Assembly Speaker Sheldon Silver, bill sponsor Assemblyman Harry B. Bronson, and Governmental Operations Committee Chair Steve Englebright announced the recent passage of legislation aimed at reducing contractual costs and increasing state workforce efficiency.
The bill (A.5128-B), would direct state agencies to conduct a cost/benefit analysis of future contracts and services to be performed by outside vendors.
"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 at lower costs," said Silver. "This bill would implement necessary reforms to the contract procurement process to increase government efficiency and rein in costs by requiring a cost/benefit analysis to be performed before the agency enters into a contractual agreement with a private provider."
"To save taxpayer dollars, especially during this tough economic time, it is crucial that we have a system in place to determine the most cost-effective way to carry out state agency projects," said Bronson. "It is possible to execute a project using the expertise and skills of our state's own workforce, and it's more cost-effective than doling out the same job to private consultants."
"Provisions in this bill will help to improve the state's service delivery system and reduce costs by increasing oversight to the contract procurement process," said Englebright. "I commend Speaker Silver and Assemblyman Bronson for their leadership in bringing this important cost saving measure to the floor."
Silver noted that an analysis conducted by the Assembly in 2009 showed that certain work, which would otherwise be contracted to outside consultants, can be performed by state employees at a lower cost. The analysis estimated that the state could save $250 million over three years by reducing the use of information technology consultants.
"During these challenging economic times, we must ensure that any government expenditure is cost-effective," concluded Silver. "This bill will help to realize cost savings and protect government programs that have been cut or reduced as a result of budget cuts."