Z-0159.2 _______________________________________________
HOUSE BILL 1193
_______________________________________________
State of Washington 55th Legislature 1997 Regular Session
By Representatives D. Schmidt, Dunn, L. Thomas, Wolfe, Scott and Wensman
Read first time 01/16/97. Referred to Committee on Government Administration.
AN ACT Relating to personal service contracts; amending RCW 39.29.003, 39.29.006, 39.29.011, 39.29.018, 39.29.025, 39.29.040, 39.29.055, 39.29.065, and 39.29.068; and repealing RCW 39.29.035.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 39.29.003 and 1993 c 433 s 1 are each amended to read as follows:
It
is the intent of this chapter to establish a policy of open competition for all
personal service contracts ((and subcontracts to personal service contracts))
entered into by state agencies, unless specifically exempted under this
chapter. It is further the intent to provide for legislative and executive
review of all personal service contracts, to centralize the location of
information about personal service contracts for ease of public review, and
ensure proper accounting of personal services expenditures.
Sec. 2. RCW 39.29.006 and 1993 c 433 s 2 are each amended to read as follows:
As used in this chapter:
(1) "Agency" means any state office or activity of the executive and judicial branches of state government, including state agencies, departments, offices, divisions, boards, commissions, and educational, correctional, and other types of institutions.
(2) "Client services" means services provided directly to agency clients including, but not limited to, medical and dental services, employment and training programs, residential care, and subsidized housing.
(3) "Competitive solicitation" means a documented formal process providing an equal and open opportunity to qualified parties and culminating in a selection based on criteria which may include such factors as the consultant's fees or costs, ability, capacity, experience, reputation, responsiveness to time limitations, responsiveness to solicitation requirements, quality of previous performance, and compliance with statutes and rules relating to contracts or services.
(4) "Consultant" means an independent individual or firm contracting with an agency to perform a service or render an opinion or recommendation according to the consultant's methods and without being subject to the control of the agency except as to the result of the work. The agency monitors progress under the contract and authorizes payment.
(5) "Emergency" means a set of unforeseen circumstances beyond the control of the agency that either:
(a) Present a real, immediate threat to the proper performance of essential functions; or
(b) May result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken.
(6) "Evidence of competition" means documentation demonstrating that the agency has solicited responses from multiple firms in selecting a consultant.
(7) "Personal service" means professional or technical expertise provided by a consultant to accomplish a specific study, project, task, or other work statement. This term does not include purchased services as defined under subsection (9) of this section. This term does include client services.
(8) "Personal service contract" means an agreement, or any amendment thereto, with a consultant for the rendering of personal services to the state which is consistent with RCW 41.06.380.
(9) "Purchased services" means services provided by a vendor to accomplish routine, continuing and necessary functions. This term includes, but is not limited to, services acquired under RCW 43.19.190 or 43.105.041 for equipment maintenance and repair; operation of a physical plant; security; computer hardware and software maintenance; data entry; key punch services; and computer time-sharing, contract programming, and analysis.
(10) "Sole source" means a consultant providing professional or technical expertise of such a unique nature that the consultant is clearly and justifiably the only practicable source to provide the service. The justification shall be based on either the uniqueness of the service or sole availability at the location required.
(((11)
"Subcontract" means a contract assigning some of the work of a
contract to a third party.))
Sec. 3. RCW 39.29.011 and 1987 c 414 s 3 are each amended to read as follows:
All personal service contracts shall be entered into pursuant to competitive solicitation, except for:
(1) Emergency contracts;
(2) Sole source contracts;
(3) Contract amendments;
(4)
Contracts between a consultant and an agency of less than ((ten)) fifteen
thousand dollars. However, contracts of ((two)) five thousand ((five
hundred)) dollars or greater but less than ((ten)) fifteen
thousand dollars shall have documented evidence of competition. Agencies shall
not structure contracts to evade these requirements; and
(5) Other specific contracts or classes or groups of contracts exempted from the competitive solicitation process by the director of the office of financial management when it has been determined that a competitive solicitation process is not appropriate or cost-effective.
Sec. 4. RCW 39.29.018 and 1996 c 288 s 30 are each amended to read as follows:
(1)
Sole source contracts shall be filed with the office of financial management ((and
the joint legislative audit and review committee)) and made available for
public inspection at least ten working days prior to the proposed starting date
of the contract. Documented justification for sole source contracts shall be
provided to the office of financial management ((and the joint legislative
audit and review committee)) when the contract is filed. For sole source
contracts of ((ten)) fifteen thousand dollars or more ((that
are state funded)), documented justification shall include evidence that
the agency attempted to identify potential consultants by advertising through
state-wide or regional newspapers.
(2)
The office of financial management shall approve sole source contracts of ((ten))
fifteen thousand dollars or more ((that are state funded,))
before any such contract becomes binding and before any services may be
performed under the contract. These requirements shall also apply to sole
source contracts of less than ((ten)) fifteen thousand dollars if
the total amount of such contracts between an agency and the same consultant is
((ten)) fifteen thousand dollars or more within a fiscal year.
