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State's New Cannabis Department Spent $41.4M on IT Services in 2021

The department oversees the licensing, inspection and regulation of cannabis in the state. It was created through a merger of the Bureau of Cannabis Control, the CalCannabis Cultivation Licensing Division and the Manufactured Cannabis Safety Branch.

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The state Department of Cannabis Control (DCC) spent a total of $41.4 million on its five largest purchases of IT services from its inception in July 2021 through Dec. 31, a portion of which was through an interagency agreement with the California Department of Public Health.

DCC was formed in July through a consolidation of three former regulatory entities: the Bureau of Cannabis Control (Department of Consumer Affairs), the CalCannabis Cultivation Licensing Division (California Department of Food and Agriculture), and the Manufactured Cannabis Safety Branch (California Department of Public Health). The consolidation was done to standardize regulations; the new department licenses, inspects and regulates all cannabis activity in California.

The department's five largest buys of IT services, with rounding, were:
  • $30,000,000 for the California Track and Trace System, purchased in a competitive bid through Metrc LLC. The contract is for one year, from July 1 through June 30, 2022.
  • $8,827,846 for a three-year contract with the California Department of Public Health under a noncompetitively bid interagency agreement for “business administration services, business facilities oversight and IT management services.” The first year of the contract calls for “MCLS (Manufactured Cannabis Licensing System) DevOps Team; Enterprise Production Support/Help Desk; Pega Software Upgrade and Cloud Migration; Tableau Dashboard Reporting; IT Network Infrastructure Support Services; IT Network Infrastructure One-Time Installation.”
  • $1,799,910 for a contract with Visionary Integration Professionals (VIP) for systems integration consulting services. The contract runs from July 1 through March 14, 2022, and was awarded under a master agreement.
  • $479,910 for one-year master agreement contract, ending June 30, with Deloitte Consulting for consulting services related to DCC’s Manufactured Cannabis Licensing System.
  • $365,769 for Accela software consulting services, under an IT master services agreement, with Visionary Integration Professionals. The contract runs through March 22.
Dennis Noone is Executive Editor of Industry Insider. He is a career journalist, having worked as a reporter and editor at small-town newspapers and major metropolitan dailies in California, Nevada, Texas and Virginia, including as an editor with USA Today in Washington, D.C. He lives in Northern California.