5. Vendor contracts. The bill requires DOA and any agency that has been given
procurement authority by DOA to include a stipulation clause in any contract for a
high-risk IT project or an IT project with a projected cost of greater than $1,000,000.
The clause would require vendors to submit to DOA for approval by DOA any order
or amendment that would change the scope of the contract and have the effect of
increasing the contract price. The stipulation clause must also authorize DOA to
review the original contract and the order or amendment to determine whether the
work proposed within the order or amendment is within the scope of the original
contract or is necessary. The bill authorizes DOA to negotiate with the vendor
regarding any change to the original contract.
The bill also authorizes DOA or any agency that has been given procurement
authority to exclude the stipulation if all of the following conditions are satisfied: (a)
including the stipulation would negatively impact contract negotiations or
significantly reduce the number of bidders on the contract; (b) if the exclusion is
sought by an agency with procurement authority, the agency seeking the exclusion
submits to DOA a plain-language explanation of the reasons the stipulation is
excluded and the alternative provisions the agency will include to ensure that the
contract will be completed on time and within the contract budget; (c) if the exclusion
is sought by DOA, DOA prepares a plain-language explanation of the reasons for
excluding the stipulation and the alternative provisions DOA will include to ensure
that the contract will be completed on time and within the contract budget; and (d)
DOA or the agency seeking the exclusion obtains approval for the alternate
provisions from JCIPT.
6. Open-ended contracts. The bill requires each agency that has entered into
an open-ended contract for the development of IT to submit quarterly reports
documenting the amount expended on the IT project to DOA. The bill defines
"open-ended contract" as a contract for IT that includes one or both of the following:
(a) stipulations that provide that the contract vendor will deliver IT products or
services but that do not specify a maximum payment amount; and (b) stipulations
that provide that the contract vendor shall be paid an hourly wage but that do not
set a maximum limit n the number of hours required to complete the IT project. DOA
must compile and annually submit to JCIPT all reports it receives from agencies.
7. JCIPT review. The bill requires JCIPT to review all executive branch IT
projects identified by DOA as high risk or with an annual or projected cost of at least
$1,000,000 to determine whether the project should be continued or implemented.
DOA must submit semiannual reports to JCIPT. The reports must contain the
following information: (a) original and updated cost projections; (b) original and
updated completion dates for the project and any stage of the project; (c) an
explanation for any variation between the original and updated costs and completion
dates; (d) a copy of any contract entered into by DOA or the agency that has not
already been provided to JCIPT; (e) all sources of funding for the project; (f) the
amount of any funding provided for the project through a master lease; (g)
information about the status of the project, including any portion of the project that
has been completed; and (h) any other information requested by JCIPT about the
project or any related IT project.
In the event JCIPT is not organized, the Joint Legislative Audit Committee is
required under the bill to assume all of the responsibilities established for JCIPT
under the bill.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB520, s. 1
1Section
1. 13.53 (2) (intro.) of the statutes is amended to read:
SB520,4,82
13.53
(2) Responsibilities. (intro.) The joint legislative audit committee shall
3have advisory responsibilities for the legislative audit bureau. The committee's
4responsibility is subject to general supervision of the joint committee on legislative
5organization.
If the joint committee on information policy and technology is not
6organized, the joint legislative audit committee shall assume the responsibilities
7assigned to the joint committee on information policy and technology under ss.
816.971 (2) (Lg) and 16.973 (10) to (15). The joint legislative audit committee may:
SB520, s. 2
9Section
2. 13.58 (5) (b) 5. of the statutes is created to read:
SB520,4,1410
13.58
(5) (b) 5. Review any executive branch information technology project
11identified in a report submitted to the committee by the department of
12administration under s. 16.973 (15) to determine whether the project should be
13continued or implemented. The committee may forward any recommendations
14regarding the project to the governor and to the legislature under s. 13.172 (2).
SB520, s. 3
15Section
3. 16.71 (1m) of the statutes is amended to read:
SB520,5,516
16.71
(1m) The department shall not delegate to any executive branch agency,
17other than the board of regents of the University of Wisconsin System, the authority
18to enter into any contract for materials, supplies, equipment, or contractual services
19relating to information technology or telecommunications prior to review and
20approval of the contract by the department. No executive branch agency, other than
21the board of regents of the University of Wisconsin System, may enter into any such
1contract without review and approval of the contract by the department.
Any
2executive branch agency that enters into a contract relating to information
3technology under this section shall comply with the requirements of s. 16.973 (13). 4Any delegation to the board of regents of the University of Wisconsin System is
5subject to the limitations prescribed in s. 36.11 (49).
