QUESTION-No.

1:
What do you understand by the term Technology Acquisition? Discuss advantages of
acquiring technology compared to building technology.
Answer:Technology Acquisition - Acquiring new technology to sustain or enhance your business
can be one of the most critical activities your business engages in. It is often left to the
vendors of those technologies to define and quantify how your business will benefit from
the often substantial capital outlays required. Through our technology acquisition services,
we can help ensure that the benefits expected are the benefits derived.
Key Benefits:

Quantify the business requirements for the technology

Determine the key vendors
Rank the vendors against the technology requirements
Recommend the technology and vendor
Assist in acquisition negotiations
Review technology implementation plans

1) The Life Cycle of Technology

We understand the life cycle of technologies and the fact that these life cycles are
continuing to shorten as the pace of technological innovation increases. We can recognize
when a technology is ready to go mainstream giving a maximal return on investment. We
also recognize an "end-of-lifer".
2) The Benefits versus the Costs of a 1.0 Technology
Acquiring the latest technology has its benefits and its associated risks. We can help
identify both the potential benefits as well as the concomitant risks. And then put those
benefits and risks into a financial perspective.
3) We understand the Technology Sales Cycle
We can help identify the proper negotiating approach to ensure that both you and your
vendors have a successful experience. We have seen all of the sales outcomes - "lose/lose",
"win/lose", "lose/win" and "win/win". We can help you win in your negotiations.
Technology plays a key role in most enterprises, however it doesnt always make sense to
tie up valuable working capital on equipment that can be superseded rapidly.
4) Leasing can provide advantages
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Rather than purchasing technology-based equipment like phone systems, computers and
peripherals, there can be advantages to leasing them. There are two main types of lease
available to business operators: finance leases, and operating leases.
Broadly speaking, a finance lease lasts for a defined period, with a residual payment due
at the end of the lease term. As the lessee, you may be able to purchase the asset outright by
paying this residual, or simply transfer the lease to a new piece of equipment.
By contrast, an operating lease involves renting your equipment for a set period, generally
without any intention of owning it. As a plus, you may be able to upgrade the equipment
before the lease expires. Unless the technology you are purchasing is of significant value, it
is likely you will be offered an operating lease.
One of the key advantages of leasing rather than owning business equipment is that it lets
you meet the cost of an item over an extended period using regular lease payments rather
than making one large payment upfront. This allows for better cash flow management,
letting you conserve working capital for other aspects of the business including possible
expansion.
From a tax perspective, there are significant differences between leasing and purchasing
equipment. Lease payments are generally fully tax deductible, and so can be used to reduce
the ventures tax bill. When equipment is owned rather than leased, your tax deduction is
limited to an annual depreciation claim at rates set by the Australian Taxation Office.
One further plus of leasing over buying is that responsibility for maintenance of the item
often rests with the owner (or lesser), not you (the lessee). This can save you a lot if your
equipment malfunctions.
On the downside, it is likely to be a condition of any lease that you take out insurance for
the item, though it is wise to have all your business equipment insured irrespective of
whether it is leased or owned.
As there are pros and cons associated with both purchasing and leasing business
equipment, it is worth speaking with your accountant to determine which option is best for
your particular business.
If you do choose to lease, give careful consideration to the lease term. It is usually far
cheaper to extend the term rather than arrange an early termination of the lease.

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QUESTION-No.2:
Differentiate between a Project Plan and a Project Schedule. Discuss various
requirements that need to be defined in planning phase of technology acquisition
project.
Answer:Difference between Project Plan & Project Schedule:
Project plans and project schedules are two of the main documents used to successfully
guide a project to completion.
1) Project Plan
The project plan is the formal document used to define the manner in which the project will
be managed and guided. Project plans provide the necessary actions to define and
coordinate the entire subsidiary plans included within the project plan.
2) Project Schedule
A project schedule is a series of tasks and associated dates for a given project. Its main
purpose is to show the time line over which a project will be completed, including start and
end dates for tasks.
Project Plan Components:
The project plan can be described as a series of plans within a plan. This document depicts
the different plans required for a project including the risk plan, communications plan, and
resource plan. Additionally, stakeholders are often defined, and business objectives are
detailed. The Project Management Office for an organization usually provides the required
template.
Project Schedule Components:
Project schedules are composed of a hierarchy of activities and tasks with associated dates,
which are then characterized by the duration of the project. Often the amount of resources
and estimates are incorporated into the schedule and often represented by a Gantt chart.
Tools:
Many tools exist in the project management industry to help create project plans and
project schedules. Project plans are often a document created with a word processing tool
and distributed to the project stakeholders.

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Project schedules are often created as part of a project management software suite or
standalone scheduling tools such as Microsoft Project.
The planning phase for Project:
The planning phase for Project technically begins during the Initiation Phase of the Project
Management Life Cycle, when consideration is given to overall scope, budget and
schedule. During the Initiation Phase, the Project should consult with the OSI Procurement
Center for preliminary guidance and direction on the development of their State and The
Planning Phase for the Acquisitions Life Cycle begins when all State and Federal approvals
to proceed with the project have been secured and the project is ready to procure a new
system or refresh an existing system. IEEE Standard 1062, 1998 Edition, provides the
framework for all activities conducted during this phase. The key steps in the Planning
phase include planning and obtaining approval of the overall acquisition strategy through
the Information Technology Procurement Plan (ITPP) approvals, developing requirements
and building them into the Request for Proposal, and determining the evaluation and
selection criteria that will be used to determine the contract awardee. The Procurement
Center Staff will lead the Acquisition Team through this phase. The phase ends with the
release of the RFP.
There are different schools of thought when considering a phased approach to project
management. Some may claim there are 3 phases to a project while others say its 5. All in
all its reasonable to adopt the most suitable approach depending on Industry type or
project scope. The management of a project is solely based on the basic idea that a project
goes through a number a phases characterized by a distinct set of activities or tasks that
take the project from conception to conclusion. Projects may be big or small, constrained
by cost and time often complex and therefore it is important to take a structured and
defined approach to managing them through their entire lifecycle.
Lets take a look at the 5 phases:

Project Initiation
A project is formally started, named and defined at a broad level during this phase.
Project sponsors and other important stakeholders perform their due diligence on
whether or not to undertake a project, or choose to undertake one project over another.
Depending on the nature of the project, feasibility studies are conducted or as it may
require, in an IT project requirement gathering and analysis are performed in this
phase.

Project Planning
It is during this phase that a project management plan is developed all comprehensive
of individual plans for cost, scope, time, quality, communication, risk and resources.
Some of the important activities that mark this phase are -making WBS, development

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of schedule, milestone charts, GANTT charts, estimating and reserving resources,

planning dates and modes of communication with stakeholders based on milestones,
deadlines and important deliveries. Projects have identified and unidentified risks that
may affect aspects of projects in later stages, hence a plan for managing these risks
should they happen is determined. Risk management planning includes risk
identification and analysis, risk mitigation approaches and risk response planning.

Project Execution
In the execution phase, the project deliverable is developed and completed, adhering to
the plan as developed in the previous phase. The project execution and project
monitoring and Control are the 2 phases that mostly occur simultaneously. A lot of
project management tasks during this phase capture project metrics through tasks like
status meetings and project development updates, status reports, human resource
development and performance reports.

