How does an agency determine contract value?
A major contract, under TX Gov’t Code 2262.001, is one with a value of at least one (1) million dollars during the original term of the contract. An agency should base its determination of the proposed length of and compensation during the original term and the renewal periods of the contract on best business practices, state fiscal standards and applicable law, procedures and regulations. Agencies should not artificially split any of these factors to avoid the one million dollar threshold during the original term of the contract and therefore submission of the solicitation to CAT for review.
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