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2011 - 2012 LEGISLATURE
March 15, 2012 - Introduced by Senators Lassa and Vinehout, cosponsored by
Representatives Jorgensen, Roys, Turner and Ringhand. Referred to
Committee on Senate Organization.
SB574,1,3 1An Act to renumber and amend 16.705 (1); and to create 16.705 (1) (a) 3., (b)
2and (c), 16.705 (10) and 84.01 (13g) of the statutes; relating to: contracting for
3services in state procurement.
Analysis by the Legislative Reference Bureau
Currently, the Department of Administration (DOA) or any state agency to
which DOA delegates purchasing authority may contract for services if the services
can be performed more efficiently or economically by contract than by state
employees. This bill allows contracting for services if at least two of the following
three conditions are met: 1) the services may be performed more economically by
contract than by state employees; 2) when considering expertise, the services can be
performed more efficiently by contract than by use of current full-time state
positions; or 3) when considering timeliness, the services can be performed more
efficiently by contract than by state employees.
Under current law, the requirement described above that allows an agency to
contract for services only if the services can be performed more efficiently or
economically by contract than by state employees does not apply to the Department
of Transportation (DOT). Instead, DOT may engage engineering, consulting,
surveying, or other specialized services as it deems advisable. Under this bill, before
DOT enters into a contract for the engagement of services, DOT must determine that
all of the following apply: 1) no current state employee is able and available to
perform the services; 2) the work to be performed is necessary to DOT's achievement
of its statutory responsibilities and there is statutory authority to enter into the

contract; 3) the contract will not establish an employment relationship between the
state or DOT and any person performing under the contract; 4) the contractor and
its agents are not employees of the state; 5) DOT has specified a satisfactory method
of evaluating and using the results of the work to be performed; and 6) the contract
term does not exceed two years. In addition, before DOT enters into any contract for
the engagement of services, DOT must implement a written plan providing for the
assignment of specific personnel to manage the contract, including a monitoring and
liaison function, the periodic review of interim reports or other indications of past
performance, and the ultimate utilization of the final product of the services. If the
results of the contract work will be continued by state employees upon completion
of the contract, the contractor must include state employees in development and
training, to the extent necessary to ensure that after completion of the contract, state
employees can perform any ongoing work related to the same function. DOT may not
contract out its previously eliminated jobs for four years without first considering the
same former employees who are on the seniority unit layoff list who meet the
minimum qualifications. The contract must provide that no more than 90 percent
of the amount due under the contract may be paid until the secretary of
administration has certified that the contractor has satisfactorily fulfilled the terms.
Finally, the bill provides that if in any fiscal year an executive branch agency
is prohibited from hiring employees to fill vacant positions or its employees are
required to serve an unpaid leave of absence, the agency may not enter into, renew,
or extend any contractual services contracts with private contractors or consultants
for the remainder of that fiscal year for the performance of services of agency
employees who would have performed the services had they been hired or had they
not been required to take an unpaid leave of absence. This provision, however, does
not apply to certain contracts of the Office of the State Public Defender, as well as
certain contractual services contracts funded with federal economic stimulus funds.
The bill further provides that an agency may submit a written request to the Joint
Committee on Finance (JCF) to exempt an agency with respect to a specific
contractual services contract. If the cochairpersons of JCF do not notify the agency
within 14 working days after the date of the agency's submittal that JCF intends to
schedule a meeting to review the request, approval of the request is granted. If,
within 14 working days after the date of the agency's request submittal, the
cochairpersons notify the agency that JCF intends to schedule a meeting to review
the request, the request may be granted only as approved by JCF.
For further information see the state 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:
SB574, s. 1 1Section 1. 16.705 (1) of the statutes is renumbered 16.705 (1) (a) (intro.) and
2amended to read:
SB574,3,2
116.705 (1) (a) (intro.) The department or its agents may contract for services
2which if at least 2 of the following conditions apply:
SB574,3,3 31. The services can be performed more economically or by contract.
SB574,3,6 42. When considering expertise of the current full-time positions, whether filled
5or vacant, the services can be performed more
efficiently by such contract than by use
6of employees in those positions
.
SB574,3,8 7(d) The department shall, by rule, prescribe uniform procedures for
8determining whether services are appropriate for contracting under this subsection.
SB574, s. 2 9Section 2. 16.705 (1) (a) 3., (b) and (c) of the statutes are created to read:
SB574,3,1110 16.705 (1) (a) 3. When considering timeliness of delivery, the services can be
11performed more efficiently by contract.
SB574,3,1412 (b) Notwithstanding par. (a), the department or its agents may contract for any
13services if the contract will be for a period that is not more than one year and if the
14contract is not eligible for renewal.
SB574,3,1515 (c) No contract under this section may be automatically renewed.
SB574, s. 3 16Section 3. 16.705 (10) of the statutes is created to read:
SB574,3,1917 16.705 (10) (a) In this subsection, "federal economic stimulus funds" means
18federal moneys received by the state, pursuant to federal legislation enacted during
19the 111th Congress for the purpose of reviving the economy of the United States.
SB574,4,220 (b) Except as provided in pars. (c), (cm), and (d), if in any fiscal year an agency
21in the executive branch is prohibited from hiring employees to fill vacant positions
22or its employees are required to serve an unpaid leave of absence, the agency may
23not enter into, renew, or extend any contractual services contracts with private
24contractors or consultants for the remainder of that fiscal year for the performance

