West Virginia Code of State Rules
Agency 114 - Insurance Commission
Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER
Series 114-101 - Exempt Purchasing
Section 114-101-6 - Information technology

6.1. A procurement of information technology(IT) may include many types of IT, such as software, hardware, services and support, and maintenance. The procurement of IT carries a high level of risk because of the importance, requirements, rapid industry changes, security, sophistication, and privacy issues associated with IT.

6.2. Software procurement requires consideration of whether the software meets the needs of the OIC, type of license, any available alternative software, costs, how the software is hosted, security, legal requirements, effects of a breach, compatibility with current systems, frequency of updates, any associated changes that will be needed over time, and ongoing support and maintenance.

6.3. A license term of use must be flexible, as well as associated services, support and maintenance. If OIC determines services, support and maintenance are needed beyond the current term of the contract, the contract may be extended or renewed at the discretion of OIC and the vendor.

6.4. If a current contract provides for future support and maintenance at the fees set by the vendor or as negotiated, the vendor shall provide a quotation of the fees and the period covered by those fees. The parties shall negotiate in good faith. Once OIC finds the quotation acceptable, then a change order to the current contract shall be issued with the quotation attached. A new contract is not needed.

6.5. If OIC believes only one vendor may reasonably provide specific commodities and services, including support and maintenance, the procurement may be handled as a direct procurement.

6.6. If the OIC, the vendor, or the law requires changes to a current contract, the parties shall negotiate in good faith to reach agreement. If an agreement is reached and put into writing signed by both parties, OIC Procurement shall issue a change order to the current contract containing the agreed language.

6.7. At least one year before an IT contract in the amount of $2,500 or more and with a term longer than one year for software, hardware, or IT system terminates, including all available extensions, and the OIC desires to extend or renew the contract, OIC will evaluate and justify the extension or renewal using life cycle costing, total ownership or operational cost, or any other methods considered appropriate by the OIC. Additional factors to consider include current and anticipated work environment needs, compliance issues, current performance, availability of alternate sources, and costs. If the OIC determines the contract should not be rebid, it will determine the length of term for the renewal.

6.8. The OIC shall obtain approval from the West Virginia Office of Technology regarding the purchasing of computer software, hardware, services, support and maintenance.