The State of Texas through it’s Department of Information Resources (DIR) operates what is commonly called a buy-board for technology devices and services.
Here is how it works. DIR starts by posting a notice that it would like to receive offers for a certain type of equipment (lets keep it non-technical and say they are looking for Chevrolet sedans). Companies respond with their offers. DIR negotiates prices and terms and ultimately enters a contract under which governmental entities can buy Chevrolet sedans for some percentage off of sticker price. They may also go through the same process for Cadillacs and Fords or other sedan brands.
Governmental entities then use this process to buy sedans instead of conducting competitive bidding to get the best value for themselves.
These contracts allow the entities to choose the brand and model that they want even though a fair competitive bidding process might provide better value for the taxpayers. The entity can choose Cadillacs instead of Chevrolets or Fords simply because they have a favorite brand or dealer.
This is not competitive bidding. It is often favoritism. If the entity would conduct the bid process fairly, receive bids, and then include a DIR offer in it’s analysis we could get much better value for our money. Circumstances change and many times the price a company will charge will be lowered, for example at the end of a model year or if sales are too slow. We should be smart buyers and get the beter price.
Why do they do this with our money? Probably sometimes because it allows them to use favoritism. Probably sometimes because it is easier and less transparent to use the buy-board. It is a way to eliminate competition.
It is legal in the State of Texas. It should be changed.
We deserve better than this.
elpasospeak 