Passage of cost-benefit bill could reduce contracting-out

By DEBORAH A. MILES
PEF’s message to lawmakers that state employees are valuable and capable is no longer falling on deaf ears.

A bill that would require agencies to do a cost-benefit analysis before the state awards an outside contract has already passed in the Assembly. PEF is working to build support in the Senate.

“This bill is intended to get at the problem we have been addressing,” said PEF President Roger Benson. “We’ve established through a lot of evidence, such as in the state Department of Transportation with its hiring of engineering consultants, that it would be more cost-effective for state employees to do that work.”

The bill, S.198/A.1726A, is modeled on legislation adopted by the state of Maine in 1997. It regulates the process state agencies use for awarding contracts for services, and establishes several conditions that must be met before contracts are awarded.

“The primary focus of this legislation is to require full disclosure of the anticipated costs and benefits of a contract for services,” said PEF Legislative Director Brian Curran. “It also requires a review to consider whether the public interest is being adequately protected, and whether any important public policies may be jeopardized by the decision to hire a contractor rather than perform the work with public employees.”

Curran said that after PEF brought this issue and the Maine statute to the attention of Assembly Member Susan John and Senator Nicholas Spano, they took the initiative to introduce the bill.
“PEF members have identified a number of examples where the state is using expensive private consultants that cost substantially more than having state employees do the work,” Curran said. “The goal of this bill is to curb that abuse.”

Curran asked PEF members to call their senators at 1-877-255-9417and urge them to support bill S.198.

Communicator Home June 04

Inside This Issue
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Contract Update: State stalls...
Take agencies out of the shadows
Law could reduce contracting-out
Keep pressure to save Fulton CF
Heroes plant feet in NH

Departments
President's Message
Member's Mailbag
Nurses' Station
Retirees In Action
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