Bill > A05001

This bill creates a comprehensive framework for state agencies to critically evaluate and justify consultant service contracts over $1 million, requiring a detailed cost comparison review to determine whether the services could be performed more efficiently by state employees. The bill defines "consultant services" broadly, including activities like analysis, research, technology development, engineering, and professional services, while excluding legal services and public works construction. Under the proposed law, agencies must conduct a thorough cost analysis that accounts for all direct and indirect expenses, including salary, benefits, equipment, and overhead for both potential in-house and contracted services. If the cost comparison identifies potential savings of 10% or more, the agency must develop a comprehensive business plan detailing the contract's rationale, goals, performance standards, and potential risks. The bill also mandates that if the contract could result in significant employee layoffs, the agency must provide affected employees an opportunity to propose cost-reducing alternatives. The state comptroller will review these business plans and can approve or require modifications, and all related documents will be subject to public disclosure. Additionally, by December 31, 2027, the state comptroller must prepare a report evaluating the effectiveness and cost savings of this new review process. The law includes several exceptions for specialized, urgent, or short-term services, ensuring agencies retain flexibility while promoting fiscal responsibility.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/A5001