SB 574

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.

Finally, the bill provides that if in any fiscal year an executive branch agency

is prohibited from hiring employees to fill vacant positions or its employees are

required to serve an unpaid leave of absence, the agency may not enter into, renew,

or extend any contractual services contracts with private contractors or consultants