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A Look at EDD’s Spend on IT Services Since 2019

The California Employment Development Department’s purchases of IT services rose significantly in number in 2020 relative to 2019 and 2021, but the value of its five costliest such buys has risen consistently each year.

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The department responsible for connecting job seekers and employers is making progress on identity security and a technology modernization, and its many millions spent on IT services during the past three years reflect that work.

The California Employment Development Department (EDD) made just 108 purchases of IT services during 2021; 173 such purchases in 2020; and 111 such purchases in 2019. Its five costliest such buys during each of those years cost it $53,896,379 in 2021; $676,094,416 in 2020; and $12,284,529 in 2019. Here, with rounding, is more on those purchases, based on information from the State Contracting and Procurement Registration System:

  • In 2021, EDD’s five most expensive IT services buys topped out with $41.5 million to the California Department of Technology (CDT) for data center services, a two-year contract from July 1-June 30, 2023.
  • $4.9 million to KPMG for “IT consulting for business process re-engineering for reimagining Benefit Systems Modernization,” an eight-month contract ending June 30 and part of EDD’s ongoing modernization of its benefit systems.
  • $3.5 million to West, a Thomson Reuters business, for “Thomson Reuters ID Risk Analytics” across FY 2020-21 and 2022-2023. West publishes legal, business and regulatory data in print and online. The contract is for two years, from May 1-April 30, 2023.
  • $1.8 million to Allied Network Solutions for Micro Focus’ Reflection Desktop software, for a one-year period from April 1-March 31, 2022. EDD made the purchase March 25.
  • $1.6 million to Solutions Simplified for a renewal of Proofpoint software across the 2020/2021-2023/2024 Fiscal Years. The contract is three years, from April 24-May 23, 2024.
  • In 2020, EDD’s five most expensive IT services buys were topped by $551.6 million to Deloitte for an emergency contract for call center augmentation, a roughly 10-month contract from April 20, 2020-Feb. 28, 2021.
  • $49.8 million to Deloitte for “emergency contract for IT consulting for website improvements and database design,” a roughly three-year contract from April 1, 2020-June 30, 2023.
  • $44 million to CDT for “amendment 1 – data services agreement, providing ongoing information technology services, materials and/or equipment,” a one-year pact from July 1, 2020-June 30, 2021.
  • $19.4 million to Eventus Solutions Group LLC for IT services, a nearly three-year contract from May 1, 2020-March 17, 2023.
  • $11.3 million to The iFish Group, Inc., for “emergency IT project management – COVID stimulus,” a two-year contract from April 1, 2020-March 31, 2022.
  • In 2019, EDD’s five most expensive IT services buys were led by $4.4 million to xFusion Technologies Inc. for “BSM data conversion developer consultants,” a three-year contract from Nov. 1, 2019 to Oct. 31, 2022.
  • $3.8 million to M Corp. for “10 IT consultants to prepare for (integrating) benefit system,” a roughly one-year pact from July 1, 2019-Sept. 30, 2020.
  • $1.5 million to Cornerstone OnDemand, Inc. for “TMS project,” a three-year contract from March 1, 2019-Feb. 28, 2022.
  • $1.3 million to SupportFocus Inc. for data conversion services, a nearly four-year contract from April 15, 2019-Jan. 14, 2023.
  • $1.3 million to xFusion Technologies for “BSM senior technical lead,” a one-year contract from Sept. 7, 2019-Sept. 6, 2020.
Theo Douglas is Assistant Managing Editor of Industry Insider — California.