Certified Texas Contract Manager (CTCM) Certification Exam — Questions and Answers

Question 1: A contract for janitorial services is identified as 'low-risk' after a formal risk assessment. According to the principles outlined in the Texas Procurement and Contract Management Guide, what level of monitoring is most appropriate?

Enhanced, daily on-site supervision by the contract manager.
The same level of enhanced monitoring required for a high-risk contract.
Routine monitoring, such as periodic inspections and review of contractor reports. (Correct answer)
No monitoring is required since the contract is low-risk.

Correct answer: Routine monitoring, such as periodic inspections and review of contractor reports.

All contracts require some level of monitoring. The risk assessment determines the intensity and frequency of that monitoring. A low-risk contract does not require the intensive oversight of a high-risk one, but still needs routine monitoring to ensure compliance with contract terms and satisfactory performance.

Question 2: What is the benefit of using performance scorecards for contract monitoring?

To provide standardized, objective performance evaluation (Correct answer)
To make contractors compete against each other unnecessarily
To reduce the frequency of performance reviews
To eliminate all contract documentation

Correct answer: To provide standardized, objective performance evaluation

Performance scorecards are valuable tools in contract monitoring because they provide a standardized and objective method for evaluating contractor performance against agreed-upon metrics. By using consistent criteria and quantifiable measures, scorecards reduce subjectivity and facilitate clear communication regarding expectations and results. This systematic approach helps ensure fair assessment and drives continuous improvement in service delivery.

Question 3: According to the Texas Government Code, state agencies are required to develop a purchasing accountability and risk analysis procedure. At a minimum, this procedure must provide for assessing the risk of:

Negative public perception and media coverage.
Vendor protests and litigation.
Budget overruns due to unforeseen market fluctuations.
Fraud, abuse, or waste in the contractor selection process and contract provisions. (Correct answer)

Correct answer: Fraud, abuse, or waste in the contractor selection process and contract provisions.

Texas Government Code §2261.256 specifically requires that the risk analysis procedure must provide for assessing the risk of fraud, abuse, or waste in the contractor selection process, contract provisions, and payment methods.

Question 4: Which Texas Government Code chapter primarily governs state agency purchasing and contract management?

Chapter 2001
Chapter 771
Chapter 2155 (Correct answer)
Chapter 551

Correct answer: Chapter 2155

Texas Government Code Chapter 2155 establishes the framework for state agency purchasing, procurement procedures, and contract management oversight.

Question 5: Which of the following is a core principle of interest-based negotiation, a strategy often encouraged in contract management?

Applying pressure to exploit the other party's weaknesses.
Maintaining a firm, unwavering position on all key issues.
Separating the people from the problem and focusing on underlying needs and goals. (Correct answer)
Achieving victory by conceding as little as possible.

Correct answer: Separating the people from the problem and focusing on underlying needs and goals.

Interest-based negotiation focuses on understanding the underlying interests (the 'why') behind each party's stated positions (the 'what'). By separating the people from the problem and exploring mutual interests, parties can invent options for mutual gain, leading to more durable and value-driven agreements.

Question 6: Which of the following is a fundamental requirement for a valid contract amendment for a Texas state agency contract?

It must be verbally agreed upon by both parties' project managers.
It must be approved by the Legislative Budget Board before execution.
It must be issued unilaterally by the agency's contracting officer.
It must be in writing and signed by authorized representatives of both parties. (Correct answer)

Correct answer: It must be in writing and signed by authorized representatives of both parties.

Texas procurement principles and contract law require that modifications or amendments to a contract be formalized in writing and signed by individuals who have the authority to bind their respective parties. This ensures clarity, enforceability, and a proper record of the changes agreed upon.

Question 7: What is the mandatory minimum posting period for competitive solicitations on the Electronic State Business Daily (ESBD) in Texas?

7 calendar days
14 calendar days
21 calendar days (Correct answer)
30 calendar days

Correct answer: 21 calendar days

Texas Government Code requires solicitations to be posted on the ESBD for at least 21 calendar days to ensure adequate vendor notice and competition.

Question 8: Under Texas Government Code Chapter 2262, which entity is responsible for reviewing and approving major contracts for certain state agencies?

Texas Legislative Council
Governor's Budget Office
Contract Advisory Team (CAT) (Correct answer)
State Auditor's Office

Correct answer: Contract Advisory Team (CAT)

The Contract Advisory Team (CAT), established under Chapter 2262, reviews and advises on major contracts and procurement practices for designated state agencies.

Question 9: When may a Texas state agency use a sole-source procurement without competitive bidding?

When a vendor offers a significant discount
When the procurement officer prefers a specific vendor
When only one vendor can provide the required goods or services due to unique capability or compatibility (Correct answer)
When the procurement timeline is less than 30 days

Correct answer: When only one vendor can provide the required goods or services due to unique capability or compatibility

Sole-source procurement is justified only when competition is not practicable because only one source exists or can meet unique requirements.

Question 10: Which invoice review step is most critical to prevent payment of undelivered goods in a Texas state purchase order contract?

Matching the invoice to the receiving report confirming delivery (Correct answer)
Verifying the vendor's HUB certification is current
Confirming the contract was posted on ESBD
Checking the vendor's taxpayer identification number

Correct answer: Matching the invoice to the receiving report confirming delivery

Three-way matching — comparing the purchase order, invoice, and receiving report — is the primary control to ensure payment is only made for goods actually received.

Question 11: Under a cost-reimbursable contract, which cost category requires the most rigorous documentation and pre-authorization from the agency?

Overhead allocated at a fixed rate
Direct labor costs
Other Direct Costs (ODCs) such as travel and equipment (Correct answer)
Fringe benefits at a negotiated rate

Correct answer: Other Direct Costs (ODCs) such as travel and equipment

Other Direct Costs (ODCs) like travel, equipment, and subcontracts require detailed receipts and often prior approval because they vary and are most prone to abuse.

Question 12: Which factor is most important when evaluating procurement bids in Texas?

Vendor's physical proximity to your office
Lowest price regardless of other factors
Adherence to published evaluation criteria (Correct answer)
Personal relationships with vendors

Correct answer: Adherence to published evaluation criteria

When evaluating procurement bids in Texas, the most important factor is strict adherence to the evaluation criteria clearly published in the solicitation document. This ensures fairness, transparency, and objectivity in the selection process, preventing arbitrary decisions and upholding the integrity of state procurement.

Question 13: Which procurement method is required by Texas law when purchasing information technology commodities and services through cooperative contracts managed by DIR?

Request for Proposals (RFP)
DIR cooperative contracts (Correct answer)
Sole source justification
Invitation for Bids (IFB)

Correct answer: DIR cooperative contracts

Texas law requires most state agencies to use DIR cooperative contracts for IT commodities and services rather than conducting separate competitive solicitations.

Question 14: When a Texas state agency uses an Interagency Contract (IAC), what is the key regulatory requirement?

IACs require HUB subcontracting plans
The IAC must be competitively bid through ESBD
The Comptroller must pre-approve all IACs over $50,000
Both agencies must have statutory authority to provide/receive the service (Correct answer)

Correct answer: Both agencies must have statutory authority to provide/receive the service

For a valid Interagency Contract, both the providing and receiving agencies must have the statutory authority to perform and receive the services being exchanged.

