Judd T.

Tumbaga
BSA 4-2

Request for information

A request for information seeks information from suppliers for a specidic purpose. However,
neither the company nor the suppliers are obligated by the responses to the RFI. The RFI
serves as a tool for determining the alternatives or associated alternatives for meeting the
organizations needs. An RFI often asks suppliers to respond to questions that will assist the
organization in obtaining additional relevant information. Information from the RFI may then be
used to prepare a request for proposal (RFP).

Request for bid

A request for bud (RFB) is used to purchase specific goods or services. RFB’s are used in
cases where multiple suppliers are capable of meeting all of the technical and functional
specifications or only one supplier can meet them, In either case, the selection process is solely
determined based on cost and schedule requirement, In these cases, contract terms and
conditions are more likely to be nonnegotiable or fixed.
Request for proposal
The basic components of RFP
- Background information about the company, business problem and the computing
environment,
- Schedule of important dates such as when the suppliers RFP response is due, when the
decision is expected, when the actual purchase is expected, and implementation is
expected.
- Contract names and sources for answering questions for the RFP
- Specific requirements being sought.
- Technical requirements for the systems, such as sample reports and standard contract
language.
- Additional requirements for the selection process

Evaluating proposal
A selection committee of one or more key stakeholders evaluates submitted proposals using a
list of objective selection criteria. A list of the objective selection criteria is used as a means for
identifying the best match between the product’s features and functionality and the identified
requirements. The basis for the selection criteria is the user and system requirements. Features
and functionality are normally the most significant factors in the decision-making process.
Processing the selected software
Contract terms and conditions normally include the following.
- A functional definition of the work to be performed
 - Specifications for input or output designs such as interfaces screens or reports
- Detailed description of the necessary hardware
- Description of the software systems or tools required for the development or
implementations
- Terms or limitations with the use of any related trademark rights or copyrights
- Requirements for the conversion or transfer of data
- Systems performance and capacity such as speed, throughput or storage
- Testing procedures used to identify the problems and the results expected to define the
acceptance.
- Supplier staffing and specified qualification
- Contract and relationships protocol between the buyer and the supplier
- Requirements and expectation for installation
- description of payment of terms

Other considerations for software contracts and licenses

Software contracts should also address the following
- Flexibility and choice for upgrades and updates. Some contracts specify required
upgrades to receive updates or maintenance
- SLA’s for defining expectations for support and maintenance
- Annual maintenance costs
- Provision for protecting the company against unforeseen problems such as software
interoperability
- Intellectual property rights for modifications. Customer may not be granted the rights for
modifications
- Terms and conditions for termination options such as what transfer process will take
place when the licenses ends, lengths of the transition period, and the impacts from
termination
- Assignment clauses requiring consent
- Verification of any expert or import restrictions by customers
- Regulatory approvals that may be required
- Review of competition or antitrust laws to ensure compliance with any related legal
requirements
- Consideration of currency exchange rates.
-

Completing the final acceptance

An acceptance plan should be agreed upon and defined in the contract. This plan defines the
terms and conditions for acceptance. Normally final payment is withheld until all acceptance
tests have been completed and the software and equipment meet all the specifications in the
contract.
Technology acquisition is dependent on other key processes and must integrate to operate
effectively. In, addition, the life cycle of acquired devices does not end with the acquisition
process. Assets must be installed, secured, tracked, maintained, and disposed of properly

IT Contracts issues
The increased use of computers has forced organizations to enter more contracts for computer
hardware, software and services. Poorly informed and counselled computers buyers, however
are as a disadvantage relative to the suppliers. The suppliers have familiarity with the products
and contract terms. The rising costs associated with the upgrading equipment and keeping pace
with the state of art, the acquisition of services from suppliers from suppliers to design, develop
and maintain equipment and continue IT operations have generated more concern among the
top management.
Management has recognized that its traditional posture of accepting supplier contracts without
negotiation is a poor business practice. Negotiation computer related acquisitions is being taken
very seriously by the management and rased as the highest priority and we have become much
more dependent on information systems to support strategic and day-to-day operations. IT
auditors can assist their organization in preparing for negotiation computer hardware, software
and services contracts. Within the Big four environment, MAS can help their client contract for
computer hardware, software and services
We represent many Software Developers, Web Developers and other IT providers. We draft
and negotiate IT contracts on a daily basis and advise providers on many Software and Website
legal disputes. To put yourselves in the best position, you need to have a solid contract in place.
 Procurement and supplier management

Technology approval
Technical steering committee
(TSC)
Evaluate architecture
Determine impact
Approve/disapprove

Account manager

Works with TSC members

to evaluate solution
Customer work with account
manages to document requirements
Request for proposal
and identify potential solutions
Finalize requirements and scope
Request vendor proposals
Evaluate vendor proposals

Technoloy request
Account manager
Review requirement with customer
works for IT
Identify potential solutions
procurement team to
Evaluates potential solutions
evaluate vendor
Recommend vendor solutions proposals
Negotiation
IT procurement team
Define the scope of the work
Technology/contract refresh Define contract terms
IT procurement team Negotiates services and costs
Track contracts and asset
Negotiate technology refresh
Negotiate contract renewal/ Account manager works with
upgrades IT procurement team to
negotiate vendor terms

IT procurement team notififes

customer of contracted date.
Vendor management
IT procurement team
Monitor vendor performance administer
contracts and budget for costs