and notification
Administrative change
No change to the contract, address, payment assignment, names of key POC
F score
Not the best value criteria, Means the contractor did not fulfill the requirements of the contract and is in jeopardy of being debarred (fraud, misrepresentation, contract breach)
Potential Conflicts of Interest for procurement employees
Owns or controls interest in at least 1% in the business; could reasonably see a result of a financial benefit to the employee or official duties
Change Control
POCN or Contract Amendment
Consanguinity 1st Degree
Parents and children
Receipt of goods and services True and correct invoice
Payments are overdue on the 31st day after
CPA expenditure section audits state agencies for compliance with certain state laws and rules concerning
Payroll, travel, purchasing and procurement, processing requirements of CAPPS, USAS, USPS, AND SPRS
force majeure
Performance is suspended when the failure to preform is due to excusable causes Acts of God, public enemy, fires, floods, epidemics, strikes or freight embargo's, unusually severe weather
TX SMARTBUY
Portal used to buy non-IT goods and services; set aside programs, term contracts, managed contracts and TXMAS contracts are available here
TCI WAIVERS
Price, deliverability, specifications-form provided on comptrollers site
Request for Offer (RFO)
Primary method of purchasing automated information systems AIS, agency has obtained an exemption/approval from DIR/LBB, negotiations are not allowed, specific to IT procurements, cyber security and cloud services
Request for Qualifications (RFQ)
Professional qualifications or skills, subject to ESBD posting requirements and CAT review, price is not the initial factor
Descriptive Speculations
Provide principal physical, functional, or other characteristics that are essential to the minimum need of the business, do not include minimum or maximum characteristics, avoid name brand or steps to limit competition
Legal counsel
Provides legal advice for solicitations, including proper procurement method, contract terms and conditions. Assists the CD with drafting the solicitation. May prepare other instruments to support the contract like, templates, specialized t&c's. Negotiate t &c's and contract language as needed. Drafts and reviews leases, licenses, loan agreements, grants, IAC's and MOU's, interlocal agreements, consulting service agreements, legal service agreements, and professional service agreements.
TXMAS contracts under $50k
Purchase directly to TXMAS vendor
Term contracts
Purchase of goods and services in large quantities by several agencies, competitive bidding is not required, they are categorized by NIGP class/item codes
ESBD
Purchases over $25k must be posted Solicit for purchases over $25k
SAO Nepotism Form
Purchasing personnel for contracts over $1m
Proprietary Purchases
Purchasing where specifications or conditions of the proposed purchase are proprietary to 1 vendor and do not permit equivalent product or service to be supplied
State Use Exemptions
Quality, Quantity, Life Cycle, Deliverability- price is not an exemption-monthly exemption report to SPD
Vendor selection committees are for
RFP( request for proposal) , RFO (request for offers), RFQ (request for qualifications)
Negotiations are permitted:
RFP/RFO, DIR contract, consulting or professional services, sole source or proprietary purchases, emergency purchases
Justification of solicitation procurement method
Reason for IFB, RFO, RFP, RFQ
Reciprocal Preference Law
Resident State business then, Principal State based businesses
Restrictive Specifications
Reduce competition, don't inadvertently customize a product or service when drafting, could result in proprietary procurements
Consanguinity
Related by Blood
Contractor Name Change
Request in writing on new company letterhead
Contact Advisory Team
Review and make recommendations on solicitations that have an estimated value of at least $5m.; reviews recommendations and findings by the State Auditor; can take 30 days to complete the process
Transition from contract developer to management
Risk assessment and monitoring deliverables, change control, contract close out, vendor performance, record retention
Purchases $5-$25k
Search on the CMBL using the NIGP class and item codes, must solicit 3 vendors 2 being HUB
Service contracts over $100k
SPD delegates purchase authority and conducts solicitation reviews
Purchasing Authority
SPD purchasing authority is required for any procurement that is not delegated by rule or statute
Milestone
Scheduled event associated with a deliverable means to gauge progress
Contract manager
Serves as POC for contract communication for the agency. Manages state property used in the contract performance. Implements quality control and contract monitoring processes. Monitors the contract performance and progress and keeps timely records of all findings. Consults with legal to address any legal concerns. Manage, approves and documents any changes made through the amendment process, authorized by the terms of the contract. Inspect and approve products or services by submitting written documentation from the end user. Verify invoices and authorize payments under contract terms,. Monitor the contract budget. Identify and resolve disputes. Exercise state remedies. Maintains appropriate records in accordance with the records retention policy. Confirm all products or services have been delivered prior to contract expiration date. Preform contract close out process.
