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SMR, Inc. Computer Technology Remediation Assignments

Representative Assignments- Technology Dispute Remediation

Stalled Software Acquisition

The Stalled Software Acquisition

Situation

Our client was one of the largest private universities in the U.S. We were asked to advise it on a project to automate their student registration and record keeping. Prior to SMR's involvement, it had selected a large and complex software package for this purpose and had made the mistake of telling the software vendor of the selection prior to working out the contractual details. By the time we were retained contract negotiations had halted due to inflexible stances taken by both sides. The project schedule was endangered, and issues worth over 2.6 million dollars were in dispute.

Actions Taken

Working with the VP of Student Affairs, the Project Manager, and Counsel for the university we reviewed the history of the contractual disputes and the project content. Based on the positions taken by the respective sides and our prediction of the future needs of the university, we developed a remediation model and a negotiation plan. The university reviewed and approved the negotiation plan. We were able to get the President of the software company to attend the resumed negotiations. By coincidence, the vendor President and our consultant happened to be seated next to each other on a plane to the negotiation site. Many misunderstandings were corrected by the time the landing gear went down. Two days of intense negotiations followed, with the SMR consultant as a part of the university negotiation team.

Results Obtained

A mutually acceptable contract was drafted. The project resumed. Contract provisions suggested by our consultant subsequently saved the University over $430,000 in license fees and service fees. One provision ensured continued vendor support of the base software for the duration of the project, when the vendor otherwise would have withdrawn support. It is hard to measure the value of that provision, but the project probably would have failed without the base system support. The project completed successfully.

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