Question 15: What constitutes a conflict of interest in Texas contracting?

Having professional certifications
When a personal interest could impair impartial judgment (Correct answer)
Knowing vendors personally
Attending industry conferences

Correct answer: When a personal interest could impair impartial judgment

A conflict of interest in Texas contracting occurs when a state employee's personal interest, whether financial or otherwise, could reasonably be perceived to impair their impartial judgment or decision-making regarding a state contract. This includes situations where an employee or their family stands to benefit from a contract they oversee. Such conflicts undermine public trust and are strictly prohibited by state ethics laws.

Question 16: A contract manager receives an invoice that does not match the agreed contract price. What is the correct first step?

Escalate directly to the agency's legal counsel
Approve partial payment for the agreed amount
Pay the invoice to avoid prompt payment penalties
Return the invoice as defective and notify the vendor in writing (Correct answer)

Correct answer: Return the invoice as defective and notify the vendor in writing

A defective invoice that does not conform to contract terms must be returned to the vendor with written notice specifying the defects, which resets the prompt payment clock.

Question 17: A contract manager for a Texas state agency is overseeing a multi-year IT services contract. After the first year, the contractor experiences significant staff turnover, including the loss of their lead project manager. According to best practices for risk management, what is the contract manager's most appropriate immediate action?

File a formal complaint against the vendor with the Statewide Procurement Division.
Terminate the contract for convenience to avoid further issues.
Update the contract's risk assessment to reflect the new potential for performance issues and discuss mitigation strategies with the contractor. (Correct answer)
Immediately withhold all payments until the contractor stabilizes its staffing.

Correct answer: Update the contract's risk assessment to reflect the new potential for performance issues and discuss mitigation strategies with the contractor.

Risk assessment is an ongoing process throughout the life of a contract. A significant change, such as the loss of key personnel, introduces new performance risks. The correct action is to formally re-evaluate and document this new risk and then work with the contractor on a plan to mitigate it, ensuring contract performance is not compromised.

Question 18: What is the key principle of the Texas Open Meetings Act relevant to contracting?

Permitting closed-door contract approvals
Conducting official business in publicly accessible meetings (Correct answer)
Eliminating documentation requirements
Allowing private negotiations with vendors

Correct answer: Conducting official business in publicly accessible meetings

The Texas Open Meetings Act mandates that governmental bodies conduct their official business in meetings that are open to the public, with proper notice provided. This principle is highly relevant to contracting as it ensures transparency in decision-making processes, including discussions and approvals related to state contracts. It prevents secret negotiations and promotes public accountability for how taxpayer funds are spent.

Question 19: A Certified Texas Contract Manager (CTCM) serves on an evaluation committee for a major IT procurement. They discover that their spouse owns a significant amount of stock in one of the bidding companies. According to Texas Government Code Chapter 572, what is the CTCM's mandatory course of action?

Disclose the financial interest to their supervisor and recuse themselves entirely from any participation in the procurement. (Correct answer)
Disclose the interest in a memo for the procurement file after the contract is awarded to ensure transparency.
Advise their spouse to sell the stock immediately before the evaluation begins to eliminate the conflict.
Proceed with the evaluation but score the affiliated company's proposal conservatively to avoid any appearance of bias.

Correct answer: Disclose the financial interest to their supervisor and recuse themselves entirely from any participation in the procurement.

Texas Government Code §572.051 and related provisions establish a standard of conduct that prohibits a state employee from having a financial interest that is in substantial conflict with the proper discharge of their duties. To mitigate this, the employee must disclose the interest and abstain from any decision-making, discussion, or participation related to the matter to maintain the integrity of the procurement process.

Question 20: A contract manager is finalizing the closeout of a facilities maintenance contract. All deliverables have been accepted and the final invoice has been received. Before authorizing the final payment, which of the following is a critical document the contract manager must obtain from the contractor?

A signed 'Release of Claims' form. (Correct answer)
A notarized statement of the contractor's financial solvency.
A post-project performance appraisal of agency staff.
A copy of the contractor's records retention policy.

Correct answer: A signed 'Release of Claims' form.

Obtaining a signed 'Release of Claims' is a crucial step in contract closeout before final payment. This document formally states that the contractor has received all payments due and releases the agency from any further claims, debts, or liabilities arising from the contract, protecting the state from future disputes.

Question 21: How often should formal performance reviews be conducted for Texas state contracts?

Only at contract termination
Never, to avoid contractor discomfort
At regular intervals specified in the contract (Correct answer)
When the contractor requests payment

Correct answer: At regular intervals specified in the contract

Formal performance reviews are crucial for effective contract management to ensure contractors meet obligations and standards. Conducting them at regular, pre-defined intervals, as specified within the contract, allows for proactive monitoring, early identification of issues, and timely corrective actions. This systematic approach helps maintain accountability and ensures the state receives the expected value throughout the contract term.

Question 22: What is the key benefit of conducting a pre-proposal conference?

To reduce the number of potential bidders
To select the winning vendor in advance
To clarify requirements and ensure common understanding (Correct answer)
To eliminate the need for written questions

Correct answer: To clarify requirements and ensure common understanding

A pre-proposal conference provides an opportunity for potential vendors to ask questions directly to the procuring agency and receive clarifications on the solicitation document. This helps ensure that all bidders have a consistent and accurate understanding of the requirements, scope of work, and evaluation criteria, leading to more responsive and competitive proposals.

Question 23: Under Texas law, a 'sole source' procurement justification is appropriate when which condition is documented?

The procurement is under the formal bidding threshold
The agency has previously worked with the vendor
The vendor offers the lowest price in the market
Only one vendor is capable of providing the required goods or services (Correct answer)

Correct answer: Only one vendor is capable of providing the required goods or services

Sole source justification is only valid when documented evidence shows that only one vendor is capable of meeting the agency's requirements, making competition impractical.

Question 24: What is a key consideration when developing procurement timelines?

Allowing sufficient time for vendor responses and evaluation (Correct answer)
Eliminating all review periods
Matching competitors' timelines exactly
Arbitrary deadlines

Correct answer: Allowing sufficient time for vendor responses and evaluation

Developing realistic procurement timelines is critical to ensure a fair and competitive process. Sufficient time must be allocated for vendors to prepare comprehensive and high-quality responses, and for the state agency to thoroughly evaluate these submissions. Rushing these phases can lead to fewer qualified bids, errors, or inadequate selection, ultimately compromising the contract's success and value.

Question 25: When should contract modifications be documented?

Only for changes over $10,000
At the end of the contract term
For all changes, regardless of size or significance (Correct answer)
Only when requested by the vendor

Correct answer: For all changes, regardless of size or significance

All contract modifications, regardless of their size or perceived significance, must be formally documented to maintain a clear and accurate record of the agreement between parties. This practice ensures legal enforceability, prevents misunderstandings, and provides an auditable trail of the contract's evolution, protecting both the state and the vendor.

Question 26: A Texas agency contract includes a liquidated damages clause of $500 per day for late delivery. If the vendor delivers 10 days late, what is the agency's correct action?