Project Monitoring and Control

This phase mostly deals with measuring the project performance and progression with
respect to the project management plan. Scope verification and control to check and
monitor for scope creep, change control to track and manage changes to project
requirement, calculating key performance indicators for cost and time are to measure
the degree of variation if any and in which case corrective measures are determined and
suggested to keep project on track.

Project Closure
A project is formally closed in this phase. It includes a series of important tasks such as
making the delivery, relieving resources, reward and recognition to the team members
and formal termination of contractors in case they were employed on the project.

Planning:
At the onset of a project, you establish the plan first.
The project plan focuses on the big picture, the ideas and ideals of the project goal overall.
Think of it as a cloud of options all leading to the same goal.
The project schedule can only be put into place after the plan has been accepted and
understood by all parties working on it.
The schedule deals with specifics, dates and duration, and assigns each member of the team
concrete tasks to be completed at certain points.

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Organization:
The project plan is organized in outline form with a clearly stated goal at the top of the
plan. After that, define the scope of the project; determine how many people you'll need to
pull it off and estimate the costs, balancing them with end profits.
Establish a budget. After you determine these main factors, start scheduling. Determine
each individual's roles and responsibilities.
Divide the plan up into small tasks, each with its own due date for completion and assign
someone to be in charge of each task. A schedule is in large part estimation. As difficulties
arise, they may necessitate changes in the schedule. The schedule is fluid, whereas the
project plan is stable.
Setup Tools:
A project plan contains a series of components within the main plan, including sections
devoted to quality, risk assessment, communications, procurement and improvements. This
entire arc can be visualized by using simple documents with any word processing
program. The project schedule usually relies on software such as Microsoft Project,
Basecamp or Intuit Quick-Base.
A favored method of scheduling uses Gantt Charts, which are bar charts that show the start
and finish dates of tasks within a project, while illuminating the different elements'
relationships and connections to each other.
Implementation:
Set the plan into motion, using the specifics of your schedule. At this early stage, the two
work hand in hand. As difficulties arise, make sure your workers have all resources
available to them to troubleshoot on their own. They'll need to take into account the
availability of necessary tools, undesirable outcomes and inefficiency from outside sources.
All these can cause potential delays. As setbacks crop up, you'll need to adjust the
schedule, but you only need to change the plan if something you outlined has become
impossibility.
Good communication between all parties involved is necessary. As you manage the team,
determine how firm and involved they need you to be.
If your workers are competent, the plan should direct them as to the content of the project,
and the schedule should alert them to the structure.

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QUESTION-No.3:
Prepare an LOI (Letter of Intent) for acquiring technology for a departmental store
point of sale system. You are required to send this letter to head of sales organization
of vendor/s.
Answer:LETTER OF INTENT
[24-May-2015]
Seller [1]
Seller [2]
...
Seller [8]
Ladies and Gentlemen:
This will set forth the preliminary intention of the parties as to general terms upon which
Head of Sales would consider acquiring from you ("Sellers") all the outstanding capital
stock of ("Company").
1. Upon the closing of the sale, Buyer would acquire all of the capital stock of
Company from the shareholders of Company in exchange for an aggregate payment at
closing of in cash, subject to adjustment, and promissory notes of Buyer in the aggregate
principal amount of $__________. Each Seller would receive cash equal to $_________
per share owned, subject to adjustment, and a promissory note in the principal amount of
$________ per share. Our willingness to consider this proposed transaction is conditioned
on the willingness and eventual agreement of all shareholders of the Company to sell on
terms acceptable to Buyer.
2. As promptly as practicable and in any event by _________, Buyer's counsel will
prepare an initial draft of a definitive stock purchase agreement ("Purchase Agreement")
and other related agreements for review by you and your counsel. The draft Purchase
Agreement will provide for customary representations and warranties, covenants,
conditions to closing, escrows, and indemnities. The parties will endeavor to negotiate and
execute a final definitive Purchase Agreement on or before and to close the sale on or
before _________. The parties anticipate that prior to the execution of any definitive
Purchase Agreement, Buyer will have the opportunity to conduct due diligence of the
Company and you will have the opportunity to conduct due diligence of Buyer.
3. It is understood that before the parties would consider entering into a definitive
Purchase Agreement, (a) Buyer shall have been satisfied with the results of its due
diligence investigation of Company, and (b) Buyer shall have become satisfied that it is
able to borrow $__ million of the cash portion of the purchase price on terms acceptable to
Buyer.

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4. It is agreed that each party shall bear its own legal, accounting, investment
banking, and other expenses in connection with the negotiation, documentation, and
closing of the acquisition, whether or not a closing occurs. Any expenses borne by
Company would be deducted from the purchase price in the event of a closing. Each party
represents that it has not engaged any broker or finder in connection with the acquisition.
5. The parties agree that this letter is merely an expression of intent and neither
party is under any legal obligation to the other unless and until a definitive Purchase
Agreement is executed, except for (a) the provisions of paragraph 4, this paragraph 5, and
paragraph 6 and (b) the From the Model Stock Purchase Agreement, Second Edition. The
Prefaces, Preliminary Notes, Appendices, and Commentary to the second edition of the
Model Stock Purchase Agreement, Exhibits, and Ancillary Documents are protected under
United States copyright law and may not be reproduced in any manner without express
permission from the American Bar Association. Notwithstanding assertions otherwise, the
Model Stock Purchase Agreement itself and it Exhibits and Ancillary Documents, as they
appear in the printed publication and on its accompanying CD-ROM, may be freely
reproduced by the reader. Confidentiality, agreement executed by Buyer with respect to the
confidential information of Company.
6. It is agreed that any party may cease pursuit of the contemplated transaction at
any time for any or no reason. No party is obligated to negotiate in good faith. If the
foregoing is in accordance with your understanding, please execute and return the enclosed
copy of this letter.
Very truly yours,
________________________________
Buyer
Seller [1]
Seller [2]
Seller [3]
...
Seller [8]

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QUESTION-No.4:
What is an RFP? Design an RFP for acquiring technology for a medium sized
production unit.
Answer:DEFINITION of 'Request for Proposal - RFP':
A type of bidding solicitation in which a company or organization announces that funding
is available for a particular project or program, and companies can place bids for the
project's completion. The Request for Proposal (RFP) outlines the bidding process and
contract terms, and provides guidance on how the bid should be formatted and presented. A
RFP is typically open to a wide range of bidders, creating open competition between
companies looking for work.
Definition#2:
A request for proposal (RFP) is a document that an organization posts to elicit bids from
potential vendors for a desired IT solution. The RFP specifies what the customer is looking
for and establishes evaluation criteria for assessing proposals.
An RFP generally includes background on the issuing organization and its lines of
business, a set of specifications that describe the sought-after solution, and evaluation
criteria that discloses how proposals will be graded. RFPs may also include a statement of
work, which describes the tasks to be performed by the winning bidder and a timeline for
providing deliverables.
Elements of an RFP:
Before you circulate your RFP, ensure that it is comprehensive by considering the
following elements.
Organizational Overview
Provide a short description of your organizations mission and projects. This gives the
vendor some background and focus as to the needs of the project.
Project Goals
Identify the programmatic goals of the project. This allows the vendor to see how the
project will serve the needs of the organization, and whether it fills a particular niche or
program area or is a system that offers general support to numerous organizational goals.

