TITLE 42
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
applicable.
(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.)