Deduct $5,000 from the vendor's next invoice per the contract terms (Correct answer)
Waive the damages as a goodwill gesture for a long-term vendor
Issue a cure notice and wait 30 days before assessing damages
Terminate the contract immediately for default

Correct answer: Deduct $5,000 from the vendor's next invoice per the contract terms

Liquidated damages clauses are contractually pre-negotiated remedies that must be enforced per the contract terms, allowing the agency to deduct the agreed daily rate from payment.

Question 27: Which Texas law addresses procurement anti-corruption measures?

Texas Family Code
Texas Health and Safety Code
Texas Penal Code, Chapter 36 (Correct answer)
Texas Education Code

Correct answer: Texas Penal Code, Chapter 36

The Texas Penal Code, Chapter 36, specifically addresses offenses related to bribery and corrupt influence, which are critical anti-corruption measures in state contracting. This chapter criminalizes actions such as offering or accepting bribes, improper influence, and conflicts of interest, ensuring that public servants and those interacting with them uphold ethical standards. It provides the legal framework to prosecute corrupt practices and maintain integrity.

Question 28: Which of the following best describes the purpose of the Historically Underutilized Business (HUB) Subcontracting Plan (HSP) in the procurement formation process?

To guarantee that a certain percentage of the contract value is awarded to HUB vendors.
To provide a price preference for prime contractors that are certified HUBs.
To exempt prime contractors from using subcontractors if they are a certified HUB.
To require prime contractors to demonstrate a good faith effort to include HUBs in subcontracting opportunities. (Correct answer)

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

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 29: Which Texas law establishes ethical standards for state contract managers?

Texas Penal Code
Texas Government Code, Chapter 572 (Correct answer)
Texas Education Code
Texas Transportation Code

Correct answer: Texas Government Code, Chapter 572

The Texas Government Code, Chapter 572, specifically outlines the ethical standards of conduct for state officers and employees, including contract managers. This chapter addresses various aspects such as conflicts of interest, gifts, and financial disclosures, ensuring integrity and public trust in state contracting. Adherence to this code is mandatory for all state personnel involved in procurement and contract management activities.

Question 30: A contract manager is overseeing a contract for IT services. The contractor requests a significant change to the scope of work that will also increase the contract price. What principle must the contract manager adhere to before agreeing to the change?

The change can be approved if the contractor has a history of good performance.
Scope changes are not permitted once a contract has been executed.
Any modification to the contract must be formalized through a written amendment, signed by both parties. (Correct answer)
Verbal agreements are sufficient as long as they are documented in a follow-up email.

Correct answer: Any modification to the contract must be formalized through a written amendment, signed by both parties.

A fundamental principle of contract administration is that any changes to the material terms of a contract, such as scope, price, or schedule, must be documented in a formal, written amendment or change order that is signed by authorized representatives of both parties. This ensures there is a clear, legally enforceable record of the new agreement and prevents misunderstandings or disputes. Verbal agreements are not sufficient for formal contract modifications.

Question 31: Which payment method is most appropriate for Texas state contracts involving ongoing services delivered over time?

Progress payments tied to milestones or deliverables (Correct answer)
Advance payment of the full contract value
Lump sum payment upon contract execution
Payment only at contract closeout

Correct answer: Progress payments tied to milestones or deliverables

Progress payments tied to milestones or deliverables align payment to actual performance, reducing risk and ensuring the state receives value before full payment.

Question 32: According to the Texas State Library and Archives Commission's Records Retention Schedule (RRS), what is the MINIMUM required retention period for contract administration files after a contract has been closed?

Five years after the contract's fiscal year end.
Seven years after the expiration or termination of the contract. (Correct answer)
Three years after the contract's fiscal year end.
Permanently, in the agency's official archives.

Correct answer: Seven years after the expiration or termination of the contract.

The Texas State Records Retention Schedule, under RSIN 5.1.001a, specifies that for contracts executed on or after September 1, 2015, the retention period is AC+7, where 'AC' is the expiration or termination of the instrument. This means the files must be kept for a minimum of seven years after the contract is officially closed.

Question 33: Under Texas state finance rules, what is the maximum period for which a state agency may execute a contract without specific legislative appropriation authority?

The biennium (two-year legislative appropriation period) (Correct answer)
Four years with Comptroller approval
Two fiscal years
One fiscal year

Correct answer: The biennium (two-year legislative appropriation period)

Texas operates on a biennial appropriations cycle, and state contracts are generally limited to the biennium unless specific statutory or legislative authority authorizes multi-biennium commitments.

Question 34: 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?

Obtaining an exemption from the Department of Information Resources (DIR).
Conducting a pre-bid conference with at least five potential vendors.
Securing a formal protest bond from the apparent winning bidder before award.
Submitting the solicitation to the Contract Advisory Team (CAT) for review. (Correct answer)

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

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 35: The Electronic State Business Daily (ESBD) is primarily used by Texas state agencies for which purpose?

Filing annual financial disclosures
Tracking employee travel reimbursements
Posting solicitations and contract awards over $25,000 (Correct answer)
Paying vendor invoices electronically

Correct answer: Posting solicitations and contract awards over $25,000

The ESBD is the official Texas state website where agencies must post solicitations and contract award notices for procurements exceeding $25,000.

Question 36: According to Texas Government Code §2260.052, once a contractor files a formal claim for breach of contract, the state agency must take what specific action within 120 days of receiving the claim?

The agency must submit a formal response to the Texas Attorney General for review.
The agency must schedule a mandatory mediation session with the contractor.
The agency must file a counterclaim, regardless of whether one exists, to preserve its rights.
The agency's chief administrative officer or designee must examine the claim and negotiate with the contractor. (Correct answer)

Correct answer: The agency's chief administrative officer or designee must examine the claim and negotiate with the contractor.

Texas Government Code §2260.052 explicitly states that the agency's chief administrative officer or a designee shall examine the claim and any counterclaim and negotiate with the contractor to resolve them. This negotiation must begin no later than the 120th day after the claim is received. Mediation is the next step if these negotiations fail.

Question 37: Which Texas procurement method requires competitive sealed proposals?

Emergency purchases only
Sole source procurements
Procurements exceeding $50,000 for professional services (Correct answer)
All purchases under $5,000

Correct answer: Procurements exceeding $50,000 for professional services

In Texas, procurements for professional services exceeding a certain threshold (currently $50,000) typically require the use of competitive sealed proposals (RFP). This method allows agencies to evaluate proposals based on factors beyond just price, such as qualifications, experience, and methodology, to select the most advantageous offer for complex services.

Question 38: The Texas Procurement and Contract Management Guide is published by which agency to assist state contract managers?

Office of the Attorney General
Texas Comptroller of Public Accounts (Correct answer)
Texas Ethics Commission
Legislative Budget Board

Correct answer: Texas Comptroller of Public Accounts

The Texas Comptroller's Statewide Procurement Division publishes the Texas Procurement and Contract Management Guide as the primary reference for state agency contract managers.

Question 39: What does 'responsibility' mean when evaluating a vendor in Texas procurement?

The vendor has the financial capacity, experience, and integrity to perform the contract (Correct answer)
The vendor submitted a complete bid package
The vendor is registered on the CMBL
The vendor's price is the lowest offered

Correct answer: The vendor has the financial capacity, experience, and integrity to perform the contract

A responsible vendor has the financial resources, experience, personnel, and integrity necessary to successfully perform the contract requirements.

