If a contract exceeds $5M in value, what must a state agency do?

When a contract exceeds $5 million in value, a state agency is required to submit its own solicitation through a Request for Offer (RFO). This requirement ensures that the agency follows the appropriate procurement processes to obtain goods or services in a competitive and transparent manner. By issuing an RFO, the agency provides potential vendors with the opportunity to submit their proposals, which promotes fairness and maximizes value for the state by allowing for comparisons of multiple offers.

This process is critical for large contracts, as it also aligns with state regulations designed to foster accountability and efficiency in public spending. Agencies must follow established procurement procedures to ensure compliance with state laws and policies, which ultimately protect public interests and resources. Moreover, submitting an RFO instead of merely deciding on vendors helps in evaluating different proposals against each other systematically. This approach also allows the agency to clearly articulate its needs and expectations to potential contractors.

The other options do not fulfill the specific legal and procedural requirements set forth for high-value contracts in Texas. Thus, using an RFO is the correct and necessary step in this context.