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 Target Audience
Describe who will be using the project deliverables and how large that audience is. Include
any significant technical needs your audience may have. Describe how they will interact
with the site, the organization, and each other throughout the project.
Project Deliverables and Specifications
Identify the major components of the project. Describe the required features and design of
each component, along with the support services you will require from the vendor both
during development and after the project launch. The more details here, the more accurate
the cost estimates will be. For areas where there are few rigid requirements, outline your
goals and invite proposals for creative solutions.
Project Requirements
Describe the administrative requirements and guidelines for the project, including
completion dates, expectations on project testing and evaluation during development,
intellectual property rights, billing requirements, and the maximum price range vendors
should bid within. (Note that this price range should be lower than your internal budget for
the project. Always allow yourself space to negotiate up if necessary.) Indicate where you
want vendors to contribute their own recommended solutions, and where they should
adhere to your exact specifications.
Proposal Format
Describe the elements required in vendor bids, such as budget and cost breakdown per
deliverable; tasks and timeline chart; staff roles and responsibilities; and vendor
description. Outlining these elements ensures that vendors will give you what you want,
and allows you to directly compare (and filter out) vendors.
Request for References
Describe what information you require in references, such as how recent or long-term the
clients were, what kinds of clients you would like to hear from, what kind of contact
information you need, whether they are current or past clients, and so on.
Proposal Delivery Instructions and Contact Information
To whom should proposals be addressed? How many copies should be sent? How should
they be delivered (fax, email, mail), and who is the point of contact for phone inquiries? Is
this a closed by invite only RFP or open, meaning you allow (or encourage) vendors to
share this proposal?

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 Proposal Evaluation Timeline

Identify the vendor selection process and timeline. Consider that vendors may provide
useful feedback during phone calls that necessitate changing a part of the RFP schedule
this in so bidders know when to expect more clarifications. Adhering to a set process
communicates to vendors that you know what you are doing. Vendors often spend nonbillable time on proposal writing, so managing their expectations of your process helps
build harmonious relationships.
Designing an RFP for acquiring technology for a medium sized production unit:
Activity Purpose:
...
Roles
Responsible
Project Sponsors
Project Owners
Resource Managers
Project Managers*
Project Team
Subject Matter Experts

Approval
x
x

Consult

Inform

x
x
x

* The ISC representative with whom the client will work and who is responsible for
driving the request to a point of approval or denial.
Deliverables/Outcomes:
REQUEST FOR PROPOSAL:
Guidance:
What is the attached template?
This is a template for a Request for Proposal, or RFP, to be used when ISC-sponsored
projects seek to obtain vendors bids to sell us their software. This template is only a
guide; sample RFPs are also available on the Administrative Systems LAN.
Why do an RFP?
A Request for Proposal (RFP) is the way the University requests competitive bids when it
intends to acquire a product created by a vendor. By asking each vendor to develop a
proposal that contains specific information, bids containing consistent information can be
compared with each other, so Penn can make the best possible decision about which
product to acquire.

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What is the difference between an RFI, an RFS and an RFP?

An RFI, or Request for Information, is designed to collect information from a supplier or
vendor with no commitment to engage in any particular project. It is very likely that in an
RFI no project details would be provided. Instead the document would focus on the vendor
capabilities, skills and experience.
An RFS, or Request for Service, is designed to obtain services rather than items such as
software or hardware. For example, ISC may be seeking vendors who will provide various
kinds of support for software or hardware we currently have.
An RFP, or Request for Proposal, focuses on specifying a scope of work that needs to be
performed (the RFP) and solicits in response a Proposal from the vendor describing how
they would go about executing the project - including pricing information.
Using the attached template:
This template is designed to be fairly comprehensive. In addition to the specific sections to
be included in an RFP, it also includes boilerplate language for the Legal Requirements,
administrative Requirements and RFP Terms and Conditions.
Some notes about the template RFP:
1) Information about, or a description of, each section is provided in brackets, like this
[ ].
2) Sample language that may be included as is or may be revised based on how the
RFP will be used is either: a) provided in italics, or b) if longer, provided in an
Appendix.
3) Boilerplate language is provided in regular font; this language should not be
changed.
4) The footer contains some items that should be used in every RFP, such as page
numbers, the word Confidential, the Penn logo, etc.
Using the Purchasing Smart-Source system:
When distributing your RFP, consider using the Purchasing Services electronic system for
obtaining competitive bids: IASTA SmartSource. This system allows the RFP to be
distributed to vendors electronically and lets them to respond the same way. It also
includes a forum where vendors can post questions related to Penns RFP requirements;
Penn staff can then respond, either to all vendors at once or to individual vendors. One
issue when using SmartSource: when uploading requirements, SmartSource creates
requirement identification numbers automatically. Therefore, although it retains
requirements in the correct order, it cannot retain any previously created numbering system
unless the numbers are included in the actual requirements.

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QUESTION-No.5:
Compare and contrast Vendor Site Demo, Vendor On Site Demo, Vendor Reference
Calls and Vendor Customer Site Visits as research methods
Answer:VENDOR DEMONSTRATION:
(Insert vendor name), hereinafter referred to as the "vendor", is authorized to demonstrate
(describe the product or service).
A. Location of Demonstration and Product/Service Display
This demonstration and product/service display shall be presented to NOAAs (name the
line or staff office) in (name of location/building number). (Identify number) of vendor
personnel will participate in the demonstration.
B. Dates and Duration of Demonstration and Product/Service Display
The vendor demonstration is scheduled to occur (date(s) and time); all necessary
equipment and other materials shall be transported to and from the demonstration site by
the vendor.
C. Agreement Terms and Conditions:
The parties to this document agree as follows:
1) The vendor shall demonstrate the capabilities of (state the product or service). The
vendor personnel or personnel using vendor provided equipment will conduct the
demonstration. The sole purpose of this product/service display is to demonstrate the
aforementioned capabilities of (name of vendor). Government personnel will not
endorse the vendor's product.
FOR SELECTED VENDOR DEMONSTRATIONS, THE TERMS IN PARAGRAPH 2
APPLY IN LIEU OF THE TERMS IN PARAGRAPH 1 ABOVE WHEN PARAGRAPH 2
IS MARKED AS APPLICABLE.
2) If applicable, the vendor agrees to allow trained Government personnel to use the
product described herein for the above stated period, at no charge to the Government.
Government personnel will not endorse the vendor's product and will use reasonable
care when handling the product.

