Buy IT Manual

Purpose: This chapter outlines VITA’s statutory procurement authority for IT and telecommunications goods and services as well as VITA’s responsibility to establish IT and telecommunications procurement policies, standards and guidelines.

Key points:

• VITA has IT procurement authority for all executive branch agencies and institutions of higher education that are not specifically exempted from VITA's authority.
• VITA has statutory governance/oversight responsibilities for certain Commonwealth IT projects and procurements.
• Only VITA can establish statewide IT contracts.
• Judicial and legislative branch as well as independent agencies are not subject to VITA’s procurement authority.

Chapter 1 - Vita's Procurement Purpose and Scope (PDF)

Purpose: This chapter provides guidance on how the acquisition of IT goods and services is different than the procurement of non-IT commodities and also provides guidance on the IT procurement process.

Key points:
• IT sourcing is constantly changing and requires the application of specialized best practices.
• Technology risks must be analyzed and mitigated during solicitation development and prior to contract execution.
• Applying strategies and principles to technology procurement, positions the Commonwealth to maximize the benefits it receives from technology and reduces the risk of supplier and technology failures.

Chapter 2 How is Procuring Information Technology Different? (PDF)

Purpose: This chapter outlines VITA’s Supply Chain Management’s (SCM’s) vision, mission, core values and guiding principles. It also discusses the services that SCM provides to the Commonwealth.

Key points:
o SCM is the division of VITA charged with developing, implementing and leading the Commonwealth’s technology procurement policies, standards and guidelines.
o SCM is the central purchasing office for IT goods and services for the Commonwealth.
o SCM seeks to achieve its mission of developing and managing supplier relationships to maximize the return on Commonwealth IT investments by integrating its customers’ business needs with its strategic suppliers.

Chapter 3 - VITA's Supply Chain Management (SCM) (PDF)

Purpose: This chapter sets forth background information and policy that should be followed by agencies and institutions. Adherence to this policy will ensure compliance with statutory regulations, protect the trust established between procurement officials and citizens of the Commonwealth, and establish fair and equal treatment of all suppliers who are interested in doing business with the Commonwealth.

Key points:
• VITA is committed to developing procurement policies and maintaining procurement processes which are fair, ethical, non-biased and in strict compliance with the laws of the Commonwealth.
• Procurement professionals have the responsibility to ensure that all information and documentation relative to the development of a solicitation or contractual document for a proposed procurement or anticipated contractual award

Chapter 5 Ethics in Public Procurement (PDF)

Purpose: This chapter includes procurement policies that ensure that IT procurement and contracting practices in the Commonwealth are consistently executed in a manner that promotes fair and open competition.

Key points:
o VITA is committed to fair and open competition through the implementation of procurement policies and procedures that are transparent to agencies, suppliers and the public.
o Fair and open competition creates and drives value, reduces costs, and enables greater choices as increased supplier participation necessitates delivery of innovative solutions and improved supplier performance.

Chapter 6 Fair and Open Competition in IT Procurement (PDF)

Purpose:  This chapter provides the policies and guidelines that the Commonwealth’s executive branch agencies and institutions shall follow to promote the Commonwealth’s socio - economic goals while procuring IT.

Key points:

• Executive Order 35 ( establishes a goal that the Commonwealth should exceed its target goal of 42% of its purchases from small businesses including small businesses owned by women, minorities, service -disabled veterans and micro- businesses.
• Any executive branch agency’s goals under 2.2 -4310 of the Code of Virginia for participation by small businesses shall include within the goals a minimum of 3% participation by service disabled veteran businesses as defined in § 2.22.2-2001 and 2.22.2- 4310 when contracting for goods and services.
• Executive Order 77 ( sets a statewide goal to reduce plastic pollution and eliminate the need for new solid waste disposal facilities in Virginia.
• VITA has developed procurement policies and guidelines designed to encourage eligible contract users and state agencies to procure IT products and services which help to minimize the environmental impact from the use and disposal of those products.

Chapter 7 Promoting the Commonwealth's Socio-Economic Initiatives (PDF)

Purpose: This chapter sets forth VITA’s policies and guidance on preparing effective specifications and requirements for the procurement of IT goods and services.