Purchases over $25k
Solicit all eligible vendors in the geographical region
Parts of the acquisition Plan
Solicitation overview, internal calendar of events, contract organization, specification requirements, special terms and conditions, payment structure, document files, change Control, contract close out
Deliverable level risk assessment
Specific to individual contract, each deliverable is assigned a risk level and monitored accordingly
Delegation by rule
Spot purchases, one time purchases of goods less than $50k, services purchases under $100k, direct publications, perishable goods, Distrubutor purchases, fuel, oil, grease, internal repairs, and emergency purchases
affinity
Spouse or related to spouse
Affinity 1st degree
Spouse parents, spouse children, children spouses
Affinity 2nd Degree
Spouses grandparents, grandchildren, brothers, sisters and their spouses
Revolving Tie Bid tiebreakers
State agriculture products, state products, state bidder, us products
Non-delegated procurement methods
State and Federal Surplus, set aside programs, Interagency Contracts, SPD Term Contract, SPD delegated by rule, SPD Review and delegation
Historical Analysis
Study an agency purchasing data, seek cost savings with consolidated purchases or diversity or areas of improvement for administrative efficiency
Evaluation Committee
Subject matter experts or persons with relevant expertise and knowledge, established prior to vendor proposals being due, use evaluation criteria and scoring matrix, insure all applicable forms (NDA, Conflicts of Interest)
Senate Bill 65
Subject to open records, maintained in electronic form, reviewed by procurement Director or designee
DIR over $50k-$1m
Submit pricing from 3 vendors, the category to which the contract relates
DIR $1m-$5m
Submit request for pricing from at least 6 vendors in the contract category
Services over $100k
Submit to procurement oversight and delegation portal POD
Set aside programs
TCI(TDCJ) or State Use(TWC, TPPD, OR WORKQUEST)
contract value
The initial value of the contract including any anticipated extensions and renewals for the contracts full existance
SAO coordinates with internal auditors and law enforcement to investigate waste, fraud, and abuse offenses. Types
Theft, Forgery, tampering with Gov. records, securing execution of document deception, conversion of funds, misapplication of fiduciary property, abuse of official capacity, gifts, bribery
Vendor Score
The score calculated by averaging all of the vendors report scores to provide an overall vendor score
Report score
The score the agency assigns for 1 particular report
Quality assessment plan
Tool used to assist the CM to clearly understand monitor, and mitigate risk during the administration of the contract (contract monitoring schedule and findings report) appropriate planning and risk assessment are components to successful contract management
A request can be submitted to LBB and is considered approved unless LBB issues a rejection in writing within 30 business days
True
The CM must assess if the option to renew a contract will be exercised prior to the contract term
True
Factors for post award conference
Type of contract, Risk level, value and complexity, urgency of delivery schedule, special or unusual contract requirements, contract length. Period of performance, or delivery requirements, procurement history and contractors expertise
External calendar of events
Vendor deliverables and milestone dates, due dates
Contractor business buyout
Verify SOS, business entity, insure they can still do the work
Renewal
When contractual parties have the option to renew the contract under another term
LBB Reporting $50-$100k-major information systems AIS
Within 10 days of award or modification
LBB Reporting to $50k-all contracts
Within 30 days of execution or modification
Contract Formation
Written contract documents the terms of the agreement to prevent misunderstandings or conflict creates a legal binding and enforceable obligation
Technical transfusion
disclosing technical info pertaining to a proposal that results in improvement of a competing proposal
VTPS over $25k
reports are required within 30 days of contract completion or termination
LBB reporting to $14k construction, professional or consulting services
within 10 days of award or modification
