HI SB2662

Purchasing agencies must provide detailed justification for hiring external consultants, including demonstrating lack of in-house capacity, conducting cost-benefit analyses comparing consultant costs to hiring/training employees, and publishing justification reports for public review.

Legislative approval is required for any consulting services contract exceeding a specified dollar amount (threshold left blank in current draft).

Each purchasing agency must submit annual reports to the legislature documenting the number of external consultants used and the percentage of budget spent on consulting.

The Compliance Audit Unit within the Office of the Auditor must conduct regular audits of consultant contracts to assess cost-effectiveness and compliance.

Chief procurement officers must ensure inherent government functions are not delegated to contractors; exceptions apply for specialized expertise unavailable in-house and short-term emergency needs including disaster response.