The following words and terms, when used in this title, shall have the following meanings, unless the context clearly indicates otherwise.

1. (1) Act--The State Purchasing and General Services Act, Texas Civil Statutes, Article 601b.
2. (2) Best interests of the state--Most advantageous to the state in light of all relevant circumstances.
3. (3) Commission--The General Services Commission.
4. (4) Competitive bidding--The process of inviting and obtaining bids from competing sources in response to advertised competitive specifications, by which an award is made to the lowest and best bidder meeting the specifications. The process contemplates giving potential bidders a reasonable opportunity to bid, and requires that all bidders be placed on the same plane of equality. Each bidder must bid on the same advertised specifications, terms, and conditions in all the items and parts of a contract. The purpose of competitive bidding is to stimulate competition, prevent favoritism, and secure the best goods and services at the lowest practicable price, for the benefit of the state. Competitive bidding cannot occur where contract specifications, terms, or conditions prevent or unduly restrict competition, favor a particular vendor, or increase the cost of goods or services without providing a corresponding benefit to the state.
5. (5) Electronic data interchange (EDI)--Exchange of information electronically between business parties in a structured format, including, but not limited to, computer direct or indirect electronic information exchange, exchange of computer tapes and disks, and telefacsimile transmission.
6. (6) Local government--A county, municipality, school district, special district, junior college district, or other legally constituted political subdivision of the state.
7. (7) Minor technicality--A requirement in a bid invitation which, if waived or modified by the commission when evaluating bids, would not give a bidder an unfair advantage over other bidders or result in a material change in the contract.
8. (8) Nonresident bidder--A bidder whose principal place of business is not in Texas, but does not include a bidder whose majority owner or parent company has its principal place of business in Texas.
9. (9) Payment bond--A deposit, pledge, or contract of guaranty supplied by a successful bidder to protect the state against loss due to the bidder's failure to pay material suppliers and subcontractors. Acceptable forms of payment bonds are: cashier's check, certified check, or irrevocable letter of credit issued by a financial institution subject to the laws of Texas; a surety or blanket bond from a company chartered or authorized to do business in Texas; United States treasury bond; or certificate of deposit.
10. (10) Performance bond--A deposit, pledge, or contract of guaranty supplied by a successful bidder to protect the state against loss due to the bidder's inability to complete the contract as agreed. Acceptable forms of performance bonds are those listed in the definition of payment bond.
11. (11) Principal place of business in Texas--A permanent business office located in Texas from which a bid is submitted and from which business activities are conducted other than submitting bids to governmental agencies, where at least one employee works for the business entity submitting bids.
12. (12) Texas resident bidder--A bidder with its principal place of business in Texas, including a bidder whose majority owner or parent company has its principal place of business in Texas.

Source Note:The provisions of this §111.2 adopted to be effective February 16, 1994, 19 TexReg 713.