AN
ACT Relating to personal service contracts; amending RCW 39.29.003, 39.29.006,
39.29.011, 39.29.016, 39.29.018, 39.29.025, 39.29.040, 39.29.055, 39.29.065,
and 39.29.068; adding a new section to chapter 39.29 RCW; 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)) twenty
thousand dollars. However, contracts of ((two)) five thousand ((five
hundred)) dollars or greater but less than ((ten)) twenty
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
39.29.016 and 1996 c 288 s 29 are each amended to read as follows:
Emergency
contracts shall be filed with the office of financial management ((and the
joint legislative audit and review committee)) and made available for
public inspection within three working days following the commencement of work
or execution of the contract, whichever occurs first. Documented justification
for emergency contracts shall be provided to the office of financial management
((and the joint legislative audit and review committee)) when the
contract is filed.
Sec.
5. 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)) twenty 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))
twenty 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)) twenty thousand dollars if the
total amount of such contracts between an agency and the same consultant is ((ten))
twenty 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)) twenty thousand dollars or more are reasonable.
Sec.
6. 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.
7. 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.
8. 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 (a) 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)); and (b) reviewed and approved
by the office of financial management when those contracts provide services
relating to management consulting, organizational development, marketing,
communications, employee training, or employee recruiting.
(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 shall
be made available for public inspection at least ten working days before the
proposed starting date of the contract. All other contracts shall be effective
no earlier than the date they are filed with the office of financial management.
Sec.
9. 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.
10. 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))
twenty thousand dollars; (3) the number and aggregate value of contracts
of ((ten)) twenty 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. 11. A
new section is added to chapter 39.29 RCW to read as follows:
Personal
service contracts awarded by institutions of higher education from nonstate
funds do not have to be filed in advance and approved by the office of
financial management. Any such contract is subject to all other requirements
of this chapter, including the requirements under RCW 39.29.068 for annual
reporting of personal service contracts to the office of financial management.
NEW SECTION. Sec. 12. RCW
39.29.035 and 1993 c 433 s 4 are each repealed.
