Increases transparency and accountability of public contracts.

Requires better evaluation of contract performance, and the evaluation should include an assessment of whether decisions to "contract out" government services to the private sector are achieving their stated objectives.

Requires an agency, department, or institution of higher education that intends to contract out, or does contract out, for services customarily and historically provided by employees in the classified service or employees included in the Washington management service to follow certain procedures and meet certain criteria.

Requires the joint legislative audit and review committee to: (1) Conduct a program and fiscal review of the changes made by this act;

(2) Upon completion of its preliminary report, transmit copies of the report to the office of financial management and affected state entities; and

(3) Transmit the final report, which will include a response, if any, from the affected state entities and the office of financial management, to the legislature, the affected state entities, the governor, and the state library.