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Closer Look: Franchise Tax Board Spends $115M in 2 Years

California's Franchise Tax Board spent about $115 million in IT goods, services and telecoms during the 2016-17 and 2017-18 fiscal years.

California's Franchise Tax Board spent about $115 million in IT goods, services and telecoms during the 2016-17 and 2017-18 fiscal years. 

That included 670 purchase orders spread over 24 months, with the most orders in June 2017. That month included 48 orders, while August 2017 had 14 purchases, the fewest in those two years. In all, 170 vendors contracted with the board.

The largest monetary portion of those orders came under competitively bid contracts, at $27.9 million, almost one-sixth of the spending. Just under half of the spending, about $75.3 million, was done under competitive, software licensing programs and non-competitive contracts. Software licensing programs still require competitive bids.

The non-competitive bids amount to about $23.6 million, most of which was spent in 2016-17. In 2016-17, $12.9 million was spent on competitive contracts. 

About $92.6 million was spent on IT goods and $18.1 million was spent on IT services over the two years, and $4.8 million was spent on telecoms.

FY 2016-17 had a $63.1 million spend toward IT goods and $15.1 million on IT services. The department spent $41.9 million in FY 2017-18, $3.8 million on IT services, $33.4 million on IT goods and $4.8 million on telecom.

 

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Kayla Nick-Kearney was a staff writer for Techwire from March 2017 through January 2019.