Texas Procurement: Damages, Contract Roles, and Vendor Performance, Exams of Finance

Download Texas Procurement: Damages, Contract Roles, and Vendor Performance and more Exams Finance in PDF only on Docsity! Inform al CORRECT ANSWER:$5k to $25k =bidding - CTCM Certification Exam Latest Update 2024- 2025 300+ Questions and Verified Correct Answers Guaranteed A+ A contract with an initial value of $4 million, with three (3) optional, annual renewals of the same amount. What is the contract value? Include formula for the answer. - CORRECT ANSWER: Initial + Renewals (4) + (4+4+4) = $16 Million A contract with an initial value of $200,000, with two (2) optional, annual renewals of the same amount. What is the contract value? Include the formula in your response. - CORRECT ANSWER: Initial + Renewals (200,000) +(200,000+200,000) = $600,000 A debarment check is done by checking thedatabase to establish that the vendor is not debarred by the Texas Comptroller of public accounts - CORRECT ANSWER: CMBL A definitions section is important in an RFP to . A. Clarify the meaning of words if used differently than their normal meaning B. Spell out acronyms that are used throughout the solicitation C. Define any technical terms or industry specific language D. All of the above - CORRECT ANSWER: D. All of the above A Direct Publication Purchase consists of all of the following except: A. Commodity or services only available from the Publisher B. Back issues of magazines, journals, and newspapers C. Subscription services for magazines, journals, and newspapers D. Computer software and software maintenance E. Hard and electronic Publications produced by professional societies - CORRECT ANSWER: D. Computer software and software maintenance Reason: Computer software yes, but maintenance no. Hardware and IT may not be purchased as a direct publication. A material change in a proposed contract constitutes a counteroffer, which must be agreed to by the other party for there to be a finding contract between the parties. Also referred to as a "meeting of the minds". This is the description of which element of a contract. A. Legal Purpose B. Consideration A. Purchase from another Agency B. Purchase of Printing from TCI Print Shop C. Purchase using a Request for Proposal D. Purchase using an Invitation for Bid - CORRECT ANSWER: A. Purchase from another agency An Invitation for Bid consists of all of the following except: A. Based on the lowest bid. B. Must meet the minimum specification C. Allows for negotiations - CORRECT ANSWER: C. Allows for negotiations Can I evaluate a bid from a high school friend that is employed by the bidder? - CORRECT ANSWER: I would need to disclose this information and most likely recuse myself. Can the price of an item be used as an exception from purchasing from the State Use Program? - CORRECT ANSWER: No Centralized Master Bidder's List (CMBL) - CORRECT ANSWER: Online directory that provides public professionals the ability to foster competition between vendors Circumstances where it is necessary to withhold payment - CORRECT ANSWER: Invoice errors, Undocumented and or unsupporting costs, remediating over payments to the vendor, contractor's performance is non- conforming or unacceptable Compensatory Damages - CORRECT ANSWER: Monetary amount necessary to compensate the injured party for the loss. Types of compensatory damages: Expectation damages, reliance damages, consequential damages Consanguinity - CORRECT ANSWER: Blood relationship Contract Advisory Team (CAT) - CORRECT ANSWER: Review and make recommendations on solicitations with an estimated value of at least $5 million CAT reviews recommendations and findings made by the state auditor Contract developers should use this system to review experiences and results from other state agencies on potential contractors - CORRECT ANSWER: Vendor performance tracking system (VPTS) Contract Development - CORRECT ANSWER: The term applies to actions taken prior to contract execution including the receipt and processing of requisitions assessment of need, development and review of specifications, development and review of scopes of work ; identification and selection of procurement methods, evaluation criteria ; prep and advertising of solicitation documents, tabulation of respondent bids, evaluation of respondent proposals, negotiation of proposals and the preparation and completion of contract award documents. Contract Management - CORRECT ANSWER: The term applies to actions taken following contract execution, including the assessment of risk, verification of contractor performance, monitoring compliance with deliverable and reporting requirements, enforcement of contract terms, monitoring and reporting of vendor performance and ensuring that contract performance and practices are consistent with applicable rules, laws and the state of Texas procurement and contract management guide Contract Management is the term that applies to actions taken following contract execution. TRUE or FALSE. - CORRECT ANSWER: True Contract Value - CORRECT