The NCUA has released the Basics of Data Processing Contracts, which provides detailed, comprehensive instructions on negotiating contracts with third-party vendors for digital services. The guidebook covers the elements of the contracting process, including:
- Requesting and evaluating bids;
- Performing due diligence on potential vendors;
- Negotiating terms, including pricing, performance requirements and liabilities; and
- Contract management and compliance.
The guide comes out of the Office of Small Credit Union Initiatives, but provides a good basis for reviewing and updating data processing service contracts for all credit unions.