Purchase evaluation equipment or software

Purchase evaluation equipment or software

The table and the comparisons are only as good as the data used. And he investment decision (also known as capital budgeting) is one of the fundamental decisions of business management: managers determine the assets that the business enterprise obtains. These assets may be physical (such as buildings or machinery), intangible (such as patents, software, goodwill), or financial (see below). The manager must assess whether the net present value of the investment to the enterprise is positive; the net present value is calculated using the enterprise's marginal cost of capital. Also there are types of software. According to the Committee identified four categories for new software acquisitions:Corporate Applications: Software to be used throughout the University System or at more than one campus. Campus Applications: Software to be used campus-wide or by more than one Division, or requiring network level support at the campus. Department/Division Applications: Software to be used in multiple Departments, either within a campus, or by similar departments at several campuses, that does not require campus-wide network level support. Limited Use Applications: Software to be used for specialized applications within a Department. Although the guidelines have been designed to address the varying needs during the acquisition of these types of software, the Committee recognizes that not all software purchases will fit neatly into one of these categories. The degree of integration with the University's existing computing environment will greatly influence who should be involved in the process. The Committee also prepared recommendations for Upgrades or Expansion of Existing Systems and for Software Maintenance. Maintenance, If appropriate, the initial periods of maintenance should be included in the RFP (RFB) specifications and life cycle costing should be used in the evaluation. Beyond this period, maintenance costs should be reviewed as part of the decision process to continue or replace a system. Approval of maintenance contracts will be in accordance with delegated levels. Upgrades Or Expansion Of Existing Software ,Review benefits of replacement vs. upgrade (Project leader and/or designated individuals). Provide sole source justification to Procurement (Project leader), if applicable. If not, refer to the steps identified for other software acquisitions. For a major acquisition, possibly inform the Board of Curators. And Obtain the necessary approvals.
Example of software requirements to be follow:
Recommended Process
The following twelve steps have been identified for software acquisitions. For large, corporate systems, each step is expected to be detailed, and involve gathering and distribution of information from and to a wide University constituency and vendor community, and high level approvals. For the Campus, Department and Limited Use Applications, each succeeding process is expected to be relatively less detailed, quicker, and may require a narrower collection and distribution of information, and fewer approvals.
> >Recognize Need, Appoint Committee and/or Project Manager
>>Define Procurement Process
>>Define General Needs and Develop Budget Projection
>>Investigate the Market
>>Refine the Budget and Identify a Funding Plan
>>Define Detailed Needs
>>Prepare and Issue a Request for Bid (RFB) or a Request for Proposals (RFP)
>>Evaluate Bids or Proposals
>>Determine Details of Purchase
>>Negotiate Contract Language
>>Obtain Final Approvals
>>Execute the Contract

A matrix is attached which identifies who should perform each step for each of the four types of applications.
The following suggestions pertain primarily when the acquisition involves a major expenditure or affects a large group. They may be reduced or eliminated for less comprehensive acquisitions.