Appendix I: IT Purchasing Protocol

Background: Pursuant to Section 10a-89e of the Connecticut General Statutes, the Connecticut State University System has consolidated some purchasing for the System at the System Office, primarily purchasing of common software products. With the recent adoption by the Board of Trustees of the CSUS Strategic Plan for Information Technology, the Board has provided that additional purchasing opportunities be centralized. Specifically, Section VIII of the Plan establishes the following objectives:

1. To take advantage of economies of scale, purchase all software licenses and hardware through State contract, a higher-education purchasing consortium, a Systemwide negotiation or a Systemwide competitive process, as appropriate.
2. Establish and implement protocols for sharing information about desired purchases and actual purchase prices.
3. Establish and implement protocols for reporting all IT purchases.
4. Purchase all IT hardware, software, and consulting services, that are required by statute to be competitively bid (currently in excess of $10,000), through centralized purchasing at the System Office, unless otherwise authorized by the Chancellor.

The implementation of these objectives will be approached in phases, with the goal of full implementation by FY 2005.

Phase I - Effective Immediately

Objective 1: Continue to follow the existing purchasing process, if it complies with the policy set out in Objective 1 quoted above. If not, begin immediately to use any of the four methods indicated, with the exceptions noted below.

Objective 2: Each Vice President for Finance and Administration, or his/her designee, should send an email to System Office IT, with copies to each university CIO, indicating desired IT purchases (including product name and product category), as soon as an IT purchase is proposed. (This distribution will enable System Office IT to determine if the hardware, software or service has already been purchased (e.g., with a Systemwide license, or at another university with possible contract extension to sister universities.))
For the second part of Objective 2, see below.

Objective 3: Prior to the second Monday of each month, university purchasing departments will report by e-mail all IT purchases as defined below to System Office IT and System Office Purchasing with copies to each university CIO, via a completed form (copy attached) reporting the following information for all IT purchases made at the university during the prior calendar month:

• purchaser,
• vendor,
• name of the product,
• category of the product (hardware, software, services),
• the one time cost of the product,
• the fund source used (operating or bond funds) to purchase the product, and
• the on-going annual cost of the product.

(This reporting is necessary at this time in order to prepare for centralized purchasing, and to assist in determining the number and complexity of the IT purchases made at the universities. Note that "IT purchases" do not encompass only those purchases made by the IT department at each university; rather, they refer to purchase of a specific set of commodities/services, which are enumerated below.)

Objective 4: Centralized purchasing of all IT purchases required to be competitively bid will not be implemented for all purchases at this time.

During this phase, the Chancellor will determine on a case-by-case basis whether to authorize the universities to self-administer any IT purchase (as defined below) greater than $10,000, pursuant to the following processes. Note that the Chancellor may reject, in whole or in part, any proposed purchase greater than $10,000.

Additional process for IT purchases between $10,001 and $50,000: The request to purchase the commodity/service must be e-mailed to System Office Purchasing at least seven (7) business days prior to the time it is intended that a request for quotation go to bidders. The request should include the following information:

• the potential vendors,
• name of the product,
• reason for purchase,
• category of product (hardware, software, services),
• name of person responsible for the purchase,
• the Systemwide or university strategic objective to which the purchase relates,
• a copy of the specifications to be sent to the bidders, and· the fund source (operating or bond funds) to be used to purchase the product.

Based on this information, as well as any other follow-up information deemed necessary, the Chancellor will determine if the proposed purchase should proceed, and whether university purchasing or System Office Purchasing will manage the purchasing activity. It may be determined that the purchase in question should be expanded to be Systemwide in nature. If the purchase authority is given to the
university, the university at the request of the System Office will include a System Office representative on the evaluation team. Additional process for purchases over $50,000: The request to purchase the commodity/service must be emailed to System Office Purchasing at least 10 business days prior to the time it is intended that an RFP be issued. The request should include the following information:

• the potential vendors,
• name of the product,
• reason for purchase,
• category of product (hardware, software, services),
• name of person responsible for the purchase,
• the fund source (operating or bond funds) to be used to purchase the product,
• the Systemwide or university strategic objective to which the purchase relates, and a copy of the draft RFP.

