The bill specifically impacts the Department of Transportation (DOT) in
several ways. Under the bill, with respect to DOT's contractual engagement of
engineering, consulting, surveying, and other specialized services (engineering
services), DOT is subject to certain provisions of state procurement law relating to
contractual services from which, under current law, DOT is exempt. The bill also
requires DOT to use DOT employees to conduct all tests of concrete thickness on its
highway improvement projects. Under the bill, DOT must submit a report to JCF
containing recommendations on actions that DOT and local governments can take
to improve the efficiency, cost-effectiveness, and timeliness of local road construction
projects and proposed legislative changes to implement these recommendations.
DOT must also annually submit a report to the governor, JCF, the Joint Legislative
Audit Committee, and the appropriate legislative standing committees relating to
its contractual engagement of engineering services.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB792, s. 1 1Section 1. 16.42 (1) (h) of the statutes is created to read:
AB792,5,4
116.42 (1) (h) 1. The total amount of contracted positions, including the number
2of service hours and recurring service rate payments, providing services for the
3agency that are paid from the agency's base level funding and an identification of the
4appropriation or appropriations used to fund the contract expenditures.
AB792,5,65 2. The total amount of agency base level funding used to pay for the contracted
6positions under subd. 1.
AB792,5,97 3. The amount of funding requested for contracted positions identified under
8subd. 1 and an identification of the appropriation or appropriations that will be used
9to fund the contracted positions.
AB792, s. 2 10Section 2. 16.46 (10) of the statutes is created to read:
AB792,5,1411 16.46 (10) (a) A statement of the number of contracted positions providing
12services for each state agency that are paid from the agency's base level funding and
13an identification of the appropriation or appropriations used to fund the contracted
14positions.
AB792,5,1615 (b) A statement of the total amount of each state agency's base level funding
16used to pay for the contracted positions.
AB792,5,1917 (c) A statement of the amount of funding requested by state agencies for
18contracted positions and an identification of the appropriation or appropriations that
19will be used to fund the contracted positions.
AB792, s. 3 20Section 3. 16.705 (1) of the statutes is renumbered 16.705 (1) (a) (intro.) and
21amended to read:
AB792,5,2322 16.705 (1) (a) (intro.) The department or its agents may contract for services
23which if at least 2 of the following conditions apply:
AB792,5,24 241. The services can be performed more economically or by contract.
AB792,6,3
12. When considering expertise of the current full-time positions, whether filled
2or vacant, the services can be performed more
efficiently by such contract than by use
3of employees in those positions
.
AB792,6,5 4(d) The department shall, by rule, prescribe uniform procedures for
5determining whether services are appropriate for contracting under this subsection.
AB792, s. 4 6Section 4. 16.705 (1) (a) 3., (b) and (c) of the statutes are created to read:
AB792,6,87 16.705 (1) (a) 3. When considering timeliness of delivery, the services can be
8performed more efficiently by contract.
AB792,6,119 (b) Notwithstanding par. (a), the department or its agents may contract for any
10services if the contract will be for a period that is not more than one year and if the
11contract is not eligible for renewal.
AB792,6,1212 (c) No contract under this section may be automatically renewed.
AB792, s. 5 13Section 5. 16.705 (2) of the statutes is renumbered 16.705 (2) (a) (intro.) and
14amended to read:
AB792,6,1715 16.705 (2) (a) (intro.) The department shall promulgate rules for the
16procurement of contractual services by the department and its designated agents,
17including but not limited to rules the following:
AB792,6,19 181. Rules prescribing approval and monitoring processes for contractual service
19contracts.
