Certified Texas Contract Manager Practice Exam

Which of the following is true regarding procurement contracts over $1 million?

1. They are managed exclusively by local governments

2. They are subject to review by the Contract Advisory Team (CAT)

3. They require no formal solicitation process

4. They bypass the CMBL requirements for vendors

The correct answer is: They are subject to review by the Contract Advisory Team (CAT)

The correct assertion regarding procurement contracts over $1 million is that they are subject to review by the Contract Advisory Team (CAT). This requirement exists to ensure compliance with applicable laws, regulations, and best practices in public procurement. The CAT provides oversight and guidance to help mitigate risk and promote transparency and accountability in the contract management process. Their review process is particularly important for large contracts due to the significant financial implications and the potential impact on public resources. In contrast, local governments do not manage these contracts exclusively, but rather a range of entities may have jurisdiction. Additionally, contracts over this threshold typically require a formal solicitation process, ensuring competitive bidding and fostering a fair procurement environment. Lastly, there are no exemptions from the Centralized Master Bidders List (CMBL) requirements based solely on the contract amount, as CMBL is intended to facilitate outreach to potential vendors and promote inclusivity in procurement opportunities.