Code of Maine Rules
18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
554 - BUREAU OF GENERAL SERVICES
Chapter 155 - RULES FOR DEFINING AN EQUIVALENT BASIS FOR COST COMPARISON BETWEEN STATE EMPLOYEE AND PRIVATE CONTRACTOR PROVISION OF SERVICES
Part One - GENERAL
Section 554-155-One-Two - Definitions
Universal Citation: 18 ME Code Rules ยง 554-155-One-Two
Current through 2024-38, September 18, 2024
Summary: This section defines terms used in the rule. Terms may be found in the text of the rule or the associated forms which require completion by the agency/department and bidders. Statutory definitions relating to the subject matter are contained in 5 MRSA1825-A. Definitions.
| Administrative Costs | The charges made by a contractor providing personal services to recruit, select, retain, train, place, and supervise temporary workers; profit; and associated allowed costs, calculated on an annualized basis per FTE. |
| Classification Specification | Positions so sufficiently alike with respect to duties, responsibilities and authority that the same descriptive title may be used with clarity to designate each such position; the same knowledge, skill, and ability applied; the same process used to recruit, qualify and examine persons for each such position; and the same schedule of pay applied with equity to each such position. |
| Comparable Position | A state position that completes job duties similar to those being requested under a personal services contract. Job duties of state workers must be those described in a comparable classification specification. |
| Competitive Bidding Process CBP | Depending on the circumstances, a process which allows use of either a solicited proposal or quotation for services from all known service providers in an area if the expected annual contract value is less than twenty thousand dollars (<$20,000). |
| Cost Differentials | In general, the difference between the temporary worker base cost and the state worker base cost. Cost differentials are calculated in the aggregate over the life of the contract. |
| Equivalent Basis (see mathematical expression) | The dollar value of an employee's Fully Burdened Employee Cost (FBEC) less health benefits and retirement benefits, calculated on an annualized basis. Equivalent Basis = FBEC - (health insurance + retirement benefit costs). |
| Full Time Equivalent FTE (see mathematical expression) | A computed statistic representing the number of full-time employees that could have been employed if the reported number of hours worked by part-time, temporary, or intermittent employees had been worked by full-time employees. This statistic is calculated by dividing the hours worked per year by 2080 and is commonly reported as a whole number, decimal or fraction. Full Time Equivalent = hours worked in 12 months/2080 |
| Fully Burdened Employee Cost FBEC | The total cost of an employee's salary and benefits including the base salary and all premium adjustments and stipends, state paid amounts for retirement, health, dental, and life insurance, and the amount associated with workers' compensation. This amount is found as the "total cost" on the employee Position Profile Report. |
| Health Benefit Costs | Annualized dollar value of major medical and dental insurance provided at the expense of the employer, covering the employee only. For state workers, these are the health and dental costs shown on the Position Profile Report. |
| Job Duties | The functional tasks of a position, expressed in percentage of time per FTE, describing fundamental responsibilities which account for five percent (5%) or more of the work. Job duties for state workers must significantly correlate to or be those listed in the classification specification of the specific position. |
| Lay-off Notice Cost (see mathematical expression) | The cost associated with the lay-off notice period. This cost is the sum of total benefits and total salary as taken from the Position Profile Report divided by 52 and multiplied by the number of weeks of the lay-off notice period. Lay-off Notice Cost = FBEC/52 x Number of Weeks in Lay-off Notice Period. |
| Lay-off Notice Period | The period of notice required for lay-offs of state workers as specified in collective bargaining agreements. |
| Position Profile Report | A report from the Budget and Financial Management System produced for each authorized position in state government summarizing the salary and benefit costs of the position. |
| Request For Proposal RFP | A formal and structured inquiry published by an agency or department of state government soliciting information by which a selection may be made of a contractor to provide specific services. |
| Retirement Benefit Costs | Annualized employer contributions to Social Security or the Maine State Retirement System. Retirement benefits for state workers are the sum of normal and unfunded liability and administrative costs on behalf of the Retirement System and health costs taken from the Position Profile Report. |
| Social Security | Contributions made by the employer pursuant to the Federal Insurance Contributions Act. |
| State Worker Base Cost SWBC (see mathematical expression) | The cost to the state to utilize state employees to provide services. This is calculated as the Fully Burdened Employee Cost (FBEC) less health and retirement benefits plus a supervisory adjustment, unemployment costs, and the lay off notice cost at step 3 of the pay range. SWBC = FBEC - (health insurance and retirement benefit costs) + supervisory adjustment + unemployment costs + lay off notice cost. |
| Supervisory Adjustment | The estimated additional cost to the State, calculated on an annualized basis, associated with the need to add supervisory staff to deal with the administration of state workers when temporary workers cannot be hired. It is the product of the number of additional supervisors required and the supervisors' compensation. |
| Supervisor's Compensation | The sum of the total salary and the value of the total benefits, taken from the Position Profile Report, for the supervisor of the comparable position. |
| Temporary Worker Base Cost TWBC (see mathematical expression) | The annualized cost for the provision of temporary, non-civil service workers. This is calculated as the annual value of the hourly wage less the combined health and retirement benefits plus administrative costs. TWBC = Hourly Wage Annualized - (health insurance and retirement benefit costs) + administrative costs. |
| Total Benefits | The total benefits of a specific position, taken from the Position Profile Report. |
| Total Salary | The total salary of a specific position, taken from the Position Profile Report. |
| Unemployment Costs | The arithmetic mean of the state's total unemployment costs over the preceding five years, or years for which data are available, expressed as the product of a percentage of the base cost and the state worker base salary over a 26 week period. Unemployment Costs = (([]State Unemployment Cost/[]State Payroll)n1..n5/n) * Annual Equivalent Cost * 0.5) The sum of State Unemployment Costs divided by the sum of State Payroll Costs for up to 5 years multiplied by the Annual Equivalent Cost times 0.5. |
Disclaimer: These regulations may not be the most recent version. Maine may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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