This bill introduces comprehensive regulations for the privatization of public service contracts in New Jersey, focusing on ensuring significant cost savings while safeguarding public interests. It requires agencies to perform detailed cost analyses before entering into privatization contracts, ensuring that cost reductions do not come at the expense of service quality, increased fees, or diminished workforce standards. The bill mandates competitive bidding processes where contractors must prove their capability to maintain or exceed existing service levels and provide comparable wages and benefits to current agency employees. Ongoing oversight and public disclosure are also required to ensure accountability.

Additionally, the legislation outlines specific exemptions for certain contracts, such as those related to legal and management consulting services, construction work under prevailing wage laws, and emergency services, provided there is no job loss for regular employees. It sets strict conditions for contracts exceeding $500,000 for political subdivisions and $1 million for public bodies, including compliance with antidiscrimination standards and the requirement to offer positions to qualified displaced employees. The bill also establishes penalties for violations, including debarment and contract rescission, and mandates reviews by the Office of the State Comptroller and post-audits by the State Auditor to ensure compliance and realization of projected savings.