BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 522 (Burke) - Public contracts: information technology:
contractor performance assessment report
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|Version: May 28, 2015 |Policy Vote: G.O. 10 - 1 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 17, 2015 |Consultant: Mark McKenzie |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 522 would require the Director of Technology to
develop and implement a standardized contractor performance
assessment report system by January 1, 2017 to evaluate
contractor performance on specified information technology (IT)
contracts and projects.
Fiscal
Impact:
Department of Technology estimates annual costs of
approximately $350,000 to develop a performance assessment
system, and to maintain the information received from
evaluations of contractors and vendors. (General Fund)
Unknown ongoing costs to state departments or agencies
acquiring IT projects to perform contractor evaluations.
These costs are likely to be built into overall contract
costs. (General Fund or special funds, as applicable)
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Background: Existing law generally requires that all contracts for the
acquisition of IT goods or services be made by, or under the
supervision of, the Department of General Services (DGS), unless
otherwise expressly provided. Acquisition authority may be
delegated by DGS to any state agency determined to be capable of
effective use of that authority, subject to specified
limitations. Existing law provides the Department of Technology
with the express authority over all contracts for the
acquisition of IT projects that are "reportable" under Chapter
4800 of the State Administrative Manual (those that require
advance approval from the Department of Technology) and not
delegated to state agencies, as specified.
Section 4819.37 of the State Administrative Manual (SAM)
specifies which IT projects are "reportable," requiring state
agencies to either obtain a specified reporting exemption or
obtain approval from the Department of Technology before
dedicating funding or staff resources for projects that meet the
following criteria:
Projects whose initiation depends upon decisions made during
the state budget process, such as proposals to increase the
agency's existing IT activities.
Projects that involve a new system development or acquisition
that is specifically required by legislative mandate, or is
subject to legislative review, as specified.
Projects that have a cost that exceeds the agency's delegated
cost threshold assigned by the Department of Technology and do
not meet the criteria of a specified desktop and mobile
computing commodity expenditure.
Projects that meet previously imposed conditions by the
Department of Technology.
Generally speaking, the Department of Technology provides
independent project oversight for medium- and high-criticality
state IT projects. Currently, there are 45 projects under
development with a reported cost of over $4 billion that are
subject to oversight by the Department of Technology.
Proposed Law:
AB 522 would require the Department of Technology to develop a
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standardized contractor performance assessment report system by
January 1, 2017 to evaluate the performance of a contractor on
any IT contract or project reportable under Chapter 4800 of the
SAM. The bill requires the system to include an objective
contractor performance evaluation, and information about the
type of contract, whether the contract was completed on time,
and the number of previously completed contracts or projects by
the contractor.
The bill would also require the Department of Technology to
implement the contractor performance assessment report system
for all reportable IT contracts and projects, and requires that
the system be used to evaluate and award any IT contract or
project awarded under existing law for the acquisition of IT
goods and services.
Proposed Author
Amendments: The author proposes to amend the bill to require
multiple evaluations before the final evaluation, and to provide
a minimum 30-day response period for the contractor to respond
to the final evaluation
Recommended
Amendments: Staff recommends a technical amendment to paragraph
(2) of subdivision (b) of the new code section for consistency
with the rest of the bill, as follows:
(2) The contractor performance assessment report system
shall, in addition to any other applicable information
technology procurement procedures, be utilized to evaluate
and award any information technology contract or project
reportable under Chapter 4800 of the State Administrative
Manual awarded pursuant to this chapter.
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