Question 40: What is 'piggybacking' in the context of Texas cooperative purchasing?

Splitting purchases to avoid competitive thresholds
Using another entity's competitively awarded contract to make purchases without a separate solicitation (Correct answer)
Adding unauthorized items to an existing purchase order
Awarding contracts to related vendors

Correct answer: Using another entity's competitively awarded contract to make purchases without a separate solicitation

Piggybacking allows Texas agencies to leverage contracts competitively awarded by other governmental entities, reducing duplication and saving procurement resources.

Question 41: Which term describes the process of issuing written clarifications or changes to a solicitation document before bid/proposal submission?

Waiver
Modification
Clarification Request
Amendment or Addendum (Correct answer)

Correct answer: Amendment or Addendum

An amendment or addendum formally changes the solicitation terms and must be provided in writing to all prospective offerors to ensure equal information.

Question 42: During the needs assessment phase of procurement planning, a contract manager's primary objective is to:

Pre-qualify a list of potential vendors.
Select the most appropriate procurement method.
Develop a detailed, independent cost estimate.
Clearly define the agency's actual requirements and objectives for the purchase. (Correct answer)

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

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 43: The final step in the administrative closeout process for a contract file involves verifying all other steps are complete, preparing a completion statement, and preparing the file for storage. What key information must be verified before the file can be officially closed and archived?

That the contractor has provided a list of all subcontractors used.
That a press release announcing the successful project completion has been issued.
That the contractor has submitted their final invoice and final payment has been made. (Correct answer)
That all agency personnel have completed their satisfaction surveys.

Correct answer: That the contractor has submitted their final invoice and final payment has been made.

A fundamental prerequisite for closing a contract is ensuring that all financial obligations have been met. This involves confirming the receipt of the contractor's final invoice, verifying its accuracy against the contract terms and deliverables, and processing the final payment. Without this step, the contract cannot be considered financially closed.

Question 44: A Texas agency contract manager must ensure a conflict of interest disclosure is obtained from which parties before contract award?

Only the agency's executive director
The HUB coordinator only
Contractors and agency employees involved in the procurement (Correct answer)
Third-party auditors assigned to the contract

Correct answer: Contractors and agency employees involved in the procurement

Texas law requires conflict of interest disclosures from both the prospective contractor and agency employees who participated in the evaluation and award process.

Question 45: Which Texas law specifically prohibits state agencies from entering contracts with companies that boycott Israel?

Texas Business & Commerce Code §17
Texas Education Code §44
Texas Penal Code §31
Texas Government Code §2270 (Correct answer)

Correct answer: Texas Government Code §2270

Texas Government Code §2270 requires state agencies to include a certification that the contracting company does not boycott Israel as a condition of contract award.

Question 46: Which financial document should a Texas contract manager review to verify a vendor's financial stability before awarding a major long-term contract?

The vendor's DIR cooperative contract catalog
The vendor's prior ESBD posting history
The vendor's audited financial statements or Dun & Bradstreet report (Correct answer)
The vendor's HUB certification application

Correct answer: The vendor's audited financial statements or Dun & Bradstreet report

Audited financial statements or credit rating reports like Dun & Bradstreet reveal whether a vendor has the financial capacity to sustain performance over a long-term contract.

Question 47: Which Texas statute outlines requirements for contract performance monitoring?

Texas Family Code
Texas Penal Code
Texas Transportation Code
Texas Government Code, Chapter 2261 (Correct answer)

Correct answer: Texas Government Code, Chapter 2261

The Texas Government Code, Chapter 2261, specifically addresses contract management, including requirements for monitoring contract performance by state agencies. This chapter mandates that agencies establish systems and procedures to ensure contractors comply with contract terms and conditions, thereby safeguarding state resources and ensuring effective service delivery.

Question 48: An agency has just posted an RFP and designated the procurement director as the single point of contact. A contract manager on the evaluation team receives an email from a potential bidder asking for clarification on a key specification. What is the contract manager's most ethical and legally compliant response?

Ignore the email, as responding would violate the procurement's communication rules.
Reply to the bidder and copy all other known potential bidders with the question and the answer.
Do not answer the question directly, and forward the email to the designated single point of contact for a formal response. (Correct answer)
Answer the question to be helpful, as long as the information provided is publicly available.

Correct answer: Do not answer the question directly, and forward the email to the designated single point of contact for a formal response.

To ensure a fair and competitive procurement, all communications during the solicitation period must be channeled through the single point of contact named in the document. This prevents any vendor from gaining an unfair advantage through improper communications. The correct procedure is for any employee who is not the designated contact to forward the inquiry to the person who is, so they can issue a formal clarification to all potential offerors, typically via an addendum.

Question 49: 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?

TXMAS purchase, selecting a vendor directly from the pre-approved schedule.
Request for Proposal (RFP), where cost is the primary evaluation factor.
Request for Qualifications (RFQ), with selection based on demonstrated competence and qualifications, followed by negotiation of a fair and reasonable price. (Correct answer)
Invitation for Bids (IFB), awarding to the lowest responsible bidder.

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

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 50: What is the primary purpose of contract oversight in Texas state contracting?

To create unnecessary paperwork for vendors
To eliminate all contract modifications
To ensure contractor performance meets contractual requirements (Correct answer)
To reduce communication with contractors

Correct answer: To ensure contractor performance meets contractual requirements

The primary purpose of contract oversight in Texas state contracting is to actively monitor and manage the contractor's performance to ensure they deliver goods or services in accordance with the agreed-upon terms and conditions. This proactive approach helps identify and address issues early, mitigate risks, and ensure the state receives the expected value and quality.

Question 51: Which Texas statute requires state agencies to maintain a contract management handbook describing their internal contract management processes?

Texas Government Code §552.001
Texas Business & Commerce Code §2.201
Texas Government Code §2261.256 (Correct answer)
Texas Government Code §2054.003

Correct answer: Texas Government Code §2261.256

Texas Government Code §2261.256 requires state agencies to develop and maintain a contract management handbook outlining their internal procedures for managing contracts.

Question 52: A Certified Texas Contract Manager is creating a contract closeout checklist. All of the following are essential elements to include EXCEPT:

Ensuring all invoices have been paid and conducting a final funds reconciliation.
Confirming that the contractor has initiated the process for contract renewal. (Correct answer)
Verifying that all goods, services, and reports have been delivered and formally accepted.
Documenting the disposition of any state-furnished or contractor-acquired property.

Correct answer: Confirming that the contractor has initiated the process for contract renewal.

Contract closeout is the process of finalizing all activities for a completed contract. Contract renewal is a separate, future procurement action and is not part of closing out the existing contract. The other options are all core administrative tasks required for a proper closeout.

Question 53: A contract modification that is mutually agreed upon and signed by both the state agency and the contractor to make a substantive change, such as adjusting the scope of work and corresponding price, is known as a:

Constructive amendment
Unilateral change order
Change directive
Bilateral modification (Correct answer)

Correct answer: Bilateral modification

A bilateral modification, also known as a supplemental agreement, is a contract modification that is signed by both the contractor and the contracting officer. It is used to reflect agreements of the parties that modify the terms of the contract, such as making a negotiated equitable adjustment.

