1. State Purchasing – DTS SOLICITATION AND CONTRACTS PROCESS Background and Highlights 3/17/16 Complement to the State Purchasing – DTS Solicitation and Contracts Guide

2. Overview  DTS Authority  Sources  Scope  DTS Services  DTS Exceptions  IT Solicitation Tips  Additional Resources

3.  Code: Part 63F, Utah Technology Governance Act (2005)  § 63F-1-205 requires the CIO’s approval of the acquisition by an executive branch agency of:  Information technology equipment  Telecommunications equipment  Software  Services related to the above  Data acquisition DTS Authority

4.  Code: Part 63F, Utah Technology Governance Act (2005)  § 63F-1-102(6)(b) exempts the following agencies from DTS authority:  Legislative branch  Judicial branch  State Board of Education  Institutions of higher education  Board of Regents  State Auditor  State Treasurer  Attorney General  Independent entities DTS Authority

5.  Rule: R895. Technology Services, Administration.  R895-5-5. Acquisition of Information Technology requires the CIO to “exercise general supervision and control over the purchase of all hardware, software, and technology services.”  Hardware: Physical technology used to process, manage, store, transmit, receive, or deliver information.  Software : Non-physical technology used to process, manage, store, transmit, receive, or deliver information. Includes all supporting documentation, media, related materials, modifications, versions, upgrades, enhancements, updates, or replacements.

6. DTS Authority  Rule: R895. Technology Services, Administration.  R895-5-5. Acquisition of Information Technology requires the CIO to “exercise general supervision and control over the purchase of all hardware, software, and technology services.”  Technology services: All services, functions, and activities that facilitate the design, implementation, creation, or use of software, hardware, or telephony products. Includes data acquisition, seat management, staffing augmentation, training, maintenance, and subscription services.

7. DTS Services

9. DTS Exceptions  Exception from what?  Does NOT refer to:  Utilization of DTS-provided products or services  Day-to-day management of contract/project  CAN refer to:  Participation by DTS Contracts in solicitation drafting  Participation by DTS technical expert in evaluation  Business case requirement  Inclusion of DTS on contract document  Inclusion of DTS Ts&Cs in contract  Ownership of contract  Ordering and payment by DTS on behalf of agency

10. DTS Exceptions FULLPARTIALNONE Exception form completed and signed - RQM/RQS submitted in FINET by… Agency DTS Business case required -- DTS Contracts involved in solicitation -- DTS employee on evaluation committee -Case-by-case Terms and conditions Attachment A: Standard Ts&Cs Attachment A: Standard Ts&Cs and Attachment B: Additional IT Ts&Cs Attachment A: DTS Standard Ts&Cs

11. DTS Exceptions FULLPARTIALNONE Kick-off meeting attendance Agency/ State Purchasing Agency/(DTS)/ State Purchasing Agency/DTS/ State Purchasing Contract drafted by… Agency Agency/DTS DTS on contract document -Signature line Ownership/ signature line Exception form sent to State Purchasing with contract - Purchase orders and payments processed by… Agency DTS Contract/project managed by… Agency

12. IT Solicitation Tips Pre-solicitation  Engage and utilize the expertise of your DTS staff from the very beginning of the solicitation process and all the way through the contract drafting phase.  Translation: If there is any type of IT component to your procurement, contact DTS.  Your agency’s IT director is listed at https://dts.utah.gov/about-dts/contact-dts. https://dts.utah.gov/about-dts/contact-dts  If you are unsure who your DTS contract analyst is, you may reach out to DTS Contracts manager Laura Larsen at (801) 538-3507 or lauralarsen@utah.gov.lauralarsen@utah.gov  Explore existing statewide and DTS contracts.  Consider a pre-procurement Request for Information.

13. IT Solicitation Tips The Solicitation Document  Make the most of the “Background” section of the solicitation document.  Agency mission and objectives  Pros and cons of current system, if you have one  Description of technical environment in which the successful solution will be implemented, including technical components with which the solution will have to be compatible  Determine what a realistic and appropriate contract term would be.  Standard is 5 years  Take into account:  Expected life of equipment  Length of project  Possibility of better pricing  Termination for convenience  Consider disclosing your budget.

14. IT Solicitation Tips Specifications  Subscription vs. software licensing  Subscription license  Ongoing and recurring payments  Right to use software lasts only as long as the subscription term  Updates and new versions are usually included in the subscription price  Perpetual license  One-time purchase  Right to use software continues in perpetuity  Updates and new versions are usually offered at additional cost  Software maintenance  Purchase of another perpetual license  Determine which type(s) you will consider upfront.  Sample solicitation language: “The successful Offeror must, if providing an existing, commercially available product, give the State a perpetual license to use its system even if the State chooses: - To terminate its contract early; - Not to enter into a new contract with the Offeror upon the initial contract’s expiration; or - Not to continue purchasing maintenance or upgrades from the Offeror.”

15. IT Solicitation Tips Specifications  Mandatory documentation  Service Level Agreement (SLA)  State that these will be considered additions or exceptions to the Standard Terms and Conditions  Backup/archiving plan  Disaster recovery plan  Data security policies and procedures  Data breach response policy  Security certifications  System diagrams  Consultant/personnel résumés

16. IT Solicitation Tips Specifications  Find the right balance between technical and security requirements and your business operations considerations.  Type and sensitivity of data  Compliance with applicable laws  Technical support needs  Ownership of data, software, and custom coding  Budget  Willingness of vendors to respond  Security is important.  As a general rule, insist on data storage on geographically diverse servers within the United States.  Determine if you are comfortable sharing servers with other entities.  Consider more stringent background check requirements if your data is especially sensitive.  Consult with your IT and legal staff about which requirements are appropriate.

17. IT Solicitation Tips Specifications  Hosting options  Considerations  Type and sensitivity of data  Costs  If both State hosting and vendor hosting are acceptable, include two Cost Proposal forms.  Other optional features  Mobile version (responsive design)  Mapping capabilities (GIS)  Consider including these in your Cost Proposal as a quote  Not included in cost evaluation  No obligation by State to purchase  Don’t forget about training of internal IT staff.

18. IT Solicitation Tips Post-solicitation  Contract execution  DTS will draft, negotiate, and execute the contract, but the agency should remain heavily involved in the post-solicitation process.  Don’t sign extraneous documents from the vendor (e.g., SLAs, licensing agreements, quotes, etc.) without consulting DTS Contracts and your legal counsel.  Contract expiration  Work with DTS to begin the re-solicitation process early.  Remember:  Contract extensions are the devil.  Sole source requests that are based on transitional costs and do not provide an adequate cost-benefit analysis will be rejected.

19. Additional Resources  Utah Technology Governance Act  http://le.utah.gov/xcode/Title63F/63F.html http://le.utah.gov/xcode/Title63F/63F.html  DTS Administrative Rules  http://www.rules.utah.gov/publicat/code/r895/r895.htm http://www.rules.utah.gov/publicat/code/r895/r895.htm  State Purchasing – DTS Solicitation and Contracts Guide  www.purchasing.utah.gov/purchasingforms www.purchasing.utah.gov/purchasingforms  DTS products, services, and policies  www.dts.utah.gov www.dts.utah.gov  Fay Tan, Purchasing Agent (State Purchasing)  (801) 538-3524  ftan@utah.gov ftan@utah.gov  Questions?