Need a It Contract in Arkansas? AroundWire Can Help

IT contracts in Arkansas, particularly for state and public sector procurement, are governed by the Arkansas Procurement Law (Ark. Code Ann. § 19-11) and related administrative rules. Contracts typically require vendors to comply with state IT security standards, including data privacy, cybersecurity protocols, and, when handling sensitive information, adherence to federal regulations such as HIPAA or FERPA as applicable. Vendors must often register with the Arkansas Secretary of State and may need to demonstrate relevant business licenses or certifications (e.g., for network security or cloud services). The state frequently mandates insurance coverage, including general liability and, for IT contracts, cyber liability insurance, with specified minimum coverage amounts. Payment terms usually follow a net-30 schedule but may be contingent upon deliverable acceptance and subject to prompt payment statutes. Contracts commonly include explicit language on intellectual property ownership, software licensing, and data retention or destruction. Dispute resolution generally favors negotiation and mediation before litigation, with venue typically set in Pulaski County. Standard contract clauses address confidentiality, indemnification, and limitation of liability, though Arkansas statutes may restrict the extent of indemnification the state can accept. Risk factors include potential for liquidated damages for missed milestones or service interruptions. Contractors should also be aware of state preferences for using Arkansas-based businesses and reporting requirements related to subcontracting or use of offshore resources.