ACRL News Issue (B) of College & Research Libraries J u n e 1 9 9 7 / 3 9 9 Contracting fo r com puter se rv ice s in lib ra rie s By Stuart K o h le r Issues yo u need to consider when outsourcing A s the use o f computerized systems b ecom es more and more com m on in librar ies o f all sizes, so has the use o f outside ven dors, contractors, and consultants to install, implement, and maintain these systems. Acquir ing systems, services, and applications may of ten b e undertaken m ore cost-effectively by ar ranging for them with nonlibrary personnel, but on ce the decision to outsource is made, there are many issues that must be carefull considered. The recomm endations presente here are general in nature and should not be taken to substitute for com petent legal advic when drafting contractual documents. Introduction Libraries are no longer strictly the province o rows o f card catalog drawers and shelves o books and periodicals. The long-standing icon o f libraries, the catalog card with spindle hole, has given way to its electronic descendants, although not always without protest.1 Advances in information technology hav definitively made way into the world o f busi ness and publishing, but the impact on librar ies has also been significant. Librarians see thei role expanding from custodians o f warehouse information to gatekeepers o f electronic ar chives, often remote, o f immense breadth an depth.2 As sophisticated applications o f infor mation technology continue to evolve for li braries, opting to obtain some o f these resource from outside the library becom e appropriat alternatives. ­ ­ ­ ­ ­ ­ y d e f f e ­ ­ r d ­ d ­ ­ s e Making the decision to outsource depends on many factors and is beyond the scope of this paper. The reader interested in this aspect o f the outsourcing process is referred to sev­ eral helpful publications in the literature.3–5 The focus in the present set o f observations begins on ce the decision to outsource has been care­ fully weighed and identified as the course o f action. T y p es of co m p u ter se rv ice s The range o f possible types o f services runs from a contract for a specific piece o f custom software to a comprehensive contract for the provision o f com plete librarywide computer services. While there may b e som e overlap in the follow ing list, five general categories o f outside assistance in automated systems may b e identified: 1. Sm all, cu s to m so ftw a re a p p lica tio n s (e.g., library kiosks, pieces o f computer-assisted instruction, specific database applications for newsletter or mailing list purposes, etc.) 2. S erv ices, such as short-term onsite train­ ing sessions for library staff, long-term agree­ ments for user or network support, subscrip­ tions to remote databases o f periodicals or other content-specific resources, etc. Network services might also include the installation and mainte­ nance o f a local area network, including the required hardware and software, servers and workstations. 3 . P u r c h a s e o r le a se o f s p e c if ic a u to ­ m a te d lib ra ry m o d u les, such as an online public-access catalog or an automated circula­ tion system, usually to run on a personal com ­ puter. 4 . P u rch a s e o r lease o f a n in te g ra te d li­ b ra r y sy ste m which includes an OPAC and Stuart Kohler is information technology librarian at Norwich University, Northfield, Vermont; e-mail: stuartk.@norwich.edu 4 0 0 / C&RL News systems for circulations, serials, acquisitions, and other areas of library administration, usually to run on a mini or mainframe computer. 5 . C o m p reh en siv e co n tra c ts fo r to ta l li­ b ra ry -w id e a u to m a tio n , training, m ainte­ nance, upgrade, and support for all related computer systems. Issu es to consider Potential problem areas may be divided into nine general categories: 1. C le a r s ta te m e n t o f n e e d /c l a r i ty o f c o n tr a c t. Not only should the statement of need explain specifically what is required, there should also be a brief summary o f how the new system will improve efficiency, service, reduce costs, or other justification for under­ taking the project. Build this specificity into the contract with the provider, as lack o f clarity is a frequent cause of outsourcing problems.6 2. Evaluate c o n tr a c to r s /v e n d o r s . If the project is large enough, it may be appropriate to call for bids. The library is paying for exper­ tise but also experience. Therefore the library should ask questions such as: Has the contrac­ tor done similar work elsewhere? Are references available? If it is a new area for the contractor, will the fees reflect his or her learning curve? 3. C om patibility w ith e x istin g system s, h a r d w a r e , a n d / o r s o f tw a r e . Diversifying c o m p u tin g p la tfo rm s ( i . e . , W in d o w s or Macintosh or both?) may enfranchise new sec­ tors of the library’s community, but it also adds increased levels o f complexity for maintenance, troubleshooting, and perhaps future expansion o f related systems. 4. In -h o u se m a in te n a n ce re q u ire m e n ts / tra in in g o f s ta ff to o p e r a te n e w sy ste m . Who trains staff and will the original trainees be able to train new staff hired later? Will the system be a self-contained, dedicated-use sys­ tem (stand-alone), which would be easier for staff to learn and use or will it be accomplished by adding on to an existing system? The latter may force staff to learn more about the general operation o f the existing system than a dedi­ cated-use application would. Training should also be included on backing up current data and archiving procedures for old data. 5. S cope o f c o n tr a c t. O nce the contract is turned over to library, is there any long-term responsibility by contractor if bugs are discov­ ered or changes are desired? Who owns cus tom-written software? (See notes 7 and 8 for more information on copyright issues such as title and work for hire.) If the library does not obtain title to software, the consultant may re­ alize additional profit by selling the same work again to another library, albeit with some modi­ fication. If so, the fee schedule should reflect the true value o f what is being created and its true ownership. When contracting for full-text periodical databases, are there copyright restric­ tions? 