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Here Are Employment Department’s Top IT Service Purchases in 2021

The California Employment Development Department spent tens of millions on IT services this year, much of it with another state entity.

The department charged with connecting job seekers and employers spent many millions on IT services this year, with its five most expensive purchases in that area landing in the mid-eight figures.

The California Employment Development Department made 102 purchases of IT services from Jan. 1 to Dec. 15. It spent $53,333,130 on its five costliest buys, based on data in the State Contracting and Procurement Registration System. With rounding, here’s where that money went:

  • $41.5 million to the California Department of Technology for data center services. This is for two years of services; the contract is from July 1-June 30, 2023.
  • $4.9 million to KPMG for “IT consulting for business process re-engineering for reimagining Benefit Systems Modernization, Fiscal Year 21/22.” This refers to EDD’s ongoing modernization of its benefit systems — unemployment and disability insurance, and paid family leave — into a single integrated system. This is an eight-month contract from Oct. 1-June 30, 2022.
  • $3.5 million to West, a Thomson Reuters business, for “Thomson Reuters ID Risk Analytics” across FY 2020-21 and 2022-2023. West is a Thomson Reuters enterprise, publishing legal, business and regulatory data in print and online. The contract is for two years, from May 1-April 30, 2023.
  • $1.8 million to Allied Network Solutions for Micro Focus’ Reflection Desktop software, for a one-year period from April 1-March 31, 2022. EDD made the purchase March 25.
  • $1.6 million to Solutions Simplified for a renewal of Proofpoint software across the 2020/2021-2023/2024 Fiscal Years. The contract is three years, from April 24-May 23, 2024.
Theo Douglas is Assistant Managing Editor of Industry Insider — California.