Tracking the Spend: EDD’s Biggest Q3 Buy Was Data Center Services

The Employment Development Department (EDD) spent a little more than $35 million on its five largest buys of IT services in the third quarter of 2023.

Of the $35,441,448 that EDD spent in Q3, $30 million went to the California Department of Technology (CDT) for data center services for fiscal year 2022-23. CDT offers data center storage and other services for many entities within state government, funded through interagency agreements. Last year, EDD paid CDT $36 million for data center services.

According to the State Contracting and Procurement Registration System, EDD’s next four largest expenditures were:

• $2,311,848 for quality assurance testing, in a one-year contract with Acuity Technical Solutions LLC that runs through July 19, 2024. This contract was awarded under the state IT Master Service Agreement (IT MSA) as a small or medium business.
• $1,425,600 for consulting and project management services, in a Sept. 15 contract with Affinian Group LLC that runs through June 30, 2025. This contract was awarded under the state IT MSA as a small or medium business.
• $1,404,000 for IT consulting in a July 1 contract that runs through June 30, 2025, with Delegata Corp., also an IT MSA contract with a small business.
• $300,000 for virtual training for EDD’s IT Branch, in a three-year competitively bid contract running through Sept. 14, 2026, with ProTech Professional Technical Services Inc.

The periodic reports of spending on IT goods and services by agencies and departments in state government are compiled by Industry Insider — California as a way of highlighting procurements and trends.