Report 2014-116 Recommendation 24 Responses

Report 2014-116: California Department of Consumer Affairs' BreEZe System: Inadequate Planning and Oversight Led to Implementation at Far Fewer Regulatory Entities at a Significantly Higher Cost (Release Date: February 2015)

Recommendation #24 To: Technology, California Department of

To ensure that future IT project procurements do not jeopardize the State's financial interests, CalTech's procurement division should document its reasons for approving any deviations from standard contract language.

Annual Follow-Up Agency Response From October 2016

In August 2015, the Department's Procurement division piloted its draft desk procedures for approving any deviations from standard contract language. Desk procedures finalization and full implementation for all IT reportable projects were completed May 2016.

  • Completion Date: May 2016

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented


1-Year Agency Response

In August 2015, the Department's Procurement division piloted its draft desk procedures for approving any deviations from standard contract language. Desk procedures finalization and full implementation for all IT reportable projects is expected by March 2016

  • Estimated Completion Date: March 2016
  • Response Date: February 2016

California State Auditor's Assessment of 1-Year Status: Pending


6-Month Agency Response

The Department's Procurement division currently documents the reasons for any deviations from standard contract language (GSPD 401IT) utilizing formal approval threshold criteria. The Procurement division has developed draft desk procedures for this area, which are currently under internal review and expect to be finalized by September 2015.

  • Completion Date: August 2015
  • Response Date: August 2015

California State Auditor's Assessment of 6-Month Status: Pending

Until CalTech finalizes its draft desk procedures for this area, we will continue to report the status of this recommendation as pending.


60-Day Agency Response

CalTech is currently developing the below new criteria. The following is the GSPD 401IT Paragraph Modification Threshold Criteria that STPD has proposed:

To modify a "carve out" paragraph of the GSPD (i.e., "unless otherwise specified in the Statement of Work":

- The Department must show, and CalTech must agree, that there is added clarity to the contract or value added to an important State position in the agreement as a result of changing the contract term.

To modify a "non-carve out" paragraph of the GSPD:

- The Department must show, and CalTech must agree, that a critical Department objective cannot be met without changing the contract term.

  • Estimated Completion Date: 12/31/2015
  • Response Date: May 2015

California State Auditor's Assessment of 60-Day Status: Pending


All Recommendations in 2014-116

Agency responses received are posted verbatim.


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