CTCM TEST

V2.1

Vendor Performance Tracking System (VPTS)

A contractor's performance must be reported to this system once a contract with a value over $25,000 is completed or otherwise terminated.

Texas SmartBuy Online Ordering System

The State's eProcurement system for non-IT goods and services.

Statewide Procurement Policy and Outreach

Consists of the Outreach team, the Training and Policy Development team, and the Procurement Oversight & Delegation team. Conducts policy research, training and certification and customer support services.

Statewide Mail Operations (SMO)

Provides state agencies and institutions of higher education a variety of mail operations services.

Statewide Contract Management Team

Manages statewide term, managed, and TXMAS contracts for use by state agencies

State Travel Management Program (STMP)

Manages travel expenditure, monitors travel activity, provides discounted travel services to state agencies, institutions of higher education, and eligible Texas SmartBuy members.

Office of Vehicle Fleet Management (OVFM)

Establishes and manages the state vehicle reporting system, assists state agencies and institutions of higher education with the management of their fleet vehicles.

Historically Underutilized Business Program (HUB)

Provides opportunities to disadvantaged groups in an effort to remedy disparity in state procurement and contracting.

Electronic State Business Daily (ESBD)

The State's online system used for posting solicitations for the purposes of informing vendors of procurement opportunities and providing public notice of contract awards.

Procurement Oversight and Delegation Team (POD)

Reviews solicitations and issues a letter of delegation of purchasing authority for an anticipated service contract valued over $100,000.

Centralized Master Bidder's List (CMBL)

Online directory that provides procurement professionals the ability to foster competition between vendors.

Agency Procurement Plans

This plan must be submitted by November 30th annually to SPD for potential contract consolidation

Statewide Contract Development Team

Develops Statewide Term, managed, and TXMAS contracts that offer a broad range of goods and services to state agencies.

Spot Purchase

Purchase of goods and services when the total purchase is estimated to be less than $10K.

Threshold: $10K - $25K Purchase requirements

Informal bids from 3 vendors on CMBL (2 must be HUBs)

Threshold: \>$25K Purchase requirements

bid solicitation (and award) posted on ESBD and all vendors on CMBL must be solicitated for bids. VPTS must be submitted 30 days after contract completion or termination.

Threshold: >$50K Purchase requirements (Goods)

Request Letter of Delegated Purchasing Authority from Open Market Requisition (OMR) email. Takes up to 30 days for approval letter.

Threshold: >$100K Purchase requirements (Services)

Request Letter of Delegated Purchasing Authority from POD portal. and need HUB subcontracting plans within the responses.

Threshold: \>$1 million Purchase requirements

Need following forms signed: SAO Nepotism Disclosure Statement (CM) & 1295 (TEC Disclosure of Interested Parties) (vendor)

Threshold: \>$5 million Purchase requirements

Control Advisory Team (CAT) becomes involved (process lasts up to 30 days). VPTS must be submitted annually and at each key milestone in addition to 30 days after contract ends.

Threshold: \>$10 million Purchase requirements

Quality Assurance Team (QAT) (MIRPS)

Quality Assurance Team (QAT)

an interagency working group established in 1993 to provide on-going oversight to reduce risk of project overruns and failures of major information resources projects that receive appropriations from the Legislature.

Contract Advisory Team (CAT)

assist agencies in improving contract management practices.

Major Information Resources Project (MIRPS)

any information resources technology project identified in a state agency's biennial operating plan whose development costs exceed $5 million and that: requires one year or longer to reach operations status; involves more than one state agency; or substantially alters work methods of state agency personnel or the delivery of services to clients.

Contract Value

Initial Value of the contract, plus any amendments, renewals and extensions for the contract's full existence

Statewide Procurement Division (SPD)

the entity that delegates purchasing authority to state agencies for non-IT goods and services

Purchasing Authority

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

Delegation of Purchasing Authority

Assigning purchasing authority to an agency

Historically Underutilized Business (HUB) Subcontracting Plan (HSP)

Subcontracting opportunity for any procurement with an estimated contract value of $100K or greater.

Agency Contract Management Procedures

Each agency must develop and comply with a purchasing accountability and risk analysis procedure. Must be posted to the agency website.

Agency Contract Management Handbook

Each agency must publish a handbook that complies with purchasing accountability and risk analysis procedures. Establishes consistent policies and practices.

