senate Bill S3093A
(R, C, IP) 56th Senate District
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
Relates to the cost effectiveness of consultant contracts by state agencies; defines "consultant services".
TITLE OF BILL:
to amend the state finance law, in relation to the cost effectiveness of
consultant contracts by the state agencies
PURPOSE OR GENERAL IDEA OF BILL:
Sets forth conditions when an agency
shall enter into a contract for consultant services.
Requires agencies to conduct a cost comparison prior to entering into
a contract for consultant services to determine if there is a less
SUMMARY OF SPECIFIC PROVISIONS:
Amends the state finance law by
amending section 163 to add a new subdivision 15, setting forth
conditions that must be met when an agency shall enter into a
contract for consulting services of more than $500,000. The agency
shall compare costs to determine whether the work can be performed at
lower cost by utilizing state employees rather than consultants.
Certain exceptions are specified when this cost comparison is not
required. The agency must retain documentation of the cost comparison
as a public record.
The purpose of this bill is to require state agencies
to do cost comparisons before entering into contracts for consultant
Any time the taxpayers' money is used to fund a contract for services
there is a need to insure that this expenditure is necessary and
prudent. The State of New York spends over $2 Billion per year on
consultants. In many cases these consultants perform work that could
be done by professional state employees and the cost of using
consultants is substantially higher.
In 1998 the use of engineering consultants by the State Department of
Transportation was studied by the State Comptroller and OSC concluded
that the State could save millions of dollars by reducing the use of
consultants. The Comptroller recommended cost/benefit analysis prior
to contracting with consultants. other studies have confirmed this
finding, including an analysis by the State Assembly in 2009 that
estimated the state could save $250 million over three years by
reducing the use of information technology consultants. In 2010 The
state Senate Task Force on Government Efficiency estimated
that the Department of Transportation could save about $46 million per
year by implementing this policy.
In 2009 the Federal Office of Management and Budget issued a directive
to Federal government agencies that calls for them to perform a cost
benefit analysis before entering into contracts and to initiate pilot
projects for in-sourcing work in cases where the cost analysis
supports the conclusion that the work can be performed by government
employers at lower cost that by using contractors. OMB estimates that
this and other contracting reforms can save the Federal government
This act shall take effect on the ninetieth day after
it shall have become a law, with provisions.
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