In addition to the duties assigned by the governor, the office:

Terms Used In Arizona Laws 41-2773

  • Competitive government process: means the process, as developed by the governor's office of management and budget, designed to standardize the methodology for how the state identifies and evaluates state functions to determine if future competitive contracting with the private sector and other state agencies is in the best interest of this state. See Arizona Laws 41-2771
  • Competitive government program: means the program, as developed by the governor's office of management and budget, designed to manage the process of introducing private sector and interagency competition into the delivery of state goods and services. See Arizona Laws 41-2771
  • Contract: A legal written agreement that becomes binding when signed.
  • Function: means a good or service that is provided through the direct efforts of state employees. See Arizona Laws 41-2771
  • Office: means the governor's office of management and budget, established by executive order, or its successor. See Arizona Laws 41-2771
  • Privatization: means the utilization of a private sector entity in the delivery of goods and services currently provided by a state function or program. See Arizona Laws 41-2771
  • Process: means a citation, writ or summons issued in the course of judicial proceedings. See Arizona Laws 1-215
  • Relevant costs: means those costs that relate to a target function that can be eliminated if the target function is transferred to another agency or the private sector. See Arizona Laws 41-2771
  • State agency: means any executive department, office, commission, institution, board or other executive agency of state organization regardless of whether monies are appropriated to the agency. See Arizona Laws 41-2771
  • Target function: means a current state function that has been identified for review through the competitive government process. See Arizona Laws 41-2771

1. Shall develop, implement and manage a statewide competitive government program.

2. Shall identify, with the assistance of state agencies, functions in state government appropriate for submittal to the competitive government process.

3. May require a state agency to conduct an in-house total cost estimate, a management study or any hearing, study, review or cost estimate concerning any aspect of a target function to determine the potential for privatization.

4. May require a state agency to release a request for proposal or invitation to bid for any target function the office deems appropriate for competitively contracting.

5. Shall develop minimum savings criteria for governing the award of contracts resulting from the competitive government process.

6. Shall develop a costing model that accurately estimates and accounts for the total cost of providing a state function and develop methods by which state in-house costs can be compared to private sector costs.  The model shall:

(a) Take into account relevant costs for determining whether savings would result from the privatization of a target function.

(b) Specifically account for conversion, transaction, disruption, contract monitoring costs, and revenue increases and decreases related to a privatization.

(c) Include uniform definitions of direct costs and indirect costs.

7. Shall develop a handbook and training program that educates state agencies in the competitive government process.

8. Shall preapprove requests for proposals and invitations to bid, as the office deems appropriate, that could result in the privatization or transfer to another state agency of a target function.