Authorizes departments, agencies, and institutions of higher education to purchase services, including services that have been customarily and historically provided by employees in the classified service under the state civil service act, by contracting with individuals, nonprofit organizations, businesses, employee business units, or other entities.

Prohibits a department, agency, or institution of higher education from entering into, renewing, extending, or allowing the automatic extension of a collective bargaining agreement that restricts or modifies the authority granted above.

Requires the office of financial management to establish a process for identifying the savings achieved by state agencies and institutions of higher education as a result of contracting for services under the authority granted above.