DECEMBER 20249GOVBUSINESS REVIEWvalue by performing reviews and checks during the procurement process to ensure all tech-related concerns are addressed about which state customers might not be well versed. Another major benefit is that master contracts allow customers access to a discounted rate, bargained by the expected volume of purchasing throughout the state, compared to the discount a single agency might be able to negotiate.Pitfalls and Timeline ConstraintsWhile there are benefits to using master contracts, utilizing them is not without effort or time and sometimes confusion. Although, in some cases, purchase orders issued against master contracts can be completed quickly and easily, without the need to solicit multiple vendors for quotes, in other cases, some procurements can still take months or longer to execute. With the need for a statement of work reviews by DIR, procurement oversight & delegation reviews required by SPD for specific procurements, and other procedural requirements, the process can still take longer than expected. Awareness of these processes is key to creating a realistic procurement timeline. Confusing which steps are next in the process or failing to request the correct type of timely review can unexpectedly delay the project timeline. In some cases, agencies may decide they want to procure their needs that are offered under master contracts through the open market and will need to request an exception from the pertinent agency. These processes to request an exception exist and are well outlined but will add to the overall procurement timeline. Customers will have to provide justification for why they want to circumvent the master contract process, and the exceptions might not always be granted. Other potential downsides of utilizing master contracts are that, in some cases, the purchasing options may be limited compared to using open market options. However, the agencies issuing these master contracts work hard to ensure the most options possible will be available through their contracts. Procurement and Contract Administration Professionals and their Value Add to the ProcessThis is where each agency's procurement and contract administration professionals can be very helpful. These professionals obtain one or both of the certifications that SPD offers (the Certified Texas Contract Developer (CTCD) and Certified Texas Contract Manager (CTCM) certifications), which ensure that they are trained on state purchasing and contract management principals, as well as continuing to stay up to date on new guidelines and rule changes as they occur. Reach out to your purchasing team for guidance on using master contracts, including creating a realistic project timeline. Don't forget they're here to help make purchasing as easy as possible. Procurement and Contract Administration Resources· SPD's State of Texas Procurement and Contract Management Guide can be a great tool for procurement professionals and SPD's public-facing purchasing page. · Vendors seeking opportunities to participate in master contract solicitations can monitor SPD's Electronic State Business Daily website, which details available procurement opportunities. Reach out to your purchasing team for guidance on using master contracts, including creating a realistic project timeline. Don't forget they're here to help make purchasing easy
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