AB792,7,9 202. Except as provided in par. (b), a requirement for agencies to conduct a
21uniform cost-benefit analysis of each proposed contractual service procurement
22involving an estimated expenditure of more than $25,000 in accordance with
23standards prescribed in the rules, and, except as provided in par. (b), a requirement
24for agencies to review periodically, and before any renewal, the continued
25appropriateness of contracting under each contractual services agreement involving

1an estimated expenditure of more than $25,000. The rules shall require the
2cost-benefit analysis or continued appropriateness review to compare the costs of
3using a current employee who is providing, or who would provide, the service, or a
4similarly situated employee if the current position is vacant, to the costs of using an
5employee under a contract and shall require the comparison to include all relevant
6costs including the salary and fringe benefit costs, costs of any training that will be
7necessary to fulfill the task, materials, inspections, unemployment insurance,
8transitional costs, liability insurance, overhead, facility costs, taxes, and other
9incidental costs.
AB792,7,18 10(d) Each officer requesting approval to engage any person to perform
11contractual services shall submit to the department written justification for such
12contracting which shall include a description of the contractual services to be
13procured, justification of need, justification for not contracting with other agencies,
14a specific description of the scope of contractual services to be performed, and
15justification for the procurement process if a process other than competitive bidding
16is to be used. The department may not approve any contract for contractual services
17unless it is satisfied that the justification for contracting conforms to the
18requirements of this section and ss. 16.71 to 16.77.
AB792, s. 6 19Section 6. 16.705 (2) (a) 3., (b) and (c) of the statutes are created to read:
AB792,7,2320 16.705 (2) (a) 3. A requirement that each agency that contracts for services
21under this section perform periodic audits on cost-benefit analyses or continued
22appropriateness reviews and contracts that required a cost-benefit analysis or
23continued appropriateness review.
AB792,8,324 (b) A cost-benefit analysis or continued appropriateness review is not required
25for services that federal or state law requires to be performed by contract; services

1that are incidental to the purchase of a commodity; or services that must be provided
2per a contract, license, or warranty by the original equipment manufacturer or
3publisher unless the contract, license, or warranty has expired or is no longer valid.
AB792,8,54 (c) 1. Neither a cost-benefit analysis nor a continued appropriateness review
5may be conducted by contract.
AB792,8,76 2. A cost-benefit analysis may not be shown to a bidder prior to the issuance
7of a letter of intent to contract.
AB792, s. 7 8Section 7. 16.705 (3) (intro.) of the statutes is amended to read:
AB792,8,119 16.705 (3) (intro.) The director of the office of state employment relations
10department, prior to award, under conditions established by rule of the department,
11shall review contracts for contractual services in order to ensure that agencies:
AB792, s. 8 12Section 8. 16.705 (4) of the statutes is created to read:
AB792,8,2213 16.705 (4) Any person submitting a bid or proposal or a labor organization that
14is certified under subch. V of ch. 111 to be the representative of the appropriate
15collective bargaining unit that is aggrieved by a solicitation for bids or by a letter of
16intent to contract may protest to the agency that solicited or awarded the contractual
17services. The protesting party shall file a written notice of intent to protest with, or
18send an electronic notice of intent to protest to, the agency that solicited or awarded
19the contractual services within 7 working days after the solicitation or the letter,
20whichever is appropriate, and shall serve a written or send an electronic protest
21within 12 working days after issuance of the solicitation or the letter, whichever is
22appropriate.
AB792, s. 9 23Section 9. 16.705 (5g), (5m) and (5r) of the statutes are created to read:
AB792,9,3
116.705 (5g) All contracts for contractual services must provide notice of the
2rules promulgated by the division of legal services under sub. (5m) (a) and of the
3requirements under sub. (5r).
AB792,9,5 4(5m) The division of legal services shall promulgate rules on all of the
5following:
AB792,9,96 (a) Actions by the person performing the contractual services that would result
7in the agency for which contractual services are performed recovering any
8expenditures for those contractual services that the agency paid to the person
9performing the contractual services.
AB792,9,1110 (b) Standard performance measures, including quantifiable benchmark
11indicators, to evaluate persons performing contractual services.
AB792,9,1312 (c) Signing bonuses, reimbursements, and per diem costs included in all
13contracts for contractual services.
