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Chapter 3. Acquisition Of Information Technology Goods And Services of California Public Contract Code >> Division 2. >> Part 2. >> Chapter 3.
(a) The Legislature finds that the unique aspects of
information technology projects, as defined in Chapter 4800 of the
State Administrative Manual and not delegated under subdivision (e)
of Section 12102.2, and their importance to state programs warrant a
separate acquisition authority. The Legislature further finds that
this separate authority should enable the timely acquisition of
information technology goods and services to meet the state's needs
in the most value-effective manner.
(b) (1) All contracts for the acquisition of information technology projects, reportable under Chapter 4800 of the State Administrative Manual and not delegated under subdivision (e) of Section 12102.2, shall be made by or under the supervision of the Department of Technology consistent with the requirements of this chapter.
(2) The Department of Technology shall have the authority necessary for the acquisition of information technology projects as prescribed in this chapter.
(c) The Department of Technology shall have the final authority in the determination of information technology procurement policy.
(d) The Department of Technology shall have the final authority in the determination of information technology procurement procedures applicable to acquisitions of information technology projects reportable under Chapter 4800 of the State Administrative Manual and not delegated under subdivision (e) of Section 12102.2 and telecommunications procurements made pursuant to Section 12120.
(e) The Department of Technology shall have the final authority in the determination of procurement policy in telecommunications procurements made pursuant to Section 12120.
(f) Unless otherwise expressly provided, all contracts for the acquisition of information technology goods or services, whether by lease or purchase, shall be made by or under the supervision of the Department of General Services.
(g) Unless otherwise expressly provided, the Department of General Services shall have the final authority in the determination of information technology procurement procedures.
(b) (1) All contracts for the acquisition of information technology projects, reportable under Chapter 4800 of the State Administrative Manual and not delegated under subdivision (e) of Section 12102.2, shall be made by or under the supervision of the Department of Technology consistent with the requirements of this chapter.
(2) The Department of Technology shall have the authority necessary for the acquisition of information technology projects as prescribed in this chapter.
(c) The Department of Technology shall have the final authority in the determination of information technology procurement policy.
(d) The Department of Technology shall have the final authority in the determination of information technology procurement procedures applicable to acquisitions of information technology projects reportable under Chapter 4800 of the State Administrative Manual and not delegated under subdivision (e) of Section 12102.2 and telecommunications procurements made pursuant to Section 12120.
(e) The Department of Technology shall have the final authority in the determination of procurement policy in telecommunications procurements made pursuant to Section 12120.
(f) Unless otherwise expressly provided, all contracts for the acquisition of information technology goods or services, whether by lease or purchase, shall be made by or under the supervision of the Department of General Services.
(g) Unless otherwise expressly provided, the Department of General Services shall have the final authority in the determination of information technology procurement procedures.
The Regents of the University of California, the Trustees
of the California State University, and the Board of Governors of the
California Community Colleges shall not be subject to this chapter
except that the trustees shall develop policies and procedures
maintained in its state university administrative manual and the
board shall adopt policies and procedures maintained in its
administrative manual that further the legislative policies for
contracting expressed in this chapter but without the involvement of
the Director of Finance, the Director of General Services, the
Department of Finance, the Department of General Services, the
Director of Technology, or the Department of Technology.
The Trustees of the California State University are
subject to Article 1.5 (commencing with Section 10115) of Chapter 1.
The contents of any report that the trustees are required to submit
to the Governor and the Legislature pursuant to that article shall be
organized so that, whenever applicable, each campus is individually
featured.
As used in this chapter:
(a) "Multiple award schedule" (MAS) is an agreement established between the General Services Administration of the United States and certain suppliers to do business under specific prices, terms, and conditions for specified goods, information technology, and services.
(b) "Multiple award" means a contract of indefinite quantity for one or more similar goods, information technology, or services to more than one supplier.
(c) "Procedures" means the rules, methods, and practices to be followed in conducting information technology procurements.
(d) "Policies" means determining what information technology goods or services are to be purchased and by whom.
(e) For purposes of this chapter, "value-effective acquisition" may be defined to include, but not be limited to, the following:
(1) The operational cost that the state would incur if the bid or proposal is accepted.
(2) Quality of the product or service, or its technical competency.
(3) Reliability of delivery and implementation schedules.
(4) The maximum facilitation of data exchange and systems integration.
(5) Warranties, guarantees, and return policy.
(6) Supplier financial stability.
(7) Consistency of the proposed solution with the state's planning documents and announced strategic program direction.