Key points:
• By their nature, specifications set limits and thereby eliminate or restrict items that are outside the boundaries drawn. Technology specifications should be written to encourage, not discourage, competition consistent with seeking overall economy for the purpose and technology solution intended.
• Specifications constitute the heart of a contract document that will govern the supplier of required goods or services in the performance of the contract as well as the basis for judging compliance.
• Fixing a requirement error after delivery can cost up to 100 times the cost of fixing the implementation error.
• The procurement requirements are the foundation for the solicitation’s and contract’s scope and statement of work.

Chapter 8 Describing the Need: Specifications and Requirements (PDF)

Purpose: This chapter covers the process for determining a fair and reasonable price related to IT procurements.

Key points:
• All IT procurement professionals have a fiduciary responsibility to analyze the price or cost the Commonwealth pays for its IT goods and services.
• A fair and reasonable price is characterized by factoring industry and market pricing with the expected value and quality of products, solutions and/or services to be received. Fair and reasonable does not necessarily mean the lowest offer.
• Fair and reasonable pricing is determined by conducting either a price analysis or cost analysis.

Chapter 9 Determining Fair and Reasonable Pricing (PDF)

Purpose: This chapter contains general policies applicable to the procurement of IT goods and services.

Key points:
• Under Virginia’s Freedom of Information Act, the presumption is that all documents in the possession of any public body or public official and all meetings of state and local public bodies are open to citizens of the Commonwealth.
• To the extent allowed by law, this public body does not discriminate against faith-based organizations in accordance with the Code of Virginia, § 2.2-4343.1 or against a bidder or offeror because of race, religion, color, sex, national origin, age, disability, sexual orientation, gender identity or expression, political affiliation, or status as a service disabled veteran or any other basis prohibited by state law relating to discrimination in employment.

Placing multiple orders to one or more suppliers for the same, like or related goods or services in order to avoid having to utilize the appropriate method of procurement or to remain within delegated procurement authority or to avoid competition is prohibited.

Chapter 10 General IT Procurement Policies (PDF)

Purpose: This chapter discusses IT procurement planning, which include efforts by all personnel responsible for significant aspects of an IT project to ensure that they are coordinated and integrated in a comprehensive manner.

Key points:
• As an IT procurement best practice, comprehensive IT procurement planning is proven to provide multiple benefits to public procurement.
• Market research is central to sound IT procurement planning and market research results should be understood by the entire procurement project team.
• Strategic procurement planning helps the Commonwealth optimize performance, minimize price, increase achievement of socio-economic acquisition goals, evaluate total life cycle management costs, improve supplier access to business opportunities, and increase the value of each IT dollar.
• VITA may have an existing mandatory-use or optional-use statewide contract that would
serve your IT procurement need. Agencies subject to VITA’s IT procurement authority must
determine whether one is available as a first step in the procurement planning process.

Chapter 11 IT Procurement Planning and Strategic Sourcing (PDF)

Purpose:  This chapter covers the preparation of statement of scope and statement of work (SOW) documents used in the acquisition of information technology goods and services.

Key points:

• The importance of complete, clear and well-developed requirements definition, scope statement, and statement of work documents for IT solicitation and contract documents cannot be overstated.
• It is critical to include and state all technical, functional, performance and project management requirements and expectations clearly and without ambiguity in the SOW.
• The SOW content and detail will depend on the nature of the procurement and can range from extremely simple-buying packaged software-to extremely complex-procuring a solution or system design. 

Chapter 12 Statements of Work for IT Procurement (PDF)

Purpose:  This chapter explains the importance of developing a strong IT Procurement Project Team ( with the right resources, the right skills and the time needed to complete the job.

Key Points:

• The PPT should assemble as much knowledge as possible to ensure the best qualified supplier is selected.
• PPT members/evaluators will be required to complete a Confidentiality and Conflict of Interest Statement.

Chapter 13 The IT Procurement Project Team (PDF)

Purpose: The purpose of this chapter is to provide IT purchasing professionals with descriptions of various IT procurement methods and when to use these methods.

Key points:
• Fair and open competition is the core concept behind the Virginia Public Procurement Act. The procurement methods available that utilize competition are quick quotes, competitive sealed bidding, competitive negotiation and auctions.
• There are circumstances where competitive procurements are not practical. There are times when only one supplier is practicably available or when an emergency must be addressed immediately.

Chapter 14 Selecting the IT Procurement Method (PDF)

Purpose:  This chapter defines IT and telecommunications small purchase guidelines.

