Need a It Contract in Pennsylvania? AroundWire Can Help

IT contracts in Pennsylvania, especially those involving state or public entities, typically require strict adherence to the Commonwealth’s procurement code and related statutes, such as the Pennsylvania Procurement Code (62 Pa.C.S.). Contracts often mandate compliance with cybersecurity standards, including adherence to the state’s Information Technology Security Policy and, where applicable, federal requirements like NIST SP 800-53. Vendors may need to demonstrate relevant business and professional licensing, and in some cases, staff certifications (e.g., CompTIA, CISSP) for sensitive or specialized IT services. Insurance obligations are significant, with general liability, professional liability (errors and omissions), and cyber liability coverage commonly required; minimum coverage limits are often specified in solicitations. Risk factors include stringent data protection clauses, indemnification provisions, and requirements for timely reporting of breaches or incidents. Payment terms tend to follow the state’s Prompt Payment Act, usually net 30 days upon invoice approval, with retainage or milestone-based payments possible for larger projects. Dispute resolution generally favors negotiation and mediation before litigation, and contracts may specify Pennsylvania state courts as the venue. Additionally, contractors must comply with prevailing wage laws if applicable, non-discrimination clauses, and may need to register with the state’s vendor management system. Subcontracting and assignment restrictions are common, and intellectual property rights—particularly regarding custom-developed software—are often negotiated, with the state typically seeking broad usage rights.