Agencies shall ensure that the costs, fees, or rates negotiated in filed sole
source contracts of ((ten)) fifteen thousand dollars or more are
reasonable.
Sec. 5. RCW 39.29.025 and 1996 c 288 s 31 are each amended to read as follows:
(1)
Substantial changes in either the scope of work specified in the contract or in
the scope of work specified in the formal solicitation document must generally
be awarded as new contracts. Substantial changes executed by contract amendments
must be submitted to the office of financial management ((and the joint
legislative audit and review committee)), and are subject to approval by
the office of financial management.
(2)
An amendment or amendments to personal service contracts, if the value of the
amendment or amendments, whether singly or cumulatively, exceeds fifty percent
of the value of the original contract must be provided to the office of
financial management ((and the joint legislative audit and review committee)).
(3) The office of financial management shall approve amendments provided to it under this section before the amendments become binding and before services may be performed under the amendments.
(4) The amendments must be filed with the office of financial management and made available for public inspection at least ten working days prior to the proposed starting date of services under the amendments.
(5) The office of financial management shall approve amendments provided to it under this section only if they meet the criteria for approval of the amendments established by the director of the office of financial management.
Sec. 6. RCW 39.29.040 and 1996 c 2 s 19 are each amended to read as follows:
This chapter does not apply to:
(1)
Contracts specifying a fee of less than ((two)) five thousand ((five
hundred)) dollars if the total of the contracts from that agency with the
contractor within a fiscal year does not exceed ((two)) five
thousand ((five hundred)) dollars;
(2) Contracts awarded to companies that furnish a service where the tariff is established by the utilities and transportation commission or other public entity;
(3) Intergovernmental agreements awarded to any governmental entity, whether federal, state, or local and any department, division, or subdivision thereof;
(4) Contracts awarded for services to be performed for a standard fee, when the standard fee is established by the contracting agency or any other governmental entity and a like contract is available to all qualified applicants;
(5) Contracts for services that are necessary to the conduct of collaborative research if prior approval is granted by the funding source;
(6) Contracts for client services;
(7) Contracts for architectural and engineering services as defined in RCW 39.80.020, which shall be entered into under chapter 39.80 RCW;
(8) Contracts for the employment of expert witnesses for the purposes of litigation; and
(9) Contracts for bank supervision authorized under RCW 30.38.040.
Sec. 7. RCW 39.29.055 and 1996 c 288 s 32 are each amended to read as follows:
(1)
((State-funded)) Personal service contracts subject to
competitive solicitation shall be filed with the office of financial management
((and the joint legislative audit and review committee)) and made
available for public inspection at least ten working days before the proposed
starting date of the contract.
(2)
The office of financial management shall review and approve ((state-funded))
personal service contracts subject to competitive solicitation that provide
services relating to management consulting, organizational development,
marketing, communications, employee training, or employee recruiting.
Sec. 8. RCW 39.29.065 and 1987 c 414 s 8 are each amended to read as follows:
To implement this chapter, the director of the office of financial management shall establish procedures for the competitive solicitation and award of personal service contracts, recordkeeping requirements, and procedures for the reporting and filing of contracts. For reporting purposes, the director may establish categories for grouping of contracts. The procedures required under this section shall also include the criteria for amending personal service contracts. At the beginning of each biennium, the director may, by administrative policy, adjust the dollar thresholds prescribed in RCW 39.29.011, 39.29.018, 39.29.040, and 39.29.068 to levels not to exceed the percentage increase in the implicit price deflator. Adjusted dollar thresholds shall be rounded to the nearest five hundred dollar increment.
Sec. 9. RCW 39.29.068 and 1993 c 433 s 8 are each amended to read as follows:
The
office of financial management shall maintain a publicly available list of all
personal service contracts entered into by state agencies during each fiscal
year. The list shall identify the contracting agency, the contractor, the
purpose of the contract, effective dates and periods of performance, the cost
of the contract and funding source, any modifications to the contract, and
whether the contract was competitively procured or awarded on a sole source
basis. The office of financial management shall also ensure that state accounting
definitions and procedures are consistent with RCW 39.29.006 and permit the
reporting of personal services expenditures by agency and by type of service.
Designations of type of services shall include, but not be limited to,
management and organizational services, legal and expert witness services,
financial services, computer and information services, social or technical
research, marketing, communications, and employee training or recruiting
services. The office of financial management shall report annually to the
fiscal committees of the senate and house of representatives on sole source
contracts filed under this chapter. The report shall describe: (1) The number
and aggregate value of contracts for each category established in this section;
(2) the number and aggregate value of contracts of ((two)) five
thousand ((five hundred)) dollars or greater but less than ((ten))
fifteen thousand dollars; (3) the number and aggregate value of
contracts of ((ten)) fifteen thousand dollars or greater; (4) the
justification provided by agencies for the use of sole source contracts; and
(5) any trends in the use of sole source contracts.
NEW SECTION. Sec. 10. RCW 39.29.035 and 1993 c 433 s 4 are each repealed.
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