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§42-148-3  Preclosure analysis. –

Published: 2015

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State Affairs and Government

CHAPTER 42-148

Privatization of State Services

SECTION 42-148-3

   § 42-148-3  Preclosure analysis. –

(a) Prior to the closure, consolidation or privatization of any state facility,

function or program, the director of administration or his or her designee,

shall conduct a thorough cost comparison analysis and evaluate quality

performance concerns before deciding to purchase services from private vendors

rather than provide services directly.

   (b) The director of administration shall notify the

bargaining representatives of state employees who will be directly impacted by

a potential privatization in writing at least six (6) months in advance of its

consideration of privatizing a state service and complete the following process:

   (i) Document the current in-house costs of providing the

services with a detailed budget breakdown. The in-house cost shall include any

department overhead and other costs that would continue even if the service was

contracted out.

   (ii) Prepare a statement of work and performance standards

which shall form the basis for the requests for proposals and which shall

include the following:

   (A) A clear statement of work with measurable performance

standards including qualitative as well as quantitative standards that bidders

must meet or exceed;

   (B) Requirements that contractors meet affirmative action,

disability and other nondiscriminatory and service standards currently required

of state agencies.

   (C) A clear format that will enable comparison of competitive

bids and in-house bids. The format must require detailed budget breakdowns.

   (c) Prior to the issuance of the RFP current public employees

must be notified of the intent to solicit bid proposals and of the decision

timeline. Additionally, at least sixty (60) calendar days prior to the issuing

of a request for proposals, the cost analysis and statement of work shall be

sent to the bargaining representatives of state employees who will be directly

impacted by a potential privatization.

   (d) Prior to, or up until the time when a prospective offeror

is required to submit to the state a proposal for a privatization contract,

directly impacted state employees and their bargaining representatives shall be

afforded an opportunity to present a new cost estimate, reflecting any

innovations that they could incorporate into the work performance standards.

This new cost estimate shall be deemed an in-house bid, which shall form the

basis for the eventual cost comparison. The director shall provide technical

and informational assistance to the in-house state work group in its

preparation of an in-house bid.

   (e) Prior to or at any time before or after the normal

procurement process, the director may elect to accept the in-house bid or

proceed with the normal procurement process which must:

   (i) Incorporate the statement of work and performance

standards, and

   (ii) Require bidders to meet the same statement of work

performance standards as would be expected by an in-house cost estimate; and

   (iii) Include bid forms requiring a sufficiently detailed

breakdown of cost categories to allow accurate and meaningful comparisons, if


   (f) The in-house bid developed pursuant to subsection (d) of

this section shall be kept confidential from bidders.

History of Section.

(P.L. 2007, ch. 73, art. 42, § 1; P.L. 2008, ch. 121, § 2; P.L. 2008,

ch. 139, § 2.)