State of Maine



18-554

State of Maine

Department of Administrative and Financial Services

Bureau of General Services

Division of Purchases

Chapter 155

Rules defining an equivalent basis for cost comparison between state employee and private contractor provision of services

Table of Contents

Part One. General

Section 1. Purpose and Scope

This section states the purpose and scope of the Bureau of General Services’ rules governing the equitable selection of contractor personal services.

Section 2. Definitions

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 MRSA 1825-A. Definitions.

Part Two. Construction of the Rule

Section 1. Creating an Equal Basis

This section discusses the issues with respect to the creation of an equivalent basis for considering personal services proposals.

Section 2. Responsibilities

This section outlines the responsibilities of the Agency or Department and the bidders when preparing requests and submitting proposals which would result in a contract for personal services.

Part Three. Application and Forms

Section 1. Applying the Provisions of the Rule

This section requires the use of a standard calculation to determine the best value to the State of Maine and suggests standard language to be included in the request for proposal document.

Section 2. Applicable Forms

This section outlines the information required to be collected and suggests a format for the collection, presentation, and analysis of the information.

Part One. General

Section One. Purpose and Scope

Summary: This section states the purpose and scope of the Bureau of General Services’ rules governing the equitable selection of contractor personal services.

1.1.1 Contracting for Personal Services Allowed.

5 MRSA 1816-A allows contracting for personal services when any number of conditions is met. Generally examples include, but are not limited to, services which are highly specialized or technical in nature, when it’s necessary to protect against a conflict of interest, if the location is such that state employees are not available, or the services are urgent, temporary or occasional in nature.

When contracting for personal services, agencies and departments are required to utilize a process of competitive bidding.

1.1.2 Rules Assuring an Equivalent Basis for Cost Comparison.

Contracting for personal services as part of 5 MRSA 1816-A is permitted to achieve actual cost savings when other conditions are met. However, 5 MRSA 1816-A, 2, I requires that an equivalent basis for cost comparison between state employee and private contractor provision of services must be calculated by rules adopted by the State Purchasing Agent to assure that the private contractor provides the best value. All personal services contracts are subject to this rule.

Section Two. Definitions

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 MRSA 1825-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 |Depending on the circumstances, a process which allows use of either a solicited proposal or quotation for|

|CBP |services from all known service providers in an area if the expected annual contract value is less than |

| |twenty thousand dollars ( |  |  | | |

|2 > |  |  | | |

|3 > |  |  | | |

|4 > |  |  | | |

|5 > |  |  | | |

|6 > |  |  | | |

|Position Classification Name |Number |0.00 | |Make entries in all cells with a |

| | | | |distinctive blue colored type face. |

|Enter the Position Name and Number Above for the Duties Described. |Total Projected | | |

|Total Projected Annual Hours will be summed and should be the basis|Annual Hours | | |

|for the bidder proposal. | | | |

|Part Two. Developing the State Worker Base Cost for the Position |This section of the form allows |

| |development of the State Worker Base Cost |

| |for the position named above. Make |

| |entries to the right of the text on lines |

| |1, 2, 3, 6, 7 and 8. The values in boxes |

| |4, 9, 10 and 11 will be entered as a |

| |result of cell formulas in the sheet. |

|1 |For the Position Named Above, enter the Fully Burdened |$0.00 | | |

| |Employee Cost at the right . . . | | | |

|2 |Enter the cost of all Health Insurance |$0.00 | | | |

| |at the right . . . | | | | |

|3 |Enter the costs associated with |$0.00 | | | |

| |Retirement at the right . . . | | | | |

|4 |Costs of all Health Insurance and Retirement are summed and|$0.00 | | |

| |appear at the right . . . | | | |

|5 |The value on line 4 is deducted from the Fully Burdened |$0.00 | | |

| |Employee Cost on line 1 | | | |

|6 |Show the number of Supervisor FTE's at |0.00 | | |The percentage for unemployment costs is |

| |the right | | | |an average of the last five years of state|

| | | | | |experience with the payment carried for 26|

| | | | | |weeks. The Layoff Notice Cost is based on|

| | | | | |the Fully Burdened Employee Cost. |

|7 |Show the number of Employee FTE’s |0.00 | | | |

| |supervised at the right | | | | |

|8 |Show the Supervisor's Compensation at |$0.00 | | | |

| |the right . . . | | | | |

|9 |Divide Supervisor by Employee FTE's, then multiply by |$0.00 | | |

| |Compensation & show at the right . | | | |

|10 |Enter the Unemployment Costs, calculated elsewhere, in the |$0.00 | |0.16% |Show the State Percentage at|

| |space at the right . . . | | | |the left |

|11 |Enter the Layoff Notice Cost, calculated elsewhere, in the |$0.00 | |2 |Show No. of Weeks in Layoff |

| |space at the right . . . | | | |Notice Period |

|12 |Sum the values on lines 5, 9, 10, and 11 and show the |$0.00 | |  |

| |result at the right . . . | | |This value is the State Worker Base Cost |

| | | | |  |

|Part Three. Comparison with Bidder's Amount for this Position | |For the bidders participating in the |

| | |proposal and answering with forms and |

| | |data, show the name(s) and the associated |

| | |amount(s) for this position only. The |

| | |values should be compared to the amount |

| | |shown on line 12 in Part Two in order to |

| | |have an indication of the "best value" |

| | |calculation required in statute. |

|13a |Enter the Bidder's Name and Amount for |Name |TWBC Amount | | |

| |this Position at right | | | | |

|13b |Enter the Bidder's Name and Amount for |Name |TWBC Amount | | |

| |this Position at right | | | | |

|13c |Enter the Bidder's Name and Amount for |Name |TWBC Amount | | |

| |this Position at right | | | | |

|13d |Enter the Bidder's Name and Amount for |Name |TWBC Amount | | |

| |this Position at right | | | | |

|13e |Enter the Bidder's Name and Amount for |Name |TWBC Amount | | |

| |this Position at right | | | | |

|13f |Enter the Bidder's Name and Amount for |Name |TWBC Amount | | |

| |this Position at right | | | | |

3.2.3 Advice to Agencies/Departments and Bidders.

The two forms described above are intended to allow determination of “Best Value.” Any RFP issued would require submission of the usual and customary sheets and schedules required by the Division of Purchases to describe the actual scope of services for which the proposal is describing.

EFFECTIVE DATE:

February 10, 2005 – filing 2005-49

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