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AB-1806 Public contracts: information technology: Department of Technology: modular contracting.(2021-2022)

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Date Published: 04/21/2022 09:00 PM
AB1806:v97#DOCUMENT

Amended  IN  Assembly  April 21, 2022
Amended  IN  Assembly  March 17, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1806

Introduced by Assembly Members Salas and Mathis

February 07, 2022

An act to add Section 12114 to the Public Contract Code, relating to state contracts.


LEGISLATIVE COUNSEL'S DIGEST


AB 1806, as amended, Salas. Public contracts: information technology: Department of Technology: modular contracting.
Existing law requires all contracts for the acquisition of information technology goods and services related to information technology projects, as defined, to be made by or under the supervision of the Department of Technology, which also has the final authority in the determination of information technology procurement policy.
This bill would require the Department of Technology to maximize, to the extent practicable, use of modular contracting for large-scale information technology acquisitions, as defined. The bill would require, to the maximum extent practicable, a contract for an increment of an information technology acquisition using modular contracting to be awarded within 180 days after the solicitation is issued, and would require an increment of an information technology acquisition to be delivered within 18 months after the solicitation resulting in award of the contract was issued. The bill would require the department to develop a process for overseeing large-scale information technology acquisitions using modular contracting, as specified.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares that large-scale information technology acquisitions are best realized using modular contracting when all of the following occurs:
(a) An agency shares first, focuses on reusability, and leverages increments across the organization.
(b) Integrated project teams are formed to identify the functional, technical, and other capabilities and characteristics required to make an acquisition deliverable, viable, and useful.
(c) End users are involved early and throughout the development process and an acquisition’s requirements and design matures as understanding of the users’ needs mature.
(d) The information technology project manager’s team and the contracting officer’s team collaborate early in the requirements definition process, especially in determining the modular increments and developing the acquisition strategy that can best be applied to deliver the intended results.
(e) The information technology project manager uses the input from integrated project teams, end users, and the contracting officer in the development of the document that will explain the agency’s justification for the information technology acquisition.
(f) Proper governance is provided to oversee increments’ progress and results.
(g) Agencies are required to established cost, schedule, and measurable performance goals for all major information technology acquisitions, and achieve, on average, 90 percent of those goals.
(h) Cost and schedules are managed at the increment levels, and cost and schedule targets are developed for each increment.
(i) Performance measures and outcomes are defined early in the process and are monitored throughout the process through an established governance structure.

SECTION 1.SEC. 2.

 Section 12114 is added to the Public Contract Code, to read:
12114.

(a)The Legislature finds and declares that large-scale information technology acquisitions are best realized using modular contracting when all of the following occurs:

(1)An agency shares first, focuses on reusability, and leverages increments across the organization.

(2)Integrated project teams are formed to identify the functional, technical, and other capabilities and characteristics required to make an acquisition deliverable, viable, and useful.

(3)End users are involved early and throughout the development process and an acquisition’s requirements and design matures as understanding of the users’ needs mature.

(4)The information technology project manager’s team and the contracting officer’s team collaborate early in the requirements definition process, especially in determining the modular increments and developing the acquisition strategy that can best be applied to deliver the intended results.

(5)The information technology project manager uses the input from integrated project teams, end users, and the contracting officer in the development of the document that will explain the agency’s justification for the information technology acquisition.

(6)Proper governance is provided to oversee increments’ progress and results.

(7)Agencies are required to established cost, schedule, and measurable performance goals for all major information technology acquisitions, and achieve, on average, 90 percent of those goals.

(8)Cost and schedules are managed at the increment levels, and cost and schedule targets are developed for each increment.

(9)Performance measures and outcomes are defined early in the process and are monitored throughout the process through an established governance structure.

(b)Notwithstanding any other law, the

12114.
 (a) The Department of Technology shall maximize, to the extent practicable, use of modular contracting, as defined in paragraph (3) of subdivision (h), (g), for large-scale information technology acquisitions.

(c)

(b) Modular contracting, as defined in paragraph (3) of subdivision (h), (g), shall include successive, interoperable increments. These increments shall be undertaken under one or more contracts to develop and implement the products and capabilities to deliver the larger information technology acquisition. Each increment, which can be contracted for and built sequentially or in parallel, shall have its own cost estimate, budget identifying full funding, schedule, performance expectations, and key deliverables for the product or capability it will develop and deliver. Each increment shall have its own development lifecycle, including planning, acquisition, development, and deployment, and shall be scoped in a way that it can be acquired independently so that the acquisition of any single increment does not commit the agency to acquiring any future increment.

(d)

(c) Using modular contracting, as authorized in subdivision (b), the Department of Technology shall seek to achieve all of the following goals: shall, to the extent practicable:
(1) Simplify management of large-scale information technology acquisition by breaking these undertakings into smaller increments.
(2) Address complex information technology objectives incrementally, thereby increasing the likelihood of achieving workable solutions for attaining those objectives.
(3) Provide for delivery, implementation, and testing of workable systems or solutions in discrete increments, each of which comprises a system or solution that is not dependent on a subsequent increment in order to perform its principal functions.
(4) Provide an opportunity for subsequent increments of the acquisition to take advantage of any evolution in technology or needs that occur during conduct of the earlier increments.

(e)

(d) To the maximum extent practicable, a contract for an increment of an information technology acquisition using modular contracting shall be awarded within 180 days after the solicitation is issued. If the contract for that increment cannot be awarded within that period, the increment should shall be considered for cancellation.

(f)

(e) An increment of an information technology acquisition shall be delivered within 18 months after the solicitation resulting in award of the contract was issued.

(g)

(f) The Department of Technology shall develop a process for overseeing large-scale information technology acquisitions using modular contracting, as defined in paragraph (3) of subdivision (h), (g), including a process for approving and overseeing the development of increments. The process shall set expectations for state agencies to plan and develop cost estimates, develop an overall strategy, report progress toward completion, and integrate increments into the overall acquisition.

(h)

(g) As used in this section:
(1) “Information technology acquisition” means a project for the development, modernization, enhancement, or maintenance of a single information technology asset, or group of information technology assets with related functionality, and the subsequent operation of those assets in a production environment.
(2) (A) “Large-scale” means possessing a combination of elements that will function together to produce the capabilities required to realize an information technology acquisition. The elements may include, among other things, hardware, equipment, software, or any combination thereof, but exclude construction or other improvements to real property.
(B) An information technology acquisition is large scale if it is estimated to result in an eventual total expenditure exceeding two million five hundred thousand dollars ($2,500,000).
(3) “Modular contracting” means a contractual approach that provides for incremental delivery, implementation, and testing of an information technology acquisition by dividing it into discrete increments.