Montana IT service contract template

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How Montana IT service contract Differ from Other States

  1. Montana requires specific clauses regarding data privacy and state-level cybersecurity, aligning with local statutes.

  2. Consumer protection provisions in Montana IT service contracts must comply with the Montana Consumer Protection Act.

  3. Montana law mandates the inclusion of dispute resolution terms that specify legal venue within Montana jurisdictions.

Frequently Asked Questions (FAQ)

  • Q: Is a written IT service contract required by law in Montana?

    A: While not required for all IT services, a written contract is strongly recommended to clarify obligations and legal rights.

  • Q: What are key clauses to include in a Montana IT service contract?

    A: Essential clauses include scope of services, payment terms, confidentiality, data protection, and Montana-specific dispute resolution.

  • Q: Are e-signatures valid for IT service contracts in Montana?

    A: Yes, Montana recognizes the legal validity of electronic signatures on IT service contracts as long as both parties consent.

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Montana IT Service Contract

This Montana IT Service Contract (the “Agreement”) is made and entered into as of this [Date] by and between:

[Service Provider Company Name], a [State] [Entity Type] with its principal place of business at [Service Provider Address] (“Service Provider”), and

[Client Company Name], a [State] [Entity Type] with its principal place of business at [Client Address] (“Client”).

1. Scope of Services

Option A: General IT Support

Service Provider will provide the following IT services to Client: [Description of General IT Support Services]

Option B: Specific IT Project

Service Provider will provide the following IT services to Client for the project described in Exhibit A: [Description of Specific IT Project Services]

Option C: Managed Services

Service Provider will provide the following managed IT services to Client:

Network Management: [Description of Network Management Services]

Helpdesk Support: [Description of Helpdesk Support Services]

Cybersecurity: [Description of Cybersecurity Services]

Hardware and Software Maintenance: [Description of Hardware and Software Maintenance Services]

2. Supported Systems and Platforms

Service Provider will support the following systems and platforms: [List of Supported Operating Systems, Platforms, Networks, Hardware, and Software Versions]

3. Implementation and Onboarding

The implementation and onboarding process will include the following steps: [Description of Implementation and Onboarding Procedures, including system access, data transfer, backup, and security measures]

Client Responsibilities: [Description of required client cooperation during onboarding]

4. Regulatory Compliance

Service Provider will comply with all applicable Montana and federal laws and regulations, including, but not limited to:

Montana Information Technology Act (ITA)

Montana’s Uniform Electronic Transaction Act (UETA)

Montana Data Privacy Law (Title 33, Chapter 19 MCA)

Applicable industry standards (NIST, HIPAA, FERPA, GLBA)

Cybersecurity protocols mandated for Montana state entities or critical infrastructure.

5. Service Level Agreement (SLA)

Option A: Standard SLA

Uptime Guarantee: [Percentage]%

Response Time: [Timeframe] for priority [Priority Level] incidents.

Resolution Time: [Timeframe] for priority [Priority Level] incidents.

Scheduled Maintenance: [Frequency and Time], with [Notice Period] prior notice.

Service Credits: [Description of Service Credits for SLA failures]

Option B: Custom SLA (See Exhibit B)

Refer to the attached Exhibit B for specific service level agreements.

All times are Mountain Time (MT).

6. Access and Security

Service Provider will implement and maintain the following security measures: [Description of Client Data Protection Measures, Encryption Standards, Account Access Policies, Password Management, Remote Connection Protocols, Backup and Disaster Recovery Plans]

Data Breach Notification: In the event of a data breach, Service Provider will comply with all applicable Montana and federal data breach notification statutes.

7. Subcontractors and Offshore Service Provision

Option A: Permitted

Service Provider may use subcontractors, but will remain fully responsible for their performance. All personnel accessing Client systems must pass background checks in accordance with Montana state requirements.

Option B: Not Permitted

Service Provider will not use any subcontractors or offshore service provision.

8. Intellectual Property

Option A: Client Ownership

Client will own all intellectual property rights in software, scripts, and documentation developed under this Agreement.

Option B: Service Provider Ownership

Service Provider will own all intellectual property rights in software, scripts, and documentation developed under this Agreement. Client will have a [Type] license to use the same.