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3) Vendors will have sole responsibility for furnishing all supplies, equipment, etc.,
necessary to accomplish the demonstration, display, or service. On occasion, it may be
desirable for the Government to furnish certain supplies and/or equipment from
Government assets to support vendor demonstrations. For the demonstration to be
performed under this agreement, the Government will provide (describe any
Government assets to be provided or enter N/A ). In the event Government assets are
furnished, the vendor agrees to repair, replace, or fully reimburse the Government for
any damage or loss incurred while the supplies and/or equipment are in the vendor's
possession or use.
4) The vendor demonstration and product display are conducted for the sole purpose of
demonstrating product capabilities and not for fulfilling mission requirements for an
interim time frame. The examination and demonstration of items or services will in no
way, expressed or implied, obligate the Government to purchase, or otherwise acquire,
the items demonstrated or displayed. The Contracting Officer is the duly authorized
representative of the Government for purposes of this agreement.
5) The Government assumes no cost or obligation, expressed or implied, for damage to,
destruction of, or loss of any vendor-provided equipment or material used in the
demonstration. All risk of loss, destruction and/or loss of property brought onto a
government site by vendor shall be solely at the risk of the vendor.
6) The vendor is responsible for all food, lodging, and transportation expenses incurred by
their personnel as a result of this product demonstration.
7) In return for the opportunity to demonstrate the capabilities of (state the product or
service), the vendor agrees not to file any claims against the Government, or any of its
authorized agencies, or otherwise seek any form of reimbursement for the use, or
compensation for the loss, damage to, or destruction of the product displayed during
this demonstration. The vendor agrees to release and hold harmless the United States,
the Department of Commerce, and all their employees and contractors from any and all
claims or demands resulting from any loss, damage, death or injury, that may arise due
to use of the vendor's product or service. Any litigation, if brought, shall be prosecuted
exclusively in the Court of Federal Claims.
8) The Government is not bound or obligated in any way to give any special consideration
to the vendor on future contracts as a result of this demonstration.
9) The parties have executed this agreement as of the dates set forth below.
VENDOR: ____(enter vendor name)____________________
By: ___________________________________

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(Signature of Vendor representative)

GOVERNMENT: (enter name of Line or Staff Office)
By: ___________________________________
(Signature of Government representative)

Date:___________________

COUNTRY Name
By: ___________________________________
(Signature of Contracting Officer)

Date:__________________

_____________________________________
(Typed or printed name of Contracting Officer)
Scheduling Vendor Demonstrations:
The focus of the system selection phase for EHR implementation should be vendor
demonstrations. Vendor demos provide the chance to see the look and functionality of an
EHR application. The purpose of the demo is to get an overview of the application and to
ask the vendor questions.
This document provides helpful hints on planning and attending EHR application
demonstrations:

A good number of demos to request is somewhere between five and 10. Fewer than
five, you probably will not see enough vendors to get a feel for the functionality that
exists in the market. With more than 10, and you will probably lose track of the subtle
differences among vendors.
We recommend attending the demos of five to 10 vendors, and if you still dont have a
good feeling about any of the products, select another group of five to 10 and repeat the
process.
Attending demos can be a tedious process. Pace yourself, and try not to see all of the
demos in the same week.
When the vendor contacts you to set up the demo, be clear about which products you
would like to seeEHR or EHR and practice management system.
The vendor will offer either an onsite demo or a WebEx demo. At this point, either
onsite or WebEx demos would be appropriate.
For an onsite demo, youll usually need an Internet connection and a screen or some
way for the vendor to present the demo. Be sure to ask the vendor what equipment is
needed for the demo.
For a WebEx demo, youll need a telephone with speakerphone, a computer that is
connected to the Internet and a screen or some way for everyone to view the demo.

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Practices vary on which staff members are invited to the vendor demos. At a minimum,
the physician champion and practice manager should attend. Ideally, the entire
implementation team would be invited to attend the demo.
The demo should last approximately 1.5 hours for the EHR portion. Allow more time
for a demo of the EHR and the practice management system together. Come prepared
with a list of questions for the vendor (see the Questions for EHR Vendors section for
model questions). Ask each vendor the same questions to get a feel for how the
different EHRs compare.
Also come prepared with some clinical scenarios or specific workflows for the vendor
to walk through. The scenarios will give you a chance to see the EHR in action.
Also ask the vendor to show how certain reporting tasks would be possible. For
example, how does the application report on patients with a particular disease,
medication, or lab result? Also ask questions with multiple search parameters: for
example, how does the application report on patients with diabetes who, within the past
year, have had a HbA1C > 9.0%?
During the demo, try not to interrupt the vendor with questions too often. Its
sometimes hard not to ask everything that comes to mind, but the vendor will need to
pace the demo within the allocated time so you can view all the information. By all
means ask questions, but you may want to see a particular function all the way through
and then ask questions at the end.
After seeing all the vendor demos and narrowing your choices down to the serious
contenders, request references from each of the vendors. These references will be other
customers that use the EHR product and have had a good experience. Your
implementation team can schedule phone call interviews with these references to get an
idea of their experience.
After the product demos and reference phone calls, youll be able to further narrow
your list of EHR vendors. Experts say to enter contract negotiations with at least two
vendors to provide the necessary leverage to get the best deal. For these remaining few
vendors, request references from these vendors for practices that you can visit onsite.
These may or may not be the same references called previously for telephone
interviews.

Scenario to Provide the Vendor:

Provide the information below to the vendor so that it is populated before the
demonstration.

The purpose of this demonstration is to get a good idea of the workflow capabilities of
your program, highlighting current meaningful use criteria, the ease of documenting
and tracking PQRI quality measures. Please follow the provided scenario as closely as
possible. There will be time afterwards to highlight any additional features your
software has to offer.
The information below should be pre-populated for the vendor demo:

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Information to be entered During Demonstration:

Do not provide this information to the vendor prior to the demonstration but have them
enter it during the demonstration to see how the system handles it.
Evaluating the Scenario:
Use the evaluation matrix to evaluate how each of the vendors do with the scenario.
Vendors should be able to walk through this scenario once they have entered the
background data provided.
Allot time for the vendor to demonstrate other features of interest after the scenario is
completed.
Instructions: Note difficulties in performing the documentation tasks, and score the ease of
each task from 1 (very difficult or time-consuming) to 5 (easy and quick). Make sure to
pay attention to the number of mouse clicks and screen changes it takes to complete one
task and check for visibility of key information and the intuitiveness of the user interface.
Questions for EHR Vendors:
These questions address issues other than product functionality. Some of these questions
may be important to ask early in the vendor selection process, and others may be more
appropriate to ask when choosing between two or three vendors.

Vendor Name
Date of Meeting
Name of Sales Contact:

Questions about the company:

1. How long has your company been in business? How many employees do you have?
2. Of those employees, how many are dedicated to research of new products, sales, and
ongoing support? What is the R&D budget?
3. How long has the EHR product been offered. Was it bought from another company?
Was the practice management system bought from another company?
4. What were your total sales last year? Last quarter? How many sales people and trainers
are assigned to this region?
5. What is your total customer base? What is your total customer base? Of those, how
many are new within the last year?
6. Does the company hold regular user meetings?
7. Is your company involved now in any litigation with a customer? Has your company
been fired from a job in the past three years?