Based on this information, as well as any other follow-up information deemed necessary, the Chancellor will determine if the proposed purchase should proceed, and whether university purchasing or System Office Purchasing will manage the purchasing activity. It may be determined that the purchase in question should be expanded to be Systemwide in nature. If the purchase authority is given to the
university, the university will include a System Office representative on the evaluation team.

Luminis and Vista purchases will be managed by System Office Purchasing.

Commodities/services to be reported: The following is a listing of the commodities/services purchases that are subject to the above processes. Note that the purchase may or may not originate in the IT department.
713140 Electronic Media
721115 Consulting Services
721145 Professional Services - Other (IT Related)
721140 Non-professional Services - Other (IT Related)
751100 Hardware Purchases under $1,000 (IT)
751105 Equipment Rentals (IT)
751110 Hardware Maintenance (IT)
752100 Software Licenses
752105 Software Maintenance
752110 Software Support
752115 Software Purchases
753100 Data Processing Services
753105 Data Processing Service Bureau
761100 Telecom Equipment Purchase under $1,000
761105 Telecom Network Services
762100 Telecom Software
773140 Operating Leases (IT)
781105 Equipment Leases (IT)
784400 Information Systems Equipment
784401 Computer Equipment
784402 Software
784501 Education Equipment
784601 Telecom Data Equipment
784602 Telecom Video Equipment
784603 Telecom Voice Equipment
784604 Telecom Infrastructure
784605 Telecom Computer Equipment

Responsibilities: The university Vice President for Finance and Administration, or his/her designee, is responsible for generation of the monthly report of all purchases, and for requesting purchasing authority for items in excess of $10,000.

Activation: This procedure will be effective immediately.
Phase II - Currently Effective
Objective 1: Same as Phase I.
Objective 2: Same as Phase I.
Objective 3: Same as Phase I.
Objective 4: Same as Phase I with the following exception:
Process for purchases over $50,000: The request to purchase the commodity/service must be e-mailed to System Office Purchasing at least ten (10) business days prior to the time it is intended that an RFP be issued. The request should include the following information:

• the potential vendors,
• name of the product,
• reason for purchase,
• category of product (hardware, software, services),
• name of person responsible for the purchase,
• the fund source (operating or bond funds) to be used to purchase the product,
• the Systemwide or university strategic objective to which the purchase relates, and a copy of the draft RFP.

Based on this information, as well as any other follow-up information deemed necessary, the Chancellor will determine if the proposed purchase should proceed. If so, Systemwide Purchasing will manage the purchasing activity.

Responsibilities: The university Vice President for Finance and Administration, or his/her designee, is responsible for generation of the monthly report of all purchases, for requesting purchasing authority for items in excess of $10,000, and for requesting the purchase of items in excess of $50,000

Activation: This procedure will be effective upon notification by the Chancellor, when System Office Purchasing is capable of handling the load.  Phase III - Effective at a time to be determined.
Objective 1: Same as Phase I.
Objective 2: Same as Phase I.
Objective 3: Same as Phase I.
Objective 4: Same as Phase II, with the following exception:

During this phase, any IT purchase (as defined above) greater than $10,000 will be managed by System Office Purchasing. Note that the Chancellor may reject, in whole or in part, any proposed purchase greater than $10,000. Process for IT purchases between $10,001 and $50,000: The request to purchase the commodity/service must be e-mailed to System Office Purchasing at least 7 business days prior to the time it is intended that a request for quotation go to bidders. The request should include the following information:

• the potential vendors,
• name of the product,
• reason for purchase,
• category of product (hardware, software, services),
• name of person responsible for the purchase,
• the fund source (operating or bond funds) to be used to purchase the product,
• the Systemwide or university strategic objective to which the purchase relates, and· a copy of the specifications to be sent to the bidders.

Based on this information, as well as any other follow-up information deemed necessary, the Chancellor will determine if the proposed purchase should proceed. If so, Systemwide Purchasing will manage the purchasing activity.

Responsibilities: The university Vice President for Finance and Administration, or his/her designee, is responsible for generation of the monthly report of all purchases, and for requesting the purchase of items in excess of $10,000. Activation: This procedure will be effective upon notification by the Chancellor, when System Office Purchasing is capable of handling the load.