• Key points:
  Set asides are required for micro businesses for all procurements under $10,000 when the price quoted is fair and reasonable and does not exceed five percent ( of the lowest responsive and responsible non -certified bidder. Set asides are required for DSBSDDSBSD-certified small businesses, for all procurements up to $100,000 when the price quoted is fair and reasonable and does not exceed five percent ( of the lowest responsive and responsible noncertified bidder.
• Reviewing available statewide contracts for IT or telecommunications goods and services allows agencies and institutions to determine if the technology product or service needed can be purchased through a statewide contract.
• A Quick Quote or RFP may be used for small purchases up to$200,000.
• All procurements for cloud-based solutions (Software as a Service), regardless of dollar amount, are subject to agency compliance with the requirements in VITA’s Third-Party Use Policy.

Chapter 15 Small IT Purchase Procedures (PDF)

Purpose:  This chapter defines sole source IT procurements and outlines sole source policies.

Key points:

• Sole source IT procurements are defined as procurements where there is only one solution to meet an agency’s IT needs, and only one supplier can provide the technology goods and/or services required for the solution.
• Proprietary IT solutions do not justify a sole source procurement. Proprietary procurements are defined as those in which there is only one solution available to meet an agency’s IT needs; however, multiple suppliers may provide the technology goods and/or services required for the solution.

Chapter 16 Sole Source IT Procurements (PDF)

Purpose:  This chapter defines emergency IT procurements and outlines emergency procurement policies.

Key Points: 

• Any agency can make emergency procurements when an urgent situation arises, and the particular IT need cannot be met through normal procurement methods. The agency head must approve the emergency procurement in writing.
• An emergency is a serious or urgent situation requiring immediate action to protect persons or property. An emergency can be a threat to public health, welfare or safety caused by floods, epidemics, riots, equipment failure, fire loss or such other reason.
• The agency is required to first search VITA’s statewide contracts to determine if existing sources are available to fulfill the emergency procurement, since these contracts have been competed and negotiated.

Chapter 17 Emergency IT Procurements (PDF)

Purpose: This chapter provides guidance for conducting requests for information, prequalification of suppliers and receipt of unsolicited proposals.

Key Points:

• A request for information ( is a standard business process to collect written information about the capabilities of various suppliers.
• Prequalification is a procedure to qualify products or suppliers and limit consideration of bids or proposals to only those products or suppliers which have been prequalified.
• An unsolicited proposal is a proposal received that is not in response to any agency or institution- initiated solicitation.

  Chapter 18 RFI, Prequalification of Suppliers, Unsolicited Proposols (PDF)

Purpose:  This chapter contains policies and guidelines pertaining to the acquisition of IT goods through the use of public, online and reverse auctions.

Key Points: 

• The purchase of IT goods and nonprofessional services from a public auction sale shall be permitted by any authority, department, agency or non non-exempt institution of higher education if approved in advance by the CIO.
• A reverse auction is a procurement method where suppliers are invited to bid on specified goods or nonprofessional services through real-time electronic bidding, with the award being made to the lowest responsive and responsible supplier.

  Chapter 19 Public, Online, and Reverse Auctions (PDF)

Purpose:  This chapter covers policies related to sponsoring and using joint and/or cooperative procurements, and the use of GSA contracts by public bodies, for the procurement of IT goods and services.

Key points:

• The joint and/or cooperative procurement is formed when multiple parties identify common requirements suitable for a joint and/or cooperative procurement arrangement and sign a written agreement to jointly and cooperatively procure.
• The CIO must approve all joint and/or cooperative procurement arrangements for the procurement of IT goods and services and all purchases from jointly and cooperatively procured contracts, including GSA contracts, regardless of the amount of the IT purchase.
• Joint and/or cooperative contracts, including GSA contracts, typically should not be used for procurements involving intellectual property or that include service level agreements.
• If the joint and/or cooperative procurement involves an off -premise (cloud hosted) solution, agencies must follow the Enterprise Cloud Oversight Services (ECOS) Process.
  
  

  Chapter 20 Joint and Cooperative and GSA Contracts (PDF)

Purpose:  This chapter covers performance-based contracting and service level agreements used in the acquisition of information technology goods and services.