Substantial Interest in a business entity

1. Has a controlling interest, 2. Owns more than 10 percent of the voting interest, 3. Owns more than $25,000 of the fair market value, 4. Is a member of the board of directors or other governing board, 5. 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, 6. Serves as an elected officer, 7. Is an employee of the business entity

Nepotisim - Cosanguinity

First Degree - Parents, Children; Second Degree - Grandparents/children, Brothers/Sisters; Third Degree - Great-grandparents/children, Nephews/Nieces, Uncles/Aunts

Nepotism - Affinity

First Degree - Spouse, Spouse's Parents, Children's Spouses, Spouse's Children; Second Degree - Spouse's Grandparents/children, Spouse's Brothers/Sisters, Brothers'/Sisters' Spouses

Post Employment Restrictions

2 years for State Employment, 4 years for Executives

State Auditor's Office (SAO)

Coordinates investigatory work with internal auditors and law enforcement to pursue criminal conduct.

Non-Disclosure Agreement Form

Must be signed by the individuals serving on an evaluation committee prior to receiving the responses or participating in evaluation committee activities.

Vendor Communication Prior to Contract

Fact gathering: allowed; Drafting the solicitation: limited; After the solicitation is posted: certain time points; Evaluation and negotiation: allowable between response due date and contract award

Vendor Communication Post Contract Award

Discuss the contract only, not future solicitations; Refer to point of contact for contracts and solicitations

Contract Development Phases

Phase 1: Procurement Planning, Phase 2: Procurement Method Determination, Phase 3: Vendor Selection, Phase 4: Contract Formation and Award, Contract Transition (CD to CM)

How can Agencies request delegation of purchasing authority from SPD?

1. Open Market Requisition (OMR) - Goods >$50K, 2. Procurement Oversight and Delegation (POD) portal - Services >$100K

SPD Delegation by Rule

Purchases of $10K or less ("spot" purchases), One-Time Purchase of Goods of $50K or less, Purchases of Services of $100K or less

SPD Delegation by Rule examples

Direct Publication, Perishable Goods Purchases, Distributor Purchases, Internal Repair Purchases, Emergency Purchases, Fuel, oil, and grease purchases.

Solicitation Methods

1. Invitation for Bids (IFB), 2. Request for Proposal (RFP), 3. Request for Offer (RFO), 4. Request for Qualifications (RFQ)

Invitation for Bids (IFB)

Solicitation method used when products/services are standardized or uniform.

Request for Proposal (RFP)

Solicitation method for non-IT goods/services used when negotiations are desired and the vendor is expected to provide innovative ideas or solutions.

Request for Offer (RFO)

Solicitation method for IT goods/services used when negotiations are desired and the vendor is expected to provide innovative ideas or solutions.

Request for Qualifications (RFQ)

Solicitation method used when selection is made solely on skills/qualifications of the vendor and price is not a factor until after vendor is selected.

Post Award Internal Conference / Kickoff meeting

For high risk or high dollar procurements; Understand roles & responsibilities; Contract Developer transitions into Contract Manager; Contract Developer/ Contract Manager/ End User/ Project Manager

Post Award Contractor Conference

Understanding of terms and conditions and responsibilities; Examples of points to review: Performance milestones, deliverables, monitoring methods, acceptance criteria; Mostly for new contractors or high dollar contracts. CM decides if this conference is necessary.

Deliverable

A measurable task or outcome (product or service)

Milestone

Event associated with a deliverable (a means to gauge progress)

Quality Assessment Plan (QAP)

The tool to assist Contract Managers clearly understand, monitor, and mitigate risk during the administration of a contract. Contract Developer creates it, CM uses it.

Acquisition Plan

Tracks all the procurement activities that take place throughout the procurement cycle. It is used during the transition from Contract Developer to Contract Manager

Risk Assessment Types

1. Deliverable, Terms and Conditions Level Risk Assessment -Specific to an individual contract; 2. Contract Level Risk Assessment - across all contracts in the CM's workload

Examples of Risk Mitigation Measures

Financial Capability, Insurance, Bonds, Warranties, Cybersecurity Training, Extended Warranty / Maintenance Agreement; Licenses/ Certifications; Limitations of Liability (LOL) Clauses

Insurance best practice

The solicitation should specify that all insurance policies must be obtained from insurance companies licensed in Texas with at least an "A-" rating.

Overdue Payment

Overdue on the 31st day after: The receipt of the goods/performance of the services; and Receipt of the true and correct invoice for the goods or services.

Withholding Payment

First thing we can do to get a contractor back on track.

Payment is Due

within 30 days of receiving a good invoice

Department of Information Resources (DIR)

Coordinates and supports the IT and telecommunications needs of the State

Bilateral Amendments

Affects both parties and can be for either Substantive Changes (done ahead of time) or Constructive Changes (done same day or after the fact)

Unilateral Amendments

Affects just one party and are Administrative Changes (spelling errors, changes to names, does not affect the contract)

Assignment by Contractor

Occurs when one party to a contract (assignor) transfers its rights under a contract to another party (assignee).

Contract Renewal

Where contractual parties have the option to renew the contract for another term.

Contract Extension

Extended term beyond the original solicitation contract terms which allows time needed to complete the service.

