Press Release  Auditor Bump Denies Proposal to Privatize Holyoke Community College Bookstore

Boston — In a determination issued on Friday, the Office of State Auditor Suzanne M. Bump denied a proposal from Holyoke Community College (HCC) to privatize the operations of its bookstore. In the letter, Bump’s office explains the denial is due to the proposed contract’s failure to include required elements, including minimum wage and health insurance benefits for the contract workers and an offer of jobs to qualified existing bookstore staff. Additionally, the letter notes the designated contract bidder did not show that it has no adjudicated record of substantial or willful noncompliance with relevant federal or state statutes.

HCC may resubmit a revised proposal that addresses the identified issues.

Under Chapter 296 of the Acts of 1993 (also known as the Taxpayer Protection Act or the Pacheco Law), the Office of the State Auditor (OSA) is responsible for reviewing proposals from state agencies seeking to privatize a service that is currently performed by public employees. Under the law, state agencies must demonstrate and certify to the OSA that the cost to privatize the service will be less than keeping it in-house, of equal or better quality, that the selected contractor has a record of compliance with state regulations, and that the contract will contain required provisions regarding wages, benefits, and personnel.

The letter from Bump's office denying the proposal is available here.

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