Limits on Custom-Developed Software

In compliance with OMB M-16-21, all Bureaus, Independent Offices, and Missions (B/IO/Ms) must consult with, and receive approval from, M/CIO before procuring any custom-developed software for a USAID IT Investment for Agency use. The guidance applies to all USAID IT Investments, including direct purchases of IT by USAID and direct purchases by USAID contractors where such IT is used directly by USAID. Software is considered "used by an agency" if it is used by USAID directly or if used by a contractor under a contract with the USAID that requires the use of the software to a significant extent in the performance of a service or the furnishing of a product. This guidance does not apply to software that is acquired by a contractor incidental to contract performance or software acquired by a contractor or recipient that is used in furtherance of a project, so long as the software is not being used directly by USAID or will not be connected to a USAID IT system. The B/IO/M acquisition planner must conduct a thorough analysis to determine whether an existing federal, commercial, or custom-developed software solution can meet the requirement. This analysis involves considering existing USAID solutions, other existing federal solutions, existing commercial solutions, and custom-developed solutions. The acquisition planner must exhaust solutions at each step before considering the next step. This analysis is intended to leverage existing solutions and suitable commercial solutions, while mitigating duplicative spending on custom-developed software solutions. The process to select software involves conducting market research consistent with FAR Part 10 and determining whether an existing federal, commercial, or custom-developed software solution can meet the requirement. The acquisition planner must consider existing USAID solutions, other existing federal solutions, existing commercial solutions, and custom-developed solutions. If a custom-developed solution is required, the B/IO/M must request M/CIO approval prior to issuing a solicitation that identifies a specific software solution. The request must document the B/IO/M's analysis and allow no fewer than 30 business days for M/CIO review and approval. If the B/IO/M has determined that there is no existing software solution and that the Agency must acquire custom software, and M/CIO has approved the request, the acquisition planner must ensure that the Agency has appropriate data rights to the custom-developed code by including the standard intellectual property clauses and/or other custom clauses where required. The Contracting Officer must not solicit for or enter into an award including a requirement for custom-developed software for Agency use without confirming that the required approvals have been received and that the solicitation and award address the requirements above.