Bill Summaries: S789 (2015-2016 Session)

  • Summary date: Apr 28 2016 - View summary

    Identical to H 976, filed 4/26/16.

    Enacts new GS 143-50.2, Oversight of certain service contracts, requiring the Secretary of the Department of Administration to create a business case justification template for use by State agencies to document the business case for changing providers of agency services.  Sets out 11 required components of the template, including a detailed description of the manner in which the agency service is currently provided, costs as specified for the delivery of the service during the most recently completed fiscal year, and a description of the transition process for a change in providers. New subsection (b) sets out the following three requirements that must be completed before any change of provider can take place: (1) the business case for such a change has been documented on the business case justification template, (2) specified written approvals have been obtained in accordance with specified financial requirement, and (3) a consultation with the Joint Legislative Commission on Governmental Operations in regards to the provider change has taken place.  Subsection (c) sets out exceptions to the requirements in subsection (b) when certain conditions are satisfied, including that the total cost of providing the agency service does not exceed $1 million.  Subsection (d) sets out definitions for use in the section for (1) agency service, (2) service contract, (3) private provider, and (4) total cost. Effective October 1, 2016.

    Directs the Office of State Budget and Management to develop and implement a plan by which they can determine if agency services can be more effectively provided by private providers.  A report on the plan is due to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division no later than December 1, 2016. Sets out requirements of the plan.

    Enacts new GS 143-50.3, Contract management system, requiring the State Purchasing Officer to operate a contract management system that will be required to be used by all state agencies for the management of any service contracts entered into by that agency.  Sets out specified capacities the system must have, including the ability to ensure that payments are made in accordance with applicable contract terms and conditions.  Requires the State Purchasing Officer to report annually, no later than December 1 of each year, to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division detailing service contracts entered into by state agencies as specified. 

    Provides that the use of the contract management system is not required until notice has been received from the Division of Purchase and Control in regards to its operational status; such notice is required at least 30 days before the system becomes operational.

    Amends GS 143-48.3 and GS 143-50.1(e), concerning purchasing and contracting of State agencies, making conforming changes.