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) SB 834 Page 2 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. SB 834 Page 3 Support: None on file. Opposition: None on file. **************