Software Related Purchases

Data Processing Software & Software Related Purchases



For DATA PROCESSING SOFTWARE and related purchases, Client Services is not required to review for prior approval. All software, software maintenance and support services must have price support regardless of the cost.

 

State Memorandum OSP 10-04


Software:


Data processing software offered commercially ("off the shelf") and software licenses may be purchased non-competitively over $5,000 up to $99,999 provided documentation is attached to the requisition as follows:

 

  • list all known information technology software packages investigated which claim to accomplish the required task

     

  • name each software package investigated, its total cost, and the rationale for selection or rejection

     

  • secure vendor quote of software cost to be purchased (software shall not exceed the vendor's published price)

 

Otherwise the software must be competitively bid.

 

Software Maintenance Services:


Purchases of data processing software maintenance services less than $100,000 may be purchased non-competitively provided price documentation supporting the software purchase price is attached to the requisition (cost of the software maintenance shall not exceed the vendor's published price).


For purchases equal to or greater than 100,000, the following procedures apply:


Software maintenance in which the software vendor is the only authorized entity to provide product fixes, patches, updates, or upgrades or in instances where the software manufacturer/developer retains ownership of the source code may be handled non-competitively over $5,000. A letter from the information technology software vendor substantiating the above information is required. The Office of Information Technology (OIT), the State Procurement Support Team (PST) and the Office of State Purchasing (OSP) must review and approve prior to purchase. Contact the Director of Purchasing for additional information.


Any other type of software maintenance equal to or greater than $100,000 must be competitively bid through either an Invitation to Bid (ITB), Request for Proposal (RFP), Consulting and Software Support Agreement (CSSA), standard agreement, statewide contract, or fully justify not using the competitive process or a standard/statewide agreement to the Office of Information Technology (OIT). The Office of Information Technology (OIT), the State Procurement Support Team (PST) and the Office of State Purchasing (OSP) must review the solicitation and award prior to purchase. Contact the Director of Purchasing for additional information.

 

Software Support Services:


Purchases of data processing software support services less than $50,000 may be purchased non-competitively. A Consulting Services contract will be required to be executed with the contractor. Purchase shall not be artificially divided to circumvent the $50,000 threshold.


For purchases of data processing software support services equal to or greater than $50,000 contact the Director of Purchasing for additional information. The process may involve a 90 to 180 day time period to solicit, award and obtain the necessary state approvals.



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