Review of Proposals to Privatize State Services

The Office of the State Auditor reviews proposals from state agencies seeking to privatize state services to ensure they are in the best interest of Massachusetts taxpayers.

Under the Massachusetts Taxpayer Protection Act (also known as the Pacheco Law), the Office of the State Auditor is responsible for reviewing proposals from state agencies and applicable state authorities seeking to privatize a service that is currently performed by public employees. State agencies must demonstrate and certify to the OSA that privatizing services will not only save money but will also maintain at least the same level of quality of service provided. State agencies must also certify that the private contractor, who will provide the privatized service, has a record of complying with state law and regulations and will meet minimum statutory requirements regarding wages and employee benefits.

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