ANSWER: The initial value of the contract, including anticipated extensions & renewals for the contracts full existance Define acquisition plan - CORRECT ANSWER: Cliff notes of contract. Tracks all the procurement activities that take place throughout the procurement cycle. It is used during the transition from contract developer to contract manager. Define Bribery - CORRECT ANSWER: Occurs if a person intentionally or knowingly offers, confers, or agrees to confer on another, or solicits, accepts, or agrees to accept any benefits as a consideration for a violation of a public servants legal duty or a public servant's decision, opinion, recommendation, vote, or any other exercise of discretion. Define consequential damages - CORRECT ANSWER: Type of compensatory damage, aka "special damages" are intended to cover any loss incurred by a breach that is not directly related to the contract but arose naturally Define contract close out - CORRECT ANSWER: Both parties have fulfilled contractual obligations Define corrective action plan - CORRECT ANSWER: A written document that identifies specific activities that must be performed by the contractor to restore compliance with the contract. Plan must be tailored to address the identified deficiency, clearly state the desired outcome, and establish a time frame for the contractor to demonstrate improved performance Define Cure Notice - CORRECT ANSWER: Notifies contractor that they are in breach of X items and needs to be fixed by X date or will be terminated. Formal warning Define Deliverable - CORRECT ANSWER: Measurable task or outcome (product or service) by SPD for the purchase (or lease) of goods and services used in large quantities by several agencies. Define termination by mutual agreement - CORRECT ANSWER: Both parties agree to terminate before expiration date Define Termination for cause - CORRECT ANSWER: Contractor not doing what they need to. Have tried to remedy but no luck Define termination for convenience - CORRECT ANSWER: No fault termination. Allows agency to terminate at any time in the best interest of the agency Define termination for non appropriation - CORRECT ANSWER: Funding out clause. Needed for contracts that go over different Fiscal year. Funds not available anymore, and budget changes. Define Texas Correctional Industries (TCI) - CORRECT ANSWER: A division of the Texas Department of Criminal Justice (TDCJ) that manufactures goods and services using primarily offender labor for purchase by Texas governmental entities. The prison made foods act requires that agencies purchase goods made by and services offered by TCI. Competitive bidding is not required for items purchased from TCI under the Prison Made Goods Act. Define the State Use Program - CORRECT ANSWER: The Texas Workforce Commission (TWC) oversees the Purchasing from People with Disabilities (TPPD), commonly referred to as the State Use Program. TWC contracts with WorkQuest, to administer the day to day operations. Define TXMAS contracts - CORRECT ANSWER: The TXMAS program adapts existing competitively awarded government contracts, overlaid with SPD (Texas) terms and conditions, to service the procurement needs of state agencies and Texas SmartBuy members. • Negotiations Permitted • Orders entered on Texas SmartBuy • Offline Sales • Incidental, Off-Schedule Items Delegation of purchasing authority - CORRECT ANSWER: Assigning purchasing authority to an agency. This is important when going to open market. Department of Resources - CORRECT ANSWER: Information Describe Monitoring Methods - CORRECT ANSWER: Desk reviews (reports), site visits, monitoring by third parties, enhanced contract and performance monitoring DIR exemptions are approved in all except: A. One-Time Exemption Requested through DIR portal. B. Blanket Exemption from list maintained on DIR website C. Obtaining approval directly from LBB Reason: Not allowable unless DIR coordinated BULK purchase. An agency may not enter into a contract to purchase a commodity item through the DIR Cooperative Contracts Program if the value of the contract exceeds $5 million unless it is a DIR coordinated bulk purchase Electronic State Business Daily (ESBD) - CORRECT ANSWER: The state's online directory used for posting solicitations for the purposes of informing vendors of procurement opportunities and providing public notice of contract awards First Degree Affinity - CORRECT ANSWER: Spouse, Spouse Parents, Children's Spouses, Spouse's Children First Degree Consanguinity - CORRECT ANSWER: Parents & Children For a formal solicitation you must solicate which vendors on the CMBL A. all vendors listed under the identified NIGP code B. all vendors under the NIGP code that services the identified county, city or highway district C. Only 3 vendors under the NIGP code with 2 HUBS D. only HUB vendors under the NIGP code for that area - CORRECT ANSWER: A. all vendors listed under the identified NIGP code Forms needed for $1 Million and above: - CORRECT ANSWER: SAO Nepotism Disclosure Statement for Purchasing Personnel, and TEC