GUIDELINE B-030

SUBJECT: PROCEDURES FOR ACQUIRING DATA PROCESSING EQUIPMENT/SOFTWARE/SERVICES

This guideline establishes procedures for the initial acquisition of data processing equipment, software, and maintenance services for institutions and schools governed by the Tennessee Board of Regents. It does not apply to annual rewards of lease agreements, software licenses, or maintenance contracts. It also does not apply to data processing acquisitions where the total expenditure is less than $50,000. If multi-step sealed bidding is used, reference should be made to Guideline B-035.

For the purpose of this guideline, the term data processing equipment, software, and maintenance services is defined as those computers and related peripherals, operating system and associated utility software, application software and hardware and software maintenance services that are used in conjunction with the electronic information systems serving both academic and administrative departments. Typical functions include office automation, financial accounting, payroll and personnel systems, decision support systems, programming, and educational activities related to the above. Specifically excluded from this definition is equipment hardware, software and services where the use of microcomputers or microprocessors is incidental to its intended primary use for non-data processing functions. Examples of said equipment are telephone switches, numerically controlled mills, robotics, and audio spectrum analyzers and other such scientific equipment.

The term "acquiring" denotes any form of acquisition (regardless of source of funds) including, but not limited to a rental, lease, purchase, trade, or gift. All changes in data processing equipment at an institution shall be accomplished in accordance with the current institutional data processing plan, with review by the institution's computer resources committee and with the approval of the president at the institution. All changes in data processing equipment at a technology center will be reviewed by the center's computer advisory committee, with approval by the Vice Chancellor for Vocational-Technical Education, who for purposes of this guideline shall have the authority and responsibilities of an institution president.

The procedures outlined in the Board of Regents Policy No. 4:02:10:00, Purchasing Policies and Procedures, Guideline B-035 on Multi-Step Sealed Bidding Process and, G-030 on Contracts and Agreements will serve as the guide for the bid process for data processing equipment software/services. To determine the applicable category under Section III, Minimum Notice and Number of Bids, "expenditures" are defined as follows:

1. Total expenditures if purchase is proposed.

2. Total funds to be committed by contractual obligation if lease, lease/purchase or rental. (Example: $200 per month on a three year contract would be considered a $7,200 expenditure.)

3. For month to month leases or rentals, the annual obligation or the actual cost to be incurred if period is less than one year.

For the purpose of acquisition approval, service contract costs will be considered on the basis of number 2 and 3 above, and the cost of service contracts will be added to the cost of the equipment purchase or lease to determine total expenditure. The appropriate number of vendors will be solicited and method of bid solicitation will be followed as specified in Section III of Policy No 4:02:10:00 and guidelines on approval of Contracts and Agreements. If multi-step process is used, B-035 will be followed. Board notification or approval will not be required on expenditures less than $50,000. In case of quantity orders or assemblies, it will be the cost of the extended total cost or total assembly cost, respectively, that will apply. However, all acquisitions regardless of cost should be reviewed by appropriate campus personnel and/or committees.  Renewals of annual machine maintenance contracts will not require Board approval.

Requests for approval to acquire data processing equipment will be submitted in the Computer and Telecommunications Plan (CTP) as part of the July budget process. Equipment purchases included in an approved CTP do not require subsequent individual approvals. Changes to data processing equipment needs as submitted in the CTP and/or other requests not included in the CTP will be forwarded to the Chancellor over the signature of the president of the institution for review and approval. A copy of the request should be sent to the Office of Business and Finance. Approval must be obtained prior to awarding the bid. The request for approval of equipment not submitted in the CTP and/or changes to requested equipment in the CTP will include: (1) justification for change or acquisition, (2) approximate expenditure, and (3) justification for sole source  procurement, if applicable. Upon request, if deemed necessary, the Office of Business and Finance may require that the bid specifications be forwarded to the Board office.

If intended purchase requires performance valuation, the benchmark and bid specifications will be prepare in conjunction with the Office of Business and Finance. All bid specifications will incorporate Board of Regents standard contracts and essential terms where applicable. The Office of Business and Finance is available to assist in the development of any equipment bid specifications.

Upon receipt of the Computer and Telecommunications Plan or other requests the Office of Business and Finance will review the plan or request and communicate with the institution or center concerning any additional information which may be necessary. A reply to the plan or request will be forwarded to the president of the institution over the signature of the Vice Chancellor for Business and Finance.

When approved, the bid process will then proceed at the institution or center. If not previously submitted but required, a copy of the final bid specifications will be forwarded to the Office of Business and Finance when bids are mailed to the vendors. Upon acceptance of a bid in cases where no formal contract must be signed, the institution or school will furnish to the Office of Business and Finance a report of bid analysis, vendor selected, price, terms, etc. and scheduled installation date (if required). 

If a contract or letter of agreement must be signed, the above mentioned report and the contract, if applicable, will be forwarded to the Chancellor with a copy to the Office of Business and Finance for appropriate signature prior to formal acceptance of the bid. If state policies and procedures require additional signatures, the signed contract will be returned to the institution or center after appropriate signature have been obtained.

If intended procurement includes major purchases which have had benchmark and bid specifications prepared, vendors will be required to submit copies of responses to bids to both the institution or center and the Office of Business and Finance. The institution or center will be responsible for maintaining files of correspondence related to any bid procedures. Copies
of bid responses furnished to the Board will be disposed of when the bid process is complete.

Source: September 1, 1975 TBR Presidents Meeting; Revised May 25, 1982 Presidents Meeting; July 1, 1984; December 13, 1985; November 10, 1987; May 16, 1989; May 10, 1994 Presidents Meeting; November 8, 1995 Presidents Meeting;
November 5, 1997 Presidents' Meeting