Purchase of Cloud Computing – Software as a Service - 1002.1
Policy
This procurement policy and procedure is only applicable to Cloud Computing Software as a Service (SaaS) purchases that do not include any contracted personnel service (e.g., training, consulting, personal services). Bundled services, which combine contracted personnel services with SaaS, are not allowed under this streamlined procurement process.
Cloud Computing and SaaS are defined in State Administrative Manual (SAM) 4819.2 Definitions.
Departments must adhere to pre-procurement requirements, including California Department of Technology (CDT) policy and confirm proper procurement authority. SaaS transactions related to Non-Delegated IT Projects are subject to CDT’s IT project procurement authority.
Procedure
Contract Classification
The contract classification type for SaaS purchases is:
- Information Technology (IT) Service
Contract Form
Use of the Standard Agreement (STD 213) is not required; use of the following contract forms are permissible:
- Financial Information System for California (FI$Cal) Purchase Order (PO)
- Purchasing Authority Purchase Order (STD 65) for FI$Cal deferred and exempt departments only
Agreement Summary
The Agreement Summary (STD 215) is not required.
Outsourcing Justification
The Government Code (GC) 19130 outsourcing justification is not required, since these services are provided through technology and not by contracted personnel.
Statement of Work
The Statement of Work (SOW) is required, regardless of the acquisition method, and must be incorporated.
The SOW may include contractor’s Service Level Agreement (SLA); however, the SLA must not contain contract terms/provisions that conflict with the state’s standard general provisions or, when applicable, provisions in a DGS Leveraged Procurement Agreement (LPA).
Contract Terms
The Cloud general provisions must be incorporated by reference on the PO or STD 65:
It is prohibited to agree to a contractor’s added contract terms that conflict with the Cloud general provisions. Except in instances where the Cloud general provision contains “Unless otherwise specified in the Statement of Work” (or similar phrase), these modifications can be made without Department of General Services, Procurement Division (DGS-PD) approval.
In case of any conflict, the terms and conditions on the PO or STD 65 will take precedence over any other terms and conditions.
Contact PAMS@dgs.ca.gov with questions about how to apply these provisions appropriately.
Written Offer and Acceptance
Commercial off-the-shelf (COTS) SaaS purchases executed using an acquisition method that does not require a solicitation are exempt from the requirement to create a solicitation for the purpose of obtaining a written offer and acceptance of the state’s general provisions. All other requirements in State Contracting Manual (SCM) Vol. 2 Section 1508 remain applicable.
Leveraged Procurement Agreements (LPA)
When executing contracts using an LPA, the contract terms have already been negotiated and therefore contracts must incorporate the LPA by reference. It is prohibited to agree to a contractor’s added contract terms that conflict with the LPA provisions.
LPA User Instructions must be reviewed for additional guidance; contact the noted LPA administrator for questions.
Legal Reference
Government Code (GC) 19130
Public Contract Code (PCC) 12100 - 12113Related Policy, Procedures & Resources
State Contracting Manual (SCM) Vol. 2, Sections, 1507, 1508, 1803, 1803.1
State Administrative Manual (SAM) 4819.2
Attachments
Not Applicable.
Revisions
No Revisions for this item.