Rhode Island § 42-148-2 - Privatization of State Services

§ 42-148-2. Definitions.

When used in this chapter:

(1) “Conversion differential” means transition costs and costs associated with starting up or closing down during conversion to purchased services or in the event of the need to bring services back in-house.

(2) “Cost comparison” means an analysis of the comparative costs of providing the service in-house or by privatization.

(3) “In-house bid” shall mean the cost of the proposal proffered by in-house state programs and employees and their representatives pursuant to § 42-148-3(b)(3).

(4) “In-house costs” means a detailed budget breakdown of the current costs of providing the service or program proposed for privatization.

(5) “Privatization or privatization contract” means an agreement or combination or series of agreements by which a nongovernmental person or entity agrees with an agency to provide services expected to result in a fiscal year expenditure of at least one hundred fifty thousand dollars ($150,000) (as of July 1 of each year, the amount shall increase to reflect increases in the consumer price index calculated by the United States Bureau of Labor Statistics for all urban consumers nationally during the most recent twelve-month (12) period for which data are available or more), which would contract services which are substantially similar to and in replacement of work normally performed by an employee of an agency as of June 30, 2007.

“Privatization” or “privatization contract” excludes:

(i) Contracts resulting from an emergency procurement;

(ii) Contracts with a term of one hundred eighty (180) days or less on a nonrecurring basis;

(iii) Contracts to provide highly specialized or technical services not normally provided by state employees;

(iv) Any subsequent contract that: (a) renews or rebids a prior privatization contract that existed before June 30, 2007; or (b) renews or rebids a privatization contract that was subject to the provisions of this statute after its enactment; and

(v) An agreement to provide legal services or management consulting services.

(6) “Statement of work and performance standards” means a clear statement of the nature and extent of the work to be performed with measurable performance standards as set forth in § 42-148-3(b)(2).

(7) “Transition costs” means the cost of contracting including monitoring vendors for accountability, costs associated with unemployment compensation, payment of accrued leave credits, bumping, and retention factors for those with statutory status. Transition costs shall not include department overhead or other costs that would continue even if the services were privatized.