AB105-SSA1,1,6 1An Act to renumber and amend 16.705 (8); to amend 13.093 (2) (a), 16.705
2(1), 16.705 (2) and 84.01 (13); and to create 16.70 (3g) and 16.705 (8) (a) and
3(b) of the statutes; relating to: state contractual service contracting
4procedures and information and fiscal estimate cost mitigation analyses,
5granting rule-making authority, and providing an exemption from and
6extending the time limit for emergency rule procedures.
Analysis by the Legislative Reference Bureau
Currently, with certain exceptions, the Department of Administration (DOA)
or any state agency to which DOA delegates purchasing authority may contract for
contractual services whenever the services may be performed more efficiently or
economically than if they were performed by state employees. This substitute
amendment directs DOA to prescribe, by rule, uniform procedures for determining
whether services are appropriate for contracting.
Currently, DOA must promulgate, by rule, procedures for DOA and the state
agencies to which DOA delegates purchasing authority to use when entering into
contractual service contracts. This substitute amendment provides that these rules
must include a requirement for the agencies to conduct a uniform cost-benefit
analysis of each proposed contractual service procurement involving an estimated

expenditure of more than $25,000 in accordance with standards prescribed in the
rules and a requirement for agencies to review periodically, and before any renewal,
the continued appropriateness of contracting under each contractual services
agreement involving an estimated expenditure of more than $25,000. Under the
substitute amendment, the cost-benefit analysis consists of a comparison of the total
costs, quality, technical expertise, and timeliness of a service performed by state
employees and resources with the total cost, quality, technical expertise, and
timeliness of the same service obtained by means of a contract for contractual
services. The substitute amendment also requires the Department of
Transportation (DOT) to conduct similar cost-benefit analyses of its proposed
specialized services contracts involving an estimated expenditure of more than
$25,000 and to perform similar periodic reviews of such contracts. (Currently, DOT's
specialized services contracts are not subject to general laws governing state
contractual services contracts.)
Currently, following the end of each fiscal year, DOA must report to the
governor, the Joint Committee on Finance, the Joint Legislative Audit Committee,
and the appropriate legislative standing committees concerning state contractual
service procurements during the preceding fiscal year. This substitute amendment
provides that the report shall include a summary of the cost-benefit analyses
prepared by state agencies in the preceding fiscal year and recommendations for
elimination of unneeded contractual service procurements and for consolidation or
resolicitation of existing contractual service procurements.
The substitute amendment also provides that each fiscal estimate prepared for
a bill must indicate whether any increased costs incurred by the state under the bill
can be mitigated through the use of contractual service contracts let in accordance
with competitive procedures. Currently, there is no similar requirement.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB105-SSA1, s. 1 1Section 1. 13.093 (2) (a) of the statutes is amended to read:
AB105-SSA1,3,182 13.093 (2) (a) Any bill making an appropriation, any bill increasing or
3decreasing existing appropriations or state or general local government fiscal
4liability or revenues, and any bill that modifies an existing surcharge or creates a
5new surcharge that is imposed under ch. 814, shall, before any vote is taken thereon
6by either house of the legislature if the bill is not referred to a standing committee,
7or before any public hearing is held before any standing committee or, if no public
8hearing is held, before any vote is taken by the committee, incorporate a reliable

