Procurement Update

1
Procurement Update

• Software, Licensing, and Maintenance

2
What is an EULA?

• End User License Agreement
• Is an EULA a contractual Document?
• What is the purpose of an EULA?
• To protect the owners intellectual property
• In some cases it also may include
• Contractual issues such as price and penalties
• Term of a software maintenance agreement
• How often may the owner change the EULA?
• Is a click-through acceptance a binding
  agreement with the EULA?

3
Exemption 78

• 04/22/86
•  
• License agreements for computer software after
  such software has been competitively bid as
  required by the Procurement Code.
•  

4

• If the software was procured through a
  competitive solicitation, then the renewal of
  that license is exempt.
• If software on state term contract was
  competitively procured, and if the product
  offered under the 10 rule is the same product
  from the same software manufacturer (i.e., you've
  met the requirements of 11-35-310(35)), and if
  the vendor holding the state term contract was
  offered, and refused to meet the lower price,
  then the product acquired under the 10 rule
  would be considered competitively procured and
  the exemption would apply to the renewal of the
  software licenses. You satisfied the requirement
  for competing the contract by offering it to the
  state term contract vendor. Please remember that
  the Code now requires that all decisions to
  purchase from the vendor offering the lower price
  must be documented by the procurement officer in
  sufficient detail to satisfy the requirements of
  an external audit.

5

• Looking at the software maintenance (in contrast
  to just the software), if the manufacturer
  requires the licensee to maintain a software
  maintenance contract in order to maintain the
  competitively procured software licenses (rather
  rare), then the software maintenance would also
  be considered competitively procured and the
  exemption would apply equally to the renewal of
  the software maintenance.
• However, not all software on state term contract
  is competitively procured. Some is acquired
  under a sole source executed by the Chief
  Procurement Officer. In these cases, the
  exemption would not apply to renewal of either
  the license or maintenance.

6

• Software License Manager Contract
•  
• The Information Technology Management Office
  (ITMO) is pleased to announce that the Software
  License Manager State Term Contract has been
  awarded to Software House International (SHI)
• Contract 4400000147.
•  

7

• Currently agencies purchase software and software
  maintenance from state term contract, agency
  contracts, and as small purchases from
  manufacturers, distributors, and resellers. Each
  agency is responsible for tracking software
  licenses, software maintenance, renewals, and
  license agreement compliance.
• The Software License Manager will streamline this
  process by adding more Commercial-Off-The Shelf
  (COTS) software to the list of state term
  contracts, providing a single point of contact to
  governmental entities for the purchase, payment,
  tracking and renewal of these software licenses
  and maintenance agreements, providing agencies
  with ready to access software license and
  maintenance data, and serve as the initial point
  of contact for problems related to the COTS
  software on contract.

8
New COTS Offerings

• Adobe
• Creative Suites
• Acrobat Pro
• Dreamweaver
• Photoshop
•  
• Business Objects
• Crystal Reports

• Lotus
• Lotus Notes w/ Collaboration
• Websphere MQ
• McAfee
• Active Virus Defense
• Safeboot
• Anti-spyware

9

• This listing is only a few of software programs
  available from the Software License Manager
  Contract.
•  
• Please visit our State Term Contract website at
• http//www.cio.state.sc.us/itmo/contract/osp/Softw
  are/index_software_companies.htm or for
  additional information, please contact
• Valerie Galloway, [phone], e-mail
  vgallow_at_cio.sc.gov.
•  

10
QUESTIONS?