Modular Contracting Bills Stall

Published On: May 24, 2022

Legislation that would have mandated modular contracting for large-scale IT projects has failed passage by the Assembly Appropriations committee, ending the possibility of it becoming state law.

Assemblymembers Rudy Salas (D-Bakersfield) and Devon Mathis (R-Visalia) introduced Assembly Bill 1806, which would have required the use of modular contracting by the California Department of Technology (CDT) for projects with a budget of $2.5 million or more.

“Modular approaches involve dividing investments into smaller parts in order to reduce investment risk, deliver capabilities more rapidly, and permit easier adoption of newer and emerging technologies. As early as 2012, the federal government was producing guidance on the need for modular contracting. The California State Auditor issued a report in 2019 that identified a number of security issues with the state‚Äôs IT structure and singled out CDT specifically as a high risk for a possible security breach. Last year, the State Auditor retained CDT as a high risk state agency for a number of reasons, including that CDT, despite overseeing projects that are using modular contracting, has not yet completed development of its own reporting and monitoring process for modular contracting projects,” says an Assembly analysis of the bill.

Another bill that failed passage, AB 2558, introduced by Mathis, would have required CDT to establish and implement an oversight modular modernization framework by January 1, 2025.




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