BILL ANALYSIS Ó
AB 2708
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Date of Hearing: April 27, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2708 (Daly) - As Amended March 18, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill directs 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.
FISCAL EFFECT:
AB 2708
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Negligible fiscal impact, as Caltrans indicates the assessment
is in process.
COMMENTS:
Background and Purpose. 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 and the Government Operations
Agency partnered to offer a Lean 6-Sigma implementation program
to 11 state departments, including Caltrans, to address
process-based issues that are 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.
After review using Lean 6-Sigma, Caltrans expects the process to
be simplified and reduced to about 45 days. These 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.
AB 2708
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Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081