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.
(more)
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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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