NJ S2733

State departments must prepare a cost analysis before entering contracts exceeding $100,000 with private businesses for work typically performed by state employees, determining whether outsourcing is more cost-effective than using departmental staff

Contracts reducing state employee work cannot be approved unless the analysis shows substantial cost savings and that savings outweigh the public interest in having the function performed directly by the State

Departments are prohibited from contracting with private entities if any principal or management employee of the contractor worked for that department in the preceding two years in a capacity affecting the contracted work

Cost analyses must be filed with the Office of Management and Budget, made publicly available, and transmitted to legislative committees and affected bargaining unit representatives, who have 20 business days to respond before contracts can be finalized

Even if departmental employees would be more cost-effective, departments may still contract out if employees lack required expertise, technology access, or if work is intermittent in nature, but must wait 30 business days to allow legislative intervention