MI HB6017

Department must negotiate with contractors holding contracts with unperformed balances of $50,000 or more as of May 31, 2010 to reduce remaining expenditures by 5% or more through changes in quantity, specifications, price, or a combination thereof.

Department may cancel and rebid contracts without penalty if contractor refuses to agree to modifications producing at least 5% savings and the department has reasonable grounds to believe such savings are achievable.

Contractors who refuse to cooperate with renegotiation or participate in good faith shall have contracts not extended, no add-ons approved, and be placed on a publicly accessible list of non-cooperating contractors on the department's website.

Department must solicit a private contractor within 60 days to analyze outstanding contracts and purchasing procedures to identify cost reduction methods, with the contractor's report due within 6 months of contract award.

Private contractor performing the analysis may be compensated with a percentage of verified savings realized during the first year from implementing the contractor's recommendations.