1404 AMH VALL H2111.1

1404 AMH VALL H2111.1

HB 1404 - H AMD

By Representatives Valle, Carlson, Anderson, Ogden, Van Luven, and

Silver

On page 1, line 11, after "contracts" strike everything through "process." and insert "((~~negotiated without an open competitive process~~)), to centralize the location of information about personal service contracts for ease of public review, and ensure proper accounting of personal services expenditures."

On page 4, after line 8, insert the following:

"Sec. 5. RCW 39.29.018 and 1987 c 414 s 5 are each amended to read as follows:

(1) Sole source contracts, and modifications thereto, shall be filed with the office of financial management and the legislative budget committee and made available for public inspection at least ten working days prior to the proposed starting date of the contract or modification. Documented justification for sole source contracts shall be provided to the office of financial management and the legislative budget committee when the contract is filed. For sole source contracts of ten thousand dollars or more, documented justification shall include evidence that the agency attempted to identify potential consultants by advertising through state-wide or regional newspapers or other appropriate media or by notifying consultants on established bidders' lists approved by the office of financial management.

(2) The office of financial management shall approve sole source contracts of ten thousand dollars or more, and modifications thereto, before any such contract or modification 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 thousand dollars if the total amount of such contracts, including their modifications, between an agency and the same consultant is ten thousand dollars or more within a fiscal year. The office of financial management shall ensure that the costs, fees, or rates negotiated in filed sole source contracts of ten thousand dollars or more are reasonable.

NEW SECTION. Sec. 6. A new section is added to chapter 39.29 RCW to read as follows:

Personal services may be procured only to resolve a particular agency problem or issue or to expedite a specific project that is temporary in nature. An agency may procure personal services only if it documents that:

(1) The service is critical to agency responsibilities or operations, or is mandated or authorized by the legislature;

(2) Sufficient staffing or expertise is not available within the agency to perform the service; and

(3) Other qualified public resources are not available to perform the service.

NEW SECTION. Sec. 7. A new section is added to chapter 39.29 RCW to read as follows:

(1) Personal service contracts subject to competitive solicitation, and modifications thereto, shall be filed with the office of financial management and the legislative budget committee and made available for public inspection at least ten working days before the proposed starting date of the contract or modification.

(2) The office of financial management shall review and approve:

(a) Personal service contracts subject to competitive solicitation, and modifications thereto, that provide services relating to management consulting, organizational development, marketing, communications, employee training, or employee recruiting; and

(b) Modifications to personal service contracts subject to competitive solicitation that substantially change the scope or cost of the work to be performed.

NEW SECTION. Sec. 8. A new section is added to chapter 39.29 RCW 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, including modifications thereto, 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 thousand five hundred dollars or greater but less than ten thousand dollars; (3) the number and aggregate value of contracts of ten 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. 9. A new section is added to chapter 39.80 RCW to read as follows:

Contracts entered into by any state agency for architectural and engineering services, and modifications thereto, shall be filed with the office of financial management at least ten working days before the proposed starting date of the contract or modification."