Key Points:

• Performance-based contracting ( is a procurement method that structures all aspects of the procurement around the purposes of the work to be performed instead of describing the manner by which the work is to be performed.
• The most important element of a PBC, and what distinguishes it from other contracting methods, is the results that are desired.
• The agency should determine at least one performance indicator and standard for each task and deliverable and link them to a description of acceptable quality.
• Performance incentives may be positive or negative and may be monetary or non-monetary—based on cost control, quality, responsiveness or customer satisfaction.
  
    Chapter 21 Performance Based Contracts and Service Level Agreements (PDF)

Purpose: This chapter covers both policies and guidance for competitive sealed bidding and the invitation for bid (IFB) procurement method used in the acquisition of IT goods and services, excluding professional services.

Key points: In competitive sealed bidding, it is important that the IT goods or services being procured are capable of being specifically described so that bids can be evaluated against the description in the IFB requirements. Terms and conditions in an IFB are nonnegotiable. It is imperative that the IFB include all mandatory, statutory, special IT and other terms and conditions required by the Commonwealth and by the procuring agency.
• Public opening and announcement must be made of all bids received.
• Award is made to the lowest responsive and responsible bidder.
• If an agency receives two or more responses to an IFB that meet the criteria established in Section 2.2-4328.1, the agency may only select among those bids.

  Chapter 22 IT Competitive Sealed Bidding/Invitation for Bid (IFB) (PDF)

Purpose:  This chapter discusses two -step competitive sealed bidding for procuring IT goods and services.

Key points:

• Two-step competitive sealed bidding is a combination of competitive procedures designed to obtain the benefits of sealed bidding when adequate specifications are not available.
• There is no negotiation in the two -step competitive bid process.
• If an agency receives two or more sealed bids for products that meet the energy - and water - efficiency requirements outlined in § , that agency may only select among those bids.
  
    Chapter 23 Two-step Competitive Sealed Bidding (PDF)

Purpose: This chapter presents guidance for planning, issuing, evaluating and negotiating IT requests for proposals (RFPs) based on competitive negotiations. It also provides general information on solution-based and performance- based IT projects.

Key Points:
• Competitive negotiation is VITA’s recommended procurement method when an agency has a defined IT need and is requesting suppliers to propose the best solution to meet that need.
• Commit adequate time and resources to gather data for developing the RFP’s
business, functional and technicalrequirements.
• It is essential that IT procurement professionals understand the complete cost of a technology-based business solution.

  Chapter 24 RFPs and Competitive Negotiation (PDF)

Purpose:  This chapter provides discussion of how to create an effective and well-prepared IT contract document. 

Key points:
• The formation of an effective contract starts while drafting the solicitation
• All IT contracts should promote excellence in supplier performance.
• Due to the nature of technology procurement, and the many risks associated with these public investments, there are many specific contractual provisions that must be included in a technology contract which agencies do not normally use for non- technology purchases.
• The lead procurement professional assigned to a technology contract is accountable for ensuring the inclusion of relevant federal and Code of Virginia contract provisions and any VITA-required IT specific contractual terms.

Chapter 25 IT Contract Formation (PDF)

Purpose: This chapter presents methods and strategies for negotiating an IT contract, risks to avoid and proven methods for reaching agreement that will support a successful relationship and mutual project success.

Key points:
• An effective negotiator is thoroughly prepared and knows the technical and business requirements as well as the strengths and weaknesses of his/her position versus the other negotiating party.
• Successful negotiation begins with preparation at the outset of the procurement, even before the development of the solicitation.
• Key areas of preparation include understanding the business needs, understanding the market and contacting customer references.
• Negotiating a contract for software licenses presents some unique negotiating considerations.
• There are usually more costs involved in a technology acquisition than the initial sale price. The costs of support and ancillary technology far outweigh any sticker savings that may seem appealing on the original item purchase.

Chapter 26 Negotiating IT Contracts (PDF)

Purpose: This chapter provides policies and guidelines for the purchase of licensed software and maintenance, including COTS, and related support services. It also presents a comprehensive discussion on intellectual property.
Key points:
• The well-prepared solicitation will set the stage for negotiating a successful software and/or maintenance contract. Addressing IP ownership issues during the solicitation phase helps ensure an even playing field for the Commonwealth and potential suppliers.
• Whatever the agency’s business objective in buying the software, it's to the agency’s advantage to build flexibility into the software licensing and/or maintenance contract to ensure that the licenses can adapt to changes in a fast-moving technical environment.
• Except for small, one-time, or non-critical software purchases, VITA recommends that a supplier’s license agreement not be used, but that the final negotiated license terms are included in the agency’s contract.
• For value-added reseller (VAR) software products, VITA requires the use of an end user license agreement addendum with certain non-negotiable terms.

