W. Va. Code R. § 112-17-7

Current through Register Vol. XLI, No. 45, November 8, 2024

Section 112-17-7 - Other

7.1. Depository Agreements

7.1.1. W.Va. Code § 12-1-2 requires the STO to designate as depositories various financial institutions in the state that meet the requirements in the W.Va. Code and rules. Bidding is not appropriate as any financial institution in the state that meets the requirements may be a state-approved depository. The number of state-approved depositories in West Virginia exceeds 45. Depository contracts need to have a long term to protect the state since the financial institution receives and hold moneys for which the state is responsible. It is not practical to have to enter into new contracts and bonds on any regular basis due to the large number of contracts and their importance.

7.2. Information Technology (IT)

7.2.1. The types of IT are software, hardware, services and support and maintenance. A procurement may include all types of IT and competitively procured where practical. IT and the procurement of IT carries a high level of risk because of the importance, requirements, rapid industry changes, security, sophistication and privacy issues.

7.2.2. Software procurement requires consideration of whether the software meets the needs of the STO, 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.

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

7.2.4. If the 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 will negotiate in good faith. Once IT finds the quotation acceptable, then a change order to the current contract will be issued with the quotation attached. A new contract is not needed so long as the original contract terms and conditions contained a renewal provision.

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

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

7.2.7. At least one year before a contract in the amount of $5,000.00 or more and with a term longer than one year for software, hardware or IT system terminates, including all available extensions, and IT desires to extend or renew the contract, IT 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 STO. Additional factors to consider include current and anticipated work environment needs, compliance issues, current performance, availability of alternate sources and costs. If the STO determines the contract should not be rebid, it will determine the length of term for the renewal.

7.3. Term

7.3.1. The length of the term of a contract and any extensions are considered at the time the procurement documents are issued and then determined at the time the contract is issued. The STO will use life cycle costing, total ownership or operational cost, or other methods to determine the appropriate length of a term and any extensions or renewals.

7.3.2. A written justification must be in the procurement file for any contract term longer than five (5) years with renewals, as well as for extensions or renewals.

7.3.3. The STO will evaluate existing contracts with terms exceeding five (5) years every other year prior to termination using life cycle costing and total ownership or operation cost procurement methods to determine whether the commodities or services should be bid.

7.4. Term - Contracts for Investment Management Services

7.4.1. At the discretion of the Board of Treasury Investments, contracts for investment services and necessary rating services may be extended from year to year indefinitely after the expiration of the initial term of the contract if said extension is determined to be the action most consistent with the Board's fiduciary duties and the following requirements are met:

7.4.1.a. The Board of Treasury Investments presents in writing a memorandum to the Board with the following information:

7.4.1.a.1. Rationale for continuing to renew for each yearly renewal after the initial term, including an explanation of how continued renewal is the action most consistent with the Board's fiduciary duties; and

7.4.1.a.2. Analysis of whether the Assets Under Management (Market Value) rate and the basis point rate assessed can be shown to be a competitive rate within the government investment services sector.

7.4.1.b. The Board of Treasury Investments obtains a majority Board vote in favor of renewal after presentation of the memorandum. This vote must occur at least six (6) months prior to the next renewal period at a regular or special meeting of the Board of Treasury Investments; and

7.4.1.c. Vendor agrees to the renewal.

7.5. If all requirements in subsection 7.4.1. are met, the renewal will be issued in accordance with the rules contained herein. If all the requirements are not met, the Board of Treasury investments will complete the necessary solicitation to obtain the needed investment services.

W. Va. Code R. § 112-17-7