Technology & Learning - September 2007 - (Page 31)

School CIO Strategies for K–12 Technology Leaders September 2007 14 Tips for Negotiating Software Agreements Avoid contractual mishaps and get the biggest bang for your buck. By Sheila Riley P 1 urchasing software license and service agreements can be daunting for any district. Greg Lindner, director of information and technology services for the Elk Grove Unified School District in California, and Steve Midgley, program manager at the Stupski Foundation, advise taking the following steps to successfully negotiate contracts. Examples are Davidson Services in Sussex, Wisconsin; ViKiwi in San Francisco; and the BLE GROUP in Washington, D.C. “…paying for everything at once can reduce leverage with a vendor if there’s a problem later.” 3 4 REMEMBER THAT CONTRACTS ARE NEGOTIABLE. DEFINE WHAT YOU WANT TO ACCOMPLISH WITH THE SOFTWARE BEFORE SIGNING THE CONTRACT. “There’s often a mismatch between what the client wanted and what the vendor provides,” says Midgley. How the software will be used to achieve its goal has to be clear, which means end users—generally teachers and principals—should be part of prepurchase committee discussions. While a vendor might say a district is getting its standard contract, it is only standard because the vendor says so, Midgley points out. THE DEVIL IS IN THE DETAILS…OF HOW AND WHEN A DISTRICT MAKES PAYMENTS. Spread payments out. Just like working with a home contractor, paying for everything at once can reduce leverage with a vendor if there’s a problem later. Also be sure contract cancellation policies are clear. A servicelevel agreement might say, for example, that for every hour a server is down past 24 hours, the vendor credits the district $1,000. “This is the place where a good business consultant can really help,” Midgley says. 6 DON’T ACCEPT THE FIRST PRICE THEY OFFER— USUALLY. 2 IF A DISTRICT LACKS NEGOTIATION EXPERIENCE, TURN TO A CONSULTANT. Consultants who walk a district through the process can be well worth their cost, Midgley says. Although it’s more work, put “deliverables”—specifics of what a product will do at what time—in the contract. It can even include consequences if software doesn’t perform as expected. 5 SPELL EVERYTHING OUT. “It’s kind of a balance—you’ve got to push as hard as you can without destroying the long-term relationship,” Lindner says. If that relationship isn’t working, a district could get a good price one year, commit to a product, and then see the price increase the next year. Sometimes the long-term relationship with the vendor outweighs a product’s cost. www.schoolcio.com A Technology & Learning Publication | 31 http://www.schoolcio.com

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Technology & Learning - September 2007 Contents Editor’s Desk News & Trends Product Guide Reviews Getting It Wrong Cover Story: SchoolBiz School CIO Higher Ed Integration How To What’s New Bottom Line

Technology & Learning - September 2007

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