Chapter 27 Software Licensing Contracts (PDF)

Purpose: This chapter provides information about the commonwealth’s security and cloud compliance requirements for all agencies when procuring IT. VITA has statutory authority for the security of state government electronic information from unauthorized uses, intrusions or other security threats by developing and implementing policies, standards and guidelines, and providing governance processes and audits to ensure agency compliance.

Key points:
• Adherence to all information security policies, standards and guidelines is required of all state agencies and suppliers providing IT products or services to your agency.
• Also, any procurement of information technology made by the Commonwealth's executive, legislative, and judicial branches and independent agencies shall be made in accordance with federal laws and regulations pertaining to information security and privacy.
• In addition to VITA Security Standard SEC525 for any procurements for third-party (supplier-hosted) cloud services (i.e., Software as a Service), since agencies have $0 delegated authority to procure these types of solutions, there is a distinct process for obtaining VITA approval to procure.
• There are specially required Cloud Services terms and conditions that must be included in any solicitation or contract for cloud services and a questionnaire that must be included in the solicitation for bidders to complete and submit with their proposals.

Chapter 28 Agency IT Procurement Security and Could Requirements (PDF)

Purpose: This chapter sets forth required and valuable award and post- award IT procurement policies and guidelines.

Key points:
o Upon completion of negotiations, if applicable, and before awarding any IT contract, the assigned procurement lead must validate the supplier is in compliance with certain critical contractual or statutory requisites.
o Before awarding any IT contract valued at $250,000 or greater, or a contract for a major project, agencies must obtain required VITA reviews and approvals. Additionally, the Procurement Governance Review (PGR) process must be followed for any technology investment valued at $250,000 or greater.
o It is recommended that within 30 days of contract award, a contract kick-off meeting be conducted.

Chapter 29 Award and Post-Award of IT Contracts (PDF)

Purpose: This chapter defines “high-risk” solicitations and contracts, the requirements for a “high-risk” solicitation or contract, and the necessary review process for all “high-risk” IT solicitations and contracts.

Key points:
o All “high-risk” IT solicitations and contracts, as defined in § 2.2-4303.01(A), must be reviewed by both VITA and the Office of the Attorney General (OAG) prior to release of a high-risk solicitation and prior to award of a high-risk contract.
o VITA Contract Risk Management will conduct high-risk IT solicitation and contract reviews according to § 2.2-4303.01(B).
o All high-risk solicitations and contracts must include clear and distinct performance measures and enforcement provisions, including remedies in the case of Supplier non-performance
o eVA will serve as the system of record for reporting data related to performance of high-risk contracts

Chapter 30 High Risk IT Solicitations and Contracts (PDF)

Purpose: This chapter sets forth VITA’s policies on protest procedures related to the procurement of IT goods and services.

Key points:
• VITA recommends that all IT requests for proposals and contracts undergo several layers and perspectives of review to yield a holistic review and to mitigate the risk of protest.
• It is VITA’s policy to be open and transparent with its Suppliers to promote a fair and competitive procurement process.

Chapter 32 Protest Procedures (PDF)

Purpose: This chapter provides discussion of post-award contract administration of IT procurements.

Key Points:

• The process of contract administration begins with the solicitation documentation and continues through from the time of contract award until the work has been completed and accepted, any disputes or adjustments have been resolved, final payment has been made and the contract is formally closed out.
• The contract administrator must understand all activities expected of him/her, based on the agency’s protocol and in relation to the complexity and requirements of the specific IT contract.
• The contract administrator should read and become familiar with the contractual documents in order to establish a schedule of activities for ensuring compliance by both parties to the contract—the supplier and the agency.
• A successful contract is equally dependent on post-award administration as it is on a well-written statement of work or rigid performance standards.
• Should any claims and disputes arise for either party during contract performance, accessibility to the contract administration file documents may be of paramount importance. Therefore, it is critical that all documentation regarding contract actions, supplier performance and agency performance are maintained and accessible.

Chapter 34 IT Contract Administration (PDF)