Contracts cannot be renewed or extended when...

it has been in effect for more than 5 fiscal years and is

Types of Remedies

1. Liquidated Damages, 2. Compensatory Damages

Dispute Resolution

Objective is to resolve problems before they escalate.

Types of Termination

1. Termination by Mutual Agreement, 2. Termination for Convenience, 3. Termination for Cause (Cure Notice, Corrective Action Plan), 4. Termination for Non-Appropriation

VPTS Scoring Guide - A

Vendor significantly exceeded the requirements of the purchase order., Any problems with the contract were minor and corrective action was highly effective., Satisfied best-value standard

VPTS Scoring Guide - B

Vendor exceeded some requirements of the purchase order, Any problems with the contract were minor and corrective actions taken by the vendor were effective., Satisfied best-value standard

VPTS Scoring Guide - C

Vendor met the requirements of the purchase order/contract., Corrective actions taken by the vendor to address minor problems were satisfactory., Satisfied best-value standard

VPTS Scoring Guide - D

Vendor did not meet some of the requirements of the purchase order or contract., Problems were serious and corrective action was marginally effective or not fully implemented., Did not satisfy best-value standard

VPTS Scoring Guide - F

Vendor did not meet the requirements of the purchase order or contract., Problems were serious and corrective actions taken by the vendor to address the problems were ineffective., Did not satisfy best-value standard

VPTS Process

"A, B and C" reports will post automatically. Report grades of "D" and "F": a vendor may submit a vendor response within 30 calendar days. Vendors can formally protest a score of "D" or "F" within 10 days of report posting.

At what dollar amount are you required to report on the VPTS?

Over $25K

When do you have to report VPTS?

Within 30 days of contract completion

What is VPTS best practice?

Report throughout the contract.

What is the VPTS requirement if the contract exceeds $5 million?

Reviews are yearly and at each key milestone during the term of the contract.

Records Retention

All documents must be maintained in electronic form after Close of Contract plus 7 years.

CPA Expenditure Audit Section

audits state agencies for compliance with certain state laws and rules concerning payroll, travel, purchase and procurement, and processing requirements of CAPPS, USAS, USPS, and SPRS.

Condensed Purchasing Process Steps

First go to: 1. State & Federal Surplus, 2. Set Aside Program (TCI & WorkQuest), 3. Interagency Contract, 4. SPD Term Contract, 5. SPD Delegated by Rule, 6. SPD Review &
Delegation

Two ways SPD is authorized to delegate its purchasing functions to agencies

1. SPD Delegation by Rule, 2. Delegation request to SPD via Open Market Requisition (OMR) or Procurement Oversight and Delegation (POD) portal.

Vendor Selection Processes

1) Bid Tabulation Process - when responses are evaluated solely on objective criteria, 2) Evaluation Committee Process -comprised of subject matter experts and stakeholders

Procurement Lifecyle 4 Overview (Contract Formation & Award)

Negotiations, Contract Formation, Contract Award & Amendment, Contract & Amendment Notifications.

Procurement Lifecycle 5 Overview (Contract Management)

Transition from CD to CM, Risk Assessment & Monitoring Deliverables, Change Control, Contract Close-out & Vendor Performance, Record Retention

Contract Manager Responsibility examples

Review contract documents, primary POC for communication, manage any state property used in contract performance, implement quality control and contract monitoring process, monitor contractor’s progress and performance, consult with legal counsel when needed, verify invoice accuracy, etc.

Scope of Work

Section of a solicitation that provides a description of the products/services to be provided by the vendor.

Matters addressed in a scope of work

Vendor responsibilities, Constraints on the vendor, Agency responsibilities, Evaluation of vendor performance, communication protocol.

NASPO concepts to help agencies in the development of a procurement planning tool and risk assessment model

1. Contract Administration Plan (Acquisition Plan), 2. Quality Assessment Plan (QAP)

Risk Factors

indicators that the contract or project objectives will not be achieved. Identifying Risk Factors is the first step in a risk assessment.

Methods to monitor Contractor’s performance

Desk Reviews (reports), Site Visits, Monitoring by third parties, Enhanced Contract and Performance Monitoring

Purchase Order

A document used by agencies to authorize the purchase of goods and services.

Inspection, Testing, and Acceptance

Should be done at the time of receipt of all goods/services. Make sure that they are in compliance with contract requirements and that the invoice is correct.

3 most common reimbursement methodologies

1. Fixed Price, 2. Time & Materials, 3. Cost Reimbursement

Change Control - effective change management includes:

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

Change Control for non-complex procurements

Purchase Order Change Notice (POCN) can be used for changes to an agency-specific contract or a statewide contract.

Change Control for complex procurements

Prescribed forms, Minimum review periods, Named individuals with approved authority.

Force Majeure

Excusable causes that allow Contract performance to be suspended. Include Acts of God or of the public enemy