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H.413
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Introduced by Representatives Brooks of Montpelier, Davis of Washington and
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Pearson of Burlington
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Referred to Committee on
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Date:
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Subject: Executive branch; privatization contracts
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Statement of purpose: This bill proposes to ensure that state personal services
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and privatization contracts are consistent with the principles of classified
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service and fiscal responsibility.
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AN ACT RELATING TO STATE GOVERNMENT PRIVATIZATION
CONTRACTS
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It is hereby enacted by the General Assembly of the State of Vermont:
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Sec. 1. 3 V.S.A. § 341(3) is amended to read:
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(3) “Privatization contract” means a personal services contract by which
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an entity or an individual who is not a state employee agrees with an agency to
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provide services, valued at $20,000.00 or more per year, which are the same or
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substantially similar to and in lieu of services previously provided, in whole or
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in part, by permanent, classified state employees, and which result in the
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elimination of a bargaining unit position through attrition, separation, or
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reduction in force of at least one permanent, classified employee.
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Sec. 2. 3 V.S.A. § 342(4) is amended to read:
(4) Any of the following apply:
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(D) The state is not able to provide equipment, materials, facilities, or
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support services in the location where the services are to be performed in a
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cost-effective manner as determined by the state auditor.
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(F) The need for services is urgent, temporary or occasional, such
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that the time necessary to hire and train employees would render obtaining the
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services from state employees imprudent. Such contract shall be limited to 90
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days duration, with any extension subject to review and approval by the
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secretary of administration. Not less than 20 days prior to approval, the
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secretary of administration shall notify the bargaining agent of a request for a
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contract subject to this subdivision.
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(G) Contracts for the type of services covered by the contract are
specifically authorized by law.
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(H) Efforts to recruit state employees to perform work, authorized by
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law, have failed in that the department of human resources and the department
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of labor have posted notice of the position, recruitment efforts have lasted at
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least 45 days, and no applicant meeting the minimum qualifications has
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applied for the job.
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(I) The cost of obtaining the services by contract is lower than the
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cost of obtaining the same services by utilizing state employees. When
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comparing costs, the provisions of section 343 of this title shall apply.
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Sec. 3. 3 V.S.A. § 343(3) is amended to read:
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(3) When comparing the cost of having a service provided by classified
state employees to the cost of having the service provided by a contractor:
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(B) The basic cost of services by a contractor includes:
(i) the bid price or maximum acceptable bid identified by the
contracting authority; and
(ii) any additional costs to be incurred by the state or agency for
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inspection, facilities, reimbursable expenses, supervision, training, and
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materials, but only to the extent that these costs exceed the costs the agency
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could expect to incur for inspection, facilities, reimbursable expenses, and
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materials if the services were provided by classified state employees.
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(D) Possible reductions in the cost of obtaining services from
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classified state employees that require concessions shall not be considered
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unless proposed in writing by the certified collective bargaining agent and
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mutually agreed to by the state and collective bargaining agent.
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Sec. 4. 3 V.S.A. § 344 is amended to read:
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§ 344. CONTRACT ADMINISTRATION
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(a) The secretary of administration shall maintain a database with
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information about approved privatization contracts and approved personal
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services contracts, including contract extensions. The database shall include
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names of contractors, summaries of services to be performed under the
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contracts, costs and durations of contracts, and values of similar services
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provided by state agencies. The secretary shall also maintain a database with
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information about privatization contracts which are rejected because they fail
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to qualify under subdivision 343(2) of this title. Contracts shall be public
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record to the extent provided under chapter 5 of Title 1, and shall be located at
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the agency of origin, including information about names of contractors,
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summaries of work to be performed, costs, and duration.
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(b) The information on contracts described in subsection (a) of this section
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shall be reported to the general assembly in the annual workforce report
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required under subdivision 309(a)(19) of this title.
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Sec. 5. 3 V.S.A. § 345 is added to read:
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§ 345. EXTENSIONS OF PRIVATIZATION CONTRACTS
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An agency may not approve an extension of a contract unless the agency
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reviews the criteria established by this chapter and determines that the contract
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will continue to yield at least a 10 percent savings over hiring or utilizing
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current state employees to perform the services under the contract.
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