Question 54: A former state agency employee was personally and substantially involved in developing the scope of work and managing the award of a multi-million dollar contract. According to Texas' "revolving door" provisions in Government Code §572.054, which of the following restrictions applies to this individual?

There are no restrictions as long as they did not share confidential information after their employment ended.
They must wait one full fiscal year before communicating with their former agency on any matter, including unrelated ones.
For two years after leaving the agency, they cannot accept employment from the person/company involved in that specific contract negotiation. (Correct answer)
They are permanently barred from ever working for the contractor who won the award.

Correct answer: For two years after leaving the agency, they cannot accept employment from the person/company involved in that specific contract negotiation.

Texas Government Code §572.054(a) imposes a two-year restriction on former state officers and employees. It specifically prohibits them from accepting employment from a person if they participated on behalf of the state agency in a procurement or contract negotiation involving that person. This rule is designed to prevent former employees from improperly benefiting from the specific procurements they managed while in public service.

Question 55: Under the Texas Government Code, what is the general competitive bidding threshold that triggers formal solicitation requirements for most state agencies?

$5,000
$10,000
$25,000 (Correct answer)
$50,000

Correct answer: $25,000

Texas state agencies generally must conduct formal competitive solicitation for purchases exceeding $25,000, requiring ESBD posting and structured bidding.

Question 56: Which of the following activities is a required and integral part of the contract closeout process for a state agency contract valued at $1.5 million?

Obtaining a new certificate of insurance from the vendor for the records retention period.
Submitting a final vendor performance report to the Vendor Performance Tracking System (VPTS). (Correct answer)
Conducting a formal legal review of the contract with the Office of the Attorney General.
Publishing a notice of contract completion in the Texas Register.

Correct answer: Submitting a final vendor performance report to the Vendor Performance Tracking System (VPTS).

State agencies are required to report vendor performance to the VPTS for contracts exceeding $25,000 upon completion. Submitting this final report is a mandatory administrative step in the closeout process to document the contractor's overall performance for future reference by other state entities.

Question 57: A contractor submits an invoice that the contract manager believes is not aligned with the contract's payment terms. Which of the following is the most appropriate and effective initial action for the contract manager to take?

Refuse payment and wait for the contractor to file a formal claim.
Communicate directly with the contractor to discuss the discrepancy and seek clarification and informal resolution. (Correct answer)
Send the matter to the agency's legal counsel to prepare for potential litigation.
Immediately invoke the formal dispute resolution clause under Texas Government Code Chapter 2260.

Correct answer: Communicate directly with the contractor to discuss the discrepancy and seek clarification and informal resolution.

Best practices and the objective of dispute resolution encourage resolving issues at the lowest possible level. Direct communication to identify and clarify the problem is the most efficient and collaborative first step. Escalating the issue to the formal process or legal counsel should only occur after informal attempts to resolve the disagreement have failed.

Question 58: When a Texas agency receives a protest challenging a solicitation award, what is typically the first step in the protest resolution process?

File with the Texas Attorney General immediately
Refer the protest to the State Auditor's Office
Suspend the contract immediately pending resolution
Submit the protest to the contracting agency for review (Correct answer)

Correct answer: Submit the protest to the contracting agency for review

Texas procurement rules require protestors to first submit their protest to the contracting agency, which must review and respond before escalation is available.

Question 59: A contract manager is developing a risk mitigation plan for a complex construction contract. Which of the following is an example of a 'risk transfer' strategy?

Developing a detailed project schedule with clear milestones.
Establishing a contingency fund to cover potential cost overruns.
Deciding not to proceed with a particularly hazardous phase of the project.
Requiring the contractor to obtain performance bonds and liability insurance. (Correct answer)

Correct answer: Requiring the contractor to obtain performance bonds and liability insurance.

Risk transfer is a strategy that involves contractually shifting the financial consequences of a particular risk to a third party. Requiring performance bonds and insurance are classic examples, as they transfer the risk of non-performance or liability from the state agency to the surety or insurance company.

Question 60: A Texas agency contract for construction services includes a payment bond requirement. What risk does the payment bond address?

Risk that subcontractors and suppliers are not paid by the prime contractor (Correct answer)
Risk of agency budget rescission
Risk that the prime contractor defaults on the project
Risk of cost overruns beyond the contract ceiling

Correct answer: Risk that subcontractors and suppliers are not paid by the prime contractor

A payment bond protects subcontractors and material suppliers by guaranteeing they will be paid even if the prime contractor fails to pay them from contract funds.

Question 61: Which of the following actions would constitute bid splitting, a prohibited practice in Texas procurement?

Using multiple vendors for different commodity categories
Awarding separate contracts for distinct scopes of work after full competition
Breaking a single purchase into smaller orders to avoid competitive bidding thresholds (Correct answer)
Dividing a large project into multiple phases for better management

Correct answer: Breaking a single purchase into smaller orders to avoid competitive bidding thresholds

Bid splitting is the intentional division of a single procurement into smaller purchases to circumvent competitive bidding requirements, which is prohibited under Texas law.

Question 62: During the closeout of a major IT contract, the contract manager must ensure the proper handling of numerous laptops that were furnished by the state agency to the contractor's staff for the project. What is the correct procedure for these assets?

The agency should transfer ownership of the laptops to the contractor as part of the final payment.
The equipment should be wiped of all data and donated to a state-approved charity.
The contractor must return the equipment to the agency for verification against inventory records and proper disposition. (Correct answer)
The contractor can purchase the equipment from the agency at fair market value.

Correct answer: The contractor must return the equipment to the agency for verification against inventory records and proper disposition.

State-furnished property must be returned to the agency upon contract completion. The contract manager is responsible for ensuring all such property is accounted for, checked against the agency's property inventory system, and disposed of according to state surplus property procedures managed by the Texas Facilities Commission.

Question 63: Under Texas Government Code §2155.083, a state agency may make emergency purchases without competitive bidding when which condition is met?

The purchase is for professional services
An immediate threat to health, safety, or property exists (Correct answer)
The vendor is HUB-certified
The purchase is under $10,000

Correct answer: An immediate threat to health, safety, or property exists

Emergency purchases bypassing normal competitive bidding are permitted under Texas law only when an immediate threat to health, safety, or property exists.

Question 64: The contract closeout phase is a critical part of contract administration. Which of the following activities is essential during contract closeout?

Developing the initial solicitation for the next procurement cycle.
Conducting market research to identify new potential vendors.
Assigning a new contract manager to the project to bring a fresh perspective.
Verifying that all deliverables have been received and accepted, and ensuring final payment has been made. (Correct answer)

Correct answer: Verifying that all deliverables have been received and accepted, and ensuring final payment has been made.

Contract closeout is the final phase of the contract lifecycle and involves verifying that both parties have fulfilled all their contractual obligations. Key activities include confirming all goods and services have been delivered and formally accepted, all required reports have been submitted, any agency property has been returned, and the final payment has been processed and made to the contractor.

Question 65: What is the most effective way to establish performance metrics for a contract?

