California Code of Regulations
Title 2 - Administration
Division 1 - Administrative Personnel
Chapter 1 - State Personnel Board
Subchapter 1.5 - Personal Services Contracts
Article 6 - Procedures that Apply to Contracts Under Government Code Section 19130(a)
Section 547.73 - Amount of Savings

Universal Citation: 2 CA Code of Regs 547.73

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) Savings generated through cost-savings based personal services contracting must justify the size and duration of the contracting agreement. To do so, such contracts must meet one of the following criteria:

(1) Achieve a savings of 10% or more compared to the cost of performing the same function within the civil service over the duration of the contract; or

(2) Achieve a savings of at least $50,000, in terms of 1988 dollars, per year compared to the cost of performing the same function within the civil service over the duration of the contract, provided that the savings equal at least 5% of the comparable civil service cost. The $50,000 standard shall be adjusted at the beginning of each fiscal year to reflect changes in the California Consumer Price Index as reported by the Department of Industrial Relations, and the adjusted figure shall be communicated by Board staff to all departments.

(b) Such savings need not be attained during each year of a multiyear contract, providing the overall savings meet one of the aforestated requirements.

1. Renumbering of former section 547.71 to section 547.73, including amendment of NOTE, filed 1-3-2008; operative 2-2-2008 (Register 2008, No. 1).

Note: Authority cited: Sections 18211, 18216 and 18701, Government Code. Reference: Sections 19130(a)(5) and 19130(a)(6), Government Code.

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