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Interface questions
1. Can your software interface with practice management systems? Lab systems? Is there
an added cost for these interfaces?
2. What existing interfaces are up and running?
3. Can I speak with a provider or administrator a clinic presently using these interfaces?
Implementation questions:
1. Will your company assume all aspects of implementation (i.e., hardware and software)?
2. Does the training occur onsite or at your facilities? Is this training included in the
overall cost?
3. Are you willing to be flexible with your training methods (e.g., individual versus group
training based on our needs)?
4. Is your software tailored for physician specialties (e.g., ob/gyn)? What sort of
customization, if any, is needed for specialties?
5. Describe the process of transition to EHR. What are some of the difficulties? What can
I expect?
6. (If interested in voice recognition) Describe how your voice activated system works.
How easy or difficult is the transition? Will I need to have an auditor for some time
after I move to voice activated notes?
7. At what point in the process does the salesperson transition to implementation
specialist?
8. How often will a support person(s) be available once the system goes live, in case of
any system difficulties?
Technical/maintenance questions:
1. What personnel and qualifications do I need to support and operate this system?
2. Does your system include any database reporting tools or special links to popular
reporting products that run under Windows? Which ones?
3. Does this system work over the Internet or do I need to purchase a server?
4. Does the system require regularly scheduled (e.g., daily, monthly) down time for
backups, system maintenance, etc.? Briefly explain.
5. What safeguards (e.g., fault tolerance, hardware redundancy) are included that
eliminates unplanned downtime?
6. What are your data retention capabilities, if any, and recommendations for maintaining
history on-line?

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QUESTION-No.6:
Differentiate between Structured Unstructured Research Evaluation Methods. Which
one is better?
Answer:In a structured Research Evaluation Methods, each candidate is asked similar questions in
a predetermined format. Emphasis tends to be on your past experience and assets you can
bring to company. Typically, the interviewer records your answers, which are potentially
scored on a standard grid.
Unstructured Research Evaluation Methods are much more casual and unrehearsed. They
depend on free flowing conversation which tends to focus on your personal qualities as
they relate to the work. Questions about skills and strengths can be asked and should be
answered as formally as in a structured interview.
Unstructured Research Evaluation Methods may be so by design of the interviewer, or may
be so due to the spontaneity of the eventyou might find yourself in an unstructured
interview after being introduced to a potential employer by a friend, or while dropping off a
resume in person at a location in which you wish to work.
Conversation and exchange is more important than the particular questions being asked. In
such an interview it is important to hold on to the main points you want this employer to
hear, and weave them into the conversation. Try to relax in the format be polite, mature
and sociable.
1- Structured Research Evaluation Methods:
The questions are asked in a set / standardized order and the interviewer will not deviate
from the interview schedule or probe beyond the answers received (so they are not
flexible).
These are based on structured, closed-ended questions.
Strengths:
1. Structured Research Evaluation Methods are easy to replicate as a fixed set of closed
questions are used, which are easy to quantify this means it is easy to test
for reliability.
2. Structured Research Evaluation Methods are fairly quick to conduct which means that
many interviews can take place within a short amount of time. This means a large
sample can be obtained resulting in the findings being representative and having the
ability to be generalized to a large population.

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Limitations:
1. Structure Research Evaluation Methods are not flexible. This means new questions
cannot be asked impromptu (i.e. during the interview) as an interview schedule must be
followed.
2. The answers from structured Research Evaluation Methodslack detail as only closed
questions are asked which generates quantitative data. This means a research will won't
know why a person behaves in a certain way.
2- Unstructured Research Evaluation Methods:
These are sometimes referred to as discovery interviews & are more like a guided
conservation than a strict structured interview. They are sometimes called informal
interviews.
An interview schedule might not be used, and even if one is used, they will contain openended questions that can be asked in any order. Some questions might be added / missed as
the Interview progresses.
Strengths:
1. Unstructured Research Evaluation Methods are more flexible as questions can be
adapted and changed depending on the respondents answers. The interview can deviate
from the interview schedule.
2. Unstructured Research Evaluation Methods generate qualitative data through the use of
open questions. This allows the respondent to talk in some depth, choosing their own
words. This helps the researcher develop a real sense of a persons understanding of a
situation.
3. They also have increased validity because it gives the interviewer the opportunity to
probe for a deeper understanding, ask for clarification & allow the interviewee to steer
the direction of the interview etc.
Limitations:
1. It can be time consuming to conduct an unstructured interview and analyze the
qualitative data (using methods such as thematic analysis).
2. Employing and training interviewers is expensive, and not as cheap as collecting data
via questionnaires. For example, certain skills may be needed by the interviewer. These
include the ability to establish rapport & knowing when to probe.

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QUESTION-No.7:
What is the importance of Negotiation in Technology Acquisition? Discuss leverage
points available both for technology acquiring organization and vendors.
Answer:Negotiation is nothing but a discussion among individuals to find out an alternative which
takes into account the interest of all and nobody is at loss. In a win- win negotiation people
try their level best to come to a solution where everyone is benefited and nobody is at loss.
Negotiation is essential incorporates to avoid conflicts and improve the relations among the
employees. Dont be too rigid and adamant in the office.
Let us understand how negotiation is important in Technology Acquisition:
The process of negotiation in Technology Acquisition starts the moment an employee gets a
selection call from an organization. It is essential that the individual responsible for hiring
employees negotiates well with the candidate and offers him the best salary. Every
organization runs for earning profits and thus the HR Professional must try to make the
person join at the lowest possible salary but make sure you do not offer him anything less
than his previous salary. He will never be interested to join. Even if he joins, he will not
take his work seriously and the results would be zero. Discussions are important. Make him
realize that money is not the only criteria for selecting a job. Other things like ones job
responsibilities, job security as well as the brand name should also be considered.
The negotiation style plays an important role in corporate. Do not offer anything
exceptionally high as it would again create a problem among the existing employees.
Ensure that you are little tactful and do flash your trillion dollar smile. It helps. No way can
you annoy the individual.
Negotiation is also important when you are dealing with vendors:
An organization needs money to survive and take care of the employees as well. It cant
afford to spend money as it is. A single penny saved will help you and the organization
later. The person dealing with the external parties must be a good negotiator else he
will end up paying more amount than required. Always sit with the vendor and quote a
price little lower than you intend to pay. He will definitely ask you to increase it and
probably then you will reach to a figure well within your organizations budget. Dont be
rude with your vendor but be very confident and convincing. Remember you are not
dealing with him just once; you need to maintain a healthy relationship with him for future
business as well.

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Try to convince the vendor at such a rate which would benefit your organization and save
money. Quote realistic figures and do take care of the vendors profits as well. Try your
level best to close the deal.
One should never accept terms and conditions verbally, its always better to have
something in black and white probably a contract as it is more reliable. The terms and
conditions must be discussed on an open forum and should be signed in presence of both
the parties so that no body backs out later.
One should also learn to negotiate with ones superiors. Remember negotiation does not
mean you have to shout on others, you need to be polite. Dont accept responsibilities just
because your boss wants it. If you are not comfortable with any role, its better to decline it,
rather than accepting something you are not familiar with and losing interest later. After all
there are other employees as well, they can accept the same and you can do something else
which suits your profile. If you know you will not be able to submit the project within the
stipulated time frame, tell your boss. Never hide things from him. Be straightforward. If
you want to go for a leave, try to negotiate with him that probably you will attend office the
coming weekend or sit for some more time in the coming days to compensate for the loss.
Be a little patient.
Conflict must be avoided at the work place as it only leads to negativity all around.
Negotiations help to reduce conflicts at the work place. Conflicts arise when individuals are
too rigid and are just not willing to compromise with each other. Negotiations help in
finding an alternative which benefits all.
Let us understand the importance of negotiation in corporate with the help of a
simple example:
Ted was working with a leading organization. He was a smart negotiator. He always
negotiated well with his superiors as well as his fellow workers and thus a enjoyed his
work. He only accepted those responsibilities he knew he was capable of doing. No doubts
his work was error free, and he was his bosss favorite. He was always well informed
before going for any negotiation with vendors, never lost his temper and always closed the
deal in favor of the organization. Good negotiation skills helped Ted be the most
appreciated employee among all.
The Role of Leverage in a Technology Acquisition:
Generally, the company with the most leverage in a negotiation gets the better deal.
Without leverage, the other company has no reason to concede anything except the
standard terms. On the other hand, if you have leverage, you can use it to shape the deal to
your liking. Gaining leverage is one of the biggest benefits of going through such a
rigorous technology acquisition process. Information provides you with leverage.

