Section 12101.5 Of Chapter 3. Acquisition Of Information Technology Goods And Services From California Public Contract Code >> Division 2. >> Part 2. >> Chapter 3.
12101.5
. (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.