Certified Texas Contract Manager Practice Exam

For contracts valued at $25,000 or more, what must be reported?

1. Vendor performance reporting

2. Annual financial reports

3. Budget proposals

4. Compliance with safety standards

The correct answer is: Vendor performance reporting

Vendor performance reporting is crucial for contracts valued at $25,000 or more because it helps ensure that contractors are meeting the agreed-upon standards and delivering services or goods in accordance with the contract terms. This reporting provides transparency and accountability, which are essential in public contracting. By assessing vendor performance, governmental entities can determine if the contractor is fulfilling their obligations, manage potential risks, and make informed decisions regarding future contracts. The other options, while relevant in different contexts, do not directly pertain to the specific requirement related to contracts of this value. Annual financial reports and budget proposals typically focus on broader financial management rather than individual vendor performance. Compliance with safety standards, though important, is usually addressed within the terms of the contract rather than as a separate reporting requirement. Thus, vendor performance reporting stands out as the critical requirement for contracts of $25,000 or more.