(8) Quality and effectiveness of business solution and approach.
(9) Industry and program experience.
(10) Prior record of supplier performance.
(11) Supplier expertise with engagements of similar scope and complexity.
(12) Extent and quality of the proposed participation and acceptance by all user groups.
(13) Proven development methodologies and tools.
(14) Innovative use of current technologies and quality results.
(a) "Multiple award schedule" (MAS) is an agreement established between the General Services Administration of the United States and certain suppliers to do business under specific prices, terms, and conditions for specified goods, information technology, and services.
(b) "Multiple award" means a contract of indefinite quantity for one or more similar goods, information technology, or services to more than one supplier.
(c) "Procedures" means the rules, methods, and practices to be followed in conducting information technology procurements.
(d) "Policies" means determining what information technology goods or services are to be purchased and by whom.
(e) For purposes of this chapter, "value-effective acquisition" may be defined to include, but not be limited to, the following:
(1) The operational cost that the state would incur if the bid or proposal is accepted.
(2) Quality of the product or service, or its technical competency.
(3) Reliability of delivery and implementation schedules.
(4) The maximum facilitation of data exchange and systems integration.
(5) Warranties, guarantees, and return policy.
(6) Supplier financial stability.
(7) Consistency of the proposed solution with the state's planning documents and announced strategic program direction.
(8) Quality and effectiveness of business solution and approach.
(9) Industry and program experience.
(10) Prior record of supplier performance.
(11) Supplier expertise with engagements of similar scope and complexity.
(12) Extent and quality of the proposed participation and acceptance by all user groups.
(13) Proven development methodologies and tools.
(14) Innovative use of current technologies and quality results.
It is the intent of the Legislature that policies and
procedures developed by the Department of Technology and the
Department of General Services in accordance with this chapter
provide for the following:
(a) The expeditious and value-effective acquisition of information technology goods and services to satisfy state requirements.
(b) The acquisition of information technology goods and services within a competitive framework.
(c) The delegation of authority by the Department of General Services to each state agency that has demonstrated to the department' s satisfaction the ability to conduct value-effective information technology goods and services acquisitions.
(d) The exclusion from state bid processes, at the state's option, of any supplier having failed to meet prior contractual requirements related to information technology goods and services.
(e) The review and resolution of protests submitted by any bidders with respect to any information technology goods and services acquisitions.
(a) The expeditious and value-effective acquisition of information technology goods and services to satisfy state requirements.
(b) The acquisition of information technology goods and services within a competitive framework.
(c) The delegation of authority by the Department of General Services to each state agency that has demonstrated to the department' s satisfaction the ability to conduct value-effective information technology goods and services acquisitions.
(d) The exclusion from state bid processes, at the state's option, of any supplier having failed to meet prior contractual requirements related to information technology goods and services.
(e) The review and resolution of protests submitted by any bidders with respect to any information technology goods and services acquisitions.
The Department of General Services shall prenegotiate the
repetitively used terms and conditions in the state's model contract
with each interested vendor who bids or proposes on electronic data
processing or telecommunications procurements. The contract language
shall be kept on file, as a matter of public record, and shall remain
operational until either the state or the vendor provides 30 days'
notice to the other party that new negotiations are deemed
appropriate.
If, for a particular procurement, the state seeks to make any
further changes to either the negotiated or the standard contract
language, or both, it shall identify those changes to each bidder or
proposer prior to the due date for the bid or proposal. If for a
particular procurement, a bidder or proposer seeks to propose a
negotiated change or standard contract language change, it shall make
this identification within the timeframe identified in the
solicitation document.
(a) It is the intent of the Legislature that agencies of
the state use an acquisition method that is compatible with their
short- and long-term fiscal needs in contracts relating to
commodities and information technology goods and services. State
agencies should be able to specify their anticipated life cycle
requirements that would become one of the criteria for contractor
selection. These agencies should be given the choice of suppliers to
meet statewide standardization needs, unique service requirements,
application requirements, and long-term satisfaction criteria. There
is a need for the state to enter into long-term contracts with annual
cancellation and fund-out clauses, as required, to protect the state'
s interests as well as provide the option for multiyear renewals to
encourage suppliers to develop higher levels of service and support
throughout the contracts.
(b) The state may utilize multiple awards, including federal General Service Administration Multiple Awards Schedules and master agreements or contracts for goods, information technology, services, or consulting services. For purposes of this subdivision, a multiple award is an award of an indefinite quantity contract for one or more similar goods, information technology, or services to more than one supplier. Except for possible multiple awards as permitted by this subdivision, and except as described in subdivision (d), all the requirements of this chapter pertaining to other types of information technology acquisitions shall be followed. The Department of General Services shall administer this section and ensure that multiple award schedules are in compliance with all other applicable statutes.