SB520, s. 4
6Section
4. 16.971 (2) (Lg) of the statutes is created to read:
SB520,5,127
16.971
(2) (Lg) 1. Develop, in consultation with each executive branch agency,
8other than the Board of Regents of the University of Wisconsin System, and adopt
9written policies establishing a standardized reporting format for proposed and
10ongoing information technology development projects included in the strategic plan
11required of each executive branch agency under par. (L) and that either exceed
12$1,000,000 or that are vital to the functions of the executive branch agency.
SB520,5,1613
2. The department shall submit for review by the joint legislative audit
14committee and for approval by the joint committee on information policy and
15technology any proposed policies required under subd. 1. and any proposed revisions
16to the policies.
SB520, s. 5
17Section
5. 16.973 (10) to (14) of the statutes are created to read:
SB520,5,2218
16.973
(10) In consultation with the legislative audit bureau and the joint
19legislative audit committee, promulgate administrative rules applicable to each
20executive branch agency, other than the Board of Regents of the University of
21Wisconsin System, pertaining to large, high-risk information technology projects
22that shall include:
SB520,5,2423
(a) A definition of and methodology for identifying large, high-risk information
24technology projects.
SB520,6,2
1(b) Standardized, quantifiable project performance measures for evaluating
2large, high-risk information technology projects.
SB520,6,43
(c) Policies and procedures for routine monitoring of large, high-risk
4information technology projects.
SB520,6,65
(d) A formal process for modifying information technology project specifications
6when necessary to address changes in program requirements.
SB520,6,87
(e) Requirements for reporting changes in estimates of cost or completion date
8to the department and the joint committee on information policy and technology.
SB520,6,109
(f) Methods for discontinuing projects or modifying projects that are failing to
10meet performance measures in such a way to correct the performance problems.
SB520,6,1311
(g) Policies and procedures for the use of master leases under s. 16.76 (4) to
12finance new large, high-risk information technology system costs and maintain
13current large, high-risk information technology systems.
SB520,6,1714
(h) A standardized progress point in the execution of large, high-risk
15information technology projects at which time the estimated costs and date of
16completion of the project is reported to the department and the joint committee on
17information policy and technology.
SB520,6,21
18(11) Promulgate administrative rules applicable to each executive branch
19agency, other than the Board of Regents of the University of Wisconsin System,
20pertaining to the use of commercially available information technology products,
21which shall include all of the following:
SB520,6,2522
(a) A requirement that each executive branch agency review commercially
23available information technology products prior to initiating work on a customized
24information technology development project to determine whether any commercially
25available product could meet the information technology needs of the agency.
SB520,7,4
1(b) Procedures and criteria to determine when a commercially available
2information technology product must be used and when an executive branch agency
3may consider the modification of a commercially available information technology
4product or the creation of a customized information technology product.
SB520,7,95
(c) Prior to initiating the creation or modification of a customized information
6technology product, a requirement that the executive branch agency initiating work
7on the product submit to the department a justification for the creation or
8modification of the product, together with a request for approval of the work by the
9department.
SB520,7,11
10(12) (a) In this subsection, "master lease" has the meaning given under s. 16.76
11(4).
SB520,7,1712
(b) Annually, no later than October 1, submit to the governor and the members
13of the joint committee on information policy and technology a report documenting the
14use by each executive branch agency, other than the Board of Regents of the
15University of Wisconsin System, of master leases to fund information technology
16projects in the previous fiscal year. The report shall contain all of the following
17information:
SB520,7,1918
1. The total amount paid under master leases towards information technology
19projects in the previous fiscal year.
SB520,7,2120
2. The master lease payment amounts approved to be applied to information
21technology projects in future fiscal years.
SB520,7,2422
3. The total amount paid by each executive branch agency on each information
23technology project for which debt is outstanding, as compared to the total financing
24amount originally approved for that information technology project.
SB520,8,2
14. A summary of repayments made towards any master lease in the previous
2fiscal year.
SB520,8,15
3(13) (a) Except as provided in par. (b), include in each contract with a vendor
4of information technology that involves a large, high-risk information technology
5project under sub. (10) or that has a projected cost greater than $1,000,000, and
6require each executive branch agency authorized under s. 16.71 (1m) to enter into
7a contract for materials, supplies, equipment, or contractual services relating to
8information technology to include in each contract with a vendor of information
9technology that involves a large, high-risk information technology project under
10sub. (10) or that has a projected cost greater than $1,000,000 a stipulation requiring
11the vendor to submit to the department for approval any order or amendment that
12would change the scope of the contract and have the effect of increasing the contract
13price. The stipulation shall authorize the department to review the original contract
14and the order or amendment to determine all of the following and, if necessary, to
15negotiate with the vendor regarding any change to the original contract price:
SB520,8,1716
1. Whether the work proposed in the order or amendment is within the scope
17of the original contract.
