SB 575

Under current law, if a state agency enters into or renews a contract for services

that involves an estimated expenditure of more than $25,000, the agency must, in

accordance with standards prescribed by the Department of Administration (DOA),

conduct either a uniform cost-benefit analysis, for a new contract, or a continued

appropriateness review, for a contract renewal. In addition, if the estimated cost

exceeds $50,000, DOA must generally invite bids or proposals to be submitted and

award the contract to the entity that submits the lowest bid or most advantageous

competitive proposal.

Current law exempts from the requirements certain contracts for engineering

services or architectural services done for the state if DOA approves the contract.

Under this bill, these services remain exempt from the requirements, but an

engineer or an architect at DOA must determine if the project could be completed

more effectively and efficiently with state employees before DOA may approve the

contract.

Current law also exempts from the requirements contracts with the

Department of Transportation (DOT). Instead, under current law, DOT must, in

accordance with standards prescribed by DOT, conduct a uniform cost-benefit

analysis, or continued appropriateness review, of each proposed engagement that

involves an estimated expenditure of more than $25,000. Under this bill, DOT must

submit a report, with respect to the previous fiscal year, to the governor and the

legislature on the following:

1. The number, value, and nature of contractual engagements of services

authorized by DOT.

2. A summary of the cost-benefit analyses completed.

3. Recommendations for elimination of unneeded contractual engagements of

services and for consolidation or resolicitation of existing contractual engagements

of services.

4. An identification of all contractors engaged, contract amount, duration, and

services to be provided, as well as aggregated value of contracts for each contractor,

distinguishing between initial contracts and extended or renewed contracts and

specifying the termination date of each contract.

5. A summary of DOT's contract review activities.

6. An identification of contract services by code according to the type of services.

7. An identification of any contracts awarded by other than usual and

customary contracting procedures, including any single-source contracts.

Then, under this bill, within 30 days of completion of a contract for

engagements of services that involves an expenditure of more than $50,000, DOT

must submit to the governor and the legislature a summary of the purpose of the

contract, including why it was necessary to enter into the contract; the amount spent

on the contract; if the contract was awarded by other than usual and customary