New Jersey Assembly Bill A3443

New Jersey 2024-2025 Regular Session

• Introduced: 2/1/24
• Refer: 2/1/24

Caption

Requires cost analysis in certain cases when State department contracts out work.

Impact

The introduction of A3443 is significant for state law as it seeks to ensure fiscal responsibility when contracting out state work. It aims to protect the interests of state employees by restricting contracts that would diminish their work unless substantial savings can be demonstrated. Furthermore, the law increases oversight and transparency in the contracting process, as cost analyses must be filed with the Office of Management and Budget and made available for public inspection. This move is expected to encourage accountability and prudent financial management within state departments.

Summary

Bill A3443, introduced in the New Jersey Assembly, mandates that any state department intending to contract out work valued over $100,000 must perform a detailed cost analysis. This analysis aims to determine if using a private business entity would be more cost-effective compared to employing state employees. The cost analysis encompasses various factors, including labor costs, fringe benefits, and potential costs of transitioning work from state employees to contractors. Additionally, the bill requires a resource analysis of the department's finances and personnel, as well as an assessment of the state's ability to revert any contracted services if it is deemed not in the public interest.

Contention

While A3443 emphasizes cost-effectiveness and accountability, it may also raise concerns about the feasibility and efficiency of state operations. Critics might argue that stringent requirements for cost analysis could delay necessary contracts and services. Additionally, there is potential contention surrounding the provision that prohibits contracts with private entities whose principals have recently worked for the state department involved. This aspect may lead to debates about the implications for competitive bidding and the ability to hire skilled contractors, potentially complicating the execution of certain specialized tasks.