BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 834|
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THIRD READING
Bill No: SB 834
Author: Figueroa (D)
Amended: 4/18/05
Vote: 21
SENATE GOVERNMENT MODERNIZATION COMM. : 10-0, 4/27/05
AYES: Figueroa, Dutton, Ashburn, Bowen, Campbell, Ducheny,
Florez, Kuehl, McClintock, Murray
SENATE APPROPRIATIONS COMMITTEE : 9-0, 5/16/05
AYES: Migden, Aanestad, Alquist, Ashburn, Bowen, Dutton,
Florez, Ortiz, Poochigian
NO VOTE RECORDED: Battin, Escutia, Murray, Speier
SUBJECT : Department of General Services: information
technology
SOURCE : Author
DIGEST : This bill requires the Procurement Division of
the Department of General Services 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.
ANALYSIS :
Existing law:
CONTINUED
SB 834
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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 the Department of General Services (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.
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 : Appropriation: No Fiscal Com.: Yes
Local: No
SB 834
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According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2005-06 2006-07
2007-08 Fund
DGS -------$142 --------
-- General
ARGUMENTS IN SUPPORT : According to the author's office,
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.
JJA:mel 5/17/05 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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