Certified Texas Contract Manager Practice Exam

What does the Disclosure of Interested Parties (1295 Form) help monitor?

1. Contracts under $1M in value

2. Businesses entering into contracts

3. Employee conduct during procurement

4. Procurement practices across agencies

The correct answer is: Businesses entering into contracts

The Disclosure of Interested Parties, commonly referred to as the 1295 Form, serves a vital function in monitoring businesses that are entering into contracts with governmental entities in Texas. This requirement ensures transparency and accountability in the procurement process by requiring businesses to disclose any interested parties, such as owners or investors, who may have a financial interest in the contract. This disclosure helps prevent potential conflicts of interest and ensures that the awarding of contracts is conducted fairly and without undue influence. By focusing on the businesses themselves and their affiliations, the form aims to safeguard public trust and maintain the integrity of the public procurement process. This is particularly geared toward larger contracts, typically those that might significantly impact public resources or interests. In contrast, the other options either do not focus specifically on businesses entering into contracts or address aspects that are not directly related to the purpose of the 1295 Form. For instance, monitoring contracts under a certain value or employee conduct during procurement does not directly relate to the disclosure of interested parties, and while procurement practices across agencies are important, they fall outside the specific focus of the 1295 Form.