1estimate of the anticipated change in appropriation authority or state or general
2local government fiscal liability or revenues under the bill, including to the extent
3possible a projection of such changes in future biennia. The estimate shall also
4indicate whether any increased costs incurred by the state under the bill can be
5mitigated though the use of contractual service contracts let in accordance with
6competitive procedures.
For purposes of this paragraph, a bill increasing or
7decreasing the liability or revenues of the unemployment reserve fund is considered
8to increase or decrease state fiscal liability or revenues. Except as otherwise
9provided by joint rules of the legislature or this paragraph, such estimates shall be
10made by the department or agency administering the appropriation or fund or
11collecting the revenue. The joint survey committee on retirement systems shall
12prepare the fiscal estimate with respect to the provisions of any bill referred to it
13which create or modify any system for, or make any provision for, the retirement of
14or payment of pensions to public officers or employees. The director of state courts
15shall prepare the fiscal estimate with respect to the provisions of any bill that
16modifies an existing surcharge or creates a new surcharge that is imposed under ch.
17814. When a fiscal estimate is prepared after the bill has been introduced, it shall
18be printed and distributed as are amendments.
AB105-SSA1, s. 2 19Section 2. 16.70 (3g) of the statutes is created to read:
AB105-SSA1,3,2420 16.70 (3g) "Cost-benefit analysis" means a comprehensive study to identify
21and compare the total cost, quality, technical expertise, and timeliness of a service
22performed by state employees and resources with the total cost, quality, technical
23expertise, and timeliness of the same service obtained by means of a contract for
24contractual services.
AB105-SSA1, s. 3 25Section 3. 16.705 (1) of the statutes is amended to read:
AB105-SSA1,4,4
116.705 (1) The department or its agents may contract for services which can
2be performed more economically or efficiently by such contract. The department
3shall, by rule, prescribe uniform procedures for determining whether services are
4appropriate for contracting under this subsection.
AB105-SSA1, s. 4 5Section 4. 16.705 (2) of the statutes is amended to read:
AB105-SSA1,4,236 16.705 (2) The department shall promulgate rules for the procurement of
7contractual services by the department and its designated agents, including but not
8limited to the rules prescribing approval and monitoring processes for contractual
9service contracts, a requirement for agencies to conduct a uniform cost-benefit
10analysis of each proposed contractual service procurement involving an estimated
11expenditure of more than $25,000 in accordance with standards prescribed in the
12rules, and a requirement for agencies to review periodically, and before any renewal,
13the continued appropriateness of contracting under each contractual services
14agreement involving an estimated expenditure of more than $25,000
. Each officer
15requesting approval to engage any person to perform contractual services shall
16submit to the department written justification for such contracting which shall
17include a description of the contractual services to be procured, justification of need,
18justification for not contracting with other agencies, a specific description of the
19scope of contractual services to be performed, and justification for the procurement
20process if a process other than competitive bidding is to be used. The department
21may not approve any contract for contractual services unless it is satisfied that the
22justification for contracting conforms to the requirements of this section and ss. 16.71
23to 16.77.
AB105-SSA1, s. 5 24Section 5. 16.705 (8) of the statutes is renumbered 16.705 (8) (intro.) and
25amended to read:
AB105-SSA1,5,7
116.705 (8) (intro.) The department shall, annually on or before October 15,
2submit to the governor, the joint committee on finance, the joint legislative audit
3committee and the chief clerk of each house of the legislature for distribution to the
4appropriate standing committees under s. 13.172 (3), a report concerning the
5number, value and nature of contractual service procurements authorized for each
6agency during the preceding fiscal year. The report shall also include, with respect
7to contractual service procurements by agencies for the preceding fiscal year:
AB105-SSA1, s. 6 8Section 6. 16.705 (8) (a) and (b) of the statutes are created to read:
AB105-SSA1,5,109 16.705 (8) (a) A summary of the cost-benefit analyses completed by agencies
10in compliance with rules promulgated by the department under sub. (2).
AB105-SSA1,5,1311 (b) Recommendations for elimination of unneeded contractual service
12procurements and for consolidation or resolicitation of existing contractual service
13procurements.
AB105-SSA1, s. 7 14Section 7. 84.01 (13) of the statutes is amended to read:
AB105-SSA1,6,215 84.01 (13) Engineering services. The department may engage such
16engineering, consulting, surveying or other specialized services as it deems
17advisable. Any engagement of services under this subsection is exempt from ss.
1816.70 to 16.75, 16.755 to 16.82 and 16.85 to 16.89, but ss. 16.528, 16.752 and 16.754
19apply to such engagement. Any engagement involving an expenditure of $3,000 or
20more shall be by formal contract approved by the governor. The department shall
21conduct a uniform cost-benefit analysis, as defined in s. 16.70 (3g), of each proposed
22engagement under this subsection that involves an estimated expenditure of more
23than $25,000 in accordance with standards prescribed by rule of the department. The
24department shall review periodically, and before any renewal, the continued

1appropriateness of contracting pursuant to each engagement under this subsection
2that involves an estimated expenditure of more than $25,000.
AB105-SSA1, s. 8 3Section 8 . Nonstatutory provisions.
AB105-SSA1,6,94 (1) Reports on initial training. In each of the first 3 annual reports submitted
5by the department of administration under section 16.705 (8) of the statutes
6following the effective date of this subsection, the department shall include a list of
7the agencies that have completed training required for preparation of cost-benefit
8analyses for contractual service procurements by the agencies in accordance with
9rules promulgated by the department.
AB105-SSA1,6,2210 (2) Emergency rules on contractual service procurement. Using the
11procedure under section 227.24 of the statutes, the departments of administration
12and transportation, respectively, shall, no later than the first day of the 6th month
13beginning after the effective date of this subsection, promulgate the rules required
14under sections 16.705 and 84.01 (13) of the statutes, as affected by this act, as
15emergency rules, which shall be in effect for the period before the effective date of the
16permanent rules promulgated under sections 16.705 and 84.01 (13) of the statues,
17as affected by this act. Notwithstanding section 227.24 (1) (a) and (3) of the statutes,
18the departments of administration and transportation are not required to provide
19evidence that promulgating a rule under this subsection as an emergency rule is
20necessary for the preservation of the public peace, health, safety, or welfare and are
21not required to provide a finding of emergency for a rule promulgated under this
22subsection.
AB105-SSA1, s. 9 23Section 9. Initial applicability.
AB105-SSA1,7,3
1(1) The treatment of section 13.093 (2) (a) of the statutes first applies with
2respect to fiscal estimates ordered on the first day of the 6th month beginning after
3publication.
AB105-SSA1,7,64 (2) The treatment of sections 16.705 (2) and 84.01 (13) of the statutes first
5applies with respect to solicitations for contractual services issued on the effective
6date of emergency rules promulgated under Section 8 (2 ).
AB105-SSA1,7,97 (3) The renumbering and amendment of section 16.705 (8) of the statutes and
8the creation of section 16.705 (8) (a) and (b) of the statutes first apply with respect
9to the report that is due for submittal on October 15, 2006.
Loading...
Loading...