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Gathering this information during the Research phase and creating a competitive
environment between vendors is what gives you the most leverage walking into a
negotiation.
For example, during the Research phase, you might learn that your chosen vendor has
recently lost two deals to its top competitor. Contacting the buying companies to find out
why they chose another vendor could identify an issue with the product of the vendor you
are negotiating with. Bringing this issue up during negotiations will really put the heat on
the vendor because the company recently lost two deals for that specific reason. Research
the vendor thoroughly, so that you know everything there is to know about the vendor, and
you will discover what it can and can't concede during the Negotiation process.
Determine your leverage points. Start by creating a list of leverage points in your
favor. An example list might include the following items:

Name recognition: The vendor can use this as a marketing tool. Strategic customer:
The vendor sees your business as critical to the success of its company.
Potential future sales: If you are buying 100 licenses of the vendor's product and there
is a good chance that you will purchase 2,000 licenses within the next two years, you
can use this future purchase to get volume pricing on the initial 100 licenses.
First to a market: You are the first large customer in a specific market to use this type
of technology, and the vendors want to be the first to prove that they can support your
type of business.
Timing: If you know that the vendor is in a hurry to close the deal before the books
close on the company's fiscal year, you can use that as leverage by delaying until the
last minute and forcing the vendor to concede a few important terms before you close
the deal.
Buyer advantage: The buyer automatically has leverage based on the fact that the
vendor is competing for your business.

By identifying all of the leverage points that you have in dealing with a particular vendor,
you will be in a better position to use them in developing your strategy.
What leverage does the vendor have? Knowing what cards the vendor holds allows you to
develop counterstrategies to minimize the benefits that these leverage points will provide.
Create a list of the vendor's leverage points such as the following sample list:

Your business is not critical to the vendor's success.

The vendor's product is by far the best solution, and the vendor knows it.
The vendor's product is by far the lowest priced solution (and the vendor knows it).
The vendor has limited supply of a product in high demand.
The vendor knows that you are in desperate need of the technology quickly.

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QUESTION-No.8:
Discuss various roles of internal implementation team members and vendor
Implementation team members
Answer:Various roles of internal implementation team members and vendor Implementation
team members:
Below are a list of project team members and a description of their roles throughout all
phases of your imaging project. Customer team roles vary based on the type of business
and their internal structure.
PSI Project Team:
Account Executive: The individual who has guided the customer through the sales process
and determined the products and high-level scope to match the companys imaging needs.
The Account Executive will transition the project, after sale, to a PSI Project Manager,
bring them up to speed on the account and be available as needed going forward.
Application Engineer (AE): The technical resource during the sales process. The AE is
responsible for answering any and all technical questions that come up while the customer
is deciding which PSI products to purchase and how to implement them appropriately in
each environment. The AE remains involved with the project throughout its lifecycle as
second tier technical support to the Project Manager, Implementation Consultant and
customer.
Project Manager (PM): The main point of contact for the customer throughout planning,
implementation and project wrap up. The Account Executive transitions the project to the
PM once a sale is complete. The Project Manager is responsible for all project leadership,
planning, communication and issue resolution. They are the resource responsible for
ensuring the customer understands the project process, the deliverables needed for a
successful implementation and the tasks that must be completed prior to and during
deployment. The PM will engage the customer in planning sessions needed to completely
map out the strategy and detailed plan for the implementation. They are also responsible
for keeping the project to the agreed upon scope and within the allocated budget. The PM
leads and supports the Implementation Consultant involved in deployment of the imaging
solution designed during the planning phase.
Implementation Consultant (IC): The individual(s) responsible for onsite deployment of
the products purchased and the solution designed during the planning phase. The IC will
be scheduled at the customer location to perform physical set up of all components. They

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are responsible for training customer team members on the implemented solution and
ensuring they are comfortable moving forward on their own.
Project Management Coordinator (PMC): The individual who assists the Project
Manager with all aspects of the project. The PMC is responsible for scheduling calls and
attending meetings. They are also responsible for creating and maintaining project
documentation such as agendas, meeting minutes and general project communications.
The PMC is the resource responsible for much of the correspondence with the customer as
well as assisting in keeping the project record up to date.
Resource Coordinator (RC): The team member that assists customers in getting signed up
and scheduled for PSI training classes. The RC is also responsible for initial set up of
customer administrator accounts on the PSI web site and support portal. They also
schedule all flights and accommodations for the PSI Team.
Customer Project Team:
Main Point of Contact:
The individual assigned to manage the project. This role is extremely important and
includes such responsibilities as:

Providing a single point of contact for communication with the PSI PM

Distributing planning materials to the entire customer team
Ensuring scheduled meetings are attended by the customer project team
Gathering and distributing project deliverables to the PSI PM
Managing customer tasks and notifying PSI PM of task delays and completion dates
(assists in meeting project timeline)
Responsible for notifying PSI PM of any issues that arise so they may be documented
and followed-through to resolution

Imaging System Administrator:

The System Admin is responsible for ongoing set up and maintenance of the system once
the project is complete. They should plan to attend all projects planning sessions. They
should be the individual that attends the PSI Image Now System Administrator training
class. This role can be fulfilled by one or more individuals. If only one person is chosen,
we recommend selecting someone from within the department being implemented and who
is computer savvy and a quick learner. Often customers will choose a System Admin from
each department to support their area. An IT resource can perform the role if they are
familiar with the processes and function of the business area being installed. The below
tasks can also be split between an IT resource and a department resource, both individuals
taking on part of the System Administrator role. The System Admin will often be
responsible for the following activities:

Setting up new users and groups

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Assigning Image Now privileges to users and groups

Creating Learn Mode applets

Setting up Capture profiles on the scanner(s)

Installing new Image Now clients
Maintaining workflow queues and routes
Providing internal support to end users

Departmental Decision Maker: The individual responsible for final sign-off of the
planned solution and imaging process. It is critical that this individual attend all planning
sessions to keep the team headed in the right direction with regards to changes in process
and roles for imaging. When the decision maker is involved in all planning sessions, there
are fewer requirements changes during the actual on site implementation.
Departmental End-User: This individual(s) should be familiar with the business area
being implemented and actually perform the processes and daily tasks. They provide
important input on day-to-day operations and functions. They often identify potential risks
with planned solutions and have low-level detail on departmental processes, key to the
success of the project.
Scan Operator: The individual(s) responsible for daily scanning operation. They will be
trained by the PSI Implementation Consultant on prepping documents for the scan process
and choosing the correct scanner/capture settings for each type of document group or batch.
They will often be trained on the QA procedures available in Image Now.

