Gov’s task force: Insource to save money

By SHERRY HALBROOK
It’s a familiar message, but a new messenger.

In a report issued December 30, 2009, the Governor’s Task Force on Personal Service Contracting Issues issued a report concluding the state could and should save money by reducing its reliance on private consultants and giving the work to state employees, even if that means hiring more of them.

The task force is charged with reviewing state agency practices in contracting for personal services, evaluating the reasons for those contracts and recommending whether and how those contracts should be limited.

This initial report focused specifically on contracting in transportation engineering and information technology (IT).

Gov. David Paterson hailed the report, and thanked the task force, which he established in June 2008.

The task force, which was chaired by state Budget Director Robert Megna, recommends the state:
• Develop a process by which agencies may demonstrate that hiring an employee to perform necessary services would create a cost savings by reducing contracting expenses;
• Develop best practices for agencies to use in contracting, including terms that should be added to IT contracts regarding knowledge transfer;

• Issue a revised budget bulletin providing for the collection of additional information from state agencies on their personal-services contracts; and

• Develop a single consolidated contract database and reporting system to improve data collection and analysis.

Paterson credited the group’s work for prompting a new law, passed in 2009, that gives state agencies the flexibility to insource IT jobs when it would be cost-effective.

Paterson said, “an inter-agency group will meet on a regular basis to ensure prompt implementation.