Disclosure of Interested Parties (1295 Form) Generally, IFBs (Invitation for Bids) are used for procuring . - CORRECT ANSWER: Goods Generally, RFPs (request for proposals) are used for procuring . - CORRECT ANSWER: Services Going to eat with a potential vendor could be an example of? - CORRECT ANSWER: Appearance of Impropriety 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. And provides opportunities to disadvantaged groups in an effort to remedy disparity in state procurement and contracting. How to determine if a post award conference is necessary? - CORRECT ANSWER: Level of risk, value and complexity, length of contract / period of performance and or delivery requirements, procurement history of goods or services required and expertise of the contractor (VPTS) CORRECT ANSWER: 100,000 I've begun the solicitation process. Can I continue communication with the vendor community? - CORRECT ANSWER: No. Once drafting has begun and during majority of the solicitation process, communication must cease. IAC - Inter cooperation contracts - CORRECT ANSWER: Agency If a notice of award must be posted to the ESBD for a contract valued at $25K or more, in the following: IFB - CORRECT ANSWER: Yes If a notice of award must be posted to the ESBD for a contract valued at $25K or more, in the following: Managed Contract - CORRECT ANSWER: No If a notice of award must be posted to the ESBD for a contract valued at $25K or more, in the following: RFP - CORRECT ANSWER: Yes If a notice of award must be posted to the ESBD for a contract valued at $25K or more, in the following: RFQ - CORRECT ANSWER: Yes If a notice of award must be posted to the ESBD for a contract valued at $25K or more, in the following: Term Contracts - CORRECT ANSWER: No If a notice of award must be posted to the ESBD for a contract valued at $25K or more, in the following: TXMAS Contracts - CORRECT ANSWER: Yes In the following scenario how many vendors to solicit to off of the CMBL: Over $10,000 - $25K - CORRECT ANSWER: 3 active vendor on CMBL and 2 HUBs In the following scenario how many vendors to solicit to off of the CMBL: Over $25k - CORRECT ANSWER: All eligible vendors on the list that serves the geographic region In TXMAS thresholds, where does the following go: $0.00-$50,000.00 - CORRECT ANSWER: Go directly to TXMAS Vendor In TXMAS thresholds, where does the following go: Over $50,000.00 - CORRECT ANSWER: SPD recommends to obtain a price quote from (at least) 3 TXMAS vendors Informal bidding thresholds for purchases no more than $25,000 - CORRECT ANSWER: Over $5,000 but not more than $25,000. Must solicit from at least 3 vendors on the CMBL, two of which must be HUB vendors. Must be within the NIGP or Class/item code by geographic area. Innovation or "Solution" from Vendor Responders: IFB HUB Subcontract Plans are required for contracts valued at CORRECT ANSWER:may have? - CORRECT ANSWER:may have? - CORRECT ANSWER:may have? - CORRECT ANSWER:may have? - CORRECT ANSWER:may have? - * Basically, are we asking the vendor to create a solution to the problem the Agency No Innovation or "Solution" from Vendor Responders: RFA (grants) * Basically, are we asking the vendor to create a solution to the problem the Agency No Innovation or "Solution" from Vendor Responders: RFO (IT) * Basically, are we asking the vendor to create a solution to the problem the Agency Yes Innovation or "Solution" from Vendor Responders: RFP * Basically, are we asking the vendor to create a solution to the problem the Agency Yes Innovation or "Solution" from Vendor Responders: RFQ * Basically, are we asking the vendor to create a solution to the problem the Agency No, note we are paying you for a certain number of hours for your services. Invitation for Bids (IFB) threshold requirements - CORRECT ANSWER: Purchases over $25,000, equal, less. A formal written competitive sealed bid method for procurements over $25,000; may be used for $25,000 or less. Most often used for goods when specifications can be clearly defined. If the solicitation contract value is more than $25,000, it must be posted on the ESBD. If the Solicitation contract value is more than $25,000, all eligible vendors on the CMBL must be solicitation. Negotiations are NOT allowed. Is delegation of purchasing authority needed for the following solicitations: Emergency Purchases - CORRECT ANSWER: No, delegation of purchasing authority is given by rule Is delegation of purchasing authority needed for the following solicitations: Goods valued at $300k - CORRECT ANSWER: Yes, not automatically by rule Is delegation of purchasing authority needed for the following solicitations: Goods valued at 10k - CORRECT ANSWER: No, these are one time purchases breach of contract. TRUE or FALSE. - CORRECT ANSWER: False Major Information Resources Project are defined as all of the following except: A. has development costs exceeding $1 million B. is restricted to submitting agency only C. requires at least one year to reach operation D. alters the work methods of state agency personnel or the delivery of services to