QUESTION-No.9:
When it is appropriate to declare that technology acquisition project has finally
Ended? Discuss various sub processes of operation.
Answer:Acquisition Process Statement:
All acquisitions of products and services will be handled in a uniform manner following the
Acquisition Process. Any product or service requiring internal support must get approval of
the acquisition from the department supplying the support. All larger, more complicated,
higher risk acquisitions will utilize a Negotiation Team approach. Any new product
acquired must follow the existing Change Management process as defined in [fill in the
blank]. All products developed for [Company] will be owned by [Company]. All source
code will be either owned by [Company] or available to [Company] through an escrow

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agreement. All contracts will adhere to contract standards, be reviewed by the Legal
department and originals of all documents will reside in the [Insert Process Owner] area.
Sign-off and Review Levels:
All contracts are subject to the following minimum sign-off and notification
procedures:
Notification means that [Insert Process Owner] must be notified prior to starting the
acquisition process and must get the final contract with original signatures for central
contract storage and expense forecasting. Negotiation Team required means that a
Negotiation Team as defined in this document must be assembled and must sign off that
they have participated in the acquisition.
What is the Negotiation Team?
The Negotiation Team consists of representation from [Insert Process Owner], Legal, the
project sponsor, and the client area. The client could be the user, manager, or beneficiary of
the product or services being purchased. The negotiation team will be led by the [Insert
Process Owner] with the Legal department providing direction on contract terms and
conditions. [Insert Process Owner] will provide information on other similar transactions,
successful negotiation tactics and financial information on the potential vendor. [Insert
Process Owner] will serve as the central repository for all IS contracts.
What is the Acquisition Checklist?
The Acquisition Checklist is a series of questions designed to familiarize you with the types
of issues faced in a product or service acquisition. The following pages may be used as a
checklist of the major steps and components to be considered in a successful product or
service negotiation.
There are four (4) parts in this process:
Acquisition Analysis
This identifies the reasons the product or service is being acquired, the size of the
transaction, and the level of Senior Management commitment.
Pre-Negotiation
This is where the groundwork is done to bring the right people to the table and to answer
important questions about the product or service.
Negotiation
This is where we identify the items being negotiated and describe how the negotiation will
be conducted.
Contract Administration
Ensures the items you negotiated for are actually received.
1) Acquisition Analysis:

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1. What is the business need?

2. Is there budget available?

3. Has the relative value of this acquisition vs. other products and services been
established?
3.1 Has the acquisition been analyzed and a recommendation completed?
3.2 Have the resource needs been determined from the project plan?
3.3 Have the skills, duration, number of resources, and estimated rates of outside
contractors been determined?
3.4 Have the time and location schedules been determined?
3.5 Is an asset liquidation plan required for an existing asset?
4. Has senior management approved?
5. Is there an existing contract or relationship with the vendor?
6. Has a Request for Information (RFI) or Request for Proposal (RFP) been issued?
7. Have the following financial analyses been conducted?
Total cost of ownership impact?
Budget impact?
Lease vs. purchase?
2) Pre-Negotiation:
1.
2.
3.
4.
5.
6.
7.
8.
9.

Has an Acquisition Analysis been completed?

Do all components of the product being considered currently exist?
What is the exposure if future features are not delivered on time?
Has an impact analysis been performed?
Identify who will be impacted by the acquisition.
5.1. When should they be notified?
5.1.1. Have all parties signed off on the impact analysis?
Is there an existing, supported product that does the same thing?
Have in house resources been sought, and are they either not available or lacking
needed technical skills?
Is this a strategic or tactical acquisition?
Is the acquisition enterprise wide? If not, what departments are involved?
9.1. Is product use going from tactical to strategic place?
9.2. Is the product becoming the de-facto standard?

10. Have you been asked to provide a letter of intent?

11. Has a competitive analysis been done?
12. Who are the market leaders?
13. What are the costs of products offered by competitors?
14. Check the vendor financial statements.
15. Get vendor annual reports and/or Dun & Bradstreet reports.

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16. Check customer references.

17. Identify the software licensing options.
3) Negotiation:
1. Have all steps in the Acquisition Analysis and Pre-Negotiation process been
completed?
2. Does this transaction require a Negotiation Team?
3. Have the following negotiation tactics been employed?
3.1 Has contact between the vendor and anyone but the negotiation team spokesperson
been minimized?
3.2 Should the sponsor negotiate or should you use a disinterested third party?
3.3 Has credible competition been created? If so, how?
4. Have the following items been negotiated?
Acquisition Price
Maintenance after the first year
Financing
Volume purchase agreements with minimum commitments
Platform transfer rights
Growth requirements
Minimum discount levels on the vendor's other products
Service Levels
Reporting requirements
5. Are there measurable and meaningful performance incentives or penalties?
4) Contract Administration
1. Have the [Company's] standard contracts been used?
2. Have the final contracts with an original signature been given to [Insert Process
Owner] for central storage?
3. What procedures or requirements are in place to enforce or audit the terms of the
contract?
Deciding whether to work with a vendor can seem simple enough...but first you have to
define the extent of the project, come up with a list of possible vendors, prepare an
effective RFI, and decide on the choice criteria. Now you can have these resources on hand
to create and develop solid vendor relationships. You'll get tips on how to:
Select the best vendor for your IT projects:

Build effective questionnaires for prospective vendors.

Create better requests for information (RFIs).
Benchmark vendor performance.
Weed out inadequate software development vendors.

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Motivate staff.

QUESTION-No.10:
Is it necessary to document technology acquisition process? Give reasons for your
answer.
Answer:The following items have to be defined in a Project Document:
Executive Summary presenting general information on the project as well as its main
goals and characteristics
Detailed presentation of the project
Type of technology to be used
Customs process to be modernized/reformed
Map of deployment
Schedule of implementation
Budget and financing solutions
Procurement strategy
Ownership strategy and external assistance needs
Operation mode of the systems acquired
Organizational change to be implemented
Customs Administration subsequent capacity building needs
Impact on Customs Administration Human Resources
Impact on Trade and Stakeholders
Project Management Organization within Customs Administration
Possible external co-operation from other members and international agencies
Possible partnership with private sector for acquisition, operation and financing
Whether the procurement approach is through a formal tendering process or a negotiating
mode, the following documents must form the basis of the quotation to be made by
vendors:
Technical Request for Proposal:

Detailed technical specifications

Alternative/Options requests
Minimum Performance expected from the systems
Performance Test Procedure
Maintenance Procedure and requirements

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Commercial Request for Proposal:

Schedule of prices and delivery
Schedule of prices for maintenance for one year and subsequent years
Request for list of references of the bidder and of the systems offered
Conditions of eligibility
Request for Guarantees (Bid bond)
Format of Contract, including format for guarantees to be issued by the contractor
(performance bond, advance payment bond, Guarantee bond)
Rules and procedures of the RFP:
The RFP must also present the rules and procedures of the acquisition process and define
the following:
Proposal Documents:

Content and format of bidding documents

Schedules to be filled
Clarification of bidding documents
Pre-bid meeting
Amendment of bidding document

Preparation of Proposals:

Language
Documents comprising the Proposal
Currency
Bid security
Period of validity of the Proposal
Signing of the Proposal

Submission of the Proposal:

Sealing and marking

Deadline for submission
Late Proposals
Modification and withdrawal of Proposals

Proposal opening and Evaluation:

Opening of Proposal
Clarification of Proposal
Preliminary examination of Proposals
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Conversion to single currency

Technical evaluation
Commercial evaluation
Domestic preference
Contacting the Customer

Award of Contract:

Post qualification
Award criteria
Notification of Award
Signing of Contract agreement
Performance securities

What documentation is required for technology (IT) acquisition initiative?

