IT Procurement Assistance
The Information Technology Department (ITD) is responsible for reviewing and approving the acquisition of technology by state agencies. For assistance, contact ITD Procurement.
State Contracts for IT equipment, software, and services allow government entities to save time and money by purchasing directly from vendors. ITD approval is generally not required for equipment, software, and services that are purchased through State Contracts, with the exception of equipment, software, and services that are required to be provided by ITD [NDCC 54-59-05 (5) and NDCC 54-59-22]. State Contracts may require additional review or action at certain dollar thresholds, so agencies must follow the instructions related to purchasing from the applicable State Contract. Contact the contract administrator listed on the contract web page with specific questions about the contract.
IT Purchases Existing Source of Supply
ITD provides a variety of information technology services, including IT infrastructure, information management, business analysis, project management, software development, and website development. Agencies can purchase ITD services without competition regardless of dollar amount. An agency can also solicit bids or proposals from ITD during a competitive solicitation process. [subsection 2(j) of NDCC 54-44-4-05 and NDAC 4-12-15]
IT Purchase Requirements
IT purchasing is subject to several state laws and special requirements.
IT Purchases Regardless of Dollar Amount – Consolidated Services
- Telecommunication and Network Equipment and Services: Purchase all telecommunication equipment and services through ITD, including telephones and telephone systems (other than cellular phones), automated attendant systems, call sequencers, lines, circuits, all data and video communication equipment and services, routers, switches, and data circuits. [NDCC 54-59-05] Submit an online work request to ITD.
- Electronic Mail, File and Print Server Administration, Database Administration, Application Server, and Hosting Services: Agencies, unless exempted, must obtain hosting services through a delivery system established by ITD. [NDCC 54-59-22] Submit an online work request to ITD.
- Desktop Support Services: Specific agencies must obtain centralized desktop support services from ITD. [NDCC 54-59-22.1] ITD’s desktop support service includes the acquisition, management and technical support of personal computers and peripheral devices. Submit an online work request to ITD.
IT Purchases Regardless of Dollar Amount - Approvals and Waivers
- Server Equipment, Cloud, Software-as-a-Service(SaaS), Managed Hosting Services: ITD must approve all purchases related to servers (applications, electronic mail, file and print, database, server storage), and for hosted services (including managed IT services/applications) outside of ITD. [NDCC 54-59-22] Submit a Request for Exemption to IT Standard to ITD Enterprise Services.
- IT purchase related to the State’s PeopleSoft/Oracle implementation: OMB must approve all purchases of shadow systems (alternative solutions) to the State’s implementation of PeopleSoft/Oracle. Submit a business case to the PeopleSoft/Oracle program manager.
- IT purchase with Limitation of Liability: An agency has limited authorization to agree to limit a contractor’s liability for purchases related to software, communication, or electronic equipment. [NDCC 32-12.2-15] The agency must prepare written documentation, in consultation with OMB Risk Management Division and the Attorney General’s Office, before agreeing to any liability limitation. Use the Limitation of Liability Documentation Template.
- IT purchase related to Electronic Health Records: Each executive branch state agency and institution of higher education may use only an electronic health record system for use in the State’s Health Information Exchange which is certified under rules adopted by the office of the National Coordinator for Health Information Technology [NDCC 54-59-31].
- IT purchase related to Microfilm Equipment and Services: ITD Records Management must approve purchases for microfilm equipment and services. [NDCC 54-46.1-05]
IT Purchases $25,000 and Over
ITD reviews and approves IT purchases over $25,000. Primary review criteria includes conformance with the requesting agency’s IT plan and compliance with statewide policies and standards. A request for a review of IT purchases under $25,000 may be made. If the request is not in conformance or compliance, ITD may disapprove the request or require justification for the departure from the plan or statewide policy or standard. [NDCC 54-59-05 (5)] Submit a Request for Exemption to IT Standard to ITD Enterprise Architecture.
IT Purchase as Part of IT Project
IT purchases that occur within the context of IT Projects may trigger additional requirements. The sections below describe various IT Project thresholds and additional requirements that the purchasing agency must follow.
- IT Projects $100,000 and over – Planning & Study Review: Each executive branch, state agency, or institution, excluding entities under the control of the state board of higher education considering the development of an information technology project with an estimated cost of $100,000 or more, shall involve ITD in the planning and study of projects over $100,000. The entity must submit a Project Exploration Workbook for architecture, project, and IT procurement review and receive a recommendation from ITD prior to proceeding with any study relating to the project. [NDCC 54-59-11.1] This is part of ITD's Project Exploration Process.
- IT Projects $250,000 and over – Project Management Requirements: Each executive, legislative, and judicial branch agency or institution, excluding entities under the control of the state board of higher education which initiate IT projects with budgets of $250,000 and over require that a project manager be assigned and shall comply with the applicable project management standards. [Project Management Standard STD-009-05]
- IT Projects $100,000 - $500,000 - Project Management Oversight: IT projects of an executive branch agency may require project management oversight to be performed by ITD. ITD provides information to the Information Technology Committee as determined necessary by ITD. [NDCC 54-35-15.2 (12), NDCC 54-59-05 (8) and Project Management Standard STD-009-05]
Major IT Projects $500,000 and Over
- Collaboration, Executive Steering Committee, Qualifications: All executive branch agency major IT Projects require:
- Collaboration between ITD and OMB in consultation with AG on the procurement, contract negotiation, and contract administration and approves the solicitation, contract or agreement, and any amendments related to the project before submission to the executive steering committee;
- An Executive Steering Committee appointed to oversee the project;
- Procurement officer and primary project manager must meet minimum qualifications established by ITD and OMB. (Guidelines for Information Technology Procurement); and
- Signature of agency head or a designee and CIO or a designee on an agreement or contract and any subsequent contract amendments. [NDCC 54-59-32]
- Business Analysis: Business Analysis is used to understand the structure, policies, and operations of an agency, and to recommend solutions that enable the agency to achieve its goals. Business Analysis activities can include business process modeling, organizational change activities, and gathering and documenting requirements. The Executive Steering Committee for a major IT project may require certain business analysis activities be completed as an initial step in the project.
- Project Oversight and Quality Assurance
- Project Management Oversight, Reporting: All major IT Projects of an executive branch agency require project management oversight to be performed by ITD. The ITD oversight analyst assigned to the project receives and reviews project information from the agency and facilitates the required reporting to the State Information Technology Advisory Committee and the Legislative Information Technology Committee. The sponsoring agency is required to present project startup and closeout reports and ITD is required to present quarterly status reports to the IT Committee. [NDCC 54-59-05 (7), and Project Management Standard STD-009-05]
- State Information Technology Advisory Committee (SITAC): SITAC receives and reviews information and status reports for major IT projects from each executive, legislative, and judicial branch agency. The sponsoring agency is required to notify SITAC of any budget or schedule variances of twenty percent or more including corrective actions being taken.[NDCC 54-59-23]
- Legislative IT Committee: The IT Committee receives and reviews information for major IT projects from each executive, legislative, and judicial branch agency including a project startup report, budget and schedule variances, and a project closeout report. If the IT Committee determines that the project is at risk of failing to achieve its intended results, the committee may recommend to OMB the suspension of the expenditure of moneys appropriated for the project. [NDCC 54-35-15.2]
Contact ITD Procurement prior to writing an IT RPF over $25,000.