AB792,9,19 14(5r) (a) 1. If the cost of the contractual services exceeds $25,000, any
15expenditures of the person performing the contractual services that exceed its
16original bid by 10 percent or more may not be paid unless the secretary, using only
17the information provided by the agency for which the contractual services are
18performed, approves payment of the increased amount and provides, in writing, to
19the joint committee on finance his or her rationale for the approval.
AB792,9,2420 2. Subdivision 1. does not apply to contractual services purchased for the
21University of Wisconsin System, or for any University of Wisconsin System campus
22or institution, if the contractual services are for research or instructional purposes,
23as determined by the University of Wisconsin System or the campus or institution,
24whichever is appropriate.
AB792,10,6
1(b) No person performing contractual services under this section may provide
2any salary increase if the salary increase would result in greater expenditures for the
3agency for which the contractual services are performed than the amounts specified
4in the original bid. This restriction under this paragraph on salary increases does
5not apply if the salary increase is in accordance with the terms of a collective
6bargaining agreement.
AB792, s. 10 7Section 10. 16.705 (6) of the statutes is renumbered 16.705 (6) (b) and
8amended to read:
AB792,10,169 16.705 (6) (b) If the agency for which contractual services are performed under
10a contractual services agreement concludes under par. (a) that the performance was
11unsatisfactory, recovers expenditures because the contractor's actions were listed in
12the rules developed under sub. (5m) (a), or concludes
that the performance was
13unsatisfactory based on factors the agency considers, the agency shall file with the
14department an evaluation of stating that the contractor's performance was
15unsatisfactory
within 60 days after the fulfillment of the agreement. The evaluation
16shall be in such form as the secretary may require.
AB792, s. 11 17Section 11. 16.705 (6) (a) of the statutes is created to read:
AB792,10,2118 16.705 (6) (a) An agency for which contractual services are performed under
19a contractual services agreement shall evaluate the contractual services using the
20standard performance measures and benchmark indicators created under sub. (5m)
21(b). No contract may be renewed until the agency completes the evaluation.
AB792, s. 12 22Section 12. 16.705 (7) of the statutes is amended to read:
AB792,11,223 16.705 (7) The department shall review evaluations submitted under sub. (6)
24(b) and promulgate rules prescribing procedures to assure that future contracts for

1contractual services are not awarded to contractors whose past performance is found
2to be unsatisfactory, to the extent feasible.
AB792, s. 13 3Section 13. 16.705 (8) (a) of the statutes is amended to read:
AB792,11,54 16.705 (8) (a) A summary of the cost-benefit analyses completed by agencies
5in compliance with rules promulgated by the department under sub. (2) (a).
AB792, s. 14 6Section 14. 16.705 (9) of the statutes is created to read:
AB792,11,97 16.705 (9) (a) In this subsection, "federal economic stimulus funds" means
8federal moneys received by the state, pursuant to federal legislation enacted during
9the 111th Congress for the purpose of reviving the economy of the United States.
AB792,11,1610 (b) Except as provided in pars. (c) and (d), if in any fiscal year an agency in the
11executive branch is prohibited from hiring employees to fill vacant positions or its
12employees are required to serve an unpaid leave of absence, the agency may not enter
13into, renew, or extend any contractual services contracts with private contractors or
14consultants for the remainder of that fiscal year for the performance of services of
15agency employees who would have performed the services had they been hired or had
16they not have been required to take an unpaid leave of absence.
AB792,11,2317 (c) Paragraph (b) shall not apply to contractual services contracts that are
18funded with federal economic stimulus funds and the secretary determines that any
19deadlines imposed by the federal government on the expenditure of the federal
20economic stimulus funds cannot be met without an agency's entering into, renewing,
21or extending a contractual services contract or a cost-benefit analysis is conducted
22that demonstrates that a contractual services contract would be more cost effective
23and efficient than having state employees perform the services.