SB520,8,1818
2. Whether the work proposed in the order or amendment is necessary.
SB520,8,2119
(b) The department or an executive branch agency may exclude from a contract
20described in par. (a) the stipulation required under par. (a) if all of the following
21conditions are satisfied:
SB520,8,2322
1. Including such a stipulation would negatively impact contract negotiations
23or significantly reduce the number of bidders on the contract.
SB520,9,324
2. If the exclusion is sought by an executive branch agency, that agency submits
25to the department a plain-language explanation of the reasons for excluding the
1stipulation and the alternative provisions the executive branch agency will include
2in the contract to ensure that the contract will be completed on time and within the
3contract budget.
SB520,9,74
3. If the exclusion is sought by the department, the department prepares a
5plain-language explanation of the reasons the stipulation was excluded and the
6alternative provisions the department will include in the contract to ensure that the
7contract will be completed on time and within the contract budget.
SB520,9,158
4. The department submits for approval by the joint committee on information
9policy and technology any explanation and alternative contract provisions required
10under subd. 2. or 3. If, within 14 working days after the date that the department
11submits any explanation and alternative contract provisions required under this
12subdivision, the cochairpersons of the joint committee on information policy and
13technology do not notify the department that the committee has scheduled a meeting
14for the purpose of reviewing the contract provisions, the explanation and alternative
15contract provisions shall be deemed approved.
SB520,9,21
16(14) (a) Require each executive branch agency, other than the Board of Regents
17of the University of Wisconsin system, that has entered into an open-ended contract
18for the development of information technology to submit to the department quarterly
19reports documenting the amount expended on the information technology
20development project. In this subsection, "open-ended contract" means a contract for
21information technology that includes one or both of the following:
SB520,9,2322
1. Stipulations that provide that the contract vendor will deliver information
23technology products or services but that do not specify a maximum payment amount.
SB520,10,3
12. Stipulations that provide that the contract vendor shall be paid an hourly
2wage but that do not set a maximum limit on the number of hours required to
3complete the information technology project.
SB520,10,54
(b) Compile and annually submit to the joint committee on information policy
5and technology the reports required under par. (a).
SB520, s. 6
6Section
6. 16.973 (15) of the statutes is created to read:
SB520,10,127
16.973
(15) No later than March 1 and September 1 of each year, submit to the
8joint committee on information policy and technology a report that documents for
9each executive branch agency information technology project with an actual or
10projected cost greater than $1,000,000 or that the department of administration has
11identified as a large, high-risk information technology project under sub. (10) (a) all
12of the following:
SB520,10,1313
(a) Original and updated project cost projections.
SB520,10,1514
(b) Original and updated completion dates for the project and any stage of the
15project.
SB520,10,1716
(c) An explanation for any variation between the original and updated costs and
17completion dates under pars. (a) and (b).
SB520,10,2018
(d) A copy of any contract entered into by the department or by an executive
19branch agency authorized under s. 16.71 (1m) to enter into a contract for the project
20and not provided in a previous report.
SB520,10,2121
(e) All sources of funding for the project.
SB520,10,2322
(f) The amount of any funding provided for the project through a master lease
23under s. 16.76 (4).
SB520,10,2524
(g) Information about the status of the project, including any portion of the
25project that has been completed.
SB520,11,2
1(h) Any other information about the project, or related information technology
2projects, requested by the joint committee on information policy and technology.
SB520, s. 7
3Section
7. 227.01 (13) (km) of the statutes is created to read:
SB520,11,54
227.01
(13) (km) Establishes policies for information technology development
5projects as required under s. 16.971 (2) (Lg).
SB520,11,157
(1)
Written policies for information technology development projects. No
8later than the first day of the 6th month beginning after the effective date of this
9subsection, the department of administration shall submit for review by the joint
10legislative audit committee and for approval by the joint committee on information
11policy and technology a preliminary draft of the policies required under section
1216.971 (2) (Lg) 1. of the statutes, as created by this act. If the joint committee on
13information policy and technology is not organized, the joint legislative audit
14committee shall approve the preliminary draft of the policies required under section
1516.971 (2) (Lg) 1. of the statutes, as created by this act.
SB520,11,2016
(2)
Rules pertaining to large, high-risk information technology projects. 17The department of administration shall submit in proper form the rules required
18under section 16.973 (10) of the statutes, as created by this act, to the legislative
19council staff under section 227.15 (1) of the statutes no later than the first day of the
2012th month beginning after the effective date of this subsection.
