300 Capitol Mall, Suite 1850, Sacramento, CA 95814
P.O. Box 942850, Sacramento, CA 94250
Fax: (916) 322-4404777 S. Figueroa Street, Suite 4800, Los Angeles, CA 90017
Fax: (213) 833-6011www.sco.ca.gov
State of California
Task ForceonReengineering IT Procurement for Success
In both the public and private sectors, 98 percent of Information Technology (IT) projects with initialbudgets in excess of $10 million fail to be implemented on schedule and within budget.
Thisdisappointing percentage highlights the heavy risk the State faces as it replaces outmoded technologyinfrastructure to meet its business needs and serve its citizens. Today, the state is in the midst of 54 majorIT projects, with a total taxpayer price tag of $4.5 billion.The State of California established the
Task Force on Reengineering IT Procurement for Success
to addressthe frustrating all-too-frequent delays and cost overruns plaguing its IT procurements. The Task Force ischarged with identifying best practices and innovative solutions used in other states and municipalities toensure that the right vendors can be hired at the best price and to hold those vendors accountable for theirperformance.The Task Force will consist of a diverse group of accomplished leaders and reformers in the field of information technology, representing both public and private sectors. With more than 100 years of collective experience and expertise, the Task Force will begin by focusing on analyzing and proposing
solutions to some of the following problems that are commonly associated with today’s procurement and
vendor management practices:
Ensuring Best Value
Despite efforts to seek best value, California’s procurement policies s
ometimesresult in vendors lowering their costs to win the bid, while knowing they will be forced to cut cornersand assign resources that do not have sufficient experience to deliver a successful project.
Identifying the most qualified vendor
California’s procurement process relies heavily on quantitativescoring, often times rewarding vendors who check off the “right” boxes. The current narrow focus
process makes it difficult for the State to determine the most qualified vendors.
ack the necessary “carrots and sticks” to get the job done right
contracts lack the financial rewards and disincentives commonly found in
s that encourage completing projects on time and within budget.
Holding California hostage
When the procurement process is undermined, the resulting contractsmay have unrealistic or incomplete requirements, deliverables, and terms. This forces California intoadditional contracts to deploy, operate and maintain new technology systems, making the State furtherdependent on contractors.
The Standish Group International, Incorporated, p1, 2010.