BILL ANALYSIS                                                                                                                                                                                                    






            GOVERNMENT MODERNIZATION, EFFICIENCY AND ACCOUNTABILITY

                          Senator Liz Figueroa, Chair

                           2005-2006 Regular Session


          SB 834                                                 S
          Senator Figueroa                                       B
          Version:  April 18, 2005
          Hearing Date: April 27, 2005                           8
                                                                 3
          Consultant:  Vincent D. Marchand                       4
                                                                 

          SUBJECT  :  Department of General Services: information  
          technology.
           
           SUMMARY  :  Requires the Procurement Division of the  
          Department of General Services (DGS) to identify  
          information technology maintenance and support service  
          providers who have multiple contracts with the state and  
          report this information to the Legislature, including an  
          evaluation of whether the state should negotiate a single  
          master services contract with each of the identified  
          vendors.
           
           EXISTING LAW  :

          1)Requires all contracts for the acquisition of information  
            technology goods or services, whether by lease or  
            purchase, to be made by or under the supervision of DGS.

          2)Requires DGS to maintain, in the State Administrative  
            Manual, policies and procedures governing the acquisition  
            and disposal of information technology goods and  
            services.

          3)Requires the acquisition of information technology goods  
            and services to be conducted through competitive means,  
            except when the director of DGS determines that the goods  
            and services proposed for acquisition are the only goods  
            and services that can meet the state's need, or the goods  
            and services are needed in cases of emergency for the  
            protection for the public health, welfare or safety.
                                                                  
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           4)States the intent of the Legislature that agencies of the  
            state use an acquisition method that is compatible with  
            their short and long-term fiscal needs in contracts  
            relating to information technology goods and services,  
            and states that agencies should be given the choice of  
            suppliers to meet statewide standardization needs and  
            unique service requirements.

          5)Permits the state to utilize multiple awards and master  
            agreements or contracts for goods, information  
            technology, services, or consulting services.  Defines  
            "multiple award" as an award of an indefinite quantity  
            contract for one or more similar goods, information  
            technology, or services to more than one supplier.

          6)Requires state agencies, for contracts related to  
            information technology integration or development  
            projects that generate revenues or achieve savings, to  
            consider performance-based or share-in-savings contract  
            terms, as specified, to manage risks and create  
            incentives for successful contract performance.

           FISCAL EFFECT  : Unknown.
           
           COMMENTS  :
           
           1)Purpose of this bill.  

            According to the author, this bill implements one of the  
            recommendations of the California Performance Review  
            (CPR) relating to the consolidation of information  
            technology (IT) contracts (Issues and Recommendations,  
            State Operations #9).  According to the CPR, state  
            agencies commonly work independently of one another to  
            develop, execute and manage their IT contracts.  This  
            results in many state agencies having separate contracts  
            with vendors who provide similar or even identical  
            services to other departments.  CPR suggested that  
            renegotiating these contracts to consolidate them would  
            reduce costs.  This bill moves in that direction by  
            requiring DGS to identify those vendors with whom the  
            state has multiple contracts, and to evaluate whether a  
            master services contract with these vendors would be  
            beneficial to the state.





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           Support:
           None on file.

           Opposition:
           None on file.

                                         

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