1. (a) No state agency may execute a personal service agreement having a cost of more than fifty thousand dollars without the approval of the secretary. A state agency may apply for an approval by submitting the following information to the secretary:

   1. (1) A description of the services to be purchased and the need for such services; (2) an estimate of the cost of the services and the term of the agreement; (3) whether the services are to be ongoing; (4) whether the state agency has contracted out for such services during the preceding two years and, if so, the name of the contractor, term of the agreement with such contractor and the amount paid to the contractor; (5) whether any other state agency has the resources to provide the services; (6) whether the agency intends to purchase the services by competitive negotiation and, if not, why; and (7) whether it is possible to purchase the services on a cooperative basis with other state agencies. In the case of a proposed personal services agreement for audit services, the agency shall notify the Auditors of Public Accounts of a proposed personal services agreement for audit services and give said auditors an opportunity to review the application and advise the agency whether such audit services are necessary and, if so, could be provided by said auditors.
2. (b) Each personal service agreement having a cost of more than fifty thousand dollars shall be based on competitive negotiation or competitive quotations, unless the state agency purchasing the personal services determines that a sole source purchase is required and applies to the secretary for a waiver from such requirement and the secretary grants the waiver. The secretary shall adopt guidelines for determining the types of services that may qualify for such waivers. The qualifying services shall include, but not be limited to, (1) services for which the cost to the state of a competitive selection procedure would outweigh the benefits of such procedure, as documented by the state agency, (2) proprietary services, (3) services to be provided by a contractor mandated by the general statutes or a public or special act, and (4) emergency services, including services needed for the protection of life or health. The secretary shall post any approvals of requests for a waiver received under this section on the State Contracting Portal. Not later than January 15, 2024, and annually thereafter, the secretary shall submit a report, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to appropriations and the budgets of state agencies and government administration and the State Contracting Standards Board listing any such waiver requests received during the prior year and the justification for the grant or denial of such request.

(P.A. 93-336, S. 5, 13; 93-435, S. 83, 95; P.A. 96-268, S. 18, 34; P.A. 99-44, S. 1, 2; P.A. 09-210, S. 4; P.A. 17-122, S. 1; P.A. 19-127, S. 1; P.A. 21-65, S. 2; June Sp. Sess. P.A. 21-2, S. 339; P.A. 23-186, S. 3; 23-204, S. 108.)

History: P.A. 93-336 effective June 29, 1993; P.A. 93-435 amended Subsec. (a) by adding “and any necessary supporting information” to Subdiv. (7), effective June 28, 1993; P.A. 96-268 amended Subsec. (a) to replace “ten” with “fifteen” and “ten-day” with “fifteen-day” re time limit for action on applications, amended Subsec. (b) to add “or competitive quotations” and made a technical correction, effective July 1, 1996; P.A. 99-44 amended Subsec. (a) to require secretary to give Auditors of Public Accounts opportunity to review personal services agreement applications for audit services, effective July 1, 1999; P.A. 09-210 made a technical change in Subsec. (b), effective July 8, 2009; P.A. 17-122 added Subsec. (c) re establishment of incentive program for nonprofit providers of human services, effective July 1, 2017; P.A. 19-127 substantially amended Subsec. (c) including replacing “may establish an incentive program” with “shall establish a pilot incentive program”, deleting reference to contracts that do not exceed $1,000,000, deleting former Subdiv. (2) re requirement that at least 50 per cent of savings retained by providers be used to expand services, redesignated existing Subdiv. (3) as new Subdiv. (2), adding provisions re nonprofit providers of human services with contracts in certain amounts to be included in pilot incentive program, and replacing “state funded assistance programs” with “nonprofit providers of human services”, effective July 1, 2019; P.A. 21-65 amended Subsec. (c) by deleting reference to incentive program being pilot program, “a percentage of” in Subdiv. (1) and provisions re 8 nonprofit providers and amounts of contracts, effective July 1, 2021; June Sp. Sess. P.A. 21-3 made identical changes as P.A. 21-65 and further amended Subsec. (c) by requiring nonprofit providers to report on use of excess funds, effective July 1, 2021; P.A. 23-186 deleted Subsec. (c) re a contract savings retention program for nonprofit providers of human services, effective July 1, 2023; P.A. 23-204 amended Subsec. (a) by deleting reference to term of more than 1 year, deleting requirement for approval or disapproval of applications within 15 business days, adding requirement for agency rather than secretary to notify auditors and auditors to advise agency rather than secretary re services and making conforming changes and amended Subsec. (b) by deleting reference to term of more than 1 year, adding provision re sole source purchase, adding provisions re waivers in Subdivs. (1) to (4) and adding provision re waiver request report, effective January 1, 2024.