Authority/Reference(s) Texas Government Code §2157.068(e-1)-(e-2); DIR Cooperative Contracts
Revision Date February 14, 2022

Policy

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

  • Hardware
  • Software
  • Technology-based training
  • Managed services
  • IT Staff Augmentation contracts (ITSC)
  • Deliverables-Based IT Services (DBITS)

DIR establishes and maintains a list of the cooperative contracts on its website. The contracts offer best value for DFPS in that DIR has negotiated discounts with the master contracts. DFPS can negotiate additional discounts based on purchase volumes using pricing requests to multiple DIR vendors to increase competitive pricing.

Periodically, DIR will host a bulk purchase where one or more agencies needing IT commodity products will result in DIR establishing a bulk purchase. 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 in two or more agencies. 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 or renewals or both.

Value of $50,000 and less
When a contract has a value of no more than $50,000 DFPS may directly award the contract to a vendor included in the category for which the contract relates without a price request to other vendors in the same category.
Value of $50,000.01, but not more than $1 million
When a contract is valued in excess of $50,000 but no more than $1 million, DFPS must submit a request for pricing to at least three vendors or resellers from the appropriate cooperative contract category.
Value of 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 or resellers 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.
Value of 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 or re-sellers 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 $10 million
If the value of a contract exceeds $10 million for a cooperative contract, then a purchase cannot be made using the cooperative contract, unless the contract is directly coordinated by DIR.