CTCM - Certified Texas Contract Manager Procurement Planning and Formation Questions and Answers

Question 1

A Texas state agency is planning a procurement for a new IT system expected to cost approximately $7 million. According to the State of Texas Procurement and Contract Management Guide, which of the following is a mandatory step in the procurement planning and formation phase for a solicitation of this value?

Accepted Answer

Submitting the solicitation to the Contract Advisory Team (CAT) for review.

Answer

Texas Government Code §2262.101 requires state agencies to submit solicitations with an anticipated value of $5 million or more to the Contract Advisory Team (CAT) for review and comment before issuing the solicitation. This oversight step is crucial for large contracts to ensure compliance and best value.

Question 2

During the needs assessment phase of procurement planning, a contract manager's primary objective is to:

Accepted Answer

Clearly define the agency's actual requirements and objectives for the purchase.

Answer

The needs assessment is the foundational step in procurement planning. Its purpose is to gather and document information to justify the purchase by defining the type and level of service or goods required to meet the agency's mission and objectives. This clear definition informs all subsequent steps, including market research, cost estimation, and solicitation development.

Question 3

Which of the following best describes the purpose of the Historically Underutilized Business (HUB) Subcontracting Plan (HSP) in the procurement formation process?

Accepted Answer

To require prime contractors to demonstrate a good faith effort to include HUBs in subcontracting opportunities.

Answer

The HUB program is a good faith effort program. For contracts of a certain value, prime contractors must submit a HUB Subcontracting Plan (HSP) that shows they have made a good faith effort to solicit and include certified HUBs for subcontracting opportunities. It does not guarantee awards but ensures HUBs have a fair opportunity to compete.

Question 4

A contract manager is preparing to procure professional services from an engineering firm. Which procurement method is required by the Professional Services Procurement Act (PSPA) in Texas?

Accepted Answer

Request for Qualifications (RFQ), with selection based on demonstrated competence and qualifications, followed by negotiation of a fair and reasonable price.

Answer

The Texas Professional Services Procurement Act (Texas Government Code, Chapter 2254) prohibits selecting architects, engineers, and certain other professional services based on price. The required method is to first solicit and select the most highly qualified provider based on their competence and qualifications, and only then negotiate a fair and reasonable price.

Question 5

When developing an acquisition plan, which of the following is a critical component that should be addressed during the procurement planning stage?

Accepted Answer

An independent cost estimate (ICE).

Answer

An Independent Cost Estimate (ICE) is a required and fundamental element of procurement planning. It is developed before the solicitation is issued to help the agency determine the reasonableness of offers received, budget appropriately, and assess the best value for the state.

CTCM - Certified Texas Contract Manager Practice Test

CTCM - Certified Texas Contract Manager Practice Test

CTCM - Certified Texas Contract Manager Procurement Planning and Formation Questions and Answers