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P.O. Box 40002 ∑ Olympia, Washington 98504-0002 ∑ (360) 902-4111 ∑



All Executive Agencies and Institutions of Higher Education

FROM: Gary Locke, Governor
DATE: November 23, 1999
SUBJECT: Contracting Out of New State Services

In an effort to continuously improve the way in which state services are delivered to the taxpayers, state government must work more diligently and creatively to identify alternative modes of service delivery. I believe that some of our state's new services can be delivered faster, more cheaply, and more efficiently by contracting with service providers outside of state government.

Effective immediately, I direct all state agencies and institutions of higher education to determine whether any new state service can be contracted through a private service provider, to the extent authorized by state statute and court decisions. Those services should be subject to a competitive bidding process that includes an opportunity for state employees to bid on the contract.

The contracting state agencies or institutions of higher education must conduct cost-benefit analyses to determine that contracts will result in cost savings or service efficiency improvements. State agencies and institutions of higher education shall also conduct periodic reviews of any state service provided by a private contractor, and determine the viability of continuing the contract.

It is my intention as Governor to continue to increase public savings and improve efficiency in the delivery of vital services to the public. We need to lead state government in a direction that partners with the private sector to ensure the best use of taxpayer dollars.