Certified Texas Contract Manager Practice Exam

Which of the following procurement methods allows negotiations?

1. Competitive sealed bids (IFB)

2. Competitive sealed proposals (RFP)

3. Texas Multiple Award Contracts (TXMAS)

4. Both B and C

The correct answer is: Both B and C

The procurement methods that allow for negotiations are competitive sealed proposals (RFP) and Texas Multiple Award Contracts (TXMAS). In the case of RFPs, the process is flexible and designed to evaluate not just cost but also qualitative factors, allowing for discussions and negotiations with bidders to achieve the best value. This method encourages innovative solutions and provides an opportunity for the procuring entity to clarify any concerns or request modifications to the proposals submitted. Texas Multiple Award Contracts (TXMAS) also facilitate negotiations. This system allows for negotiations within the framework of already established contracts, providing the opportunity to secure better terms or prices based on specific needs. Competitive sealed bids (IFB), on the other hand, do not allow for negotiations; they involve a more rigid process where bids are evaluated strictly based on price and compliance with predefined specifications. This means that once bids are submitted, they generally cannot be discussed or altered. Therefore, both competitive sealed proposals and Texas Multiple Award Contracts permit negotiation, making that answer the most accurate choice.