clients - CORRECT ANSWER: A. has development costs exceeding $1 million Method to procure goods - Invitation for - CORRECT ANSWER: Bids My agency needs a generator for a construction site. We have not begun the solicitation drafting process. Am I allowed to communicate with vendors? - CORRECT ANSWER: Yes My father in law submits a bid, where does that relationship fall on the Nepotism chart? - CORRECT ANSWER: First degree affinity Negotiation strategy should be to suit the particular facts and circumstances for each procurement. The key to successful contract negotiations is by agency personnel. (Two answers are required) - CORRECT ANSWER: Tailored and preparation Office of vehicle fleet management - CORRECT ANSWER: Establishes and manages the state vehicle reporting system, assists state agencies and institutions of higher education with the management of their fleet vehicles Policy and outreach - CORRECT ANSWER: Conducts policy research, training and certification and customer support services Post Award Contractor Conference - CORRECT ANSWER: Clear and mutual understanding of terms and conditions, and respective responsibilities. Ex of points to review: Performance milestones, deliverables, monitoring methods, acceptance criteria Post award internal conference - CORRECT ANSWER: At specific agency. For high- risk/ or high dollar procurement, understand roles and responsibilities. Attends: Contract developer, contract manager, end user and project manager. Contract developer transitions contract to contract manager Posting a solicitation to the Electronic State Business Daily is required for all purchases including those that are deemed by the agency to be proprietary to a single vendor or product. TRUE or FALSE. - CORRECT ANSWER: False Procurement consists of the following roles: A. Purchasing, Contract Development and Contract Monitoring B. Contract Management, Purchasing and Contract Development WorkQuest provided products or services if they do not meet the agency's specifications as to quantity, quality, delivery time, or life cycle costs. Price is not a factor used in the comparison of other sources to WorkQuest- provided products or services. SurplusCORRECT ANSWER:State or Federalprograms - State travel management program - CORRECT ANSWER: Manages travel expenditures, monitors travel activity, provides discounted travel, services to state agencies, institutions of higher education and eligible Texas Smartbuy members Statewide Contract Development Team - CORRECT ANSWER: Develops statewide term, managed, and TXMAS Contracts that offer a broad range of goods & services to state agencies Statewide contract development team & identify the 3 types of contracts they develop - CORRECT ANSWER: Develops and administers over 250 statewide contracts representing several thousand line items of products/services Develops term, managed & TXMAS contracts Statewide contract management team - CORRECT ANSWER: Manages statewide term, managed and TXMAS contracts for use by state agencies Statewide mail operations - CORRECT ANSWER: Provides state agencies and institutions of higher education a variety of mail operations services Substantial Interest in a Business - CORRECT ANSWER: (1) has a controlling interest in the business entity; (2) owns more than 10 percent of the voting interest in the business entity; (3) owns more than $25,000 of the fair market value of the business entity; (4) has a direct or indirect participating interest by shares, stock, or otherwise, regardless of whether voting rights are included, in more than 10 percent of the profits, proceeds, or capital gains of the business entity; (5)is a member of the board of directors or other governing board of the business entity; (6)serves as an elected officer of the business entity; or (7) is an employee of the business entity. Technical leveling, technical transfusion and auctioneering techniques are prohibited during . - CORRECT ANSWER: Negotiations Texas Act of 1975 - CORRECT ANSWER: Disaster Texas award schedule - CORRECT ANSWER: Multiple Texas Comptroller of Public Accounts - CORRECT ANSWER: The central authority for state agency procurement guidance, education, and statewide contract development services The SPD director serves as the Chief Procurement Officer (CPO) for the State of Texas. -State Tax Collector & Treasury The procurement oversight and delegation team reviews and provides letters of delegated purchasing authority for these types of contracts valued at what amount and above? (two answers are required) - CORRECT ANSWER: Service Contracts ; 100k The schedule of events, definitions, and evaluation criteria should appear in what section of the RFP? A. Proposal Information B. Statement of Work C. Terms and Conditions D. None of the Above - CORRECT ANSWER: Proposal Information The scope of work usually contains. A description of the goods and or services to be answers are required) - CORRECT ANSWER: Responsibilities and evaluation The SPD delegates to all state agencies the authority to purchase commodities and services