Developing SMART (Specific, Measurable, Achievable, Relevant, Time-bound) criteria (Correct answer)
Using vague, general language
Waiting until contract completion to establish metrics
Copying metrics from unrelated contracts

Correct answer: Developing SMART (Specific, Measurable, Achievable, Relevant, Time-bound) criteria

Establishing performance metrics using the SMART framework ensures they are clear, objective, and actionable. Specific, Measurable, Achievable, Relevant, and Time-bound criteria provide a robust basis for tracking progress, evaluating success, and holding contractors accountable, leading to more effective contract management and desired outcomes.

Question 66: Under Texas law, which agency serves as the statewide purchasing authority and administers the Texas Multiple Award Schedules (TXMAS)?

Texas Comptroller of Public Accounts (Correct answer)
Texas Health and Human Services
Department of Information Resources (DIR)
Texas Ethics Commission

Correct answer: Texas Comptroller of Public Accounts

The Texas Comptroller of Public Accounts administers TXMAS and oversees statewide purchasing programs through its Statewide Procurement Division.

Question 67: What is the primary risk to a state agency when a contractor submits invoices for unallowable costs under a cost-reimbursable contract?

The agency loses HUB credit for the contract
The vendor forfeits its performance bond
The contract automatically terminates
The state pays for costs it is not legally or contractually obligated to fund (Correct answer)

Correct answer: The state pays for costs it is not legally or contractually obligated to fund

If unallowable costs are paid without audit detection, the state wastes public funds on costs that fall outside the contract scope or applicable cost principles.

Question 68: A media outlet submits a Public Information Act (PIA) request for all proposals received in response to a recently closed RFP. One of the vendors marked their entire 100-page proposal as "Confidential/Proprietary." What is the agency's proper response under the Texas PIA?

Withhold the entire proposal because the vendor's marking makes it confidential by default.
Review the proposal to determine what specific information qualifies for a statutory exception (e.g., trade secrets), seek an Attorney General opinion if necessary, and release the remainder of the document. (Correct answer)
Release the entire proposal as submitted, as all procurement documents automatically become public once opened.
Deny the request and inform the media outlet to contact the vendor directly for the information.

Correct answer: Review the proposal to determine what specific information qualifies for a statutory exception (e.g., trade secrets), seek an Attorney General opinion if necessary, and release the remainder of the document.

Under the Texas Public Information Act (Texas Government Code Chapter 552), a vendor's claim of confidentiality is not absolute. The governmental body is responsible for determining if the information meets a specific exception to disclosure, such as the trade secret exception under §552.110. The agency must review the document, and if it wishes to withhold information, it typically must request a ruling from the Attorney General. Simply marking a document as confidential does not make it so under the law.

Question 69: What is the primary objective of the statutory dispute resolution process established by Texas Government Code Chapter 2260 for contract claims against the state?

To guarantee that all contractor claims are awarded a monetary settlement.
To create a public record of all contractor grievances for legislative review.
To provide a structured, mandatory process to encourage resolution and avoid the costs and delays of litigation. (Correct answer)
To transfer jurisdiction over all state contract disputes to the State Office of Administrative Hearings.

Correct answer: To provide a structured, mandatory process to encourage resolution and avoid the costs and delays of litigation.

The legislative intent behind Chapter 2260 was to create an exclusive, prerequisite process of negotiation and mediation that must be followed before a contractor can sue the state. This structured approach aims to resolve disputes efficiently and cost-effectively, reducing the burden of litigation on both contractors and the state.

Question 70: A Texas state contract includes a 'not-to-exceed' (NTE) ceiling. What action must the contract manager take before the vendor reaches the ceiling?

Convert the contract to cost-reimbursable automatically
Issue a termination for convenience notice
Execute a contract modification to increase the ceiling if continued work is needed (Correct answer)
Allow the vendor to bill up to 110% of the ceiling as a buffer

Correct answer: Execute a contract modification to increase the ceiling if continued work is needed

When expenditures approach the NTE ceiling, the contract manager must execute a formal modification to increase the ceiling before the limit is reached to avoid unauthorized obligations.

Question 71: Which of the following best describes the primary purpose of classifying a contract as 'high-risk' during a risk assessment?

To justify a higher contract price for the vendor.
To require the use of a specific, pre-approved vendor.
To determine if the contract requires enhanced contract monitoring. (Correct answer)
To automatically trigger an audit by the State Auditor's Office.

Correct answer: To determine if the contract requires enhanced contract monitoring.

A key outcome of the risk assessment process is to identify contracts that pose a greater risk to the agency. These 'high-risk' contracts must then receive enhanced contract monitoring to mitigate potential issues and ensure successful performance.

Question 72: What is the primary purpose of the Texas Ethics Commission?

To negotiate contract terms
To set vendor pricing
To approve all state contracts
To provide ethics guidance and enforce standards of conduct (Correct answer)

Correct answer: To provide ethics guidance and enforce standards of conduct

The Texas Ethics Commission is an independent state agency primarily responsible for administering and enforcing state laws related to ethics, lobbying, and campaign finance. For state contract managers, the Commission provides crucial guidance on ethical conduct, conflicts of interest, and gift rules, ensuring transparency and integrity in government operations. They also have the authority to investigate and prosecute violations of these standards.

Question 73: What interest rate applies to late payments by Texas state agencies under the Texas Prompt Payment Act?

Prime rate plus 2%
The federal funds rate plus 1%
A flat 5% per annum
A rate set by the Texas Comptroller each fiscal year (Correct answer)

Correct answer: A rate set by the Texas Comptroller each fiscal year

The Texas Prompt Payment Act specifies that the interest rate on late payments is established annually by the Texas Comptroller of Public Accounts.

Question 74: Which of the following is a key purpose of utilizing performance metrics or Key Performance Indicators (KPIs) in contract monitoring?

To create an objective basis for assessing the vendor's compliance with contract requirements. (Correct answer)
To eliminate the need for regular communication with the vendor.
To provide a subjective assessment of the contract manager's satisfaction.
To justify contract renewals without a competitive solicitation.

Correct answer: To create an objective basis for assessing the vendor's compliance with contract requirements.

Performance metrics and KPIs are essential tools in contract management that provide objective, measurable data. This data is used to evaluate a vendor's performance against the agreed-upon standards and deliverables outlined in the contract, moving the assessment from subjective opinion to factual analysis.

Question 75: What is a 'Request for Qualifications' (RFQ) primarily used for in Texas public procurement?

Evaluating vendor financial stability for large contracts
Issuing emergency procurement authorizations
Selecting professional service providers based on expertise before price negotiation (Correct answer)
Purchasing off-the-shelf commodity goods

Correct answer: Selecting professional service providers based on expertise before price negotiation

An RFQ is used to identify and rank qualified professional service firms based on qualifications and experience, with fee negotiation occurring after selection.

Question 76: Under Texas Government Code Chapter 2260, if a contractor has a breach of contract claim against a state agency and informal negotiations fail, what is the mandatory next step before a lawsuit can be filed?

The claim must be referred to the State Office of Administrative Hearings (SOAH) for a contested case hearing. (Correct answer)
The contractor must file a formal complaint with the Texas Attorney General's office.
The contractor must obtain legislative consent to sue the state.
The dispute must be submitted for binding arbitration with a private firm.

Correct answer: The claim must be referred to the State Office of Administrative Hearings (SOAH) for a contested case hearing.