6. Billing an d co m p le tio n arra n g e m e n ts. Will there be a single, flat fee for the com ­ pleted/delivered product or an hourly fee for its creation? For hardware or systems mainte­ nance contracts, will service calls be billed on an hourly basis or does the contract fee cover all necessary service requests? What is the time frame for delivery of completed work or for completion of repairs? The latter may be ar­ ticulated in terms o f perform ance m easure­ ments, such as performance goals and perfor­ mance minimums. 7. R em edies fo r u n a cce p ta b le w o rk . Un­ fortunately, an unscrupulous entrepreneur may attempt to maximize profits by declining to deliver exactly what was promised in absence o f specific remedies specified in writing. 8. Likelihood o f lo n g -te rm accessib ility to information such as full-text periodical data­ bases (especially important if considering can­ cellation of periodical subscriptions) or long­ term usefulness o f the software application under consideration. 9. A cce p ta n ce testin g. Absolutely crucial and should include a reasonable testing pe­ riod— not simply a demo by the consultant at turnover. E x a m p le As an example o f the process at a conceptual level, we will consider the development o f a custom piece of software to maintain the mem­ bership records o f a Friends o f the Library or­ ganization, following the nine issues outlined above. Although the process becom es more complex for larger projects, the procedure will remain the same in principle. The first step is to clearly state the goals, functionality, and features o f the Friends soft­ ware. This particular project would have as its goal the creation o f software to collect, main­ tain, and extract information about the Friends membership including the elements o f name, address, membership type, renewal date, and a miscellaneous note section. In terms o f func­ tionality and features, the system should be easy Ju n e 1 9 9 7 / 401 to use, must be able to produce (print on ei­ ther paper or label stock) mailing lists (by zip code as well as last name) and renewal lists. In addition, the system must include a mail merge function able to produce customized correspon­ dence to the membership. Once this information is presented to the consultant, the next step is to establish an ap­ proximate time for completion of the project and identify if new or existing hardware (com­ puter or printer) or new software (upgrade to current database application) will be required. If the latter is true, who is responsible for mak­ ing the required purchases? Establish also who enters sample data for testing purposes and the complete data for the full system. If data are to be supplied by the library, what is the required data format? Clarify title to the resulting soft­ ware and also clarify how much training of staff will be included by the consultant. Finally, an overall fee for the project or an hourly rate should be agreed upon. If an hourly rate is selected, it may be useful to establish a maximum total charge to prevent the project from taking on a life of its own. As a precau­ tion, discussion at this point should include rem­ edies for undelivered or unacceptable work. The next step is when the consultant re­ turns with a demonstration version of the soft­ ware, with evaluation done using sample data. At this point, change orders may be necessary. Requesting changes in the way the software operates or the pieces of information included is often a fact of life in software development. It is not necessarily evidence of poor planning or mistakes. Systems seem to have a natural “gestation” period, but it is essential to mini­ mize the number of change orders and the magnitude o f the changes requested. Each change from the original contract usually con­ stitutes additional charges. Acceptance testing with live data is usually the conclusion of the project, save for paying the consultant. At this point, the software would be “turned over” to the library and future re­ sponsibility for the consultant would likely oc­ cur only if bugs (such as dues payment miscal­ culations) show up after the acceptance testing is completed and the project accepted. Conclusion Effective management for incorporating infor­ mation technology into the library setting maxi­ mizes both financial and personnel resources. The judicious use of automation expertise de­ rived from consultants, contractors, or other vendors is a means to extend in-house tech­ nology capabilities and leverage improved ser­ vices to the library’s constituency. Notes 1. Nicholson Baker, “Discards,” New Yorker 70 (April 4, 1994): 64. 2. Paul Evan Peters, “Information Age Ava­ tars,” L ibrary J o u r n a l 120 (March 15, 1995): 32– 34. 3. “Contract Management or Self-Operation: A Decision-Making Guide for Higher Educa­ tion,” CAUSE/EFFECT 16 (fall 1993): 6– 10. 4. Robert J. Robinson, “Outsourcing’s Po­ tential in Higher Education,” CAUSE/EFFECT 14 (summer 1991): 3, 39. 5. C o n tra ctin g f o r Com puting, Vol. 2. A Checklist o f Terms a n d Clauses f o r Use in Con­ tractin g with Vendors f o r S oftw are P a c k a g e s a n d C u stom S o ft w a r e (P r in c e to n , N .J.: EDUCOM, 1975). 6. Ed Foster, “Outsource Sense,” In fow orld 18 (September 9, 1996): 1, 77–78. 7. R. S. Talab, Copyright a n d Instru ction al T echnologies. A G u ide to F a ir Use a n d Perm is­ sions P rocedures, 2nd ed. (Washington, D.C.: Association for Educational Communications and Technology, 1977), 16. (A specific descrip­ tion of the term w ork f o r h ire as related to the Copyright Act.) 8. Contracting f o r Computing, 106, 142–44. (Includes examples of contract clauses relating to the issue of title.) ■ Feature your collection on the cover of C&RL N ew s C&RL News wants to feature aesthetically pleasing photos of items from library col­ lections on its covers. If you have material in your library’s collections that you think would make an attractive C&RL News cover, please send us a photograph or a color photocopy and a brief description of the item and the collection. Photos may be ei­ ther color or black-and-white and should be 5″ × 7″ or 8″ × 10″. Illustrations with a vertical orientation work best. Send to: C&RL News Covers, 50 E. Huron St., Chi­ cago, IL 60611. For more information con­ tact Mary Ellen Davis at medavis@ala.org. mailto:medavis@ala.org 4 0 2 / C&RL News