BILL NUMBER: AB 558	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 26, 2015

INTRODUCED BY   Assembly Member Low

                        FEBRUARY 23, 2015

   An act to amend  Section 12016   Sections
12102.2, 12104, and 12104.5 of the Public Contract Code,
relating to public contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 558, as amended, Low. Public contracts: state contracts:
information technology goods and services.
   Existing law authorizes the Department of General Services and the
Department of Technology to adopt rules and regulations as are
necessary to govern the acquisition and disposal of information
technology goods and services.  Existing law requires contract
awards for all large-scale systems integration projects to be based
on the proposal that provides the most value-effective solutions to
the state's requirements, as specified, and requires evaluation
criteria for the acquisition of information technology goods and
services, including systems integration, to provide for the selection
of a contractor on an objective basis not limited to cost alone.
Existing law requires the Department of Technology to invite active
participation, review, advice, comment, and assistance from the
private sector and state   agencies in developing procedures
to streamline and make the acquisition process more efficient, and
requires solicitations for acquisitions based on evaluation criteria
other than cost alone to provide that sealed cost proposals be
submitted.  
   This bill would make a technical, nonsubstantive change to this
provision.  
   This bill would require the Department of Technology, in
developing procedures to streamline and make the acquisition process
more efficient, to require the acquisition methodology to use
electronic means, whenever possible, to reduce paper submissions and
allow for electronic submission of bids and proposals. This bill
would also require solicitations for acquisitions based on evaluation
criteria other than cost alone to provide that electronic cost
proposals be submitted whenever possible.  
   Existing law requires the Department of General Services and the
Department of Technology to develop, implement, and maintain
standardized methods for the development of all information
technology requests for proposals.  
   This bill would require the standardized methods to include,
whenever possible, electronic formats for electronic bid solicitation
and electronic receipt of bid proposals.  
   Existing law requires all rules and requirements and any changes
to the 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 is
appropriate, to be communicated in writing to all vendors that have
expressed an intent to bid and to be posted in a public location.\
 
   This bill would require all rules and requirements and any changes
to the rules and requirements to be communicated electronically and
to be posted on the Internet Web site of the Department of General
Services and the Department of Technology whenever possible. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 12102.2 of the  
Public Contract Code   is amended to read: 
   12102.2.  (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.  The acquisition methodology shall use electronic
means, whenever possible, to reduce paper submissions and allow for
electronic submission of bids and proposals. 
   (2) Solicitations for acquisitions based on evaluation criteria
other than cost alone shall provide that sealed cost proposals 
or, whenever possible, electronic 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 
or sufficiently secured electronically  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.
   SEC. 2.    Section 12104 of the   Public
Contract Code   is amended to read: 
   12104.  (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. 
 proposals, including, whenever possible, electronic formats for
electronic bid solicitation and electronic receipt of bid proposals.

   (c) All information technology requests for proposals shall be
reviewed by the Department of Technology prior to release to the
public.
   SEC. 3.    Section 12104.5 of the   Public
Contract Code   is amended to read: 
   12104.5.  (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 
or, whenever possible, electronically,  to all vendors that have
expressed an intent to bid and shall be posted in a public 
location.   location or, whenever possible, on the
Internet Web site of the Department of General Services and the
Department of Technology.  Any changes to the rules and
requirements governing that RFP shall be communicated in writing 
or, whenever possible, electronically,  to all vendors that
have expressed an intent to bid and shall be posted in a public
 location.   location or, whenever possible, on
the Internet Web site of the Department of General Services and the
Department of Technology.  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. 
  SECTION 1.    Section 12106 of the Public Contract
Code is amended to read:
   12106.  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 rules and
regulations as are necessary for the purposes of this chapter.