Open Source and Third-Party Code: [Description of licensing terms for open source and third-party code]

9. Data Return and Destruction

Upon termination of this Agreement, Service Provider will securely return or destroy all Client data and system credentials in accordance with Montana-specific destruction standards for sensitive electronic records.

10. Client Obligations

Client will provide: [List of Client Obligations, such as providing access credentials, infrastructure information, point of contact, timely approvals, and prompt response to provider inquiries]

11. Term and Termination

Option A: Fixed Term

This Agreement will commence on [Start Date] and continue for a term of [Number] [Months/Years], unless terminated earlier as provided herein.

Option B: Rolling Term

This Agreement will commence on [Start Date] and continue until terminated as provided herein.

Termination:

Either party may terminate this Agreement upon [Number] days written notice to the other party.

12. Pricing and Payment Terms

Option A: Fixed Fee

The fixed fee for the services is [Amount] per [Month/Quarter/Year].

Option B: Hourly Rate

The hourly rate for the services is [Amount] per hour.

Option C: Retainer

The monthly retainer fee is [Amount].

Payment Terms: Payment is due [Number] days from the date of invoice.

Late Fee: A late fee of [Percentage]% per month will be charged on overdue payments, subject to Montana’s usury statutes.

13. Confidentiality

Both parties agree to hold confidential the other party's business, systems, and user data. This obligation will survive termination of this Agreement.

Montana Uniform Trade Secrets Act applies to confidential information protection.

14. Representations and Warranties

Service Provider represents and warrants that:

It has the authority to enter into this Agreement.

Its staff have the skills and expertise necessary to perform the services.

The services will be performed in a professional and workmanlike manner.

The deliverables will be free from viruses.

15. Amendments

This Agreement may be amended only by a written instrument signed by both parties.

16. Force Majeure

Neither party will be liable for any failure to perform its obligations under this Agreement due to causes beyond its reasonable control, including, but not limited to, acts of God, war, terrorism, wildfires, and Montana state emergencies.

17. Support and Maintenance

Option A: Included

Support and maintenance are included in the scope of services.

Option B: Separate Agreement

Support and maintenance will be provided under a separate agreement.

Coverage Hours: [Days of the Week], [Start Time] to [End Time] Mountain Time (MT).

18. Limitation of Liability

Service Provider's liability for damages arising out of this Agreement will be limited to the amount paid by Client to Service Provider under this Agreement.

19. Early Termination

Option A: Termination for Convenience

Client may terminate this Agreement for convenience upon [Number] days written notice to Service Provider.

Option B: Termination for Cause

Either party may terminate this Agreement for cause if the other party breaches this Agreement.

20. Dispute Resolution

Option A: Mediation and Arbitration

Any dispute arising out of or relating to this Agreement will be resolved through mediation in Montana, followed by binding arbitration in Montana, in accordance with the rules of the American Arbitration Association.

Option B: Litigation

Any dispute arising out of or relating to this Agreement will be resolved in the state or federal courts located in [County Name] County, Montana.

Governing Law: This Agreement will be governed by and construed in accordance with the laws of the State of Montana.

21. Compliance with Montana Laws

Service Provider will comply with all applicable Montana consumer protection laws, public procurement requirements, and technology accessibility statutes.

22. Insurance

Service Provider will maintain the following insurance coverages:

Cyber Liability Insurance

Professional Liability Insurance

Workers’ Compensation Insurance, as required by Montana law.

23. Records Retention and Audit Rights

For public sector clients, Service Provider will maintain records in accordance with Montana's government contracting regulations and provide audit rights to the Montana Department of Administration.

24. No Employment or Agency Relationship

This Agreement does not create an employment or agency relationship between the parties.

25. E-Signature Validity

This Agreement may be executed in counterparts, and e-signatures will be valid in accordance with Montana’s UETA.

26. Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written. No oral modifications are permitted except as formally amended per Montana law.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

[Service Provider Company Name]

By: [Service Provider Name]

Title: [Service Provider Title]

[Client Company Name]

By: [Client Name]

Title: [Client Title]

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