Texas Government Code Chapter 2260 establishes a specific dispute resolution process that is a prerequisite to filing a lawsuit against the state for a breach of contract claim. After initial negotiations fail, the statute requires the claim to be referred to the State Office of Administrative Hearings (SOAH) for a contested case hearing. The old method of seeking legislative consent was largely replaced by this statutory process.

Question 77: Which of the following is a primary purpose of the Vendor Performance Tracking System (VPTS) in Texas contract administration?

To process and approve all contractor invoices for payment.
To serve as a public forum for vendors to advertise their services to state agencies.
To provide a centralized platform for negotiating contract terms with new vendors.
To create a record of a contractor's performance that can be used by agencies when making future award decisions. (Correct answer)

Correct answer: To create a record of a contractor's performance that can be used by agencies when making future award decisions.

As required by Texas Government Code §2155.089, state agencies must use the CPA's Vendor Performance Tracking System (VPTS) to report a vendor's performance on contracts over $25,000. This system provides a historical record that agencies must check to determine whether to award a future contract to that vendor, thereby promoting accountability and rewarding good performance.

Question 78: What is the purpose of maintaining a contract oversight file?

To eliminate the need for performance reviews
To document all monitoring activities and communications (Correct answer)
To hide information from auditors
To store unrelated department documents

Correct answer: To document all monitoring activities and communications

A contract oversight file serves as the official repository for all documentation related to contract monitoring, performance, and communications. This comprehensive record ensures transparency, accountability, and provides an auditable trail of all actions taken throughout the contract lifecycle. It is essential for demonstrating due diligence, managing potential disputes effectively, and complying with state record-keeping requirements.

Question 79: A contract for office cleaning services requires the contractor to vacuum all floors nightly. The agency's contract manager verbally tells the contractor's supervisor to also start shampooing the carpets weekly, a task not mentioned in the original scope of work. The contractor performs this extra work for a month and then submits an invoice for it. This situation is best described as a:

Unilateral change order
Bilateral amendment
Constructive change (Correct answer)
Cardinal change

Correct answer: Constructive change

A constructive change occurs when a contractor performs work beyond the contract requirements based on informal directives or actions from the government, without a formal written change order. The verbal instruction and subsequent performance create a situation where the contract was effectively changed, entitling the contractor to seek an equitable adjustment.

Question 80: During a contract progress meeting, a vendor's representative offers a CTCM a gift card to a popular steakhouse with a value of $75 as a "token of appreciation." According to the Texas Penal Code, what is the most appropriate and ethical action for the CTCM to take?

Accept the gift on behalf of the agency and use it for an office-wide event.
Accept the gift, as its value is under the $100 threshold for bribery.
Accept the gift but immediately report it on their annual financial disclosure statement to ensure transparency.
Politely decline the gift, explaining that state law and agency policy prohibit them from accepting it. (Correct answer)

Correct answer: Politely decline the gift, explaining that state law and agency policy prohibit them from accepting it.

Texas Penal Code Chapter 36, specifically §36.08(d), prohibits a public servant who exercises discretion in contracts from soliciting or accepting a benefit from a person they know is interested in that contract. While there are minor exceptions for items under $50, a $75 gift card does not qualify. The only correct action is to politely refuse the gift to avoid a Class A misdemeanor and maintain ethical standards.

Question 81: Which action should be taken when identifying contractor performance issues?

Immediately terminate the contract
Ignore the issue and hope it resolves itself
Document the issue and communicate with the contractor to develop a corrective action plan (Correct answer)
Modify the contract to lower performance standards

Correct answer: Document the issue and communicate with the contractor to develop a corrective action plan

When contractor performance issues are identified, the proper procedure involves thoroughly documenting the specific problem and formally communicating it to the contractor. This initiates a collaborative process to develop a clear corrective action plan, outlining steps the contractor must take to resolve the issue. This approach ensures accountability, provides an opportunity for improvement, and protects the state's interests.

Question 82: What is a key consideration when administering Texas state contracts?

Compliance with Texas procurement laws and regulations (Correct answer)
Personal preferences of the contract manager
Eliminating all documentation requirements
Vendor's suggested terms only

Correct answer: Compliance with Texas procurement laws and regulations

When administering Texas state contracts, the paramount consideration is strict adherence to all applicable Texas procurement laws and regulations. These legal frameworks ensure fairness, transparency, accountability, and proper stewardship of public funds, protecting the state's interests and maintaining public trust.

Question 83: According to the Texas Comptroller of Public Accounts, a state agency employee must be certified as a Certified Texas Contract Manager (CTCM) if they manage any single contract with a value in excess of:

$500,000
$1,000,000
$5,000,000 (Correct answer)
$10,000,000

Correct answer: $5,000,000

The Texas Comptroller of Public Accounts, which administers the CTCM program, mandates that an employee must be certified if they are involved in managing any contract valued at more than $5,000,000. This requirement also applies to employees with certain job titles or if contract management constitutes 50% or more of their job duties.

Question 84: Texas state agencies are required to report contract award information to the Comptroller within how many days of execution for contracts over $1 million?

45 days
10 days
60 days
30 days (Correct answer)

Correct answer: 30 days

Texas agencies must report contract awards exceeding $1 million to the Comptroller's Statewide Procurement Division within 30 days of contract execution.

Question 85: When must a Texas contract manager decline a gift from a vendor?

Never, if the gift is given after contract award
Only if the gift is over $500
When it could reasonably influence official actions (Correct answer)
Only if the vendor requests something in return

Correct answer: When it could reasonably influence official actions

Texas ethics laws, particularly those governing state employees, prohibit accepting gifts from vendors when there is a reasonable perception that the gift could influence official actions or decisions. This standard is designed to prevent conflicts of interest and maintain public trust in the integrity of state contracting. Contract managers must always prioritize impartiality and avoid any appearance of impropriety to uphold ethical standards.

Question 86: What is the purpose of requiring a contractor to submit a Schedule of Values before work begins on a Texas construction contract?

To establish the contractor's HUB subcontracting commitments
To satisfy ESBD posting requirements for the award
To break down the contract price into components used to evaluate progress payment requests (Correct answer)
To identify sole source materials in the project

Correct answer: To break down the contract price into components used to evaluate progress payment requests

A Schedule of Values allocates the total contract price across work components, providing the baseline for evaluating whether progress payment requests reflect actual work completed.

Question 87: In a Texas RFP evaluation, what is the role of an evaluation committee?

To objectively score proposals against pre-established criteria and recommend award (Correct answer)
To write the solicitation specifications
To approve sole-source justifications
To negotiate prices directly with the lowest-priced vendor

Correct answer: To objectively score proposals against pre-established criteria and recommend award

An evaluation committee applies pre-established scoring criteria to rank proposals objectively and make an award recommendation to the contracting authority.

Question 88: What does 'responsiveness' mean when evaluating bids in Texas competitive procurement?

The bid conforms in all material respects to the requirements of the IFB (Correct answer)
The vendor's price is within the agency budget
The vendor has a good performance history with the state
The bidder responded quickly to the solicitation

Correct answer: The bid conforms in all material respects to the requirements of the IFB

A responsive bid conforms materially to all terms, conditions, and specifications in the solicitation; non-responsive bids must be rejected.