whose estimated purchase price: A. Does not exceed $50,000 B. Does not exceed $50,000 for commodities and $100,000 for services C. Does not exceed $50,000 for commodities, $100,000 for services and $5,000,000 for IT items - CORRECT ANSWER: B. Does not exceed $50,000 for commodities and $100,000 for services Reason: (1) SPD delegates the purchasing functions of one-time purchases of goods, including goods for the resale, which do not exceed $50,000 ; (2) SPD delegates the purchasing functions of services, including services for resale, the estimated cost of which does not exceed $100,000 The standardized form used by an evaluation committee to record the vendor responses received. - CORRECT ANSWER: Scoring Matrix The Statewide Procurement Division is part of the Comptroller's office and is responsible for everything except. A. Is directed by the State of Texas Chief Procurement Officer B. Assists and oversees all statewide procurement C. Provides assistance to procurement professionals conducting procurements under delegated authority D. Responsible for the training program for all State of Texas Purchasers - CORRECT ANSWER: A. Is directed by the State of Texas Chief Procurement Officer The term HUB is an acronym for: provided by the vendor, vendor/agency , of vendor performance. A. Historical Urban Business B. Historically Underutilized Business C. Historic Underutilized Businesses D. Historically Unused Business - CORRECT ANSWER: B. Historically Underutilized Business The threshold for posting purchases to the ESBD are, Commodities over $25,000 and Services over $100,000. TRUE or FALSE - CORRECT ANSWER: FALSE Reason: Over $25K for any procurement. Agencies are required to post procurements with a contract value of more than $25,000 to the ESBD. These are the three types of contracts developed and managed by the contract development and contract management teams within the Statewide Procurement Division. (Three Answers are required) - CORRECT ANSWER: Term, Managed and TXMAS These provisions are established by statute and must be claimed by a vendor on the solicitation in order to be assessed during scoring - CORRECT ANSWER: Preferences These type of Administrative Changes are done by what type of amendment? Don't require sign off by both parties. Occur within the scope of the contract and do not affect or alter the rights of parties. - CORRECT ANSWER: Unilateral Amendment These type of contracts are established by the statewide purchase (or lease) of goods or services that are used in large quantities by state agencies - CORRECT ANSWER: Term contracts These type of substantive changes are done by what type of amendment? Contractual changes that affect the rights of both parties. Change in price of contract, delivery schedule, quantity, deliverables, key personnel, terms and conditions - CORRECT ANSWER: Bilateral amendments Third Degree Consanguinity - CORRECT ANSWER: Great-grandparents, Great- grandchildren, Nephews, Nieces, Uncles and aunts This eProcurement (online ordering system) is used by state agencies and members (local governments, etc.) to search existing SPD contracts and place purchase orders - CORRECT ANSWER: Texas Smartbuy This form is submitted to the statewide procurement division annually by November 30th. - CORRECT ANSWER: Agency procurement plan This form must be filled out by the procurement professionals involved in a procurement once this dollar threshold has been exceeded (two answers are required) - CORRECT ANSWER: SAO Nepotism Disclosure Statement for Purchasing Personnel form & 1295 form and $1 Million Dollars This type of constructive change is done by what type of amendment? Weather a solicitation valued at $25k or more must be posted to the electronic state business daily (ESBD), in the following: RFQ - CORRECT ANSWER: Yes Weather a solicitation valued at $25k or more must be posted to the electronic state business daily (ESBD), in the following: Term Contracts - CORRECT ANSWER: No Weather a solicitation valued at $25k or more must be posted to the electronic state business daily (ESBD), in the following: TXMAS Contracts - CORRECT ANSWER: No, because it's already created and has gone through it What are the four exceptions for the State Use Program? - CORRECT ANSWER: Quality, quantity, delivery time, and life cycle costs What are the responsibilities of a contract manager? - CORRECT ANSWER: Agency POC, Manager State Equipment, Manage deliverables / milestones, manage problems as they arise What does the SPD do? - CORRECT ANSWER: It is the entity that delegates purchasing authority to state agencies for non-IT goods and services What does the State Auditor's office do? - CORRECT ANSWER: The State Auditor's Office (SAO) coordinates investigatory work with internal auditors and law enforcement to pursue criminals conduct including these offenses: theft, forgery, tampering with governmental record, securing execution of document by deception, conversion of funds, misapplication of fiduciary property, abuse of official capacity, gift to a public servant by a