Contracting for services in state procurement

What it would have done

Summary by the Legislative Reference Bureau, the Legislature's nonpartisan drafting office. It's their wording, not ours.

Currently, the Department of Administration (DOA) or any state agency to which DOA delegates purchasing authority may contract for services if the services can be performed more efficiently or economically by contract than by state employees. This bill allows contracting for services if at least two of the following three conditions are met: 1) the services may be performed more economically by contract than by state employees; 2) when considering expertise, the services can be performed more efficiently by contract than by use of current full-time state positions; or 3) when considering timeliness, the services can be performed more efficiently by contract than by state employees.

Under current law, the requirement described above that allows an agency to contract for services only if the services can be performed more efficiently or economically by contract than by state employees does not apply to the Department of Transportation (DOT). Instead, DOT may engage engineering, consulting, surveying, or other specialized services as it deems advisable. Under this bill, before DOT enters into a contract for the engagement of services, DOT must determine that all of the following apply: 1) no current state employee is able and available to perform the services; 2) the work to be performed is necessary to DOT's achievement of its statutory responsibilities and there is statutory authority to enter into the contract; 3) the contract will not establish an employment relationship between the state or DOT and any person performing under the contract; 4) the contractor and its agents are not employees of the state; 5) DOT has specified a satisfactory method of evaluating and using the results of the work to be performed; and 6) the contract term does not exceed two years. In addition, before DOT enters into any contract for the engagement of services, DOT must implement a written plan providing for the assignment of specific personnel to manage the contract, including a monitoring and liaison function, the periodic review of interim reports or other indications of past performance, and the ultimate utilization of the final product of the services. If the results of the contract work will be continued by state employees upon completion of the contract, the contractor must include state employees in development and training, to the extent necessary to ensure that after completion of the contract, state employees can perform any ongoing work related to the same function. DOT may not contract out its previously eliminated jobs for four years without first considering the same former employees who are on the seniority unit layoff list who meet the minimum qualifications. The contract must provide that no more than 90 percent of the amount due under the contract may be paid until the secretary of administration has certified that the contractor has satisfactorily fulfilled the terms.

Who's behind it

2 senators are its authors⁠. All 2 are Democrats.

4 more lawmakers signed on in support⁠.

What it would cost

State agencies filed a cost estimate. Each opens as a PDF from the Legislature.

• Fiscal Estimate From DOT