Welcome » IT Booklets » Development and Acquisition » Acquisition » Software Development Contracts and Licensing Agreements » Software Development Specifications and Performance Standards
Contracts for the development of custom software should describe
and define the expected performance attributes and functionality of
the software. The contract should also describe the equipment
required to operate the software to ensure appropriate
compatibility. Vendors should be required to meet or exceed an
institution's internal development policies and standards.
Therefore, before opening negotiations or issuing a
request-for-proposal on custom software development, organizations
should have a clear idea of the essential business needs to be
addressed by the software and an adequate understanding of the
organization's present and planned system architectures.
Contracts should identify and describe the functional
specifications that operational software will perform and may
identify functional milestones that vendors must meet during the
development process. The development contract should also contain
provisions that permit the modification of specifications and
performance standards during the development process.
Software development contracts should contain objective
pre-acceptance performance standards to measure the software's
functionality. The contracts may identify particular tests needed
to determine whether the software complies with performance
standards. The contracts may also address what actions a vendor
will take if the software fails one or more tests.