NC S789

Requires State agencies to document business cases for changing service providers using a template developed by the Department of Administration, covering current service delivery, costs, performance metrics, procurement resources, and transition plans.

Mandates written approvals from the State Purchasing Officer (for contracts $5 million or less) and the State Purchasing Officer plus Office of State Budget and Management (for contracts exceeding $5 million) before agencies change service providers.

Requires consultation with the Joint Legislative Commission on Governmental Operations before changing service providers, with a 15-day deemed approval period if no meeting is held.

Directs the Office of State Budget and Management to develop and implement a plan by December 1, 2016 to evaluate whether State agency services could be more effectively provided by private providers, and requires agencies to cooperate with this review.

Establishes a contract management system operated by the State Purchasing Officer to track all service contracts, ensure payments comply with contract terms, store contract documents, generate reports, and requires annual reporting to the legislature on service contracts exceeding $1 million.