Procurement Thresholds

​Background

State agencies are required through Texas Government Code 2157 to meet bid threshold requirements for IT commodity purchases for hardware, software, and technology services. Thresholds apply to all cooperative contracts including DBITS, and ITSAC. Threshold requirements are for state agencies only, and do not apply to any other eligible customer, including institutions of higher education, K-12, local governments, assistance organizations, or out-of-state customers.

Threshold Requirements

Commodities (Hardware, Software and Services)

​Contract Value
​Number of Vendors
​$50,000 or less
​May award directly to vendor of choice
​More than $50,000 but not more than $1 million
​3 (or all Vendors in a category with less than 3 vendors)
​More than $1 million but not more than $5 million
​6 (or all Vendors in a category with less than 6 Vendors)


Threshold Exemptions

  • Threshold requirements do not apply to contracts procured through the Data Center Services program signed by the contracted vendors (e.g. Atos, Capgemini and Xerox Corporation). Please note: all Statements of Work that are being administered through the Data Center Services program as a Pass-through expense will be subject to State Procurement Rules.
  • Threshold requirements processes do not apply to agency customer agreements with the Texas.gov program, pursuant to its enabling statute (Subchapters F and I, Chapter 2054, Texas Government Code).
  • Thresholds do not apply to contracts for telecommunications services, such as TEX-AN Services and Managed Services for Telecommunications.