When used in this chapter:

(a)  “In-house costs” means a detailed budget breakdown of the current costs of providing the service or program proposed for privatization.

(b)  “Statement of work and performance standards” means a clear statement of the nature and extent of the work to be performed with measurable performance standards as set forth in § 42-148-3(b)(2) of this chapter.

(c)  “In-house bid” shall mean the cost of the proposal proffered by in-house state programs and employees and their representatives pursuant to § 42-148-3(b)(3) of this chapter.

(d)  “Cost comparison” means an analysis of the comparative costs of providing the service in-house or by privatization.

(e)  “Conversion differential” means transition costs and costs associated with starting up or closing down during conversion to purchased services or in the event of the need to bring services back in-house.

(f)  “Transition costs” means the cost of contracting including monitoring vendors for accountability, costs associated with unemployment compensation, payment of accrued leave credits, bumping, and retention factors for those with statutory status. Transition costs shall not include department overhead or other costs that would continue even if the services were privatized.

(g)  “Privatization or privatization contract” means an agreement or combination or series of agreements by which a non-governmental person or entity agrees with an agency to provide services expected to result in a fiscal year expenditure of at least one hundred fifty thousand dollars ($150,000) (as of July 1 of each year, the amount shall increase to reflect increases in the consumer price index calculated by the United States Bureau of Labor Statistics for all urban consumers nationally during the most recent twelve (12) month period for which data are available or more), which would contract services which are substantially similar to and in replacement of work normally performed by an employee of an agency as of June 30, 2007.

Terms Used In Rhode Island General Laws 42-148-2

  • Contract: A legal written agreement that becomes binding when signed.
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
  • Statute: A law passed by a legislature.
  • Transition costs: means the cost of contracting including monitoring vendors for accountability, costs associated with unemployment compensation, payment of accrued leave credits, bumping, and retention factors for those with statutory status. See Rhode Island General Laws 42-148-2
  • United States: include the several states and the territories of the United States. See Rhode Island General Laws 43-3-8

“Privatization” or “privatization contract” excludes:

(1)  Contracts resulting from an emergency procurement;

(2)  Contracts with a term of one hundred eighty (180) days or less on a non-recurring basis;

(3)  Contracts to provide highly specialized or technical services not normally provided by state employees;

(4)  Any subsequent contract which: (a) renews or rebids a prior privatization contract which existed before June 30, 2007; or (b) renews or rebids a privatization contract that was subject to the provisions of this statute after its enactment; and

(5)  An agreement to provide legal services or management consulting services.

History of Section.
P.L. 2007, ch. 73, art. 42, § 1; P.L. 2008, ch. 121, § 2; P.L. 2008, ch. 139, § 2.