NY S07782

State agencies must conduct a cost comparison review before entering into consultant service contracts anticipated to exceed $500,000 in a 12-month period to determine if services can be performed at equal or lower cost by state employees.

"Consultant services" includes analysis, evaluation, research, training, data processing, computer programming, and health services, but excludes legal services, litigation-related services, and public works design services.

Cost comparison analysis must be completed within 15 days of initiation and must be initiated within three days of contract identification; agencies are exempt if the comparison cost exceeds 5% of the contract value.

Exceptions to the cost comparison requirement include services incidental to property purchases, those necessary to avoid conflicts of interest, highly specialized services, urgent services, and short-term services not likely to be repeated.

The Office of General Services must report to the Governor and legislature by December 31, 2015 on the effectiveness and cost savings of the cost comparison requirement; the law expires December 31, 2016.