1of services of agency employees who would have performed the services had they
2been hired or had they not have been required to take an unpaid leave of absence.
SB574,4,93 (c) Paragraph (b) does not apply to contractual services contracts that are
4funded with federal economic stimulus funds if the secretary determines that any
5deadlines imposed by the federal government on the expenditure of the federal
6economic stimulus funds cannot be met without an agency's entering into, renewing,
7or extending a contractual services contract or a cost-benefit analysis is conducted
8that demonstrates that a contractual services contract would be more cost effective
9and efficient than having state employees perform the services.
SB574,4,1110 (cm) Paragraph (b) does not apply to contracts entered into, renewed, or
11extended under s. 977.08.
SB574,4,2012 (d) An agency in the executive branch may submit a written request to the joint
13committee on finance to have par. (b) not apply to the agency with respect to a specific
14contractual services contract. If the cochairpersons of the committee do not notify
15the agency within 14 working days after the date of the agency's submittal that the
16committee intends to schedule a meeting to review the request, approval of the
17request is granted. If, within 14 working days after the date of the agency's request
18submittal, the cochairpersons of the committee notify the agency that the committee
19intends to schedule a meeting to review the request, the request may be granted only
20as approved by the committee.
SB574, s. 4 21Section 4. 84.01 (13g) of the statutes is created to read:
SB574,4,2322 84.01 (13g) Procedures and requirements for contractual engagements of
23services.
(a) In this subsection:
SB574,4,2524 1. "Available," with respect to an employee, means that the employee is
25qualified and any of the following applies:
SB574,5,1
1a. The employee is already doing the work in question.
SB574,5,22 b. The employee is on layoff status in classes that can do the work in question.
SB574,5,43 c. There are authorized positions that are currently vacant with respect to the
4work in question.
SB574,5,65 2. "Available," with respect to an employee, does not include an employee who
6is doing other work, is retired, or has decided not to do the work in question.
SB574,5,87 (b) Before entering into any contract for the engagement of services under sub.
8(13), the department shall determine, at least, that all of the following apply:
SB574,5,109 1. No current state employee is able and available to perform the services called
10for by the contract.
SB574,5,1311 2. The work to be performed under the contract is necessary to the department's
12achievement of its statutory responsibilities and there is statutory authority to enter
13into the contract.
SB574,5,1514 3. The contract will not establish an employment relationship between the
15state or the department and any person performing under the contract.
SB574,5,1616 4. The contractor and its agents are not employees of the state.
SB574,5,1817 5. The department has specified a satisfactory method of evaluating and using
18the results of the work to be performed.
SB574,5,2319 6. The contract term does not exceed 2 years, unless the secretary has
20determined that a longer duration is in the best interest of the state, and the
21combined contract and amendments will not exceed 5 years without specific, written
22approval by the secretary according to established policy, procedures, and standards,
23or unless otherwise provided for by law.
SB574,6,1424 (c) Before entering into any contract for the engagement of services under sub.
25(13), the department shall develop and implement a written plan providing for the

1assignment of specific department personnel to manage the contract, including a
2monitoring and liaison function, the periodic review of interim reports or other
3indications of past performance, and the ultimate utilization of the final product of
4the services. In the event the results of the contract work will be carried out or
5continued by state employees upon completion of the contract, the contractor shall
6include state employees in development and training, to the extent necessary to
7ensure that after completion of the contract, state employees can perform any
8ongoing work related to the same function. The department may not contract out its
9previously eliminated jobs for 4 years without first considering the same former
10employees who are on the seniority unit layoff list who meet the minimum
11qualifications determined by the department. The terms of a contract shall provide
12that no more than 90 percent of the amount due under the contract may be paid until
13the final product has been reviewed by the secretary and the secretary has certified
14that the contractor has satisfactorily fulfilled the terms of the contract.
SB574, s. 5 15Section 5. Initial applicability.
SB574,6,1816 (1) The renumbering and amendment of section 16.705 (1) of the statutes and
17the creation of section 16.705 (1) (a) 3. and (b) of the statutes first apply to
18solicitations for contractual services issued on the effective date of this subsection.
SB574,6,2119 (2) The creation of section 16.705 (1) (c) of the statutes first applies to contracts
20entered into, renewed, modified, or extended, whichever occurs first, on the effective
21date of this subsection.
SB574,6,2222 (End)
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