BILL ANALYSIS Ó AB 522 Page 1 ASSEMBLY THIRD READING AB 522 (Burke) As Amended May 28, 2015 Majority vote ------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+--------------------+----------------------| |Accountability |9-0 |Salas, Lackey, | | | | |Brough, Burke, | | | | |Frazier, Beth | | | | |Gaines, Irwin, | | | | |Medina, Rodriguez | | | | | | | |----------------+------+--------------------+----------------------| |Appropriations |17-0 |Gomez, Bigelow, | | | | |Bonta, Calderon, | | | | |Chang, Daly, | | | | |Eggman, Gallagher, | | | | | | | | | | | | | | |Eduardo Garcia, | | | | |Gordon, Holden, | | | | |Jones, Quirk, | | | | |Rendon, Wagner, | | | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------- AB 522 Page 2 SUMMARY: Requires the director of the California Department of Technology (CalTech) to create and use a standardized contractor performance assessment report system when awarding information technology (IT) contracts and projects. EXISTING LAW provides that CalTech is responsible for the approval and oversight of specified IT projects. FISCAL EFFECT: According to the Assembly Appropriations Committee: Special Fund costs for 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 should be absorbable. Currently about 45 IT projects would be subject to the performance evaluation. COMMENTS: This bill requires 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 CalTech with implementing the system and requires its use, along with other existing procurement procedures, when the state awards IT contracts or projects. This bill specifies that the performance will be evaluated for IT projects that are reportable under Chapter 4800 of the State Administrative Manual. That chapter generally requires that large state IT projects are overseen by CalTech. AB 522 Page 3 According to CalTech, the department is already working to create an IT contractor performance system. 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 is used to inform contracting decisions. Analysis Prepared by: Scott Herbstman / A. & A.R. / (916) 319-3600 FN: 0000690 AB 522 Page 4