S07782 Summary:

Amd S163, St Fin L
Relates to the cost effectiveness of consultant contracts by state agencies; defines "consultant services".
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S07782 Actions:

06/21/2012referred to governmental operations
06/21/2012substituted for a5128c
06/21/2012ordered to third reading cal.176
06/21/2012passed assembly
06/21/2012returned to senate
08/17/2012VETOED MEMO.150
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S07782 Text:

                STATE OF NEW YORK
                    IN SENATE
                                      June 18, 2012
        Introduced  by  Sen.  ROBACH -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules
        AN ACT to amend the state finance law, in relation to  the  cost  effec-
          tiveness  of consultant contracts by the state agencies; and providing
          for the repeal of such provisions upon expiration thereof
          The People of the State of New York, represented in Senate and  Assem-

        bly, do enact as follows:
     1    Section 1. Section 163 of the state finance law is amended by adding a
     2  new subdivision 15 to read as follows:
     3    15.  Consultant  services.  a.  Before  a  state  agency enters into a
     4  contract for consultant services which is anticipated to cost more  than
     5  five  hundred thousand dollars in a twelve month period the state agency
     6  shall conduct a cost comparison review to determine whether the services
     7  to be provided by the consultant can be performed at equal or lower cost
     8  by utilizing state employees, unless  the  contract  meets  one  of  the
     9  exceptions  set  forth  in  paragraph b of this subdivision. As  used in
    10  this section, the term "consultant services"  shall  mean  any  contract

    11  entered  into  by  a  state  agency  for analysis, evaluation, research,
    12  training, data processing, computer programming, health services, mental
    13  health services, accounting, auditing, or similar  services,  but  shall
    14  not include any professional design services, legal services or services
    15  in  connection  with litigation including expert witnesses and shall not
    16  include contracts for  construction,  design,  or  related  professional
    17  design  services  of public works. For purposes of this subdivision, the
    18  costs of performing the services by state employees  shall  include  any
    19  salary,  pension costs, all other benefit costs, costs that are required
    20  for equipment, facilities and all other overhead. The costs of  consult-

    21  ant  services  shall  include  the total cost of the contract.  The cost
    22  comparison shall be expressed where feasible as an hourly rate, or where
    23  such a calculation is not feasible, as a total estimated  cost  for  the
    24  anticipated term of the contract.
    25    b.  The  estimated cost of a comparison study shall include the finan-
    26  cial costs to the state including the direct salaries  and  benefits  of
    27  employees conducting the study as well as all of their respective direct
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 7782                             2

     1  costs, indirect costs and all overhead. The agency shall also prepare an
     2  employee impact statement that identifies what other services may not be
     3  completed  as  a  result  of  employees  working on these new comparison
     4  studies.  If  a comparison study is being performed by an outside agency
     5  or authority, all of their respective costs need to  be  included  along
     6  with  the  oversight  costs  of  internal agency staff. The cost of such
     7  study shall be wholly paid for by the agency. No costs  associated  with
     8  the study shall be passed along to or associated with the consultant.
     9    c. A cost comparison shall not be required if:
    10    (i)  the  services  are incidental to the purchase of real or personal
    11  property; or

    12    (ii) the contract is necessary in order to avoid a conflict of  inter-
    13  est on the part of the agency or its employees; or
    14    (iii)  the services are of such a highly specialized nature that it is
    15  not feasible to utilize state  employees  to  perform  them  or  require
    16  special  equipment  that  is  not  feasible for the state to purchase or
    17  lease; or
    18    (iv) the services are of such an urgent nature that it is not feasible
    19  to utilize state employees; or
    20    (v) the services are anticipated to be short term and are  not  likely
    21  to be extended or repeated after the contract is completed; or
    22    (vi)  the  cost of the comparison is estimated to be greater than five

    23  percent of the contract,  the  agency  is  exempt  from  performing  the
    24  comparison.
    25    d. Nothing in this section shall be deemed to authorize a state agency
    26  to enter into a contract which is otherwise prohibited by law.
    27    e.  All  documents  related  to  the  cost comparison required by this
    28  subdivision shall be public records subject to  disclosure  pursuant  to
    29  article six of the public officers law.
    30    f. This analysis shall be completed no more than fifteen days after it
    31  commences  and must be initiated within three days of the contract being
    32  identified.
    33    § 2. On or before December 31, 2015 the  office  of  general  services
    34  shall  prepare  a report, to be delivered to the governor, the temporary

    35  president of the senate and the speaker of  the  assembly.  Such  report
    36  shall include, but need not be limited to, an analysis of the effective-
    37  ness  of  the cost comparison study and an analysis of the costs savings
    38  associated with performing such cost comparison.
    39    § 3. This act shall take effect on the ninetieth day  after  it  shall
    40  have  become  a law and shall expire and be deemed repealed December 31,
    41  2016; provided, however, that the amendments to section 163 of the state
    42  finance law made by section one of this act shall not affect the  repeal
    43  of such section and shall be deemed repealed therewith.
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