BILL ANALYSIS Ó
AB 522
Page 1
Date of Hearing: April 15, 2015
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Rudy Salas, Chair
AB 522
(Burke) - As Introduced February 23, 2015
SUBJECT: Public contracts: information technology: contractor
performance assessment report
SUMMARY: Requires the directors of the Department of General
Services (DGS) and the California Department of Technology
(CalTech) to create and use a standardized contractor
performance assessment report system when awarding all
information technology (IT) contracts and projects.
EXISTING LAW:
1)Provides that CalTech is responsible for the approval and
oversight of specified IT projects.
2)Generally requires that contracts for the acquisition of IT
goods and services are made by or under the supervision of
DGS.
FISCAL EFFECT: Unknown
AB 522
Page 2
COMMENTS: This bill requires DGS and CalTech to create an IT
contractor performance system by January 1, 2017. The system
must include an objective evaluation of the performance of the
contractor and information about the type of contract or project
and if it was completed on time. The system would also contain
information about the number of contracts or projects completed
by the contractor.
This bill charges both DGS and CalTech with implementing the
system and requires its use, along with other existing
procurement procedures, when the state awards IT contracts or
projects.
According to CalTech, the department is already working to
create an IT contractor performance system and plans to continue
to work with IT vendors and DGS during its development. Several
IT vendors and IT groups voiced support for the concept of
establishing such a system at an Accountability and
Administrative Review hearing on IT procurement in July 2014.
The author cites the state's past IT project difficulties in
which several projects were completed late and over budget.
"Assembly Bill 522 creates a report card for IT vendors and
requires the state's procurement process to take into account a
bidder's past performance when awarding projects," the author
states. "This bill will ensure that California has an accurate
picture of the vendor it is entering into contracts with by
using the data collected by the performance assessment in
addition to other procurement procedures to evaluate and award
any future IT contract or project."
Other governments use past contractor performance when assessing
potential vendors. The federal government has implemented the
Past Performance Information Retrieval System, a federal
government-wide repository of contractors' past performance that
AB 522
Page 3
is used to inform contracting decisions.
Natoma Technologies, a supporter of this bill, states that
having a contractor performance system in place will prevent the
state from contracting with IT vendors that have had repeated
project failures. IT Alliance for Public Sector (ITAPS), which
has a support if amended position, would like the author to
consider amendments that require an assessment to determine if
state entities had a role in IT project nonperformance, cost
overruns, or delays. Additionally, ITAPS wants to ensure that
the performance system will allow vendors to review and respond
to their evaluations.
There is no opposition on file.
REGISTERED SUPPORT / OPPOSITION:
Support
Natoma Technologies
ITAPS (if amended)
Opposition
None on file
AB 522
Page 4
Analysis Prepared by:Scott Herbstman / A. & A.R. / (916)
319-3600