MM 07-04 2025

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The Management Memo MM 07-04 issued by the Department of General Services outlines guidelines regarding follow-on contracts in relation to Public Contract Code sections 10365.5 and 10430. It clarifies the prohibitions against consultants bidding on follow-on contracts based on previous engagements, particularly extending these rules to Information Technology (IT) contracts as mandated by Senate Bill 1467. The memo details the analysis required to determine if a contract qualifies as a consulting services contract and emphasizes the importance of evaluating both initial and subsequent contracts for potential conflicts. It also provides practical recommendations for departments to consider when drafting scopes of work and advises consultation with legal counsel regarding compliance.

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