Subscription-Based Information Technology Arrangements
SBITAs (Subscription-Based Information Technology Arrangements)
A SBITA is a contract where a government entity gets the right to use another company’s IT software for a specific period of time.
- The contract allows UMW to use the software, either alone or with related equipment.
- The use of the software is for a specific period of time, not a perpetual license.
- UMW provides something of value ($$$) in exchange for the right to use the software
SBITAs are governed by the Government Accounting Standards Board (GASB).
Examples of SBITAs:
- Software Licenses
- Bundled Software Licenses that include maintenance and support
- Databases
- Training Software
- Cloud-based services
- Software as a Service (SaaS)
- Infrastructure as a Service (IaaS)
- Platform as a Service (PaaS)
Important Account Codes:
- 71222S Employee Subscriptions
- 71275 Software Maintenance
- 71277 Computer Services
- 71279 Software Development
- 72218 Software Under 2K
- 72226 Subscriptions (serial/periodical) Library
- 72227 Electronic Subscriptions Library
- 72229 Electronic Resources Library
- 71279L Software Dev Licenses (Limited Term) INACTIVE
- 72218L Software Licenses
- 72218S SBITA Software*
*Buyers will be directed to use this account code by the eVA SBITA approver.
eVA Entry of SBITAs:
- Purchases using the account codes from the previous slide, route to the eVA SBITA Approver(s)
- The approver looks for the following information:
- A complete description of what is being ordered
- Dates of Service Period
- Cobblestone Contract Number
- IT Ticket Number
If the SBITA Approver can determine from the eVA order (and past orders) that the software being purchased is going to be classified as a SBITA, the approver will ask you to change the account code to 72218S.
If the SBITA Approver cannot determine from the eVA order that the software is going to be classified as a SBITA, the approver will send you a follow-up email with a list of questions ahead of issuing an eVA approval.
- Is this a renewal or a new purchase?
- Are there specific renewal options?
- Do you intend to renew this again in the future?
- What is the payment frequency?
- What is the purpose of the software?
- Does UMW create and grant user access?
- Can UMW access the software at any time?
- Can UMW make configuration changes or customize the software?
- Start Date
- End Date
- Can UMW terminate without cause, without consent of vendor, with notice of 12 months or less?
- Can the Vendor terminate without cause, without consent of UMW, with notice of 12 months or less?
- Does the agreement automatically renew?
UMW uses DebtBook to track SBITAs. Accounting requires the following information to properly track SBITAs:
- A fully-executed Purchase Order
- Invoice
- Contract