Question 89: A director at a Texas state agency, who has authority over contract approvals, wants to approve a professional services contract with a consulting firm where their son-in-law is a principal partner. Which of the following Texas statutes would this action most directly violate?

The State Purchasing Act (Gov't Code Ch. 2155)
The Professional Services Procurement Act (Gov't Code Ch. 2254)
The Anti-Nepotism Statute (Gov't Code Ch. 573) (Correct answer)
The Public Information Act (Gov't Code Ch. 552)

Correct answer: The Anti-Nepotism Statute (Gov't Code Ch. 573)

Texas Government Code Chapter 573, the anti-nepotism law, prohibits a public official from appointing, or voting for the appointment of, a close relative to a position compensated by public funds. A son-in-law is a relative within the second degree of affinity, which is a prohibited degree. Attorney General opinions have clarified that this can extend to private contractors, making this action a violation of the statute.

Question 90: What is the proper response to discovering a potential ethics violation?

Ignoring it unless directly involved
Sharing concerns with vendors
Confronting the individual publicly
Reporting through official channels per agency policy (Correct answer)

Correct answer: Reporting through official channels per agency policy

Discovering a potential ethics violation requires a formal and structured response to ensure accountability and proper investigation. The correct action is to report the issue through official channels, following established agency policies and procedures. This ensures the matter is handled appropriately, protects whistleblowers, and allows for a fair and impartial review, rather than informal or public confrontation.

Question 91: What is 'best value' procurement in Texas, and how does it differ from low-bid procurement?

Best value is used only for IT procurement; low-bid is used for construction
Best value always selects the highest-priced vendor; low-bid selects the cheapest
Best value requires HUB participation; low-bid does not
Best value considers multiple factors including price, quality, and vendor capability; low-bid awards only on price (Correct answer)

Correct answer: Best value considers multiple factors including price, quality, and vendor capability; low-bid awards only on price

Best value procurement evaluates factors such as price, quality, service, and past performance holistically, whereas low-bid procurement awards solely to the lowest responsive price.

Question 92: What is the primary purpose of a contract closeout process?

To verify all terms were met and finalize administrative requirements (Correct answer)
To quickly archive the contract
To eliminate all contract records
To automatically renew the contract

Correct answer: To verify all terms were met and finalize administrative requirements

The primary purpose of a contract closeout process is to ensure that all contractual obligations have been satisfactorily completed by both parties. It involves verifying deliverables, reconciling payments, completing final documentation, and formally concluding the agreement, preventing future disputes and ensuring proper record-keeping.

Question 93: Under Texas law, when must a contract award decision be publicly posted for purchases above the competitive threshold?

On the ESBD after award to ensure transparency (Correct answer)
Only when a protest is filed
Only for contracts exceeding $1 million
Immediately after negotiations conclude

Correct answer: On the ESBD after award to ensure transparency

Texas requires award notices to be posted on the Electronic State Business Daily to maintain transparency and allow vendors to monitor procurement outcomes.

Question 94: Which document type is used by a Texas contract manager to formally authorize a vendor to incur costs before the contract is fully executed in urgent situations?

Letter of intent with cost ceiling
Notice to Proceed (NTP) (Correct answer)
Emergency sole source justification
Unilateral contract modification

Correct answer: Notice to Proceed (NTP)

A Notice to Proceed (NTP) formally authorizes the contractor to begin work and incur costs, and may be issued before formal contract execution in time-sensitive situations with proper approvals.

Question 95: In Texas, which program requires state agencies to make a good-faith effort to include Historically Underutilized Businesses in their procurement processes?

State Use Program
Texas Enterprise Fund Program
Texas Vendor Performance Program
HUB Program under Texas Government Code Chapter 2161 (Correct answer)

Correct answer: HUB Program under Texas Government Code Chapter 2161

Texas Government Code Chapter 2161 establishes the HUB program requiring agencies to promote contracting opportunities for historically underutilized businesses.

Question 96: Which action demonstrates proper handling of confidential procurement information?

Discussing bids with vendors during the evaluation process
Posting RFP drafts on personal social media
Protecting information as required by state laws and policies (Correct answer)
Sharing details with colleagues not involved in the procurement

Correct answer: Protecting information as required by state laws and policies

Proper handling of confidential procurement information involves rigorously protecting it in accordance with state laws, such as the Public Information Act, and agency policies. This includes safeguarding sensitive data like bid proposals, pricing, and evaluation details from unauthorized disclosure. Maintaining confidentiality ensures fairness in the procurement process, protects proprietary vendor information, and prevents unfair competitive advantages.

Question 97: When is it permissible to accept entertainment from a vendor?

When the value is under $20
When it's part of widely attended events open to all qualified vendors (Correct answer)
When no contracts are currently active
When the vendor is a personal friend

Correct answer: When it's part of widely attended events open to all qualified vendors

Texas ethics laws generally restrict accepting gifts or entertainment from vendors. However, an exception exists for widely attended events where the entertainment is offered to all qualified vendors or attendees, and the primary purpose is legitimate business or educational exchange. This allows for professional networking while still preventing situations where entertainment could be perceived as an improper influence on contracting decisions.

Question 98: Which Texas statute governs most state procurement contracts?

Texas Penal Code
Texas Government Code, Chapter 2155 (Correct answer)
Texas Transportation Code
Texas Education Code

Correct answer: Texas Government Code, Chapter 2155

The Texas Government Code, Chapter 2155, specifically outlines the general requirements for state agency purchasing and contract management. This statute provides the legal framework and rules that govern most state procurement contracts in Texas, ensuring transparency, fairness, and accountability in the contracting process.

Question 99: A contract manager is overseeing a multi-year, $6 million contract for IT services. What is the minimum frequency for reviewing and reporting the contractor's performance to the VPTS?

Only upon the final completion of the entire contract.
Within 30 days of the completion of any key milestone and at least once each year. (Correct answer)
Only when a significant performance issue is identified.
At least once every two years during the contract term.

Correct answer: Within 30 days of the completion of any key milestone and at least once each year.

For contracts with a value exceeding $5 million, state agencies are required to review and report the contractor's performance not only at the end of the contract, but also within 30 days of completing any key milestones identified in the contract and at least once annually during the contract's term.

Question 100: What is the purpose of a procurement solicitation document?

To eliminate competition
To establish personal relationships with vendors
To limit vendor participation
To clearly communicate requirements and evaluation criteria (Correct answer)

Correct answer: To clearly communicate requirements and evaluation criteria

A procurement solicitation document (e.g., RFP, IFB) serves as the formal communication from the procuring entity to potential vendors. Its primary purpose is to clearly articulate the agency's needs, specifications, terms, conditions, and the criteria by which proposals or bids will be evaluated, ensuring all vendors have the necessary information to submit competitive offers.

Certified Texas Contract Manager (CTCM) Certification Exam

The CTCM certification validates an individual's expertise in Texas state contracting laws, rules, and processes, ensuring effective and compliant contract management for state agencies.

100

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120 min

Time Limit

75%

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Sources & references

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comptroller.texas.gov — Eligibility, late registration, passing score, retake policy, test dates, test delivery, fees, registration deadline, time limit, score validity · verified Oct 2026