41-2773. Powers and duties of the office of
management and budget relating to competitive government


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


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.