Revision 1.16 Dated 9/1/16
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State Statewide
TABLE OF CONTENTSState of Texas CONTRACT MANAGEMENT GUIDE Version History 6
Introduction 9
Purpose 9
Contract Management Handbook 10
How the CMG is Organized 11
Training 11
Professional Certification 11
Contract Management (CTCM) 12
Purchasing (CTP/CTPM) 12
Contract Management Framework 13
Definitions 14
Acronyms 20
Ethical Standards and Policies 20
General 20
State Ethics Policy 21
Standards of Conduct 22
Prohibition of Economic Benefit 22
Conflict of Interest 23
General 23
Disclosure by State Officials and Employees; Certain Contracts Prohibited 23
Financial Advisors 24
Special Provisions 25
Chapter 1 Contract Advisory Team 26
CAT Review of Contracts of $10 Million or More 27
General 27
Contract Advisory Team (CAT) Risk Assessment 28
State Agency Recommendations 28
Substantial Changes to Solicitations 28
Scheduling Compliance 28
Exceptions to CAT Review 29
Determination of Contract Value 29
Chapter 2 Planning 30
General Planning 31
Contract Management 31
Accountability and Risk Analysis Procedure 31
Risk Assessment 32
Contract Advisory Team (CAT) Risk Assessment 35
Risk Management 35
Communications Plan 36
Determining the Procurement Method 37
Invitation for Bids (IFB) 37
Request for Information (RFI) 37
Request for Offer (RFO) 37
Request for Proposal (RFP) 37
Request for Qualifications (RFQ) 37
Exemptions 39
Emergency purchases 39
Proprietary Purchases 39
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Open Enrollment Contracts 39
Planning for Contract Content 39
Needs Assessment 39
Well Formed Contracting Objectives and Purpose 40
Technique 40
Research 40
Business Model 41
Cost Estimates 41
Contracts with a Value Exceeding One Million Dollars 41
Contracts with a Value Exceeding Five Million Dollars 42
Procurement Lead Time 42
Technology Contracts 44
Technology Addendum Relation to the Guide 44
Exclusions 45
Texas Project Delivery Framework 45
Special Procurement Considerations for Major IR Projects 46
Contract Requirements for Certain Services 47
Purchasing from DIR Cooperative Contracts 47
Posting Certain Documents Relating to Contract Solicitations for DIR 48
Planning in Relation to Grants 48
General Grant Announcement Planning 49
Grant Agreements 49
Chapter 3 Preparing the Solicitation 50
Use of Hyperlinks in a solicitation 50
Preparing the Statement of Work 51
Specification Types 51
Organization of the Statement of Work 54
Contract Term 54
Long version 55
Short version 55
Historically Underutilized Business (HUB) Requirements 55
Payment Types 56
Define the Agencys Role 58
Quantity 58
Quality 58
Established Standards 59
Contractor Qualifications 59
Bonding Requirements 59
Evaluation Criteria 60
Best Value Considerations 61
Proposal Submission Requirements 63
Monitoring 64
Reporting 64
Inspection and Testing 65
Final Acceptance 65
Additional Issues to Consider 66
Preparing the Grant Announcement 66
Chapter 4 Advertising the Solicitation 67
Required Posting of Certain Contracts 68
Barring Vendors from Participating in State Contracts 69
Solicitation Announcements / Developing the Bid List 69
Pre-Solicitation Conferences 69
Communication with Respondents 71
Written Questions 71
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Solicitation Submission and Opening 71
Consulting Services 71
Notice of Intent: Major Consulting Services. 71
Professional Services 73
Mixed Services 74
Architectural, Engineering or Land Surveying Services 75
Advertising a Grant Announcement 75
Chapter 5 Evaluation and Award 77
Introduction 77
Evaluation Teams 77
Scoring Matrix 77
Responsive Proposals 78
Evaluation Team(s) Training 78
Single Responses 78
Proposal Evaluation 79
References 79
Oral Presentations/Discussions 80
Determining the Competitive Range 80
Best and Final Offers 81
Negotiations 81
Negotiation Strategies 82
Negotiation Techniques 83
Award 83
Evaluation and Award of Grants 84
Chapter 6 Contract Formation 86
Approach to Contract Formation 86
Legal Elements of a Contract 87
Offer 87
Acceptance 87
Legal Purpose 87
Mutuality of Obligation 87
Certainty of Subject Matter 88
