Open Source Software Procurement by pptfiles




TOOLKIT Computer Software (Open Source) Procurement
This circular has been issued by the ACT Government Procurement Board

INTRODUCTION Computer Software (Open Source) Procurement Circular 2004/06 provides guidance to Territory entities in the application of section 6A of the Government Procurement (Principles) Guideline 2002 (as amended) regarding the procurement of computer software which came into effect on 10 December 2003. The circular provides guidance on:       What is the computer software procurement principle? What is Open Source Software? What are Open Standards? What is Open Support? Consideration of all principles. Adopting best practice in computer software procurement

The aim of this toolkit is to supplement the circular and provide Agency officers responsible for procuring software with additional guidance and a framework to plan that procurement. COMPUTER SOFTWARE PROCUREMENT Agencies must demonstrate compliance with the Software Procurement Principle regardless of the value of the procurement. This includes small Open Source procurement from the quotation level right up to large ones requiring open tender The value of the planned software procurement defines the process to be undertaken as follows: Table 1. Procurement Overview Value of Procurement Consider Open Source

Procurement Process

Approved Procurement Unit (APU) Approval

Up to $5,000

Seek a minimum of 1 oral quote No from a local supplier $5,000 up to $50,000 Yes Seek a minimum of 3 written No quotes from local suppliers $50,000 up to $100,000 Yes Seek a minimum of 3 written Yes quotes from local suppliers Over $100,000 Yes Public Tender Yes Over $1m and/or extreme Yes Public Tender including preYes – Government risk tender local industry Procurement Board consultation Guidance on specific requirements and tasks to be undertaken for each of the procurement processes as above, can be found at http://hale/basis/bwww.nsf , ‘ACT Procurement Policy and Training’ Tab, ‘Quick Help Guide’ menu item

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Before commencing the process you need to make sure that you have read and understand the Computer Software (Open Source) Procurement Circular 2004/06

STEP 1. – IDENTIFY THE NEED AND DEVELOP SPECIFICATION Define your need and develop a specification in consideration of:  Open Source Procurement Principles – Ensure that you have considered and incorporated the provisions outlined in the Computer Software (Open Source) Procurement Circular 2004/06. Business Requirements – Ensure you have a clear understanding of your business requirements. Technical requirements –Considerations will include, for example, functionality, interoperability, security; the intended hardware platform and operating system; and whether or not the software is to operate on the ACT Government network. If the software is to be installed on the ACT Government Network (ACTGOV) approval from InTACT will also be required. It is likely that a Threat and Risk Assessment (TRA) will need to be undertaken to ensure that the software does not compromise the availability, integrity, operation or security of ACTGOV. It is advisable to consult your Departmental Information Officer (DIO) to obtain information on any additional agency requirements, considerations or approvals. Consistency with Information Management Strategic Plan and compliance with, policy, standards and guidelines. These documents are available at the ACT Information Management Intranet site at http://intranet/cmd/actim/ IMPORTANT: BEFORE PROCEEDING TO STEP 2.

 


For procurements with a value above $50,000 – A Procurement Plan must be prepared. Procurement plan templates are available from Buyers & Sellers Information Service (BASIS) at http://hale/basis/bwww.nsf. Two templates are available. One for procurement with a value of 50,000 up to $100,000 and one for procurements with a value in excess of $100,000.

STEP 2. – OBTAIN APPROPRIATE APPROVALS Appropriate approval to proceed will need to be obtained. This could include:      Business Manager; Financial Delegate; Departmental Information Officer; InTACT (Software to be operated on the ACT Government Network); APU for procurements over $50,000 and Government Procurement Board for procurements over $1m or extreme risk.

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STEP 3. - INVITE AND RECEIVE OFFER/S Seek Quote/s from supplier/s or invite offers through Public Tender as appropriate. See ‘Table 1. – Procurement Overview’ for details of the appropriate process. For procurements with a value up to $100,000 – seek quote/s from supplier/s. In seeking offers you must as far as practical consider open source software. This can be undertaken by addressing the following questions:  Is an Open Source Alternative Available? Is there Open Source Software available that meets the requirements of the specification as per Step 1. above. There are a number of Internet sites that provide details of Open Source software availability. A list of some of the current Internet sites is at ‘Table 2. - Finding Open Source Applications – Relevant Internet Sites’. The ACT Contracts Register on BASIS may also be used to identify Open Source software which has been procured by ACT Government agencies. Note: There is a range of opinions and general comparisons between the functionality of proprietary and Open Source Software. Should agencies use any of these opinions to justify procurement, they must ensure that these comparisons are evidence based and defensible.  Does the Software Meet the Open Source Definition? Open Source Software is identified by ten (10) key characteristics outlined in Section 3. of the Computer Software (Open Source) Procurement Circular 2004/06  Does the Software Comply with Open Standards? Section 4. of the Computer Software (Open Source) Procurement Circular 2004/06 provides information on ‘What are Open Standards?’. A list of organisations recognised as issuers of Open Standards is at ‘Table 3. - Organisations Recognised as Issuers of Open Standards’.  Does the Open Source Software have Open Support? Section 5. of the Computer Software (Open Source) Procurement Circular 2004/06 provides information on ‘What is Open Support?’ If the answer to any of the above questions is NO then no further consideration of Open Source software is required. For procurements with a value above $100,000 – Develop appropriate ‘Request For Offer’ documentation, eg a Request For Tender (RFT), which incorporates Open Source Software Procurement provisions. Use of the ‘Checklist 1. - Request for Offers Checklist – Procurements over $100,000’ will assist with ensuring compliance.

