SECTION .0700 - CONTRACTS

09 NCAC 06B .0701          contracts established by DIT

(a)  In determining whether a good or service will be included in an agency specific contract, the agency and the State CIO shall consider available statewide term and convenience contracts and such factors as volume, whether the good or service is necessary for an IT project, nature of the good or service, repetitiveness of use, relative stability of prices, and delivery or transportation costs.

(b)  Term Contracts.

(1)           A "term contract" is a binding agreement between the purchaser and seller to buy and sell IT goods or services for a specific period of time at prices established by contract;

(2)           A statewide term contract consolidates normal, anticipated requirements of all State purchasing agencies into one agreement and shall be awarded by the State CIO.  No agency may purchase IT goods or services included in a statewide term contract from any other source unless authorized by the State CIO;

(3)           If an agency documents to the State CIO a need to establish an agency specific contract in lieu of a statewide term contract or an expenditure not covered by a statewide term contract for which the expenditure during the life of the contract exceeds the agency's general delegation, the purchasing agency, with the State CIO's approval, may issue a solicitation document for the purpose of awarding an agency specific contract for use by that agency in accordance with the determining factors set forth in this Rule.

(c)  Convenience Contracts.

(1)           A statewide IT "convenience contract" is an agreement awarded by the State CIO for an indefinite quantity of goods or services that may be used by a State agency.  Convenience contracts are not mandatory-use agreements;

(2)           If an agency elects not to purchase the goods or services it requires from an established convenience contract, then that agency must comply with Rule .0301 of this Subchapter.

(d)  A "master IT agreement" is an agreement between a vendor and the State characterized by one or more of the following:

(1)           Goods or services are, or may be, procured from resellers, value added resellers (VARs), original equipment manufacturers (OEMs), or others who represent the master agreement vendor;

(2)           Goods or services are proprietary intellectual property of the master agreement vendor; and

(3)           Master agreements are established without competitive bidding.

(e)  Master agreements may result in agency or statewide term or convenience contracts.

(f)  Solicitations and vendor offers may modify terms of a master agreement if the State's best interests are served and if such is allowed via the terms of the solicitation.

(g)  Master agreement terms and conditions may be negotiated pursuant to Rule .0316 of this Subchapter.

History Note:        Authority G.S. 143B-1322(c); 143B-1350;

Temporary Adoption Eff. January 1, 2000;

Eff. August 1, 2000;

Amended Eff. September 1, 2013;

Readopted Eff. March 1, 2016.