LRB-3957/1
CMH:med:rs
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.
SB571,1,3
1An Act to renumber and amend 16.705 (6);
to amend 16.705 (7); and
to create
216.705 (5g), (5m) and (5r) and 16.705 (6) (a) of the statutes;
relating to: state
3contractual services and requiring the exercise of rule-making authority.
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 generally requires that, if a contract is for more than $50,000,
any expenditures of the contractor that exceed the bid by more than 10 percent may
be paid only if the agency for which the contractual services are performed notifies
the governor and the joint committee on finance the amount by which the cost
exceeds the original bid and the reason for the increase. The bill requires the
Division of Legal Services in DOA to develop standard performance measures, as
well as benchmark indicators, to evaluate services performed by contract for a state
agency and to determine what actions taken by the contractor would result in the
state agency recovering the expenditures it paid to the contractor.
Under current law, if a state agency for which services are performed concludes
that the services were unsatisfactory, the agency must file an evaluation with DOA,
and DOA must ensure that future contracts are not awarded to contractors whose
past performance was unsatisfactory. The bill adds that a state agency must file an
evaluation with DOA if the contractual services are unsatisfactory according to the
standard performance measures or benchmark indicators developed by the Division
of Legal Services or if the state agency recovers expenditures from the contractor
under the guidelines developed by the Division of Legal Services.
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:
SB571, s. 1
1Section
1. 16.705 (5g), (5m) and (5r) of the statutes are created to read:
SB571,2,42
16.705
(5g) All contracts for contractual services must provide notice of the
3rules promulgated by the division of legal services under sub. (5m) (a) and of the
4requirements under sub. (5r).
SB571,2,6
5(5m) The division of legal services shall promulgate rules on all of the
6following:
SB571,2,107
(a) Actions by the person performing the contractual services that would result
8in the agency for which the contractual services are performed recovering any
9expenditures for those contractual services that the agency paid to the person
10performing the contractual services.
SB571,2,1211
(b) Standard performance measures, including quantifiable benchmark
12indicators, to evaluate persons performing contractual services.
SB571,2,1413
(c) Signing bonuses, reimbursements, and per diem costs included in all
14contracts for contractual services.
SB571,2,20
15(5r) (a) 1. If the cost of the contractual services exceeds $50,000, any
16expenditures of the person performing the contractual services that exceed its
17original bid by 10 percent of more may not be paid unless the agency for which the
18contractual services are performed notifies the governor and the joint committee on
19finance the amount by which the cost exceeds the original bid and the reason for the
20increase.
SB571,3,5
12. Subdivision 1. does not apply to contractual services purchased for the
2University of Wisconsin System, or for any University of Wisconsin System campus
3or institution, if the contractual services are for research or instructional purposes,
4as determined by the University of Wisconsin System or the campus or institution,
5whichever is appropriate.
SB571,3,116
(b) No person performing contractual services under this section may provide
7any salary increase if the salary increase would result in greater expenditures for the
8agency for which the contractual services are performed than the amounts specified
9in the original bid. The restriction under this paragraph regarding salary increases
10does not apply if the salary increase is in accordance with the terms of a collective
11bargaining agreement.
SB571, s. 2
12Section
2. 16.705 (6) of the statutes is renumbered 16.705 (6) (b) and amended
13to read:
SB571,3,2114
16.705
(6) (b) If the agency for which contractual services are performed under
15a contractual services agreement concludes
under par. (a) that the performance was
16unsatisfactory, recovers expenditures because the contractor's actions were listed in
17the rules developed under sub. (5m) (a), or concludes that the performance was
18unsatisfactory
based on factors that the agency considers, the agency shall file with
19the department an evaluation
of stating that the contractor's performance
was
20unsatisfactory within 60 days after the fulfillment of the agreement. The evaluation
21shall be in such form as the secretary may require.
SB571, s. 3
22Section
3. 16.705 (6) (a) of the statutes is created to read:
SB571,4,223
16.705
(6) (a) An agency for which contractual services are performed under
24a contractual services agreement shall evaluate the contractual services using the
1standard performance measures and benchmark indicators created under sub. (5m)
2(b). No contract may be renewed until the agency completes the evaluation.
SB571, s. 4
3Section
4. 16.705 (7) of the statutes is amended to read:
SB571,4,74
16.705
(7) The department shall review evaluations submitted under sub. (6)
5(b) and promulgate rules prescribing procedures to assure that future contracts for
6contractual services are not awarded to contractors whose past performance is found
7to be unsatisfactory, to the extent feasible.
SB571,4,109
(1) This act first applies to solicitations for contractual services issued on the
10effective date of this subsection.
