NY S05356

State agencies must conduct a cost comparison review before entering consultant service contracts exceeding $1 million per 12-month period to determine if state employees could perform the services at equal or lower cost.

Cost comparison reviews are mandatory for privatization contracts of currently non-privatized services and must compare total costs including salaries, benefits, equipment, facilities, overhead, and contractor supervision.

If cost savings of 10% or more are identified, agencies must develop a business plan; if savings are less than 10%, agencies may develop a plan only upon demonstrating significant public policy reasons.

When proposed contracts would result in layoffs or reassignments of 50+ employees, agencies must notify affected bargaining units and provide resources for employees to submit competing bids.

Business plans must be submitted to the state comptroller for review within 60 days (extendable 30 days), and are deemed approved if comptroller does not act within 90 days; exemptions apply for specialized services, urgent needs, short-term contracts, and property-related services.