(c) Notwithstanding any other provision of law, state agencies, in exercising their contracting authority delegated by the Department of General Services, may contract with suppliers who have multiple award schedules with the General Services Administration of the United States on the same terms, conditions, and prices if the supplier is willing to do so. The Department of General Services may also develop multiple award schedules or agreements for use by state agencies in the same manner. The Department of General Services shall determine the delegation contracting authority for agencies wishing to use multiple award schedules.
(d) For contracts related to information technology integration or development projects that generate revenues or achieve savings over a quantifiable baseline of existing costs, state agencies shall consider and may incorporate performance-based or share-in-savings contract terms to manage risks and create incentives for successful contract performance. Performance-based or share-in-savings contracts may have the following characteristics, among others:
(1) Contract terms that specify business outcomes to be achieved, not the solution to be provided.
(2) Contract terms that structure the contract to maintain maximum vendor commitment to project success and minimize risk to the state by sharing risk with the private sector.
(3) Utilization of "best value" evaluation methods, which means to select the solution that will achieve the best result based on business performance measures, not necessarily the lowest price.
(4) Contract terms that base payments to the vendor primarily on achieving predefined performance measures.
(b) The state may utilize multiple awards, including federal General Service Administration Multiple Awards Schedules and master agreements or contracts for goods, information technology, services, or consulting services. For purposes of this subdivision, a multiple award is an award of an indefinite quantity contract for one or more similar goods, information technology, or services to more than one supplier. Except for possible multiple awards as permitted by this subdivision, and except as described in subdivision (d), all the requirements of this chapter pertaining to other types of information technology acquisitions shall be followed. The Department of General Services shall administer this section and ensure that multiple award schedules are in compliance with all other applicable statutes.
(c) Notwithstanding any other provision of law, state agencies, in exercising their contracting authority delegated by the Department of General Services, may contract with suppliers who have multiple award schedules with the General Services Administration of the United States on the same terms, conditions, and prices if the supplier is willing to do so. The Department of General Services may also develop multiple award schedules or agreements for use by state agencies in the same manner. The Department of General Services shall determine the delegation contracting authority for agencies wishing to use multiple award schedules.
(d) For contracts related to information technology integration or development projects that generate revenues or achieve savings over a quantifiable baseline of existing costs, state agencies shall consider and may incorporate performance-based or share-in-savings contract terms to manage risks and create incentives for successful contract performance. Performance-based or share-in-savings contracts may have the following characteristics, among others:
(1) Contract terms that specify business outcomes to be achieved, not the solution to be provided.
(2) Contract terms that structure the contract to maintain maximum vendor commitment to project success and minimize risk to the state by sharing risk with the private sector.
(3) Utilization of "best value" evaluation methods, which means to select the solution that will achieve the best result based on business performance measures, not necessarily the lowest price.
(4) Contract terms that base payments to the vendor primarily on achieving predefined performance measures.
(a) Notwithstanding the sealed bidding provisions of this
chapter, reverse auctions may be utilized for the acquisition of
information technology, in accordance with the procedures set forth
in Section 10290.3.
(b) For purposes of this section, "reverse auction" means a competitive online solicitation process for fungible information technology in which vendors compete against each other online in real time in an open and interactive environment.
(b) For purposes of this section, "reverse auction" means a competitive online solicitation process for fungible information technology in which vendors compete against each other online in real time in an open and interactive environment.
(a) The Department of General Services shall maintain, in
the State Administrative Manual, all policies and procedures
governing the acquisition and disposal of information technology
goods and services, including, but not limited to, the policies and
procedures that the Department of Technology is authorized to
establish for the acquisition of information technology projects. The
Department of Technology shall provide a link to information
technology policies and procedures in the State Administrative Manual
on the homepage of the Internet Web site.
(b) Except as specified in Section 12102.1, acquisition of information technology goods and services shall be conducted through competitive means, except when the Director of General Services determines that (1) the goods and services proposed for acquisition are the only goods and services which can meet the state's need, or (2) the goods and services are needed in cases of emergency where immediate acquisition is necessary for the protection of the public health, welfare, or safety. The acquisition mode to be used and the procedure to be followed shall be approved by the Director of General Services. The Department of General Services shall maintain, in the State Administrative Manual, appropriate criteria and procedures to ensure compliance with the intent of this chapter. These criteria and procedures shall include acquisition and contracting guidelines to be followed by state agencies with respect to the acquisition of information technology goods and services. These guidelines may be in the form of standard formats or model formats.
