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Tags: acquisitions, array, business need, different stages, issuing agency, management memo, new information technology, number management, policy challenge, procurement, public contract code, public policy, road map, solution approach, uniform standards, volume 3,Pages: 7
Language: english
Created: Fri Jan 5 11:53:27 2007
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NUMBER:
MANAGEMENT MEMO
SUBJECT:
MM 07-02
DATE ISSUED:
JANUARY 5, 2007
UNIFORM STANDARDS FOR INFORMATION TECHNOLOGY EXPIRES:
PROCUREMENT JANUARY 5, 2008
REFERENCES: ISSUING AGENCY:
Public Contract Code §12104(d) Department of General
Services
Purpose of The focus of new information technology (IT) system procurements
this should be towards a "solution" approach so that the State may consider
Management and select from a potential array of IT goods and/or services to meet
Memo the public policy and business needs of a State program, rather than
specifying a particular product design. A new IT systems procurement
should articulate and define a particular business need or policy
challenge that needs to be solved by an IT solution. This management
memo:
· Sets forth uniform standards for IT procurement, including both
general considerations and requirements for each stage of the
procurement process.
· Provides a conceptual "road map" for the IT procurement process,
explaining the different stages and the major considerations in each,
and a framework for how to think about IT acquisitions.
· Directs to further detail in the new State Contracting Manual (SCM),
Volume 3.
· Provides references to relevant IT policy and procedure documents,
including the new SCM, Volume 3, which consolidates IT
procurement laws and policies.
Classifying Refer to SCM Volume 3, Chapter 1, Section B.
IT
acquisitions
Applicability This management memo applies to acquisitions of IT goods and/or
services pursuant to Public Contract Code §12100 et seq., regardless
of dollar amount, type of IT goods and/or services, and acquisition
approach.
Continued on next page
Management Memo 07-02 2 January 5, 2007
Principles The DGS' general principles for IT procurement are as follows:
for IT
procurement · The State obtains IT goods and/or services that meet its needs and
advance its policy goals, in a timely fashion, within budget, and with
the least possible administrative burden.
· Procurements are conducted with integrity and in a manner
consistent with the State's requirements and policies, including its
commitment to small businesses and Disabled Veteran Business
Enterprises (DVBEs).
· The State harnesses its expertise and purchasing power to obtain
the best values available in the marketplace.
· The State communicates clearly and consistently from procurement
to procurement with interested parties so that they understand its
goals.
· The benefits of competition, which include obtaining a broad array of
solutions to program and policy challenges, are maximized.
· The State is appropriately protected from risk.
Reference Volume 3 of the SCM is a reference document for IT acquisitions. Its
document requirements apply to IT acquisitions by the DGS and departments with
for IT delegated purchasing authority. This is the document that contains the
acquisitions policies, procedures, and methods that shall be used when seeking
bids for the acquisition of IT, including any policies contained in the
SAM (Public Contract Code §12104(a)(1)).
Other legal, In addition to SCM Volume 3, the procurement process shall be
policy and conducted in a manner consistent with:
procedure
documents · The laws and Constitution of the State of California.
that must be · All applicable regulations, including section 1400 et seq. of Title 1
followed and sections 870 et seq., 1895 et seq., and 1896 et seq. of Title 2 in
the California Code of Regulations.
· The SAM, including all applicable Management Memos.
· SCM Volume 2, for IT acquisitions conducted under delegated
purchasing authority.
· The Statewide Information Management Manual.
· The State Telecommunications Management Manual, if
telecommunications goods or services are being acquired.
· All applicable Executive Orders, including Executive Order D-37-01
on DVBE participation, S-20-04 on energy efficiency, and S-02-06
on small business participation.
Continued on next page
Management Memo 07-02 3 January 5, 2007
Uniform These uniform standards apply throughout the IT procurement process:
Standards
· Acquisitions shall be conducted in a manner consistent with
applicable laws, regulations, policies, and procedures.
· Acquisitions shall be conducted to advance the public policy
purpose of the State program that the technology will serve.
· Acquisitions shall be conducted in a professional manner that
promotes direct, straightforward, and cooperative communication
with the supplier community.
· Contracting opportunities shall be enhanced, whenever possible, for
eligible certified small businesses and DVBEs. Requirements for
small business/DVBE participation are in Chapter 2 of SCM
Volume 3.
· Acquisitions and projects shall comply with Americans with
Disabilities Act (ADA) requirements.
· New systems should be conceived in terms of a solution.
Public policy State departments shall give consideration to each of the following
consideration priorities to advance public policy for IT procurements:
· Business need
· Business requirements (necessary or desirable)
· Functionality
· IT environment
Stages of An additional uniform standard is the procurement process which
the consists of separate stages, regardless of the acquisition approach that
procurement is used. These stages are:
process
· Acquisition planning (defining the program need, assessing
operational needs, selecting the acquisition method, and obtaining
approvals).
· Acquisition Phase (conducting the acquisition).
· Post-award activity (contract management, project management,
and reporting).
Steps for each of these stages are set forth below.
Continued on next page
Management Memo 07-02 4 January 5, 2007
Acquisition In planning a new IT system procurement the focus should be towards
planning: a "solution" approach so that the State may consider and select from a
defining the potential array of IT goods and/or services to meet the public policy
program and business needs of a State program, rather than specifying a
need particular product design.
For all IT acquisitions departments shall follow these steps:
· Define the business need that solutions are to address.
· Determine whether the acquisition is justified.
· Verify that the goods and/or services to be acquired are IT.
