1102ForLife Posted June 27, 2012 Report Share Posted June 27, 2012 Can somebody help me out here? I have a requirement for Software maintenance services. One is for Cisco SmartNet Mainteance, and the other is a VMWare 1 Year Support Agreement...both of these are purchases under Army CHESS.. We are deciding how to set up the invoicing. All the information we can find seems to indicate that these acquisitions are services, which according to the FAR, have to be set up to be paid in arrears (post monthly/ quarterly)... To be honest, I can't really seem to find anything solid that says otherwise. However I have a sneaking suspicion that software maintenance is routinely purhcased and paid for in advance all across the Government. On FBO, I do not see any other agencies mention post-monthly billing....In addition, the vendors themselves who routinely deal with the Government do not seem to be familiar with post-monthly billing. Most of them will charge extra to set it up that way... All of this leads me to believe that I am missing some guidance which excuses Software Maintenance Agreements from post paid invoicing. I called the Army CHESS and GSA IT Schedule 70 help desks, but they were clueless to what I was talking about...(which didn't surprise me)... I did find this link from a GSA Blogger(?)...http://justgsa.typepad.com/just_gsa/2009/03/gsa-refresh-23-rumorsoftware-maintenance-billing-defined.html However it says "according to a rumor"....but doesn't really give any clear cut instructions.. Can anyone help??? Thanks!! Link to comment Share on other sites More sharing options...
jtolli Posted June 27, 2012 Report Share Posted June 27, 2012 Here is what the GSA E-Buy website says about the topic: "(SIN 132 32) 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. (SIN 132 34) Software maintenance as a service creates, designs, implements, and/or integrates customized changes to software that solve one or more problems and is not included with the price of the software. Software maintenance as a service includes person-to-person communications regardless of the medium used to communicate: telephone support, on-line technical support, customized support, and/or technical expertise which are charged commercially. Software maintenance as a service is billed in arrears in accordance with 31 U.S.C. 3324." Link to comment Share on other sites More sharing options...
1102ForLife Posted June 28, 2012 Author Report Share Posted June 28, 2012 Jtolli, Thanks for the info. This helps clear it up fo the most part. However there seems to be some grey area. Is anyone out there, by chance, familiar with purchasing Cisco Smartnet Maintenance? This seems like it could fall into either category. Link to comment Share on other sites More sharing options...
jtolli Posted June 28, 2012 Report Share Posted June 28, 2012 I can tell you our contract has purchased Cisco Smartnet Maintenance many times, and it has been paid for in advance, but that doesn't mean it is right. Link to comment Share on other sites More sharing options...
1102ForLife Posted July 19, 2012 Author Report Share Posted July 19, 2012 Sorry guys for the late response. I have been mulling over this issue for a while. Anywho, jtolli, based on the GSA definitions you provided above it would appear that Cisco Smartnet Maintenance would actually be a product then. What stands out for me is the "no-charge support". If the the maintenance includes no-charge support within its price, then it would be a product. However if support was provided and on a charge-per-incident, then it would be classified as a service...(possibly a Help Desk which charges for each ticket it closes out?) Based on this standard, mostly everything would be a product then, which means we can pay up front and avoid the messy "payment in arrears" situation. What does everyone think? Your opinions are appreciated! Link to comment Share on other sites More sharing options...
1102ForLife Posted July 23, 2012 Author Report Share Posted July 23, 2012 Anyone? I'd really appreciate if someone could weigh in on this.... Given GSA's definition above, does no-charge support, (or support which is included in the product price) automatically mean that I can buy it as product? Link to comment Share on other sites More sharing options...
CardinalChange Posted July 23, 2012 Report Share Posted July 23, 2012 You should get an opinion from your servicing legal office; as you have recognized, the timing of payment has statutory and fiscal implications. You may want to read this: Matter of: United States Department of Interior-- Purchase of Warranties in Advance http://www.gao.gov/products/476451#mt=e-report A 1993 case, but still a righteous one. On the other hand, you may want to read this: Matter of: Authority to Make Advance Payments for Technical Support Associated with Computer Software Packages http://www.gao.gov/products/403305#mt=e-report A 1995 case, but also righteous. The point is, fiscal issues are almost always nuanced and extremely fact dependent. Talk to your attorney. Link to comment Share on other sites More sharing options...
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