2015 Arizona Revised Statutes
Title 41 - State Government
§ 41-2773 Powers and duties of the office of management and budget relating to competitive government

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.