(b) Except as specified in Section 12102.1, acquisition of information technology goods and services shall be conducted through competitive means, except when the Director of General Services determines that (1) the goods and services proposed for acquisition are the only goods and services which can meet the state's need, or (2) the goods and services are needed in cases of emergency where immediate acquisition is necessary for the protection of the public health, welfare, or safety. The acquisition mode to be used and the procedure to be followed shall be approved by the Director of General Services. The Department of General Services shall maintain, in the State Administrative Manual, appropriate criteria and procedures to ensure compliance with the intent of this chapter. These criteria and procedures shall include acquisition and contracting guidelines to be followed by state agencies with respect to the acquisition of information technology goods and services. These guidelines may be in the form of standard formats or model formats.
(a) The Department of Technology shall establish in the
State Administrative Manual all of the following:
(1) Policies governing the acquisition of information technology projects.
(2) Procedures governing the acquisition of information technology projects reportable under Chapter 4800 of the State Administrative Manual and not delegated under subdivision (e) of Section 12102.2.
(3) Policies and procedures governing the acquisition of telecommunications goods and services, as authorized under Section 12120.
(b) Acquisition of information technology goods and services that are subject to subdivision (a) shall be conducted through competitive means, except when the Director of Technology determines that (1) the goods and services proposed for acquisition are the only goods and services that can meet the state's need, or (2) the goods and services are needed for an emergency and immediate acquisition and are necessary for the protection of the public health, welfare, or safety. The acquisition mode to be used and the procedure to be followed shall be approved by the Director of Technology. The Department of Technology shall establish, in the State Administrative Manual, appropriate criteria and procedures to ensure compliance with the intent of this chapter. These criteria and procedures shall include acquisition and contracting guidelines to be followed by state agencies with respect to the acquisition of information technology projects that are reportable under State Administrative Manual Section 4800 et seq. These guidelines may be in the form of standard formats or model formats.
(1) Policies governing the acquisition of information technology projects.
(2) Procedures governing the acquisition of information technology projects reportable under Chapter 4800 of the State Administrative Manual and not delegated under subdivision (e) of Section 12102.2.
(3) Policies and procedures governing the acquisition of telecommunications goods and services, as authorized under Section 12120.
(b) Acquisition of information technology goods and services that are subject to subdivision (a) shall be conducted through competitive means, except when the Director of Technology determines that (1) the goods and services proposed for acquisition are the only goods and services that can meet the state's need, or (2) the goods and services are needed for an emergency and immediate acquisition and are necessary for the protection of the public health, welfare, or safety. The acquisition mode to be used and the procedure to be followed shall be approved by the Director of Technology. The Department of Technology shall establish, in the State Administrative Manual, appropriate criteria and procedures to ensure compliance with the intent of this chapter. These criteria and procedures shall include acquisition and contracting guidelines to be followed by state agencies with respect to the acquisition of information technology projects that are reportable under State Administrative Manual Section 4800 et seq. These guidelines may be in the form of standard formats or model formats.
(a) Contract awards for all large-scale systems
integration projects shall be based on the proposal that provides the
most value-effective solution to the state's requirements, as
determined by the evaluation criteria contained in the solicitation
document. Evaluation criteria for the acquisition of information
technology goods and services, including systems integration, shall
provide for the selection of a contractor on an objective basis not
limited to cost alone.
(1) The Department of Technology shall invite active participation, review, advice, comment, and assistance from the private sector and state agencies in developing procedures to streamline and to make the acquisition process more efficient, including, but not limited to, consideration of comprehensive statements in the request for proposals of the business needs and governmental functions, access to studies, planning documents, feasibility study reports and draft requests for proposals applicable to solicitations, minimizing the time and cost of the proposal submittal and selection process, and development of a procedure for submission and evaluation of a single proposal rather than multiple proposals.
(2) Solicitations for acquisitions based on evaluation criteria other than cost alone shall provide that sealed cost proposals shall be submitted and that they shall be opened at a time and place designated in the solicitation for bids and proposals. Evaluation of all criteria, other than cost, shall be completed prior to the time designated for public opening of cost proposals, and the results of the completed evaluation shall be published immediately before the opening of cost proposals. The state's contact person for administration of the solicitation shall be identified in the solicitation for bids and proposals, and that person shall execute a certificate under penalty of perjury, which shall be made a permanent part of the official contract file, that all cost proposals received by the state have been maintained sealed and under lock and key until the time cost proposals are opened.
