Lawmakers gave first-round approval March 19 to a bill that seeks to improve the procedure by which state agencies contract for services.<\/p>\n
LB858, as introduced by Lincoln Sen. Bill Avery, would apply to contracts valued at more than $25 million and would require the involvement of the state Department of Administrative Services (DAS).<\/p>\n
Avery said the measures resulted from concern over contracting practices undertaken during the state Department of Health and Human Services (DHHS) reform of the child welfare system.<\/p>\n
The bill would require a state agency to submit a copy of a proposed contract and a proof-of-need analysis to DAS, which would certify a submitted analysis as complete before an agency could proceed with contracting services.<\/p>\n
Currently, contracts with direct providers of medical, behavioral or development health services, child care or child welfare service to an individual are exempt from the state\u2019s bidding requirements.<\/p>\n
LB858 would remove the exception for a personal services contract valued at $25 million or more.<\/p>\n
\u201cThis provision is important because DHHS relied on the child welfare exception in order to enter into the contracts to privatize child welfare,\u201d Avery said.<\/p>\n
A Government, Military and Veterans Affairs Committee amendment, adopted 37-0, lowered from $25 million to $15 million the threshold for DAS involvement in the contracting process. The exemption for child welfare service contracts also was lowered to $15 million.<\/p>\n
Among other provisions, the amendment specifies that a proof-of-need analysis include a:
\n\u2022 review and analysis of feasible alternatives;
\n\u2022 review of the projected long-term cost savings;
\n\u2022 justification for entering into a contract if it will not result in cost savings;
\n\u2022 rationale for purchasing a service rather than using state employees;
\n\u2022 designation of state agency employees to monitor the contract for performance; and
\n\u2022 demonstration by the state agency that it has taken formal and positive steps to consider alternatives to private contracting, such as agency reorganization.<\/p>\n
Sen. Bob Krist of Omaha supported the bill, saying it would provide accountability in state contracting.<\/p>\n
\u201cIt is extremely important that if we \u2026 enter into a contract and spend the taxpayers\u2019 dollars, we need to be accountable at the end of the day,\u201d he said.<\/p>\n
The bill advanced on a 35-0 vote.<\/p>\n","protected":false},"excerpt":{"rendered":"
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