Include Cybersecurity Evaluation Criteria Such As Encryption, Disaster Recovery, Vendor Security Requirements, and Data Governance When Procuring ITS Cloud and SaaS Solutions.

Best Practices for Modernizing Administrative Policies and Processes Related to Transportation Systems Management and Operations (TSMO).

Date Posted
09/29/2026
Identifier
2026-L01310

NOCoE Best Practices: Procurement

Summary Information

Traditional Department of Transportation contracting and procurement systems are largely structured around predictable design, construction, and maintenance activities, making them difficult to apply to the more complex and service-oriented needs of Transportation Systems Management and Operations (TSMO). TSMO programs often involve rapidly evolving technologies, software and data services, system integration, and specialized expertise that do not fit neatly within standard procurement approaches. Agencies may also face challenges related to inadequate contract language, decentralized administration, strict budgeting, federal and state requirements, cybersecurity and data-sharing considerations, and institutional inertia. This document provides considerations for modernizing procurement frameworks so they can more effectively support the acquisition, deployment, and long-term management of TSMO resources and services. 

Procurement best practices were organized by the following topic areas: pre-solicitation, Software as a Service (SaaS), performance-based contracting, qualified product lists, cooperative purchasing, coordination of TSMO and IT procurement, and requirements. 

  • Include cybersecurity evaluation criteria such as encryption, disaster recovery, vendor security certifications, and data governance frameworks when procuring ITS cloud and SaaS solutions.
  • Consider using a Request for Information (RFI) or a Request for Qualifications (RFQ) to determine if required resources are commercially available, identifying potential vendors, consultants, and contractors, reducing administrative burden, and incentivizing high-quality bids. 
  • Use qualified products lists to help ensure consistency and interoperability across different regional deployments. 
  • Pool agency buying power with cooperative purchasing agreements for TSMO program elements and supporting ITS technologies.