Strategic Sourcing Initiative
Answers to Frequently Asked Questions
- What is “strategic sourcing”?
Strategic sourcing is simply a process to ensure the state is procuring goods and services at the best value possible by analyzing expenditures and identifying procurement strategies for long-term cost savings, especially for high-volume, high-dollar commodity and service types.
- Why is the strategic sourcing initiative being launched now and how was the focus determined?
The Comptroller of Public Accounts (CPA) is complying with a requirement outlined in the state’s General Appropriations Act to launch strategic sourcing initiatives for commonly purchased goods and services. The CPA is currently focusing on the state’s largest areas of spending under state contracts.
- How will the CPA evaluate proposals as part of this initiative?
- How will strategic sourcing impact HUBs?
Each RFP requires a HUB Subcontracting Plan to be submitted with the proposals. Vendors are required to contact at least three HUB vendors about subcontracting for the work under the proposed contract that the vendor cannot perform. The CPA will evaluate the HUB Subcontracting Plans to ensure they comply with the “good faith effort” requirements in state law. Also, HUBs are highly encouraged to submit their own proposals on the RFPs, or team with other entities to submit a joint proposal.
- I have a Texas Multiple Award Schedule (TXMAS) contract that offers the best value and lowest prices in the current market. Can I use this contract information to more easily respond to the RFP?
The CPA understands some vendors already have TXMAS contracts for the same or similar commodities/services. If the TXMAS contract is based on a U.S. General Services Administration (GSA) contract, the vendor may be unable to provide a lower price than the GSA contract price without adjusting the GSA contract. For RFPs that have considerable overlap with current TXMAS contracts, the CPA is providing a simple form for those vendors to submit their TXMAS contracts as their proposals (with their catalogs in Microsoft Excel or Access format). This will save those respondents the administrative burden of re-submitting their proposals in a different format and still comply with the GSA terms and conditions. When applicable, the form is included with individual solicitations posted on the Electronic State Business Daily.
Each Request for Proposals (RFPs) contains an Evaluation and Award section that describes how the CPA will evaluate proposals and award contracts. For the most part, the CPA intends to base its evaluation of the proposals on price. However, the CPA reserves the right to consider non-price factors, as authorized by Section 2155.074, Texas Government Code.