Public contracts: information technology goods and services.

Existing law generally requires the Department of General Services, for any contract for information technology goods or services meeting specified requirements, to provide that not less than 10% of the contract price is withheld until final delivery and acceptance of the goods and services, and requires the department to conduct a risk evaluation, as specified. Existing law, until July 1, 2013, requires the department, if it determines that lesser withholding levels are appropriate based on the evaluation of risk, to withhold no less than 5% of the contract price, if the contract price is $10,000,000 or more, or no less than 3% of the contract price, if the contract price is less than $10,000,000, until final delivery and acceptance of the goods or services. Existing law, operative until July 1, 2013, also requires the Department of General Services, in consultation with the Department of Finance, to develop and maintain criteria for the evaluation of risk to the state that results from the acquisition of information technology goods or services and requires the department to submit the criteria developed and maintained for the evaluation of risk to the state that results from the acquisition of information technology goods and services to the Joint Legislative Budget Committee and to the State Chief Information Officer, as specified. Existing law, until July 1, 2013, requires the State Chief Information Officer to review all contracts approved pursuant to this provision, as specified, and to submit a report to the Legislature, as provided. Existing law, commencing July 1, 2013, requires a contractor to submit a faithful performance based in a specified sum. This bill would delete the dates on which the above provisions become inoperative and are repealed, and would make them operative indefinitely. The bill would also remove the requirement that, on and after July 1, 2013, a contractor submit a faithful performance bond.