INFORMATION TECHNOLOGY: CONTRACT LANGUAGE

3-D
INFORMATION TECHNOLOGY: CONTRACT LANGUAGE
Problem Identification:
IT contracts are negotiated separately by City departments without standard terms and conditions.

Recommended Action:
Develop standard terms and conditions for information technology contracts.

Classification:
Cost Savings, Organizational

Functional/Operational Area:
Central IT department, Law Department

Estimated Annual Impact:
Cannot be Estimated

Estimated Implementation Costs:
None

Barriers to Implementation:
None

Projected Implementation:
90 days

Next Steps:
Develop a core set of contract terms and conditions that apply specifically to IT projects.

Analysis:
Moving forward, it is reasonable to expect that information technology-related costs will represent a growing share of the City’s annual expenditures. Accordingly, the City should make every reasonable attempt to ensure the highest quality services from service and technology providers and mitigate, to the extent possible, the financial and operational risks associated with the purchase, installation, implementation, and maintenance of IT systems.

When negotiating IT-related contracts, the City should start with standard contract terms and conditions designed to insulate the City from foreseeable technology-related risks. Certain issues that should be addressed include:

– Ongoing systems maintenance
– Responsibility for cost overruns
– Availability and cost of systems upgrades
– Specific damages for failure to perform