Support Memo – A. 2248 Bronson – GOVERNMENTAL OPERATIONS

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Support Memo

ON ASSEMBLY GOVERNMENTAL OPERATIONS 5/28/15

A. 2248 Bronson

The NYS AFL-CIO representing 2.5 million union workers and their families as well as our retirees and their families, supports this bill which would require state agencies to perform a comparative cost analysis prior to entering into a contract for consultant services to determine whether or not the service in question could be performed by state employees at equal or lower cost.

Each year the state spends billions of dollars on contracts for consultant services such as engineering, computer programming, and training, often when state employees could perform the same service for less money.  Studies by the Office of the State Comptroller, the Fiscal Policy Institute, and our affiliate the Public Employees Federation have all determined that in many cases the state could save money by using in house staff rather than contracting out.

At a time when resources are stretched thin, the State can’t afford to waste money on outside contracts when its own employees provide greater value.  This legislation simply requires that the state do its due diligence before entering into contracts with outside vendors to ensure that doing so is the most cost effective option.  This should already be common practice, but unfortunately experience shows it is not.

In addition, this bill provides reasonable exceptions to the cost comparison requirement, and its provisions only apply to contracts over $250,000 during a twelve month period, which ensures that it will not overly burden state agencies.

Therefore, this Federation urges that this bill be passed immediately.

For further information, contact the Legislative Department at 518-436-8516.