Refresher: Texas State Purchase Process

The Comptroller’s Statewide Procurement Division (SPD) connects vendors with state purchases and contract opportunities and helps state and local entities procure non-IT goods and services.

The Texas Department of Information Resources (DIR) administers contracts for the state, putting master contracts in place for technology products and services at discounted prices. DIR’s contracts and services cover a wide variety of information technology products and services.

Competitive bids are not required for purchases up to $5,000, but purchasing from state-certified Historically Underutilized Businesses (HUB) is encouraged.

State agencies needing to purchase between $5,000.01 and $25,000 in goods are required to solicit a minimum of three vendors registered (active) on the Centralized Master Bidders List with the NIGP Class/Item Codes applicable to the products and/or services being procured. Two of the three vendors solicited are required to be state-certified HUBs.

State agencies wishing to purchase between $25,000.01 and $50,000 are required to send notice of the procurement opportunity to all the vendors registered (active) on the CMBL with the NIGP Class/Item Codes applicable to the products and/or services being procured.

For nondelegated purchases of goods with a value of $50,000 or more, the agency must submit its open market request to procurement.

For nondelegated purchases of goods with a value of $100,000 or more, the agency must submit its delegation request and its solicitation to procurement. Once submitted, the procurement is analyzed from a contract management and business perspective.

To receive bid opportunities and become a vendor, parties must apply to be on the CMBL, the master database used by state purchasing entities to develop a mailing list to send vendors bid opportunities.

The state uses TxSmartBuy, the e-procurement system that connects vendors and government purchasers for easy ordering, and all statewide contracts can be browsed on TxSmartBuy.

DIR contracts and services can be viewed at the agency’s website.