June 6, 2006 - Chapter 665, Statutes of 2001 (AB 793, Cox) requires the LAO to report to the Legislature on the use of best value procurement by Municipal Utility Districts. Based on the limited experience to date, it appears that the best value procurement authority provides municipal utility districts with an important tool. The one district that has used the authority—SMUD—reports major benefi ts and we are not aware of any signifi cant downsides. Accordingly, we recommend that the Legislature extend the law which authorizes this practice beyond the current January 1, 2007 sunset date.
January 7, 2014 - This report presents a summary of reports received by the LAO from California counties on construction projects that they completed with the design-build project delivery method. We find that it is difficult to draw conclusions about the effectiveness of design-build compared to other project delivery methods (such as design-bid-build) based on the reports we received. Nonetheless, when the Legislature next considers extending design-build authority for counties or other local agencies, we recommend that it consider some changes such as creating a uniform design-build statute for agencies that have design-build authority, eliminating cost limitations, and requiring project cost to be a larger factor in awarding design-build contracts.
November 11, 2009 -
The state's traditional approach for IT procurement, called the firm fixed price (FFP) procurement, creates a prescriptive process that gives equal footing to all vendors to help ensure open competition and reduce the state’s exposure to protests and potential lawsuits due to perceived vendor bias. As an alternative the state is beginning to look to so-called multi–stage procurement because it creates a collaborative environment for state and vendor staff. Our analysis indicates that an earlier evaluation of procurement strategy can reduce the risks of cost overruns and schedule delays, so we recommend that the Legislature require state entities to include procurement strategies in project documents when they submit them for approval.
(Short video summary)
March 24, 2004 - Presented to Assembly Budget Committee on March 24, 2004
January 12, 2010 - This report presents a summary of reports received by the LAO from California counties on construction projects that they completed with the design-build delivery method. Although it was difficult to draw conclusions from the reports received about the effectiveness of design-build compared to other project delivery methods, we do not think that the reports provide any evidence that would discourage the Legislature from granting design-build authority to local agencies on an ongoing basis. In doing so, however, we recommend the Legislature consider some changes such as creating uniform design-build statute, eliminating cost limitations, and requiring project cost to be a larger factor in awarding the design-build contract.
December 15, 1998 - We examine 12 specific business practices frequently used by the private sector to develop, acquire, and implement information technology. We recommend that these best practices be used on state information technology projects, unless a project has unique characteristics that warrant exceptions.
October 24, 2003 - Chapter 421, Statutes of 2001 (AB 1402, Simitian) authorizes school districts to enter into "design-build" contracts for specified construction projects and to submit specific information about these projects to the LAO upon completion of construction. This interim report describes the design-build process and reports that, thus far, no districts have reported to the LAO that they are using the design-build authorization provided by Chapter 421.
November 8, 2012 - In recent years, the state has entered into public-private partnerships (P3) to finance, design, construct, operate, and maintain two state infrastructure projects in order to achieve benefits that they might not have obtained under a more traditional procurement approach. In this report, we find that the P3 practices of these recent projects are not necessarily aligned with the P3 best practices identified in research. Based on our findings, we identify several opportunities for the state to further maximize its benefits when deciding to procure a state infrastructure project as a P3. Specifically, we recommend that the Legislature (1) specify P3 project selection criteria in statute, (2) require a comparative analysis of a range of procurement options in order to better determine which procurement option would most effectively benefit the state, (3) require the existing Public Infrastructure Advisory Commission (PIAC) to approve state P3 projects, and (4) modify the structure and responsibilities of PIAC to better provide state expertise on P3s.
June 16, 1994 - While there have been many significant advances in the state's deployment and uses of IT since the state's first computer was installed in the mid-1950s, there remain fundamental problems that prevent the state from realizing a better return on its IT investment.
February 2, 2021 - This post discusses 2021-22 Governor’s Budget proposals for the State Controller’s Office and the California Department of Human Resources to continue planning a replacement for the state’s current payroll system—the proposed California State Payroll System information technology project.
February 10, 2016 - In November 2015, the Regents of the University of California (UC) approved a proposal to enter into a public–private partnership to double the physical size of the Merced campus. Under the plan, enrollment on the Merced campus would grow from 6,000 to 10,000 full–time equivalent (FTE) students by 2020. This brief is intended to assist the Legislature in reviewing this proposal. In it, we provide background on the Merced campus and the state process for approving capital outlay projects at UC, describe key aspects of the proposed project, and raise four key issues for the Legislature to consider.