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STEP 4. - EVALUATE THE OFFERS Evaluate the offers received against the ‘Specification’ as identified in Step 1. above, and in consideration of all of the other principles listed within the Government Procurement (Principles) Guideline 2002. These principles include: value for money; and open and effective competition; and probity and ethical behaviour; and environmental sustainability; and local industry development; and management of risk; and ethical suppliers. IMPORTANT: EVALUATION PROCESS

Offers should be evaluated in accordance with the Evaluation Process and Selection Criteria outlined in the Request for Offer Documentation eg. RFT.

The outcomes of the above process should provide sufficient information to enable the delegate to make a decision as to whether or not it is practical to consider Open Source in the procurement process. STEP 5 – FINALISE PURCHASE OR CONTRACT AS APPROPRIATE Note: Open Source Software licence has no contract provisions for indemnity, warranty and support. For Proprietary Software, the above provisions are often the result of contract negotiations between the purchaser and the provider. No such negotiation exists for Open Source Software. This may mean that it is possible to open the support agreement up to tender and identify multiple vendors capable of providing the necessary support for an application. STEP 6 – MAINTAIN APPROPRIATE RECORDS Appropriate records must be maintained of the software acquisition process. These records need to satisfy appropriate financial and procurement provisions, as well as demonstrating what actions were taken to comply with the Procurement of Computer Software (Open Source) Principle.

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Table 2. - Finding Open Source Applications – Relevant Internet Sites Internet Sites Please note that the above list is not exhaustive. Table 3. - Organisations Recognised as Issuers of Open Standards. Organisation W3C Comments World Wide Web Consortium (W3C). Responsible for development of Web standards (known as Recommendations). See W3C Recommendations at <>. Standards include HTML, XML, CSS, SVG, etc. Internet Engineering Task Force (IETF). Responsible for the development of Internet standards (known as IETF RFC). See list of IETF RFCs at <>. Standards include HTTP, MIME, etc. International Organization For Standardization (ISO). See <>. National Information Standards Organization (NISO). See <>. Relevant standards include Z39.50. Institute of Electrical and Electronics Engineers (IEEE). See <>. ECMA International. Association responsible for the standardisation of Information and Communication Technology Systems (such as JavaScript). See <>. OASIS Organization for the Advancement of Structured Information Standards. OASIS is a not-for-profit, international consortium that drives the development, convergence and adoption of e-business standards. See <> Please note that the above list is not exhaustive. Page 5




Checklist 1. – Request for Offers Checklist Yes Include the provisions from Computer Software (Open Source) Procurement Circular 2004/06 in the Request for Offer documents (e.g in the RFT documents). Indicate in the Request for Offer documents that software with Open Source characteristics will be considered. Include a requirement for conformance, where practicable, to both international and industry open systems standards in the procurement documents. (Use Section 4 of the Computer Software (Open Source) Procurement Circular 2004/06 as a provision in the Request for Offer documents for vendors to demonstrate compliance with Open Standards). Identify the Open Standards relevant to the particular software procurement in the Request for Offer documents. Review the current procurement process and revise, where appropriate, provisions that disadvantage Open Source, Open Standards or Open Support Software. Request vendors to indicate what alternate source of support is available in your Request for Tender. No

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USEFUL INFORMATION & CONTACTS Manager Procurement Policy Department of Treasury Dame Pattie Menzies CANBERRA ACT 2602 Telephone: (02) 6207 5876 Facsimile: (02) 6205 2774 HomePage: Buyers & Sellers Information Service Telephone: (02) 6207 7377 Facsimile: (02) 6207 7366 HomePage: http://hale/BASIS/BWWW.NSF

ACT Government Solicitor Level 5, 12 Moore Street CANBERRA ACT 2601 Telephone: (02) 6207 0655 Facsimile: (02) 6207 0630 HomePage: Intact Callam Offices, Easty Street WODEN ACT 2606 Telephone: (02) 6207 6791 Facsimile: (02) 6207 5020 ACT Information Management (ACTIM) Canberra Nara Centre Cnr Constitution Avenue and London Circuit CANBERRA CITY ACT 2600 Telephone: (02) 6205 0904 Facsimile: (02) 6207 0248

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