AB792,11,2524 (cm) Paragraph (b) shall not apply to contracts entered into, renewed, or
25extended under s. 977.08.
AB792,12,9
1(d) An agency in the executive branch may submit a written request to the joint
2committee on finance to have par. (b) not apply to the agency with respect to a specific
3contractual services contract. If the cochairpersons of the committee do not notify
4the agency within 14 working days after the date of the agency's submittal that the
5committee intends to schedule a meeting to review the request, approval of the
6request is granted. If, within 14 working days after the date of the agency's request
7submittal, the cochairpersons of the committee notify the agency that the committee
8intends to schedule a meeting to review the request, the request may be granted only
9as approved by the committee.
AB792, s. 15 10Section 15. 16.75 (1) (a) 4. of the statutes is created to read:
AB792,12,1311 16.75 (1) (a) 4. The contracting agency shall electronically send the successful
12bidder a letter of intent to contract and shall send electronic copies of the letter to all
13other bidders.
AB792, s. 16 14Section 16. 16.75 (1) (b) of the statutes is amended to read:
AB792,13,415 16.75 (1) (b) When the estimated cost exceeds $25,000, the department shall
16invite bids to be submitted. The department either shall either solicit sealed bids to
17be opened publicly at a specified date and time, or shall solicit bidding by auction to
18be conducted electronically at a specified date and time. Whenever bids are invited,
19due notice inviting bids shall may be published as a class 2 notice, under ch. 985 or,
20and notice inviting bids, including a copy of all documents soliciting bids, shall be

21posted on the Internet at a site determined or approved by the department. The bid
22opening or auction shall occur at least 7 days after the date of the last insertion of
23the notice or
at least 7 days after the date of posting on the Internet. The notice under
24ch. 985, if applicable, and the Internet site
shall specify whether sealed bids are
25invited or bids will be accepted by auction, and shall give a clear description of the

1materials, supplies, equipment, or contractual services to be purchased, the amount
2of any bond, share draft, check, or other draft to be submitted as surety with the bid
3or prior to the auction, and the date and time that the public opening or the auction
4will be held.
AB792, s. 17 5Section 17. 16.75 (2m) (b) of the statutes is amended to read:
AB792,13,156 16.75 (2m) (b) When the estimated cost exceeds $25,000, the department may
7invite competitive sealed proposals by publishing a class 2 notice under ch. 985 or by
8posting
and shall post notice, including all documents soliciting proposals, on the
9Internet at a site determined or approved by the department. The notice under ch.
10985, if applicable, and the notice on the Internet site
shall describe the materials,
11supplies, equipment, or contractual services to be purchased, the intent to make the
12procurement by solicitation of proposals rather than by solicitation of bids, any
13requirement for surety, and the date the proposals will be opened, which shall be at
14least 7 days after the date of the last insertion of the notice or
at least 7 days after
15the date of posting on the Internet.
AB792, s. 18 16Section 18. 16.75 (6) (c) of the statutes is amended to read:
AB792,14,417 16.75 (6) (c) If the secretary determines that it is in the best interest of this state
18to do so, he or she may, with the approval of the governor, waive the requirements
19of subs. (1) to (5) and may purchase supplies, material, equipment, or contractual
20services, other than printing and stationery, from a private source other than a
21source specified in par. (b). Except as provided in sub. (2g) (c), if the cost of the
22purchase is expected to exceed $25,000, the department shall may first publish a
23class 2 notice under ch. 985 or and shall post a notice on the Internet at the site
24determined or approved by the department under sub. (1) (b) describing the
25materials, supplies, equipment, or contractual services to be purchased, stating the

1intent to make the purchase from a private source without soliciting bids or
2competitive sealed proposals and stating the date on which the contract or purchase
3order will be awarded. The date of the award shall be at least 7 days after the date
4of the last insertion or
the date of posting on the Internet.
