SB570: Bill Text

LRB-3559/1

CMH:med:ph

2011 - 2012 LEGISLATURE

2011 Senate BILL 570

March 15, 2012 - Introduced by Senators Lassa and Vinehout, cosponsored by Representatives Jorgensen, Roys, Turner and Ringhand. Referred to Committee on Senate Organization.

SB570,1,4 An Act to renumber and amend 16.705 (2); to amend 16.705 (8) (a); and to create 16.705 (2) (b) and (c) and 16.705 (8) (am) of the statutes; relating to: cost-benefit analyses and continued appropriateness reviews when state agencies contract for services.

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. Also, under current law, if a state agency enters into or renews a contract for services that involves an estimated expenditure of more than $25,000, the agency must conduct either a uniform cost-benefit analysis, for a new contract, or a continued appropriateness review, for a contract renewal. This bill exempts from this requirement services that federal or state law requires to be performed by contract; services that are incidental to the purchase of a commodity; services that are substantially dissimilar to services a state employee performs; and services that must be provided per a contract, license, or warranty by the original equipment manufacturer or publisher. Also, under the bill, no cost-benefit analysis or continued appropriateness review may be conducted by contract and no cost-benefit analysis may be shown to any bidder until a letter of intent to contract has been issued.

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:

SB570, s. 1 Section 1. 16.705 (2) of the statutes is renumbered 16.705 (2) (a) and amended to read:

SB570,2,12 16.705 (2) (a) The department shall promulgate rules for the procurement of contractual services by the department and its designated agents, including but not limited to rules prescribing approval and monitoring processes for contractual service contracts,; except as provided in par. (b), a requirement for 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, except as provided in par. (b), 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.

SB570,2,21 (d) Each officer requesting approval to engage any person to perform contractual services shall submit to the department written justification for such contracting which shall include a description of the contractual services to be procured, justification of need, justification for not contracting with other agencies, a specific description of the scope of contractual services to be performed, and justification for the procurement process if a process other than competitive bidding is to be used. The department may not approve any contract for contractual services unless it is satisfied that the justification for contracting conforms to the requirements of this section and ss. 16.71 to 16.77.

SB570, s. 2 Section 2. 16.705 (2) (b) and (c) of the statutes are created to read:

SB570,3,3 16.705 (2) (b) 1. A cost-benefit analysis or continued appropriateness review is not required for the following services:

SB570,3,4 a. Services that federal or state law requires to be performed by contract.

SB570,3,5 b. Services that are incidental to the purchase of a commodity.

SB570,3,8 c. Services that are substantially dissimilar to services performed by state employees or that state employees have not performed historically and are not able to perform without significant retraining or investment in infrastructure or capital.

SB570,3,11 d. Services that must be provided per a contract, license, or warranty by the original equipment manufacturer or publisher unless the contract, license, or warranty has expired or is no longer valid.

SB570,3,15 2. If an agency is exempted from the cost-benefit analysis or continued appropriateness review under subd. 1. c. only, the department must include in the report submitted under sub. (8) the services that the agency determined were exempt under subd. 1. c.

SB570,3,17 (c) 1. Neither a cost-benefit analysis nor a continued appropriateness review may be conducted by contract.

SB570,3,19 2. A cost-benefit analysis may not be shown to a bidder prior to the issuance of a letter of intent to contract.

SB570, s. 3 Section 3. 16.705 (8) (a) of the statutes is amended to read:

SB570,3,22 16.705 (8) (a) A summary of the cost-benefit analyses completed by agencies in compliance with rules promulgated by the department under sub. (2) (a).

SB570, s. 4 Section 4. 16.705 (8) (am) of the statutes is created to read:

SB570,4,3 16.705 (8) (am) As provided under sub. (2) (b) 2., any services on which agencies would have had to perform a cost-benefit analysis or a continued appropriateness review but for the exemption under sub. (2) (b) 1. c.

SB570, s. 5 Section 5. Initial applicability.

SB570,4,7 (1) The renumbering and amendment of section 16.705 (2) of the statutes and the creation of section 16.705 (2) (b) and (c) first apply to cost-benefit analyses and continued appropriateness reviews required on the effective date of this subsection.

SB570,4,8 (End)