person subject to his or her jurisdiction, and bribery What is the, SAO Nepotism Disclosure Statement for Purchasing Personnel form - CORRECT ANSWER: Form reviewed and signed by agency administrative head. This form is for 1 Million and above. What is the, TEC Disclosure of Interested Parties (1295 Form) - CORRECT ANSWER: It is submitted through the Texas Ethics Commission, Completed by the vendor, also required if purchase must be approved by a governing body. This form is for 1 Million and above. What must you obtain if you will not be purchasing from TCI? - CORRECT ANSWER: A Waiver What type of change would this be? An agency fails to provide a contractor access to the building on the agreed upon date in the contract, causing the contractor's work to be delayed by several days and incurring additional cost in overtime to offset the delay. The contractor requests that the contract is changed to reflect this additional cost. - CORRECT ANSWER: Constructive change that results in a bilateral amendment What type of change would this be? 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 Best value standard - CORRECT ANSWER: -a criteria factored into the VPTS score. We consider if the contractor met the best value standard when giving the VPTS score -quality, warranty, value, lifecycle cost are a few of the standards we consider 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) Bribery defined - CORRECT ANSWER: Occurs if a person intentionally or knowingly offers, confers, or agrees to confer on another, or solicits, accepts, or agrees to accept any benefit as consideration for a violation of a public servant's legal duty or a public servants decisions, opinion, recommendation, vote, or any other exercise of discretion 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 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 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 Condensed purchasing process steps within phase 2 (procurement method determination): - CORRECT ANSWER: · 1- state and federal surplus · 2- set aside program TCI and WorkQuest · 3- Interagency contract Electronic State Business Daily (ESBD) - CORRECT ANSWER: Where we advertise solicitations and notice of awards for contracts over $25,000 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 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 Examples of force majeure - CORRECT ANSWER: -Acts of God or of the public enemy -fires -floods -epidemics -strikes -freight embargos -unusually severe weather Examples of monitoring methods - CORRECT ANSWER: · desk reviews (i.e. reports): progress, status, activity, financial, vendor reports · site visits · monitoring by 3rd parties Examples of when SPD would give delegation by rule - CORRECT ANSWER: · Direct publications, professional memberships, perishable goods purchases, distributor purchases, emergency purchases 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 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 Force Majeure - CORRECT ANSWER: -Performance may be suspended when the failure to perform is due to excusable causes. -This would NOT lead to contract termination. Maybe suspension or amendment instead. -the CM would need to verify if contractor is claiming force majeure incidents 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. How we define substantial interest in a business (ethics): - CORRECT ANSWER: You have control/sway in the business. 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 · Insurance must cover all claims against the contractor AND costs to the agency Is a post award conference required? - CORRECT ANSWER: · No; CM can determine if it is necessary based on complexity, risk, etc. Liquidated damages - CORRECT ANSWER: -useful when "actual" damages are hard to calculate -must be clearly specified in the contract -used to get the contractor's attention and get things done- NOT to punish the contractor -used as a remedy when things are off track. Somewhere between a slap on the wrist and jail time Office of Vehicle and Fleet Management - CORRECT ANSWER: Assists state agencies in managing their vehicle fleet 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 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 Procurment Oversight and Delegation Portal (POD) - CORRECT ANSWER: Conducts solicitation reviews and delegates purchasing authority to state agencies for service solicitations valued over $100,000. Coordinates with the Contract Advisory Team (CAT) Pros and Cons for using Invitation for Bids? - CORRECT ANSWER: · Pros: Award process is simpler; in determining best value, price and whether the -inconsistent invoicing time periods Renewal - CORRECT ANSWER: when the contractual parties have the option to renew the contract for another term Report score vs. Vendor score - CORRECT ANSWER: Report score: the score the agency assigns to a vendor for one particular vendor performance report (VPR) Vendor score: the score calculated by averaging all of a vendor's report scores to provide an overall vendor score Required fields to