(b) The acquisition of hardware acquired independently of a system integration project may be made on the basis of lowest cost meeting all other specifications.
(c) The 5 percent small business preference provided for in Chapter 6.5 (commencing with Section 14835) of Part 5.5 of Division 3 of Title 2 of the Government Code and the regulations implementing that chapter shall be accorded to all qualifying small businesses.
(d) For all transactions formally advertised, evaluation of bidders' proposals for the purpose of determining contract award for information technology goods shall provide for consideration of a bidder's best financing alternatives, including lease or purchase alternatives, if any bidder so requests, not less than 30 days prior to the date of final bid submission, unless the acquiring agency can prove to the satisfaction of the Department of General Services that a particular financing alternative should not be so considered.
(e) Acquisition authority may be delegated by the Director of General Services to any state agency that has been determined by the Department of General Services to be capable of effective use of that authority. This authority may be limited by the Department of General Services. Acquisitions conducted under delegated authority shall be reviewed by the Department of General Services on a selective basis.
(f) To the extent practical, the solicitation documents shall provide for a contract to be written to enable acquisition of additional items to avoid essentially redundant acquisition processes when it can be determined that it is economical to do so.
(g) Protest procedures shall be developed to provide bidders an opportunity to protest any formal, competitive acquisition conducted in accordance with this chapter. The procedures shall provide that protests must be filed no later than five working days after the issuance of an intent to award. Authority to protest may be limited to participating bidders. The Director of Technology, or a person designated by the director, may consider and decide on initial protests of bids for information technology projects conducted by the Department of Technology and telecommunications procurement made pursuant to Section 12120. The Director of the Department of General Services, or a person designated by the director, may consider and decide on initial protests of all other information technology acquisitions. A decision regarding an initial protest shall be final. If prior to the last day to protest, any bidder who has submitted an offer files a protest with the department against the awarding of the contract on the ground that his or her bid or proposal should have been selected in accordance with the selection criteria in the solicitation document, the contract shall not be awarded until either the protest has been withdrawn or the California Victim Compensation and Government Claims Board has made a final decision as to the action to be taken relating to the protest. Within 10 calendar days after filing a protest, the protesting bidder shall file with the Victim Compensation and Government Claims Board a full and complete written statement specifying in detail the grounds of the protest and the facts in support thereof.
(h) Consistent with the procedures established and administered by the Department of General Services, information technology goods that have been determined to be surplus to state needs shall be disposed of in a manner that will best serve the interests of the state. Procedures governing the disposal of surplus goods may include auction or transfer to local governmental entities.
(i) A supplier may be excluded from bid processes if the supplier' s performance with respect to a previously awarded contract has been unsatisfactory, as determined by the state in accordance with established procedures that shall be maintained in the State Administrative Manual. This exclusion may not exceed 36 months for any one determination of unsatisfactory performance. Any supplier excluded in accordance with this section shall be reinstated as a qualified supplier at any time during this 36-month period, upon demonstrating to the Department of General Services' satisfaction that the problems that resulted in the supplier's exclusion have been corrected.
(1) The Department of Technology shall invite active participation, review, advice, comment, and assistance from the private sector and state agencies in developing procedures to streamline and to make the acquisition process more efficient, including, but not limited to, consideration of comprehensive statements in the request for proposals of the business needs and governmental functions, access to studies, planning documents, feasibility study reports and draft requests for proposals applicable to solicitations, minimizing the time and cost of the proposal submittal and selection process, and development of a procedure for submission and evaluation of a single proposal rather than multiple proposals.
(2) Solicitations for acquisitions based on evaluation criteria other than cost alone shall provide that sealed cost proposals shall be submitted and that they shall be opened at a time and place designated in the solicitation for bids and proposals. Evaluation of all criteria, other than cost, shall be completed prior to the time designated for public opening of cost proposals, and the results of the completed evaluation shall be published immediately before the opening of cost proposals. The state's contact person for administration of the solicitation shall be identified in the solicitation for bids and proposals, and that person shall execute a certificate under penalty of perjury, which shall be made a permanent part of the official contract file, that all cost proposals received by the state have been maintained sealed and under lock and key until the time cost proposals are opened.
(b) The acquisition of hardware acquired independently of a system integration project may be made on the basis of lowest cost meeting all other specifications.