An Exhibit 300, Capital Asset Plan and Business Case Summary, defined in Office of
Management and Budget (OMB) Circular A-11, must be used to document acquisition
initiatives for IT hardware, software, telecommunications, and support services. This
requirement is subject to the dollar thresholds defined below and applies regardless of the
acquisition vehicle, method, or source.
What is an acquisition initiative?
An acquisition initiative is an investment that requires the expenditure of funds for
information technology. An IT acquisition initiative could address a single acquisition; a
logical grouping of hardware, software, telecommunications, and support services that will
involve multiple acquisitions; or a project that will take place either within a particular
fiscal year or over a longer life cycle and involve multiple acquisitions. An initiative might
be a proposal for new funding within the budget process or it might be a new proposal for a
major IT acquisition for an ongoing project.
Who established this policy?
The Office of the Chief Information Officer (OCIO) and the Office of Acquisition
Management and Financial Assistance (OAMFA) are jointly responsible for this policy.
Who does this policy apply to?
This policy applies to the Office of the Secretary and all operating units of the Department
of Commerce, except the U.S. Patent and Trademark Office.
Why was this policy established?

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This policy was established to eliminate duplicative documentation requirements for major
IT acquisitions.
It establishes the Exhibit 300, which is required by OMB and Commerces Office of
Budget, as the primary document required to justify a major IT acquisition.

How does this revision of the policy differ from previous issuances?
The substantive revision is that, to better align with the provisions of the Clinger-Cohen
Act, the CIO will no longer issue a Delegation of Procurement Authority (DPA). The CIO
will issue Information Technology Investment Authority (ITIA) on recommendation of
the Commerce IT Review Board (CITRB).
The CITRB function and process will not substantially change. The CITRB will continue
to perform oversight and reviews of major IT investments; however, the output decision
will be the Information Technology Investment Authority (ITIA) to proceed. The
Procurement Executive is a member of the CITRB and will review the Acquisition Plan for
the IT investment as part of the CITRB process.
Why should you document your IT acquisition initiative?
Documenting your IT acquisition initiative will help you define your requirements,
ensuring that the requirements support your mission and are consistent with the
Commerces enterprise architecture. It will also help you define your acquisition strategy,
which will facilitate your acquisition process.
Will the Exhibit 300 satisfy any external requirements?
Yes. Agencies are required to establish and maintain a capital planning process. Use of the
Exhibit 300 provides essential information for Commerces Capital Planning and
Investment Control Process. Other regulations require documentation of plans for certain
acquisitions.
The specific requirements are as follows:
Section 5022 of the Clinger-Cohen Act requires an executive agency to define a
process to "...provide for the selection of information technology investments to be
made by the executive agency, the management of such investments, and the
evaluation of the results of such investments."
The Federal Acquisition Regulation (FAR) Part 7, Acquisition Planning, requires
Agency Heads to establish criteria and thresholds at which written acquisition plans
shall be prepared.
OMB Circular A-130, Management of Federal Information Resources, states,
"Agencies must establish and maintain a capital planning and investment control

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process that links mission needs, information, and information technology in an

effective and efficient manner.
The capital planning and investment control process includes all stages of capital
programming, including planning, budgeting, procurement, management, and
assessment.
When should an Exhibit 300 be revised?
The Exhibit 300 is a living document and should be revised over the life cycle of the
investment. An Exhibit 300 for a specific IT acquisition initiative may go through several
iterations. The initial Exhibit 300 justifying a budget proposal might be broad and
conceptual. As research on alternatives progresses, plans should become firmer and more
specific. An Exhibit 300 that supports an acquisition or forms the basis of the Operational
IT Plan should be detailed and explicit, identifying the expenditure stream and schedules
for the life cycle of the investment.
What is the dollar threshold and who has to approve an IT acquisition initiative?
If the total life cycle cost (total contract value, including options, for all IT acquisitions
within the IT acquisition initiative) is $10 million or greater, you must receive an IT
Investment Authority (ITIA) from the Chief Information Officer. An ITIA is the CIO's
permission to pursue an IT investment and will be contingent on the sponsor having budget
authority for the IT investment. The CIO must grant an ITIA before the Procurement
Executive can issue a Delegation of Procurement Authority (DPA) and proceed with the IT
acquisition initiative.
To receive an ITIA, submit an Exhibit 300 to the CIO for approval. The investment sponsor
will generally be required to brief the Commerce Information Technology Review Board
(CITRB), which advises the CIO. The CIO, at his discretion, may waive the requirement to
brief the CITRB for routine initiatives for maintenance, operations, or support, or refer the
investment to the Commerce Acquisition Review Board.
To obtain an ITIA, you must also complete an Acquisition Plan. An Acquisition Plan is
required regardless of the acquisition vehicle, method, or source. The Acquisition Plan
must be available, at least in draft form, before the CITRB meets to evaluate the IT
acquisition initiative.
After successful review, evaluation, and approval by the CITRB, the CIO will, at his
discretion, issue the ITIA to proceed with the IT investment. The Procurement Executive,
at his discretion, will then issue a DPA. Both approvals are required to proceed to followon phases of activity for the IT acquisition initiative, such as a Request for Proposal.
What are the requirements for IT acquisition initiatives below the dollar threshold?

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On a selected basis, the CITRB may also review IT acquisitions that are highly visible,
technically complex, or have a high degree of risk even though they are below the $10
million dollar threshold. These IT acquisition initiatives will require the same
documentation as those at or above the dollar threshold.

For other IT acquisition initiatives where the total life cycle cost of the IT acquisition
initiative is less than $10 million, the IT approval requirements and the standards for the
level of documentation will be determined by the operating unit CIO.
Are there other requirements that must be met for IT acquisition initiatives?
Yes. IT acquisition initiatives must meet other requirements.
How do you obtain CIO approval?
To request the approval of your IT initiative and issuance of an IT Investment Authority
(ITIA), submit the following to the Commerce CIO through your operating unit CIO:
A cover memorandum describing the proposed IT investment and requesting an ITIA,
An Exhibit 300, and
An Acquisition Plan.
When should you submit the required documentation to the CIO?
For acquisition initiatives requiring an ITIA, contact the CITRB to schedule the briefing,
allowing sufficient time for the briefing to be held consistent with the acquisition schedule.
This should generally be done several months in advance of the desired time frame. Submit
the Exhibit 300 and Acquisition Plan at least two weeks before the CITRB briefing.

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REFERENCE SOURCES
Technology Acquisition: Buying the Future of Your Business
By: Allen Eskelin

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