New York Codes, Rules and Regulations
Title 9 - EXECUTIVE DEPARTMENT
Subtitle A - Governor's Office
Chapter I - Executive Orders
Part 8 - Executive Orders (Andrew M. Cuomo)
Section 8.10 - Executive order no. 10: reducing costs for personal services contracts
Current through Register Vol. 46, No. 39, September 25, 2024
WHEREAS, the State is in a fiscal crisis, and must take all feasible measures to control its expenditures and achieve cost savings;
WHEREAS, the 2011-12 Executive Budget sets forth a program to address this crisis, premised on the principle of shared sacrifice and reducing expenditures, through which the burden of putting the State's fiscal house in order is spread across a wide spectrum of interests;
WHEREAS, the 2011-12 Executive Budget requires particularly significant cost reductions from state agencies, for whom the proposed budget would bring about a ten percent reduction in operating expenses;
WHEREAS, the State is continually reviewing personal services contracts to reduce the number and cost of such contracts;
WHEREAS, the State must do all it can to ensure that it is getting the best possible price of contracts paid for with taxpayer dollars, and cannot merely follow the contracting practices of the past;
NOW, THEREFORE, I, Andrew M. Cuomo, Governor of the State of New York, by virtue of the authority vested in me by the Constitution and laws of the State of New York, do hereby order as follows:
1. The following definitions will apply for purposes of this order:
2. Each state agency shall, upon the expiration of a personal services Single source contract, agree to a renewal of such contract only if the contractor agrees to a reduction in the State's annual costs of no less than ten per cent off the annual cost of the prior contract (the "mandatory reduction target"), except as provided for in paragraph 4. Such reduction may be reached by adjustment of the price, or by such other measures whose combined value to the State totals at least ten per cent of the annual cost of the prior contract.
3. Any state agency that determines that it cannot secure the reduction in contract price provided for by section 2 of this Order shall, in writing to the Director of State Operations prior to any signing of or agreement to such contract renewal:
An agency submitting the statement provided for by this paragraph shall not proceed with the contract renewal without the approval of the Director of State Operations or his or her designee.
4. In addition to contracts covered by paragraph 2, each state agency shall, prior to the expiration of a Personal Services Contract that provides the agency the option to continue the contract at an equal or higher cost, take all reasonable measures to ensure that the same services may not be acquired at a lower price. Such measures shall include:
5. The Director of State Operations may from time to time review the application of the mandatory reduction target to particular classes of contracts or contracts by particular agencies, and may in writing to affected agencies reduce or increase such target for such contracts.
6. All state agencies are directed to seek reductions in contracting expenses in addition to those set forth in this order, including through reductions in the costs of contract renewals that exceed those of the mandatory reduction targets.
7. Agencies are encouraged to seek all other reasonable and lawful means to reduce the costs of their personal services contracts. Agencies should provide whatever assistance and support may be warranted to assist contractors in reducing their costs, including the costs of subcontracts, so that they may achieve the savings provided for in this Order.
8. The Spending and Government Efficiency Commission ("Commission"), created by Executive Order No. 4, shall review the State's practices regarding contracts for personal services, to examine ways to reduce their number and cost.
9. Nothing in this Order shall:
Signed: Andrew M. CuomoDated: March 2, 2011