Certified Texas Contract Management (CTCM)
Exam Prep:Practice Questions with Answers &
Rationales – 2025 Study Guide
1. Which of the following is the primary purpose of contract
management in Texas state agencies?
A. To reduce paperwork
B. To ensure compliance with laws and achieve best value
C. To increase vendor profits
D. To eliminate the need for procurement staff
Answer: B
Rationale: The CTCM framework emphasizes ensuring
contracts comply with Texas statutes while achieving best
value for the state.
2. Which Texas law establishes requirements for state
procurement and contract management?
A. Texas Government Code Chapter 2261
B. Texas Education Code Chapter 12
C. Texas Penal Code Chapter 42
D. Texas Civil Practices Code Chapter 11
Answer: A
Rationale: Chapter 2261 of the Texas Government Code
,provides the foundation for contract management and
oversight.
3. Which of the following is considered a high-risk contract?
A. A contract less than $5,000
B. A routine office supply purchase
C. A contract involving IT services over $1 million
D. A cooperative purchasing agreement
Answer: C
Rationale: IT contracts over $1 million are deemed high-risk
and require additional oversight.
4. The procurement cycle typically begins with:
A. Contract execution
B. Needs assessment and planning
C. Vendor protest resolution
D. Contract close-out
Answer: B
Rationale: Identifying and planning agency needs is the first
step in the procurement and contract management cycle.
5. A contract manager must document significant contract
decisions to ensure:
,A. Transparency and accountability
B. Faster contract closeout
C. Fewer vendor meetings
D. Avoidance of audits
Answer: A
Rationale: Documentation ensures transparency, supports
audits, and protects agencies during disputes.
6. What is the role of the Contract Advisory Team (CAT) in
Texas?
A. To manage day-to-day contracts
B. To review and provide recommendations for major
contracts
C. To resolve all vendor disputes
D. To conduct financial audits
Answer: B
Rationale: The CAT reviews contracts over $5 million and
advises agencies to improve contract quality.
7. A "deliverable" in contract terms refers to:
A. Any clause in a contract
B. The payment schedule
C. A measurable product or service required by the contract
D. A vendor’s license
, Answer: C
Rationale: Deliverables are specific, measurable outputs
vendors must provide under a contract.
8. Which of the following is NOT a best practice in vendor
performance monitoring?
A. Setting performance metrics in advance
B. Regularly documenting vendor performance
C. Ignoring minor vendor issues until contract closeout
D. Holding vendor meetings to address issues
Answer: C
Rationale: Issues should be addressed early; ignoring them
can result in contract failure.
9. What is a “scope of work” (SOW)?
A. The agency’s budget statement
B. A section that defines deliverables, tasks, and timelines
C. The procurement protest policy
D. A vendor’s marketing material
Answer: B
Rationale: The SOW clearly defines what the vendor is
expected to deliver, including performance standards.
10. What is the purpose of a contract closeout?
Exam Prep:Practice Questions with Answers &
Rationales – 2025 Study Guide
1. Which of the following is the primary purpose of contract
management in Texas state agencies?
A. To reduce paperwork
B. To ensure compliance with laws and achieve best value
C. To increase vendor profits
D. To eliminate the need for procurement staff
Answer: B
Rationale: The CTCM framework emphasizes ensuring
contracts comply with Texas statutes while achieving best
value for the state.
2. Which Texas law establishes requirements for state
procurement and contract management?
A. Texas Government Code Chapter 2261
B. Texas Education Code Chapter 12
C. Texas Penal Code Chapter 42
D. Texas Civil Practices Code Chapter 11
Answer: A
Rationale: Chapter 2261 of the Texas Government Code
,provides the foundation for contract management and
oversight.
3. Which of the following is considered a high-risk contract?
A. A contract less than $5,000
B. A routine office supply purchase
C. A contract involving IT services over $1 million
D. A cooperative purchasing agreement
Answer: C
Rationale: IT contracts over $1 million are deemed high-risk
and require additional oversight.
4. The procurement cycle typically begins with:
A. Contract execution
B. Needs assessment and planning
C. Vendor protest resolution
D. Contract close-out
Answer: B
Rationale: Identifying and planning agency needs is the first
step in the procurement and contract management cycle.
5. A contract manager must document significant contract
decisions to ensure:
,A. Transparency and accountability
B. Faster contract closeout
C. Fewer vendor meetings
D. Avoidance of audits
Answer: A
Rationale: Documentation ensures transparency, supports
audits, and protects agencies during disputes.
6. What is the role of the Contract Advisory Team (CAT) in
Texas?
A. To manage day-to-day contracts
B. To review and provide recommendations for major
contracts
C. To resolve all vendor disputes
D. To conduct financial audits
Answer: B
Rationale: The CAT reviews contracts over $5 million and
advises agencies to improve contract quality.
7. A "deliverable" in contract terms refers to:
A. Any clause in a contract
B. The payment schedule
C. A measurable product or service required by the contract
D. A vendor’s license
, Answer: C
Rationale: Deliverables are specific, measurable outputs
vendors must provide under a contract.
8. Which of the following is NOT a best practice in vendor
performance monitoring?
A. Setting performance metrics in advance
B. Regularly documenting vendor performance
C. Ignoring minor vendor issues until contract closeout
D. Holding vendor meetings to address issues
Answer: C
Rationale: Issues should be addressed early; ignoring them
can result in contract failure.
9. What is a “scope of work” (SOW)?
A. The agency’s budget statement
B. A section that defines deliverables, tasks, and timelines
C. The procurement protest policy
D. A vendor’s marketing material
Answer: B
Rationale: The SOW clearly defines what the vendor is
expected to deliver, including performance standards.
10. What is the purpose of a contract closeout?
