009-025 Procurement Process: CP-1 Approval Documents and MAGIC

009-025 Procurement Process: CP-1 Approval Documents and MAGIC ITS CP-1 Acquisition Approval Form The ITS CP-1 Acquisition Approval form is used to notify agencies and institutions that ITS has approved the agency or institution’s request for the acquisition of information technology equipment, software, or service or has approved the exemption of a procurement from ITS. Upon approval, ITS prepares the form and emails (default), mails, or faxes the CP-1 to the designated contact at the customer agency or institution. This form specifically identifies the name of the vendor, a list of the products approved, associated costs, and any additional pertinent information for acquisitions made through ITS, and specifies the nature of the purchase and the maximum expenditure amount for exempted procurements. For acquisitions made through ITS, the form is the agency/institution’s authorization to issue a purchase order and/or to make ongoing payments to the specified vendor for the products or services identified on the form and at the prices itemized. The agency/institution should promptly issue a purchase order upon receipt of the CP-1 as the CP-1 is based upon proposal pricing the vendor is bound to honor for a specified time period. For acquisitions that involve recurring payments, the CP-1 form specifies an effective date and expiration date, authorizing payments throughout that time period. The frequency of payment, payment amount, and total number of payments to be made are also indicated on the CP-1. The CP-1 form should be kept with related financial records to provide an audit trail of ITS approval. The CP-1 number must be referenced on each related purchase order(s). If a CP-1 approves payment of recurring costs, the dates covered by the payment should be specified on the purchase order. CP-1 Form and MAGIC For state agencies, ITS loads a contract into MAGIC that contains the CP-1 approval information. Customers reference the MAGIC contract for payment processing. CP-1 Revisions (Replacement CP-1s) It is necessary to contact ITS for revised or extended approval if any of the following occur: (1) Major changes to the configuration; (2) The vendor or vendor name changes; (3) The CP-1 has expired and payments still need to be made; (4) The cost exceeds the lifecycle cost authorized on the CP-1. ITS approves a revision or extension by issuing a replacement CP-1. The replacement CP-1 has a different CP-1 number than the original CP-1 and voids the CP-1 being replaced. Once you have received a replacement CP-1, discontinue use of the CP-1 which was replaced. It is not necessary to acquire revised ITS approval for price decreases or minor configuration changes. Lifecycle Cost Authorization on the CP-1 The CP-1 contains a total lifecycle cost and details to show how the lifecycle was derived. The agency/institution is authorized to make payments to the vendor specified on the CP-1 up to this amount. CP-1 Lifecycle Limit: (1) Base Price: • For ongoing CP-1s authorizing monthly, quarterly, semi-annual, or annual licensing, hosting, maintenance, support, rental, or lease purchase payments, the base price is calculated as follows: base price = number of payments (determined by predicted lifecycle) x payment amount • For purchase or one-time CP-1s, the base price is calculated as follows: base price = the purchase or one-time price • For not-to-exceed CP-1s (for instance, a CP-1 authorizing a maximum number of hours for programming services charged by the hour, payable as incurred in varying amounts and/or at non-cyclic times) the base price is calculated as follows: base price = sum of all payments (if applicable, calculated as hourly rate or average hourly rate x the maximum number of hours of service) (2) Cost increases allowed per the RFP and/or the contract: For CP-1s (typically only ongoing CP-1s) based upon an RFP and/or contract that allows a periodic percentage increase in hourly rates, annual maintenance, or other ongoing cost, this increase is included in the amount authorized on the CP-1.