Page 39 - CONTRACT POLICY MANUAL

SECTION 3.1

COMMODITIES

§3.1-101 Definition

(1) Commodities include all supplies and equipment, equipment rentals and leases, certain types of
software and software licenses costing less than $5,000 per unit, including tax and freight, and
those costing $5,000 per unit or more with a useful life expectancy of less than one year. Included
in the definition of commodity contracts covered in this Section are the following:

a) Equipment – Operating Rental/Lease: These contracts are in essence an extended rental
contract under which the owner of the equipment allows the County to operate or otherwise
make use of the equipment in exchange for periodic lease payments. These types of
contracts are “Operating leases” and are characterized by short-term, cancelable terms. The
lessor bears the risk of obsolescence and depreciation of the equipment. Operating leases
are generally preferable when the county needs the equipment for a short period of time
such as for minor office equipment, printers, copiers, and light-duty vehicles and related
equipment. Not included in the definition are long-term, "capital," non-cancelable leases.
b) Publications/Newsprint: Contracts to receive periodicals, magazines, trade journals, etc.,
either in print or electronic/digital subscriptions.
c) Software/Licenses (Retail): Contracts for proprietary software licenses where the software
publisher grants the use of one or more copies of software under the end-user license
contract (EULA), but ownership of those copies remains with the software publisher. These
types of purchases typically include terms which define the uses of the software and
number of users allowed.

d) Subscriptions/Databases: Contracts for access to on-line information or databases to be
used to enhance or support a County program or project. Contracts of this type involve no
on-site visits or work by a contractor and are limited to the digital exchange of information
for a predetermined fee.
e) Software Maintenance: Software maintenance as a product includes the publishing of
bug/defect fixes via patches and updates/upgrades in function and technology to maintain
the operability and usability of the software product. It may also include other no charge
support that is included in the purchase price of the product in the commercial marketplace.
No charge support includes items such as user blogs, discussion forums, on-line help
libraries and FAQs (Frequently Asked Questions), hosted chat rooms, and limited
telephone, email and/or web-based general technical support for users’ self-diagnostics.
Software Maintenance as a product is billed at the time of purchase.

§3.1-102 Solicitation Considerations

(1) Solicitations for certain commodities shall be written so that critical factors associated with the
acquisition shall be considered. These factors may include, but are not necessarily limited to the
following:

a) Item capabilities - Will it carry out the functions for which it is being acquired?

35