AB792, s. 19 5Section 19. 16.771 of the statutes is created to read:
AB792,14,12 616.771 False claims. Whoever knowingly presents or causes to be presented
7a false claim for payment under any contract or order for materials, supplies,
8equipment, or contractual services to be provided to an agency shall forfeit not less
9than $5,000 nor more than $10,000, plus 3 times the amount of the damages that
10were sustained by the state or would have been sustained by the state, whichever is
11greater, as a result of the false claim. The attorney general may bring an action on
12behalf of the state to recover any forfeiture incurred under this section.
AB792, s. 20 13Section 20. 16.87 (2) of the statutes is renumbered 16.87 (2) (a) and amended
14to read:
AB792,14,1715 16.87 (2) (a) A contract for engineering services or architectural services or a
16to be done for or furnished to the state or a department, board, commission, or officer
17of the state is exempt from the requirements of s. 16.75.
AB792,14,21 18(b) A contract involving an expenditure of $10,000 or more for construction
19work, or $30,000 or more for limited trades work, to be done for or furnished to the
20state or a department, board, commission, or officer of the state is exempt from the
21requirements of ss. 16.705 and 16.75.
AB792,14,24 22(c) The department shall attempt to ensure that 5% of the total amount
23expended under this section in each fiscal year is paid to minority businesses, as
24defined under s. 16.75 (3m) (a).
AB792, s. 21 25Section 21. 16.871 of the statutes is created to read:
AB792,15,1
116.871 False claims. (1) In this section:
AB792,15,22 (a) "Agency" has the meaning given in s. 16.70 (1e).
AB792,15,33 (b) "Construction work" has the meaning given in s. 16.87 (1) (a).
AB792,15,44 (c) "Limited trades work" has the meaning given in s. 16.70 (7).
AB792,15,11 5(2) Whoever knowingly presents or causes to be presented a false claim under
6any contract for construction work or limited trades work, or for engineering or
7architectural services, to be provided to any agency shall forfeit not less than $5,000
8nor more than $10,000, plus 3 times the amount of the damages that were sustained
9by the state or would have been sustained by the state, whichever is greater, as a
10result of the false claim. The attorney general may bring an action on behalf of the
11state to recover any forfeiture incurred under this subsection.
AB792, s. 22 12Section 22. 20.932 of the statutes is created to read:
AB792,15,13 1320.932 False claims; actions by or on behalf of state. (1) In this section:
AB792,15,1414 (a) "Authority" has the meaning given in s. 16.70 (2).
AB792,15,2215 (b) "Claim" includes any request or demand for money, property, or services
16made to any officer, employee, or agent of this state, or to any contractor, grantee, or
17other recipient, whether or not under contract, if any portion of the money, property,
18or services that are requested or demanded is derived from state resources, or if the
19state is obligated to reimburse the contractor, grantee, or other recipient for any
20portion of the money, property, or services that are requested or demanded. "Claim"
21does not include any request or demand for medical assistance described under s.
2220.931 (1) (b).
AB792,15,2323 (c) "Employer" includes all agencies and authorities.
AB792,15,2424 (d) "Knowingly" has the meaning given in s. 20.931 (1) (d).
AB792,15,2525 (e) "Proceeds" has the meaning given in s. 20.931 (1) (e).
AB792,16,1
1(f) "State public official" has the meaning given in s. 19.42 (14).
AB792,16,5 2(2) Except as provided in subs. (3) and (4), any person who does any of the
3following is liable to this state for 3 times the amount of the damages sustained by
4this state because of the actions of the person, and shall forfeit not less than $5,000
5nor more than $10,000 for each violation:
AB792,16,86 (a) Knowingly presents or causes to be presented to any officer, employee, or
7agent of this state, or to any contractor, grantee, or other recipient of state resources,
8a false claim for payment or approval.
AB792,16,109 (b) Knowingly makes, uses, or causes to be made or used a false record or
10statement to obtain approval or payment of a false claim.
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