Rhode Island General Laws 42-148-4. Cost comparison
The director of administration shall analyze all vendor bids as compared to current delivery of service costs or an in-house bid, whichever is lower, according to the following:
(a) Any cost comparison must include an analysis of:
(i) Comparative benefits for employees to meet the requirements of the statement of work and performance standards;
(ii) All transition costs as defined in § 42-148-2(f) of this chapter;
(iii) Any conversion costs as defined in § 42-148-2(e) of this chapter; and
(iv) Areas where the bidder’s costs appear artificially low, thereby putting the state at risk for further cost overruns.
(b) In the event that the state will incur new program costs related to the statement of work and performance standards, such costs shall be included in the cost comparison.
(c) All cost comparisons must include an analysis of whether the cost savings will result in meeting the performance and qualitative measures set out in the statement of work and performance standards.
History of Section.
P.L. 2007, ch. 73, art. 42, § 1.
Terms Used In Rhode Island General Laws 42-148-4
- Cost comparison: means an analysis of the comparative costs of providing the service in-house or by privatization. See Rhode Island General Laws 42-148-2
- 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. See Rhode Island General Laws 42-148-2
- 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. See Rhode Island General Laws 42-148-2
- 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