Software Related Purchases

 

For all software or upgrade related purchases, prior approval is required through
Client Services.  The approval form can be located here:

 New Product Software/Upgrade Request Form 

 All software, software maintenance and support services must have price support regardless
of the cost.

State Regulations

Attach Client Services approval along with pricing support to purchasing requisition.

 

Software:

Data processing software offered commercially (“off the shelf”) and software licenses
may be purchased non-competitively over $10,000 up to $149,999 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 $150,000 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 150,000,
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 $10,000. 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 $150,000
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 $75,000 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
$75,000 threshold.For purchases of data processing software support services equal
to or greater than $75,000 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.