BILL ANALYSIS Ó
AB 2708
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Date of Hearing: April 11, 2016
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
AB 2708
(Daly) - As Amended March 18, 2016
SUBJECT: Department of Transportation: Lean 6-SIGMA program
SUMMARY: Directs the California Department of Transportation
(Caltrans) to conduct a study to assess implementation of the
Lean 6-SIGMA process-improvement program to determine the
effectiveness of streamlining the process for procuring
architectural and engineering (A&E) services for the department.
EXISTING LAW: Grants Caltrans the authority to contract for A&E
services and prescribes the general parameters governing the A&E
procurement process.
FISCAL EFFECT: Unknown
COMMENTS: Lean 6-Sigma is a data-driven process management
approach that originated in the private sector and is
increasingly being used by government agencies to pinpoint waste
and inefficiencies. Last year, the Governor's Office of
Business and Economic Development (GO-Biz) and the Government
Operations Agency (Gov. Ops.) partnered together to offer a Lean
6-Sigma implementation program to 11 state departments,
including Caltrans, to address process-based issues that are
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causing delays in services to both internal and external
stakeholders.
To date, Caltrans has reviewed over a dozen programs and/or
processes using the Lean 6-Sigma methodology, including the
process for procuring A&E services. Currently, it takes
Caltrans about 98 calendar days to process an A&E contract.
Furthermore, the onerous process can be burdensome on A&E firms,
especially smaller firms that are trying to work with Caltrans.
After the process was reviewed using Lean 6-Sigma, Caltrans
expects the process to be simplified and reduced to about 45
days. The A&E process improvements are currently in the
implementation phase.
The author introduced AB 2708 to follow up on the A&E
procurement process review to ensure the new streamlined process
under Lean 6-Sigma is, in fact, streamlined and effective.
According to the author, "California must find a way to expedite
the repair of older roads and the construction of new roads.
The implementation of the Lean-6 SIGMA program can be vital to
that mission."
California is in the midst of a transportation funding crisis,
so much so that the Governor last year called for a special
session of the Legislature to address the crisis. Amongst the
myriad of proposals for a comprehensive funding package, the
need for concurrent reforms at Caltrans is universal. In fact,
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even the Governor's proposed transportation funding package
includes an anticipated $100 million annually in Caltrans
efficiencies.
Although the A&E procurement process is a relatively minor piece
of a large, complex project delivery process, an assessment of
Caltrans' ability to meaningfully reform its processes, as
required by this bill, could foretell of its ability to tackle
the much bigger reforms that are due.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
None on file
AB 2708
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Analysis Prepared by:Janet Dawson / TRANS. / (916) 319-2093