(c) The 5 percent small business preference provided for in Chapter 6.5 (commencing with Section 14835) of Part 5.5 of Division 3 of Title 2 of the Government Code and the regulations implementing that chapter shall be accorded to all qualifying small businesses.
(d) For all transactions formally advertised, evaluation of bidders' proposals for the purpose of determining contract award for information technology goods shall provide for consideration of a bidder's best financing alternatives, including lease or purchase alternatives, if any bidder so requests, not less than 30 days prior to the date of final bid submission, unless the acquiring agency can prove to the satisfaction of the Department of General Services that a particular financing alternative should not be so considered.
(e) Acquisition authority may be delegated by the Director of General Services to any state agency that has been determined by the Department of General Services to be capable of effective use of that authority. This authority may be limited by the Department of General Services. Acquisitions conducted under delegated authority shall be reviewed by the Department of General Services on a selective basis.
(f) To the extent practical, the solicitation documents shall provide for a contract to be written to enable acquisition of additional items to avoid essentially redundant acquisition processes when it can be determined that it is economical to do so.
(g) Protest procedures shall be developed to provide bidders an opportunity to protest any formal, competitive acquisition conducted in accordance with this chapter. The procedures shall provide that protests must be filed no later than five working days after the issuance of an intent to award. Authority to protest may be limited to participating bidders. The Director of Technology, or a person designated by the director, may consider and decide on initial protests of bids for information technology projects conducted by the Department of Technology and telecommunications procurement made pursuant to Section 12120. The Director of the Department of General Services, or a person designated by the director, may consider and decide on initial protests of all other information technology acquisitions. A decision regarding an initial protest shall be final. If prior to the last day to protest, any bidder who has submitted an offer files a protest with the department against the awarding of the contract on the ground that his or her bid or proposal should have been selected in accordance with the selection criteria in the solicitation document, the contract shall not be awarded until either the protest has been withdrawn or the California Victim Compensation and Government Claims Board has made a final decision as to the action to be taken relating to the protest. Within 10 calendar days after filing a protest, the protesting bidder shall file with the Victim Compensation and Government Claims Board a full and complete written statement specifying in detail the grounds of the protest and the facts in support thereof.
(h) Consistent with the procedures established and administered by the Department of General Services, information technology goods that have been determined to be surplus to state needs shall be disposed of in a manner that will best serve the interests of the state. Procedures governing the disposal of surplus goods may include auction or transfer to local governmental entities.
(i) A supplier may be excluded from bid processes if the supplier' s performance with respect to a previously awarded contract has been unsatisfactory, as determined by the state in accordance with established procedures that shall be maintained in the State Administrative Manual. This exclusion may not exceed 36 months for any one determination of unsatisfactory performance. Any supplier excluded in accordance with this section shall be reinstated as a qualified supplier at any time during this 36-month period, upon demonstrating to the Department of General Services' satisfaction that the problems that resulted in the supplier's exclusion have been corrected.
In addition to the mandatory requirements enumerated in
Sections 12102, 12102.1, and 12102.2, the acquisition policies and
procedures developed by the Department of Technology and the
Department of General Services in accordance with this chapter may
provide for the following:
(a) Price negotiation with respect to contracts entered into in accordance with this chapter.
(b) System or equipment component performance, or availability standards, including an assessment of the added cost to the state to receive contractual guarantee of a level of performance.
(c) Requirement of a bond or assessment of a cost penalty with respect to a contract or consideration of a contract offered by a supplier whose performance has been determined unsatisfactory in accordance with established procedures maintained in the State Administrative Manual as required by Section 12102.
(a) Price negotiation with respect to contracts entered into in accordance with this chapter.
(b) System or equipment component performance, or availability standards, including an assessment of the added cost to the state to receive contractual guarantee of a level of performance.
(c) Requirement of a bond or assessment of a cost penalty with respect to a contract or consideration of a contract offered by a supplier whose performance has been determined unsatisfactory in accordance with established procedures maintained in the State Administrative Manual as required by Section 12102.
For those information technology purchases for which the
Department of General Services or the Department of Technology
determines that a request for proposal (RFP) is appropriate, the
controlling department, as specified under Section 12100, shall
identify and document the following, with respect to information
technology procurements, prior to releasing the RFP:
(a) Identify the legislative mandate, state business, or operational reason for the information technology procurement.
(b) Identify the existing business processes currently used to accomplish the legislative mandate, state business, or operational reason.
(c) Identify the most important priorities for the information technology project to accomplish.
(d) Identify what current technology is being used and how it is being used.
