BILL ANALYSIS Ó
AB 522
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Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
522 (Burke) - As Introduced February 23, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the Department of General Services (DGS) and
the Department of Technology (CalTech) to develop a standardized
contractor performance assessment reporting system and to use
this system when awarding all information technology (IT)
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contracts.
FISCAL EFFECT:
Special fund costs for DGS and CalTech to develop and implement
the contractor assessment system, which would involve evaluating
contractor proposals (in light of past performance) and
evaluating performance upon conclusion of contracts, would be up
to several hundred thousand dollars annually.
The above cost is in part because, as currently written, the
bill would cover all IT contracts for goods and services,
regardless of dollar amount, including contracts for
off-the-shelf software and equipment. According to DGS, in the
12 months between November 1, 2013 and October 31, 2014, the
state awarded 12,000 unique contracts for IT goods and services.
COMMENTS:
Purpose. 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
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procedures to evaluate and award any future IT contract or
project."
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 a July 2014 hearing of the
Assembly Committee on Accountability and Administrative Review
regarding IT procurement.
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081