Additional issues and requirements for defining the need are
discussed in Chapter 1 of SCM Volume 3.
Acquisition In assessing operational needs departments shall follow these steps:
planning:
· Consider fiscal and budgetary issues.
assessing
· Assess the timeframe in which the acquisition must be completed
operational
needs and determine the schedule for delivery and/or implementation.
· Assess the impact on physical facilities.
· Consider the risks associated with the procurement and the goods
and/or services to be acquired.
· Consider risk protection strategies that will both protect the State
and encourage competition.
· Determine whether there are available sources of the goods and/or
services to be acquired (including existing State sources and
contracts), and whether there is competition in the marketplace.
Additional issues and requirements for assessing business needs are
discussed in Chapter 1 of SCM Volume 3.
Acquisition In selecting the acquisition method, the State shall follow these rules:
planning:
· Use competitive means in all instances, unless the NCB process,
selecting the
acquisition emergency process, or an existing source is used in acquisitions of
method $5,000 or more. Requirements are in Chapter 3 of SCM Volume 3.
· Assess whether the acquisition can be made through existing
sources, such as leveraged procurement agreements (LPAs), 1
community-based rehabilitation programs, interagency agreements,
or State surplus.
Continued on next page
1
A leveraged procurement agreement (LPA) is a contract awarded by the DGS (or a multi-state alliance) that
consolidates the purchasing needs of multiple State departments. LPAs streamline the purchasing process by
eliminating repetitive, resource-intensive, costly, and time-consuming bid processes by departments. LPAs include
the California Multiple Awards Schedule (CMAS), Software License Program (SLP), Statewide contracts (including
strategically sourced contracts), and master agreements (including Master Service Agreements, Master Rental
Agreements, and Master Price Agreements, such as those awarded by the Western States Contracting Alliance).
Management Memo 07-02 5 January 5, 2007
Acquisition For many IT acquisitions, it is necessary to obtain approvals before
planning: starting the procurement process. These approvals shall be obtained,
obtaining as applicable, before releasing solicitation or purchase documents:
approvals
· The acquiring department shall verify that it has the authority to
initiate the acquisition and to sign the resulting purchase documents.
· The acquiring department shall verify that it has the necessary
approvals or delegated authority from the Department of Finance
(DOF).
· If the acquisition involves telecommunications goods and/or
services, the acquiring department shall verify that it has the
necessary authority or approvals from the DGS Telecommunications
Division (TD) or the Department of Technology Services (DTS),
Statewide Telecommunications and Network Division (STND).
· If the acquisition is being conducted via the NCB process or requires
DGS approval of an IT Procurement Plan (ITPP), the acquiring
department shall verify that it has an approved NCB request and/or
ITPP prior to releasing solicitation or purchase documents.
· If the acquisition is being conducted via an RFP, the RFP document
must be approved by the DGS Office of Legal Services prior to
release.
Further details on required approvals are contained in Chapter 1 of
SCM Volume 3.
Acquisition Acquisitions shall be conducted in a manner that complies with State
Phase: policies and meet the State's needs. In conducting acquisitions, the
Conducting State shall follow these requirements:
acquisition
· Acquisition documents shall clearly set forth the rules and authority
governing the acquisition.
· Competitive solicitation documents shall clearly set forth the:
- Business and technical requirements
- Evaluation methodology to be used
- Applicable protest procedures
- Contract award procedures
· If the acquisition is for a personal services contract pursuant to
Government Code §19130(a), the acquiring department must notify
the State Personnel Board pursuant to Government Code §19131
prior to contract execution.
Continued on next page
Management Memo 07-02 6 January 5, 2007
Acquisition · Protests shall be handled in a manner consistent with law,
Phase: regulation and policy. Requirements for protests are in Chapter 6 of
Conducting SCM Volume 3.
acquisition
(continued) These chapters of SCM Volume 3 spell out requirements and
procedures for specific acquisition approaches and methods:
· Chapter 3: Competitive solicitations
· Chapter 4: Acquisitions using the NCB or emergency process
· Chapter 5: Acquisitions using LPAs
Post-award Effective contract and project management ensures that the State and
activity its contractors honor their agreements and deal with one another in
good faith. Following the award of the contract, the acquiring
department shall:
· Adhere to the provisions of the contract and comply with statutory
requirements, policies and procedures.
· Enforce contractual requirements.
· Follow plans for project management and risk management, if
applicable.
· Manage implementation of the goods and/or services in accordance
with the level of project oversight directed by DOF.
· Fulfill all reporting requirements.
Who is The Policies and Procedures Office within the DGS Procurement
responsible Division is the single entity solely responsible for the development,
for IT implementation, and maintenance of standardized methods for the
procurement development of requests for proposals. Personnel overseeing the
standards Policies and Procedures Office are:
· Manager, Statewide Policy and Training Branch, Procurement
Division, DGS
· Assistant Deputy Director, Procurement Division, DGS
· Deputy Director, Procurement Division (State Procurement Officer),
DGS
· Chief Deputy Director of the DGS
· Director of the DGS
Continued on next page
Management Memo 07-02 7 January 5, 2007
Exemption Procurements necessary to meet the requirements of the Hawkins Data
Center in the Department of Justice are exempt from the requirements
of this management memo.
DGS contact For questions regarding this memo, please contact the Policies and
Procedures Office at PPO@dgs.ca.gov or Susan Chan, Manager,
Statewide Policy and Training Branch, at (916) 375-4601 or
susan.chan@dgs.ca.gov.
Approval
Original SAM Management Memo signed by Will Bush, Interim
Director
______________________________
Will Bush
Interim Director