§ 42-148-3. Preclosure analysis.
(a) Prior to the closure, consolidation, or privatization of any state facility, function,
or program, the director of administration or the director's designee, shall conduct
a thorough cost comparison analysis and evaluate quality performance concerns before
deciding to purchase services from private vendors rather than provide services directly.
(b) The director of administration shall notify the bargaining representatives of state
employees who will be directly impacted by a potential privatization in writing at
least six (6) months in advance of its consideration of privatizing a state service
and complete the following process:
(1) Document the current in-house costs of providing the services with a detailed budget
breakdown. The in-house cost shall include any department overhead and other costs
that would continue even if the service was contracted out.
(2) Prepare a statement of work and performance standards which shall form the basis for
the requests for proposals and which shall include the following:
(i) A clear statement of work with measurable performance standards including qualitative
as well as quantitative standards that bidders must meet or exceed;
(ii) Requirements that contractors meet affirmative action, disability and other nondiscriminatory
and service standards currently required of state agencies.
(iii) A clear format that will enable comparison of competitive bids and in-house bids.
The format must require detailed budget breakdowns.
(c) Prior to the issuance of the RFP, current public employees must be notified of the
intent to solicit bid proposals and of the decision timeline. Additionally, at least
sixty (60) calendar days prior to the issuing of a request for proposals, the cost
analysis and statement of work shall be sent to the bargaining representatives of
state employees who will be directly impacted by a potential privatization.
(d) Prior to, or up until the time when a prospective offeror is required to submit to
the state a proposal for a privatization contract, directly impacted state employees
and their bargaining representatives shall be afforded an opportunity to present a
new cost estimate, reflecting any innovations that they could incorporate into the
work performance standards. This new cost estimate shall be deemed an in-house bid,
which shall form the basis for the eventual cost comparison. The director shall provide
technical and informational assistance to the in-house state work group in its preparation
of an in-house bid.
(e) Prior to or at any time before or after the normal procurement process, the director
may elect to accept the in-house bid or proceed with the normal procurement process
which must:
(1) Incorporate the statement of work and performance standards; and
(2) Require bidders to meet the same statement of work performance standards as would
be expected by an in-house cost estimate; and
(3) Include bid forms requiring a sufficiently detailed breakdown of cost categories to
allow accurate and meaningful comparisons, if applicable.
(f) The in-house bid developed pursuant to subsection (d) of this section shall be kept
confidential from bidders.