H-3442              _______________________________________________

                                                   HOUSE BILL NO. 1694

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Representatives G. Nelson,  Sommers, Grimm, Tilly, Jacobsen and Silver

Read first time 1/22/86 and referred to Committee on State Government.

AN ACT Relating to state government; and adding a new section to chapter 39.24 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 39.24 RCW to read as follows:

          (1) No executive agency may contract for consultant services unless the specialized skills, knowledge, and resources are unavailable in the agency or unless the work cannot be done in a reasonable time within the agency's own work force, or unless it is less expensive to contract for the work.  No contract may be entered into unless the work contracted for is directly necessary to carry out duties of the agency as established by the legislature.

          (2) A consultant contract file shall be maintained by each agency for each contract request.  The file shall contain a complete record of the actions involved in developing and administering the contract, including the following:

          (a) Statement of agency justification for the contract;

          (b) Written justification for negotiation in lieu of competitive procurements when negotiation is used for personal service contracts in excess of two thousand five hundred dollars per agreement per fiscal year;

          (c) Methodology or rationale by which rates are established for contracts in excess of two thousand five hundred dollars per agreement per fiscal year that may include the following:

          (i) A copy of the request for approval;

          (ii) List of prospective contractors requested to submit proposals;

          (iii) Method used to advertise or notify other possible prospective contractors;

          (iv) A copy of each proposal;

          (v) Method of evaluating proposals;

          (vi) Record of negotiations and results; and

          (vii) How the contractor was selected, including the basis for awarding the contract; and

          (d) All contracts of two thousand five hundred dollars or less per agreement shall include:

          (i) The names of firms or individuals and cost estimates or quotations considered;

          (ii) The basis for selection of the contractor; and

          (iii) How reasonableness of price of contract was determined.

          (3) All agencies, prior to entering into a personal service contract, shall submit the contract file to the office of financial management who shall review the proposal for compliance with this section and rules adopted under this section.  No contract may be entered into until the office of financial management approves the action.

          (4) The legislative budget committee may monitor the performance of consultant contracts and may publish a review and evaluation of all work done by consultants.

          (5) The office of financial management may adopt rules to carry out this section and to further establish procedures to restrict the use of personal service contracts to those instances contemplated by law so that expenditures are lessened, frugality promoted, and fiscal management of state government improved.

          (6) The office of financial management shall carry out its duties under this section within existing staff levels.