The ability for a state to negotiate a government contract sounds like common sense. But that’s not always how business is done in government, where vendors often submit sealed, competitive bids that sometimes don’t meet all the project requirements.
Legislation moving through the state Assembly would provide the California Department of Technology (CDT) the continued authority it needs to negotiate and hammer out project details for IT goods and services.
“This authority has allowed CDT to coordinate and provide oversight for numerous IT procurement projects,” Assemblyman Ed Chau, chair of the Privacy and Consumer Protection Committee, told his fellow committee members last month. “This is a critical component of CDT’s mission.”
AB 475 by Chau removes the Jan. 1, 2018, sunset that lawmakers put into statute five years ago when it gave the technology department the authority to negotiate IT contracts — in addition to using the traditional method of closed, competitive bids to solicit goods and services.
Industry officials say negotiated procurements under what is known as Public Contract Code 6611 have been successful, and continuing its use would be a win-win for both the state and the tech industry.
“Communication is the key to success in IT projects, from writing the requirements to implementation, and the industry is pleased that the state sees the same value,” said Jennifer Saha, director of Public Sector Councils for the nonprofit trade association CompTIA.
Such negotiating authority has allowed CDT to use flexible procurement techniques to better define a state project's business needs or purpose, reduce the costs of bid submission, or empower the agency to pursue the best value or most cost-efficient outcome. It has also allowed the department to shift from the traditional waterfall procurement method to an agile acquisition system that issues multiple smaller requests for proposal, rather than a single, enormous contract, according to the Assembly analysis of the bill.
The Department of Technology could not provide specific examples of how the negotiating authority has benefited the state.
The bill would require the CDT director to submit an information technology performance report to the Joint Legislative Budget Committee every January that assesses and measures the state’s progress toward enhancing its information technology program. The report must include cost savings and avoidances achieved through improvements to the way the state acquires, develops, implements, manages and operates state technology assets, infrastructure and systems, according to the bill.
Chau’s bill is scheduled for a Wednesday hearing before the Assembly Appropriations Committee.
