What must happen if the value of a purchase exceeds $1 million?

In the context of Texas procurement policies, when the value of a purchase exceeds $1 million, the requirement is generally to seek competitive bids to ensure fairness and transparency in the procurement process. This often means that multiple vendors or suppliers should be contacted to provide pricing and service information.

The correct answer highlights the importance of reaching out to a sufficient number of vendors. Contacting a minimum of six vendors is not just a best practice but is often mandated for large purchases to foster competition and ensure that the entity is receiving the best value for the taxpayer’s money.

While obtaining price quotes from multiple vendors, competitive bidding, or obtaining approval from the state government may be relevant in broader contexts or under specific circumstances, the core requirement is centered on ensuring a competitive process through adequate vendor engagement. This process not only encourages competition but also helps to mitigate the risk of favoritism or bias in awarding contracts.