Consideration 88
Competent Parties 88
Drafting the Contract 88
Planning for the Contract 89
Form of the Contract 89
Contract Terms 90
Essential Clauses and provisions: 90
Recommended Clauses include: 91
State Contracting Standards/Oversight 91
Applicability 91
Authority to Contract 92
Council on Competitive Government 93
Procurement Process for State Printing 94
Binding Signatures 94
Delegated Purchases 94
Federally Funded Contracts 95
Contract Formation for Grants 95
Authority to Grant 95
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96Grant Contract DocumentSpecial Conditions and Specific Provisions 96
Recommended Terms 97
Chapter 7 Contract Administration 98
Contract Manager Responsibilities 99
Planning 101
Post Award Conference 102
Post Award Conference Agenda 103
Monitoring Performance 104
Enhanced Contract and Performance Monitoring 104
Monitoring Types 106
Site Visits 106
Reporting 110
Monitoring by Third Parties 111
Risk Management 111
Payment Approval 111
Withholding Payment 112
Change Management 112
Contract Changes and Contract Scope 113
Administrative Changes 114
Substantive Changes 114
Constructive Changes 115
Dispute Resolution 115
Termination 116
Termination for Convenience 116
Termination for Default 117
Termination for Default Notifications 118
State Agency Reporting of Contracting Information 119
The Contract Administration File 119
Retention of Contract and Related Documents By State Agencies 119
Master File
Contract Close-Out
GRANT CLOSE-OUT
APPENDIX 1 125
RFP SAMPLE
APPENDIX 2 184SOLICITATION ANNOUNCEMENT
APPENDIX 3 185
120
121
122
184
PRE-SOLICITATION CONFERENCE GUIDELINES
APPENDIX 4 187
ADMINISTRATIVE REVIEW CHECKLIST
Appendix 5 188
EVALUATION TEAM GUIDELINES
Appendix 6 190
EVALUATION TEAM BRIEFING INSTRUCTIONS
Appendix 7A 191
NON-DISCLOSURE STATEMENT
Appendix 7B 193
Appendix 8 195
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187
188
190
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195REFERENCE CHECK FORM
Appendix 9 197
CONTRACT TERMS
Appendix 10 212
BEST VALUE RESPONDENT QUESTIONNAIRE
Appendix 11 217
SAMPLE CONTRACT MONITORING SHEET
Appendix 12 218
BAFO EVALUATION EXAMPLE
Appendix 13 224
RFP BID EVALUATION SCORE TABULATION SHEET
Appendix 14 226
SAMPLE EXECUTIVE APPROVAL MEMO
Appendix 15 227
CONTRACT MANAGEMENT BEST PRACTICES MATRIX 227
ESSENTIAL CLAUSES AND PROVISIONS 243
RECOMMENDED CLAUSES 255
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STATE OF TEXAS CONTRACT MANAGEMENT GUIDE VERSION HISTORYStatewide Contracting is responsible for updating the Contract Management Guide (CMG) on behalf of SPD asindicated in Texas Government Code, Section 2262.051. The CMG provides suggestions and best practices to improvestatewide contracting practices. Statewide Contracting coordinates release and revisions of the guide withmembers of the state contracting community and the Contract Advisory Team.
Release /RevisionDate
ContractManagementGuideVersion
Description
September2009 1.7
Revisions reflect changes to CMG as submitted by the Contract Monitoring Officeedited by the Contract Advisory Team (CAT). Additions to the CMG include: Ch. 7,Pgs. 61, 62, 65, 66, 68, 69, 70, 74, 75, 76, and 80. Ch. 8, Pgs. 81, 82.
September2011 1.8
Revisions reflect changes to the entire CMG as revised by the Contract AdvisoryTeam (CAT). The purpose of revisions to the entire CMG is to update information,provide additional information and guidance for contract management practices.Revisions made to Introduction, Definitions, Chapters 1 thru 8 and Appendixes. * Note: Chapter 8 has been eliminated and the information incorporated into Chapter 7.
December2011 1.9
Pg. 12 Conflict of Interest. Correction made to this section on page 13, the third (3rd)paragraph of section, first (1st) bullet. This statement was incorrectly written and hasbeen revised with the correct information.
April 2013 1.10Pg. 93 of Chapter 7 Contract Administration. The first paragraph of the sectionrevised to add reporting to the Statewide Procurement Division and the addition ofthe Vendor Performance Report. The second paragraph added to this section as anew parag
