Certified Texas Contract Manager Practice Exam

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In what circumstance must a vendor be reviewed by CAT-RAD?

  1. For any service contract

  2. If the anticipated contract value is $100,000 or greater

  3. For contracts under $50,000

  4. On a case-by-case basis only

The correct answer is: If the anticipated contract value is $100,000 or greater

The requirement for vendor review by CAT-RAD is specifically applicable when the anticipated contract value is $100,000 or greater. This ensures that more significant contracts, which may have more substantial implications and risks, undergo thorough scrutiny before approval. The review process aims to ensure compliance with regulations, assess the vendor’s qualifications, and gauge the overall impact of the contract, particularly in cases where the state's interests are at stake. While it may seem logical to require reviews for various contract sizes, the threshold of $100,000 is established to streamline the review process, focusing resources on contracts that present the highest potential risk and obligation. Contracts below this amount typically fall under different review processes or may not necessitate the same level of scrutiny due to their lesser impact.