Page 525 - FortWorthFY23AdoptedBudget

• Nonaeronautical use: Any activities not associated with the direct transport of
passengers or cargo. Such activities generally involve the operation of facilities that
do not need to be located at an airport, including airline headquarters and
reservation centers; flight kitchens; hotels; public parking, rental car Example –
Investment Asset Lease.
Software Based Information Technology Agreements
The SBITAs have a subscription term which would include the period during which the
City has a noncancelable right to use the underlying IT assets and would include periods
covered by an option to extend (if it is reasonably certain the government or SBITA vendor
will exercise that option) or to terminate (if it is reasonably certain the government or
SBITA vendor will not exercise that option). At the subscription’s commencement, the
City will assess all relevant factors to determine the likelihood of exercise options, whether
contract-based, asset-based, market based, or government-specific. The following factors
will be considered in evaluating the likelihood of option exercise:
• A significant economic incentive, such as favorable contractual terms and
conditions for the optional periods compared with the current market
• A potential change in technological development that significantly affects the
technology used by the IT asset
• A potential significant change in the government’s demand for the SBITA vendors’
IT assets
• A significant economic disincentive, such as costs to terminate the SBITA and sign
a new SBITA, i.e., negotiation costs, costs of identifying another suitable IT asset
or another suitable SBITA vendor, implementation costs. or a substantial
cancellation penalty
• Option exercise history
• The extent to which the SBITA’s IT assets are essential to the provision of
government services
A rolling month-to-month SBITA—or a SBITA that continues into a holdover period until
a new contract is signed—would not be enforceable if both the government and the SBITA
vendor have an option to terminate and either could cancel the SBITA at any time.
Provisions that allow for termination of a SBITA as a result of either payment of all sums
due or default on subscription payments are not considered termination options.
A fiscal funding or cancellation clause allows the City to cancel a SBITA—typically on an
annual basis—if the government does not appropriate funds for the subscription payments.
That type of clause will affect the subscription term only if it is reasonably certain that the
clause will be exercised.

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