Who is subject to the law?

The law applies to all executive agencies, as well as the MBTA, the Massachusetts Port Authority, the Massachusetts Department of Transportation, and the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority.

What does the law regulate?

The law is applicable to contracts (valued at $559,637 or greater) between an agency and a non-government entity that provides services currently being provided by state employees.

What are the requirements of the law?

a. Competitive bidding process including employee group
b. Wage and health insurance protections
c. Realistic cost estimates
d. Certifications with any proposal to the State Auditor

What is the role of the State Auditor?

a. Certifies that the proposal will be less costly for the taxpayers.
b. Certifies that the proposal is of at least equal quality to that of the present services.
c. Certifies that the designated bidder has a satisfactory record of regulatory compliance.
d. Certifies that the proposal is in compliance with the law.
e. Evaluates agency initiatives for compliance with the law.

  Guidelines for Implementing the Commonwealth's Privatization Law (Chapter 296 of the Acts of 1993)  pdf format of Guidelines for Implementing Privatization Law