Governor McAuliffe Orders Evaluation of Major Information Technology and Service Contracts in State Government
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Today Governor
As the directive states, the Governor requested the review out of his concern that
The Governor's full Executive Director is below:
Executive Directive 2 (2014)
ASSESSING AND EVALUATING MAJOR INFORMATION TECHNOLOGY AND SERVICE CONTRACTS
One of the primary responsibilities of the Chief Executive Officer of the Commonwealth of
In an effort to ensure that procurement decisions in state government are based on sound fiscal analysis, I am directing my Secretaries of Administration, Finance and Technology to report to me by
1. An assessment of all IT full time equivalents (FTE) in state government, both contractors and state employees. From 2012 to 2013,
2. A thorough evaluation of (1) all existing major IT projects and contracts, (2) the Master Services Agreement, and (3) other major service contracts not IT related[1]. The evaluation of these contracts would include:
a. Contract term
b. Procurement method and history
c. Original amount negotiated in contract versus actual amount currently being paid
d. Number of change orders or amendments to contract
e. Number of employees working on project (state employees and contractors)
f. Performance standards and benchmarks
3. A cost-benefit analysis of insourcing versus outsourcing these contracted jobs. This analysis would consider the costs and benefits of hiring full-time state employees instead of using contractors. The cost of health insurance and other employee benefits for these individuals should be considered in this analysis.
4. Worker classifications of all contracted employees. Worker misclassification occurs when an employer improperly classifies a worker as an "independent contractor" instead of an employee of that organization. A 2012 report of the
5. A review of the process and protocol for approving major contracts, amendments to contracts or change orders. Currently, there is no clear singular protocol for approving contracts or amendments of major contracts. A thorough review is needed to streamline the process and to make recommendations on how to proceed more efficiently with the appropriate oversight.
6. Recommendations for cost savings and efficiencies through this review. _____________________________________________
Attest:
_____________________________________________
[1] Any procurement for a project over
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