CT SB00351

State contracting agencies must develop a cost-benefit analysis before entering into privatization contracts for services not previously privatized before June 1, 2010, and currently performed directly by the state.

Cost-benefit analyses must document direct and indirect costs, savings, qualitative and quantitative benefits, and include department head certification that all projections are valid and achievable.

State contracting agencies must develop a business case if cost savings are ten percent or more; business cases require State Contracting Standards Board approval before soliciting bids.

Privatization contracts exceeding $150 million annually or $600 million over the contract life must be approved by both the State Contracting Standards Board and the General Assembly.

State agencies must evaluate existing privatization contracts annually and prepare plans to return services to state employees if the contracts achieve less than ten percent cost savings.