be included on an invoice: - CORRECT ANSWER: · Contractor mailing and email address · Agency's name, number, delivery address · Texas identification number (TIN) · Name and telephone # of a person designated by the contractor to answer questions regarding the invoice · State agency's purchase order number, if applicable · Description of goods or services in enough detail 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 Role of the State Auditors Office - CORRECT ANSWER: Coordinates investigatory work with internal auditors and law enforcement to pursue criminal conduct, including theft, forgery, bribery, etc. Scope of work - CORRECT ANSWER: · A clear and thorough description of the products and services to be provided by the vendor · Clarify vendor's responsibilities, constraints on the vendor, agency's responsibilities, evaluation of vendor performance · We want this to be clear and specific- this is how we hold them accountable 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 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 Statewide mail operations - CORRECT ANSWER: Processes approximately 14-17K pieces of mail per day (interagency mail) Statewide Procurement Division (SPD) - CORRECT ANSWER: The entity that delegates purchasing authority to state agencies for non-IT goods and services, Statewide Travel Management Program - CORRECT ANSWER: Manages travel expenditures, monitors travel activity, and provides discounted travel services 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 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 Texas Department of Information Resources (DIR) - CORRECT ANSWER: The entity that delegates purchasing authority to state agencies for IT goods and services Texas SmartBuy - CORRECT ANSWER: An online ordering system that has statewide contracts for non-IT goods and services (bulk contracts, managed contracts, TXMAS- out of state or federal- contracts) Timelines and deadlines with invoices - CORRECT ANSWER: · 21 days to send back an invoice and have it corrected if needed · Must pay within 31 days of the goods/services received AND the receipt IMPLEMENTED. If the best value standard was used to award the purchase order or contract, a "D" means that the vendor DID NOT SATISFY THAT STANDARD. VPTS F Score Definition - CORRECT ANSWER: When a state agency determines that the vendor DID NOT MEET the requirements of the purchase order or the contract, that problems with the purchase order or contract were SERIOUS, and that corrective actions taken by the vendor to address such problems were INEFFECTIVE. If the best value standard was used to award the purchase order or contract, an "F" means that the vendor DID NOT SATISFY THAT STANDARD. VPTS posting process for A, B, or C scores - CORRECT ANSWER: Published automatically VPTS posting process for D or F scores - CORRECT ANSWER: -not published automatically. The vendor has 30 calendar days to submit a response -agency reviews vendor response and sends final determination to SPD -SPD posts grade to VPTS -vendor can formally protest the published score within 10 days of reposting -if protested, SPD conducts protest investigation and the final grade is determined 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 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 What are post-employment restrictions for ethical considerations? - CORRECT ANSWER: -2 year restriction for state employees -state agencies may not enter into a contract with a former executive head, or their employer, until 4 years after the executive left the agency What are the main factors considered when purchasing? - CORRECT ANSWER: · Purchase price and meeting specifications are the main factors · Those are balanced with other factors, such as quality and reliability, installation cost, vendor's experience What are the two procurement concepts from the National Association of State Procurement Officials (NASPO) that SPD has adopted? - CORRECT ANSWER: · Acquisition plan · Quality assessment plan (QAP)- allows us to monitor risk 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) What are the two ways to change a contract? - CORRECT ANSWER: Bilateral amendments and unilateral amendments 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 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 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 what is a purchase order? - CORRECT ANSWER: · Document used by agencies to authorize the purchase of goods and services · Once the services are performed and/or the goods are received, the contractor will request payment by submitting an invoice When do you report to VPTS? - CORRECT ANSWER: Contracts at or greater than $25k. Reporting is required in 30 days 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 When is purchasing authority required to be delegated from SPD? - CORRECT ANSWER: · Any procurement that is not delegated by rule or statue AND · Goods than cost at least $50k (go to Open Market Requisition) · Services that cost at least $100k (go to Procurement Oversight and