Authority/Reference(s) Texas Government Code §2157.068(e-1)-(e-2); DIR Cooperative Contracts
Revision Date March 31, 2025

Policy

The Department of Information Resources (DIR) establishes master contracts through the  Cooperative Contracts Program . Cooperative contracts are divided into six categories:

  • Hardware products and related services
  • Software products and related services
  • Technology services
  • Branded contracts
  • IT staffing services
  • Deliverables-Based IT Services (DBITS)

A list of the cooperative contracts is maintained on the DIR website. DIR has negotiated discounted pricing with negotiated terms and conditions in compliance with state procurement rules, offering best value for DFPS.. To increase competitive pricing, DFPS can negotiate additional discounts based on purchase volume using pricing requests to multiple DIR vendors.
Periodically, DIR hosts a bulk purchase for one or more eligible DIR customers in need of IT commodity items or services. 
IT commodity items refer to:

  • Commercial software, hardware, or technology services, other than telecommunications services
  • That are generally available to businesses or the public and
  • For which DIR determines that a reasonable demand exists for two or more eligible DIR customers.

The use of a bulk purchase contract does not require competitive purchasing requirements or a dollar threshold. Such contracts typically involve large purchases of specific software or computers.

Purchasing Thresholds for Cooperative Contracts

Purchasing thresholds are based on total contract value including all extensions and renewals.

Value
Conditions
$50,000 and under
 When a contract has a value of no more than $50,000, DFPS may directly award the contract to a vendor in the applicable cooperative contract category, without requesting pricing from other vendors in that category.
$50,000.01, but not more than $1 million
 When a contract is valued over $50,000, but no more than $1 million, DFPS must submit a request for pricing to at least three vendors from the applicable cooperative contract category.
More than $1 million, but no more than $5 million
 When a contract is valued at $1 million, but no more than $5 million, DFPS must submit a request for pricing to at least six vendors from the appropriate cooperative contract category. If the category has less than six vendors, then DFPS must submit a request for pricing for all vendors in the category.
More than $5 million, but no more than $10 million
 When a contract is valued at $5 million, but no more than $10 million, DFPS must submit a request for pricing to at least six vendors from the applicable cooperative contract category. If the category has fewer than six vendors, then DFPS must submit a request for pricing to  all vendors in the category.
More than $10 million
 When a contract is valued more than  $10 million,  the purchase cannot be made using a  cooperative contract, unless the contract is directly coordinated by DIR.