California Assembly Bill AB1806

California 2021-2022 Regular Session

• Introduced: 2/7/22
• Refer: 2/18/22
• Report Pass: 3/17/22
• Refer: 3/21/22
• Report Pass: 4/20/22
• Refer: 4/25/22
• Report Pass: 4/27/22
• Refer: 4/27/22
• Refer: 5/11/22

Caption

Public contracts: information technology: Department of Technology: modular contracting.

Impact

The implementation of AB 1806 is expected to streamline procurement processes, reduce project risks, and enhance the ability to adapt to evolving technological needs. By structuring contracts into smaller, manageable increments, state agencies can avoid the pitfalls associated with large, monolithic IT projects that have historically faced delays and cost overruns. This legislative change also aims to foster greater collaboration between project managers, contracting officers, and end users through integrated project teams, ultimately leading to better-performing technology solutions.

Summary

Assembly Bill 1806 aims to reform the procurement process for large-scale information technology acquisitions within the California state government by introducing modular contracting. This approach is designed to improve efficiency and responsiveness by allowing for incremental delivery, implementation, and testing of IT projects. The bill mandates that the Department of Technology prioritize the use of modular contracting for IT acquisitions exceeding $2.5 million, ensuring that these contracts can be awarded within 180 days and delivered within 18 months of the solicitation.

Sentiment

The reception of AB 1806 has been generally positive among stakeholders who advocate for more effective state expenditure on technology projects. Proponents argue that modular contracting will enable better project governance and oversight, creating measurable performance goals that encourage accountability. However, there may be some concerns regarding the potential for increased bureaucracy or difficulty in managing the incremental nature of contracts if not implemented properly. Overall, the sentiment reflects a cautious optimism about advancing state contracting practices.

Contention

While most discussions surrounding AB 1806 have highlighted its positive implications for state technology acquisitions, questions regarding the specifics of implementation and oversight have been raised. Concerns include how well agencies will adapt to the modular contracting approach and whether it will genuinely lead to the anticipated benefits or create new challenges. Additionally, there is an underlying concern that if proper governance structures and performance measures are not established, the intended efficiencies may not materialize.