33.99.16.S1 Contract Workforce

January 23, 2002

  1. GENERAL

    Prior to engaging a contract workforce or contract worker using state-appropriated funds, a department shall:

    1. 1.1 Document why and how the use of contract workers fits into departmental staffing strategies, including consideration of departmental mission, goals and objectives, existing and future employee skills needed, compensation costs, productivity, nature of services to be provided, and workload;
    2. 1.2 Prepare a cost/benefit analysis (the Contract Workforce Cost/Benefit Analysis Form is published online at http://sago.tamu.edu/soba/contract-workforce.pdf); and
    3. 1.3 Examine prior state employment issues as described in System Regulation 25.99.03, Section 1.5 and the legal distinctions between an employee and a contract worker.
  2. PROCUREMENT OF SERVICES
    1. 2.1 The procurement of contract workforce services with an anticipated value in excess of $5,000 shall be in accordance with purchasing requirements. When state-appropriated funds in excess of $10,000 are utilized, the department must disclose the justification for the contract on the requisition and purchase voucher to document the requirements of Sections 1.1-1.3. Acceptable justifications include, but are not limited to:
    2. 2.1.1 The contract worker(s) are temporarily filling a state employee position.
    3. 2.1.2 The department is unable to attract state employees for the needed position(s).
    4. 2.1.3 The contract worker(s) are used to perform highly specialized duties.
    5. 2.1.4 All contract worker(s) costs were compared with employee(s) costs and were found to be the most cost effective in performing the duties.
    6. 2.1.5 Productivity was compared between contract worker(s) and employee(s) and was found to be the most cost-effective decision.
    7. 2.1.6 Training costs and training investments were compared between contract worker(s) and employees, and the use of contract workers was found to be the most cost-effective decision.
    8. 2.2 For all purchases that qualify as contract workforce services, including Intra-System purchases, a department shall retain all supporting documentation, including the cost/benefit analysis, in their files in accordance with the approved records retention schedule.
    9. 2.3 The contract worker(s) duties must be reviewed to determine if they meet factors necessary to be classified as independent contractors.
  3. REPORTING
    1. 3.1 The SAGO Business Office will prepare the annual report on the use of a contract workforce for the preceding year in the format prescribed by the State Auditor. The report must include a description of how the component has complied with the above requirements and an evaluation of the work performed by a contract workforce, including an assessment of whether work was completed on time, within budget and according to contract specifications.

CONTACT OFFICE: The System Office of Budgets and Accounting

HISTORY: New Rule