This bill introduces comprehensive regulations for the privatization of public service contracts in New Jersey, focusing on ensuring cost savings while maintaining service quality and workforce standards. It mandates that agencies perform detailed cost analyses before entering into privatization contracts, emphasizing that any savings must not negatively impact public service users or employees. The legislation requires competitive bidding, public disclosure of contract details, and ongoing oversight to ensure contractor accountability. Additionally, it stipulates that contractors must maintain wage and benefit levels comparable to agency employees and provide opportunities for displaced workers, with contracts subject to review by the Office of the State Comptroller to ensure compliance with cost-saving criteria.

The bill also imposes strict regulations on political subdivisions and public bodies regarding contracts for services previously performed by agency employees, prohibiting contracts of $500,000 or more for political subdivisions and $1 million or more for public bodies unless specific conditions are met. These conditions include soliciting competitive sealed bids and ensuring compliance with wage and benefit standards. Agencies are required to publicly announce contract award decisions within 60 days of bidding completion, and the State Auditor will conduct post-audits to verify that projected savings are achieved without compromising service quality. Noncompliance due to misrepresentation or fraud may result in penalties such as debarment or contract rescission. The provisions apply to contracts initiated after the bill's effective date, excluding those established prior.