BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 522


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          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


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          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


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          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


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