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ITAA Calls on California to Craft a Better Deal for Taxpayers on Telecom Contract

ITAA argues $2.1 billion telecom RFP is badly flawed

The Information Technology Association of America (ITAA) last week asked the state of California to halt a telecommunications procurement potentially worth $2.1 billion, arguing a recently issued request for proposals (RFP) is badly flawed and would result in a deal that denies California taxpayers the benefits of competition.

In a letter to State and Consumer Services Agency Secretary Fred Aguiar, the Association said the RFP would deny California taxpayers best value because the proposed structure will not allow companies to compete to provide each service under the agreement. Instead, the proposal calls for a single company to perform the work with hand picked subcontractors.

The resulting arrangement denies California taxpayers best value and fails to take advantage of new technologies capable of supporting more efficient government across the state, according to ITAA President Harris N. Miller.

"California's state government owes its taxpayers a good deal that produces the best benefits at the best prices," Miller commented. "The Department of General Services should immediately withdraw this RFP and come up with something that meets California's high standards for innovative thinking and best value for its citizens, which necessitates meaningful competition."

California earlier this year abandoned the idea of simply extending its existing telecommunications contract, called CALNET. At the time, state officials argued that a new procurement would result in more competition and more widespread use of new, more efficient technologies. ITAA contends that by calling for a single prime contractor, the new RFP for the so-called CALNET II contract would prevent the competition to provide specific services that could drive down costs, contradicting the earlier justification. Additionally, ITAA pointed out that the RFP attaches little significance to new technology in the process by which a company will be selected.

Finally, the RFP also fails to support the goals of Governor Schwarzenegger's California Performance Review (CPR), a major initiative aimed at overhauling and reforming state government. The CPR recommendations call for state agencies to leverage the state's buying power by encouraging multiple vendor bids.