Information Technology Procurement Standard

Purpose

This standard provides agencies with the process to follow for the procurement of Information Technology (IT) hardware, software, and services. Technology procurements are reviewed prior to the actual purchase transaction to ensure compliance with IT standards, consistency with enterprise architecture, conformance to agency IT plans, assessment of third-party risks, and adherence to procurement best practices.

Standard

1. NDIT adopts OMB Central Services Division (CSD) purchasing procedures as defined in the State Procurement Manual as a standard for all technology purchases.
2. IT Review: The originating agency shall be responsible to initiate an IT Review of its IT purchases, competitive bid solicitations, and contracts that exceed the purchase approval limits for the categories below.
3. Purchase Approval Limits: Approval limits for IT procurement are categorized below. NDIT approval is required for purchases or contracts according to the limits below.

   Limits	Category	Definition
   $0 and over	Application and Data Services	Includes all applications and data services not directly managed or hosted by NDIT, including all Software-As-A-Service (SaaS) and cloud solutions.
   	IT Server and Network Services (Data, Voice, Video) Equipment	Includes any, but not limited to, server equipment that provides functions such as applications, electronic mail, file and print, database, and server storage.
   Level 2 and above	Other IT Equipment	Includes any type of information technology hardware and supporting infrastructure not covered by an above category.
   	Professional Services	Professional services contracts for design, development, and related activities for implementation of information technology applications or systems, which may include both hardware and software components and ongoing maintenance/support.   Note: All open-ended or hourly IT contracts without a guaranteed maximum payment or 'not to exceed' amount must be reviewed by NDIT.

4. Level 2 and above - Solicitations, Alternate Procurements, and Contract Review: For solicitations, including invitations for bids (IFB) and requests for proposals (RFP), alternate procurement (AP) requests, and contracts where the anticipated procurement is Level 2 and above, the agency shall submit an IT Review prior to issuing the appropriate procurement.
   1. A copy of the solicitation, contract, or alternate procurement purchase request must be attached to the IT Review.
   2. If not previously requested by the originating agency, the technology specifications for the procurement may be attached to the IT Review.
   3. Approval must be obtained from NDIT before issuing the purchase order or signing the contract.

Policy

54-59-05 Information Technology Department - Powers and duties.

Each executive branch agency or institution, excluding the institutions under the control of the board of higher education, shall submit to the department, in accordance with guidelines established by the department, a written request for the lease, purchase, or other contractual acquisition of information technology. The department shall review requests for conformance with the requesting entity's information technology plan and compliance with statewide policies and standards.  If the request is not in conformance or compliance, the department may disapprove the request or require justification for the departure from the plan or statewide policy or standard.

Applicability

This standard applies to all executive branch state agencies and institutions, excluding the institutions under the control of the board of higher education.

Definition

Information Technology  - Citing ND Century Code (Chapter 54-59-01.3), "'Information technology' means the use of hardware, software, services, and supporting infrastructure to manage and deliver information using voice, data, and video." NDIT further defined this in its Definition of Information Technology.

State Term Contracts - The State Procurement Office has established term contracts for commodities commonly used by the state. Term contracts establish a supplier for specific commodities for a fixed period of time.  Examples are term contracts for desktop computer equipment and printer equipment.

Invitation for Bid (IFB)  - The Invitation for Bid (IFB), solicitation is used to request competitive sealed responses. The document includes or incorporates by reference a description of the needed commodity, specifications or scope of work, bidders’ instructions, contractual terms and conditions, evaluation criteria, price sheets for vendors to submit prices, and offer and acceptance sheet.

Request for Proposal (RFP)  - The Request for Proposal (RFP) solicitation is used to request competitive sealed responses when award will be based on factors in addition to price, and when it is expected that any aspect of the requirements will need to be negotiated with respondents as part of the selection process and contract award.

Alternate Procurement (AP) - The Alternate Procurement (AP) request is used when a non-competitive procurement, limited competitive procurement, or purchase from another government entity's contract is sought.

Guidance

• Procurement Laws, Rules, Guidelines

Non-Compliance

Non-compliance with this standard shall be reported to the Office of the State Auditor and non-compliance to this standard represents a violation of state law.  This standard communicates guidance for actions to be taken by agencies to remain in compliance.