BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                          Senator Carole Migden, Chairwoman

                                           834 (Figueroa)
          
          Hearing Date:  5/16/05          Amended: 4/18/05
          Consultant:  Lisa Matocq        Policy Vote: G. M., E. & A. 10-0
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          ____
          BILL SUMMARY: SB 834 requires the Department of General Services  
          (DGS) to report to the Legislature, by July 1, 2007, on whether  
          the state should negotiate a master information technology (IT)  
          maintenance and/or support services contract with each of the  
          vendors that have multiple state contracts.  
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions               2005-06     2006-07    2007-08    Fund
           
          DGS                                     ----  $142 ----           
                   --           General
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          ____

          STAFF COMMENTS: 

          Under current law, the DGS is responsible for the administration  
          and/or oversight of state contracts for the acquisition of IT  
          goods and services. 

          This bill requires DGS to consider, in cases where IT vendors  
          have multiple contracts with the state to provide maintenance  
          and/or support services, whether it be would appropriate to  
          negotiate a master agreement with the each of the vendors  
          instead.  The bill also requires DGS to report its findings to  
          the Legislature by July 1, 2007.   

          The California Performance Review recommended the consolidation  
          of IT contracts.  

          Increased costs to DGS are about $142,000 to identify IT support  
          providers and for one senior acquisition specialist to prepare  
          the report.  

          To the extent that the bill results in the execution of master  










          agreements that offer reduced rates or improved efficiencies,  
          there are unknown cost savings. 

          SB 954 (Figueroa), also being heard in this Committee today,  
          requires state agencies to conform to the Information Technology  
          Procurement Guidelines established in the bill.