(e) If the data used in a proposed information technology system comes from multiple sources, identify the existing business processes or technical systems that produce and maintain the source data to ensure interoperability.
(f) Identify how the new information technology project leverages existing technology investments while accomplishing its business objectives.
(a) Identify the legislative mandate, state business, or operational reason for the information technology procurement.
(b) Identify the existing business processes currently used to accomplish the legislative mandate, state business, or operational reason.
(c) Identify the most important priorities for the information technology project to accomplish.
(d) Identify what current technology is being used and how it is being used.
(e) If the data used in a proposed information technology system comes from multiple sources, identify the existing business processes or technical systems that produce and maintain the source data to ensure interoperability.
(f) Identify how the new information technology project leverages existing technology investments while accomplishing its business objectives.
(a) (1) The State Contracting Manual shall set forth all
procedures and methods that shall be used by the state when seeking
to obtain bids for the acquisition of information technology.
(2) Revisions to the manual must be publicly announced, including, but not limited to, postings on the Internet Web site homepage of the Department of General Services. The Department of Technology shall provide a link to the State Contracting Manual on its Internet Web site homepage.
(b) The Department of General Services and the Department of Technology in accordance with this chapter shall develop, implement, and maintain standardized methods for the development of all information technology requests for proposals.
(c) All information technology requests for proposals shall be reviewed by the Department of Technology prior to release to the public.
(2) Revisions to the manual must be publicly announced, including, but not limited to, postings on the Internet Web site homepage of the Department of General Services. The Department of Technology shall provide a link to the State Contracting Manual on its Internet Web site homepage.
(b) The Department of General Services and the Department of Technology in accordance with this chapter shall develop, implement, and maintain standardized methods for the development of all information technology requests for proposals.
(c) All information technology requests for proposals shall be reviewed by the Department of Technology prior to release to the public.
(a) All rules and requirements governing an information
technology acquisition, for which the Department of General Services
or the Department of Technology determines that a request for
proposal (RFP) is appropriate, shall be communicated in writing to
all vendors that have expressed an intent to bid and shall be posted
in a public location. Any changes to the rules and requirements
governing that RFP shall be communicated in writing to all vendors
that have expressed an intent to bid and shall be posted in a public
location. Requirements other than those provided by law or outside of
the published RFP and posted addendums shall not be used to score
bids.
(b) (1) All requests for proposals shall contain the following statement: "It is unlawful for any person engaged in business within this state to sell or use any article or product as a "loss leader" as defined in Section 17030 of the Business and Professions Code."
(2) The Department of General Services shall post in the State Contracting Manual instructions for including the statement required by paragraph (1) in all affected contracts.
(3) The statement required by paragraph (1) shall be deemed to be part of a request for proposal even if the statement is inadvertently omitted from the request for proposal.
(c) The requirements of this section shall be in addition to any other requirement provided by law.
(b) (1) All requests for proposals shall contain the following statement: "It is unlawful for any person engaged in business within this state to sell or use any article or product as a "loss leader" as defined in Section 17030 of the Business and Professions Code."
(2) The Department of General Services shall post in the State Contracting Manual instructions for including the statement required by paragraph (1) in all affected contracts.
(3) The statement required by paragraph (1) shall be deemed to be part of a request for proposal even if the statement is inadvertently omitted from the request for proposal.
(c) The requirements of this section shall be in addition to any other requirement provided by law.
The Department of General Services and the Department of
Technology shall coordinate in the development of policies and
procedures that implement the intent of this chapter.
The Department of General Services and the Department of
Technology may, in addition to fulfilling the mandatory requirements
enumerated in Sections 12102, 12102.1, and 12102.2, adopt such rules
and regulations as are necessary for the purposes of this chapter.
Until the time that the Department of General Services and
the Department of Technology have published in the State
Administrative Manual the procedures required in accordance with
Section 12102, acquisitions of information technology goods and
services shall be accomplished in accordance with either existing
State Administrative Manual procedures for the acquisition of
information technology goods and services, or Article 2 (commencing
with Section 14790) of Chapter 6 of Part 5.5 of Division 3 of Title 2
of the Government Code, as determined by the Department of General
Services.
The Director of General Services and the Director of
Technology may make the services of their respective departments
under this chapter available, upon the terms and conditions that may
be deemed satisfactory, to any tax-supported public agency in the
state, including a school district, for assisting the agency in the
acquisition of information technology goods or services.
(a) Any contract for information technology goods or
services, to be manufactured or performed by the contractor
especially for the state and not suitable for sale to others in the
ordinary course of the contractor's business may provide, on the
terms and conditions that the controlling department, as specified in
Section 12100, deems necessary to protect the state's interests, for
progress payments for work performed and costs incurred at the
contractor's shop or plant, provided that not less than 10 percent of
the contract price is required to be withheld until final delivery
and acceptance of the goods or services. Notwithstanding this
subdivision, if the department determines that lesser withholding
levels are appropriate based upon an evaluation of risk determined
under subdivision (b) and the contract price is ten million dollars
($10,000,000) or more, the department shall withhold no less than 5
percent of the contract price until final delivery and acceptance of
the goods or services. If the department determines that lesser
withholding levels are appropriate based on an evaluation of risk
determined under subdivision (b) and the contract price is less than
ten million dollars ($10,000,000), the department shall withhold no
less than 3 percent of the contract price until final delivery and
acceptance of the goods or services.
(b) The Department of General Services, in consultation with the Department of Finance, shall develop and maintain criteria for the evaluation of risk to the state that results from the acquisition of information technology. This risk analysis shall determine the need for financial protection that is in the best interest of the state, including, but not limited to, any of the following:
(1) An acceptable performance bond as described in Chapter 2 (commencing with Section 995.010) of Title 14 of Part 2 of the Code of Civil Procedure.
(2) Any surety as defined in Section 2787 of the Civil Code.
(3) A letter of credit as described in Division 5 (commencing with Section 5101) of the Commercial Code.
(4) Protection in the form of contract terms.
(5) Any other form of security or guaranty of performance in an amount sufficient to protect the state in the case of default by the contractor providing information technology, or any other breach or malfunction of the goods or services, or both.
(c) For purposes of this section, "information technology" means information technology goods or services, or both, as appropriate.
(b) The Department of General Services, in consultation with the Department of Finance, shall develop and maintain criteria for the evaluation of risk to the state that results from the acquisition of information technology. This risk analysis shall determine the need for financial protection that is in the best interest of the state, including, but not limited to, any of the following:
(1) An acceptable performance bond as described in Chapter 2 (commencing with Section 995.010) of Title 14 of Part 2 of the Code of Civil Procedure.
(2) Any surety as defined in Section 2787 of the Civil Code.
(3) A letter of credit as described in Division 5 (commencing with Section 5101) of the Commercial Code.
(4) Protection in the form of contract terms.
(5) Any other form of security or guaranty of performance in an amount sufficient to protect the state in the case of default by the contractor providing information technology, or any other breach or malfunction of the goods or services, or both.
(c) For purposes of this section, "information technology" means information technology goods or services, or both, as appropriate.
(a) Notwithstanding any other provision of law, state and
local agencies may enter into agreements to pay for
telecommunications services to be utilized beyond the current fiscal
year. "Telecommunications services" for purposes of this section
shall include, but not be limited to, central office-based leased
communications systems equipped with primary station lines, capable
of receiving in-dialed voice and data communications and capable of
out-dialing voice and data communications and any customer premised
equipment, software and installation costs necessary for utilization
by the state or local agency.
(b) State and local agencies may enter into financing agreements for the acquisition of telecommunications services whenever the state or local agency may derive monetary benefit and greater services as a result of its ability to acquire capital at lower interest cost than the supplier of those services can provide directly to the agency or whenever the state or local agency may obtain a reduced cost of service based on length of agreement if offered by the supplier of telecommunications service.
(c) Acquisition requirements for financing of telecommunications goods and services shall be considered to have been met whenever the financing is within the scope of public sector requests for proposals or whenever the financing is offered by a sole source provider or that provider's assignee.
(d) The provisions of this section shall not be construed to alter or circumvent any existing acquisition procedure or requirement, nor to alter or circumvent the acquisition authority of any state or local agency.
(b) State and local agencies may enter into financing agreements for the acquisition of telecommunications services whenever the state or local agency may derive monetary benefit and greater services as a result of its ability to acquire capital at lower interest cost than the supplier of those services can provide directly to the agency or whenever the state or local agency may obtain a reduced cost of service based on length of agreement if offered by the supplier of telecommunications service.
(c) Acquisition requirements for financing of telecommunications goods and services shall be considered to have been met whenever the financing is within the scope of public sector requests for proposals or whenever the financing is offered by a sole source provider or that provider's assignee.
(d) The provisions of this section shall not be construed to alter or circumvent any existing acquisition procedure or requirement, nor to alter or circumvent the acquisition authority of any state or local agency.
