This bill introduces comprehensive procedures and standards for the privatization of public service contracts in New Jersey, focusing on ensuring cost savings without compromising service quality, fees, or workforce standards. It mandates that agencies perform detailed cost analyses prior to entering privatization contracts, emphasizing that any savings must stem from true efficiencies rather than negative impacts on public services or employee conditions. The legislation requires competitive bidding, public disclosure of contract details, and ongoing oversight to ensure accountability. Additionally, it stipulates that contractors must maintain wage and benefit levels comparable to agency employees and provide opportunities for displaced workers, while also prohibiting contracts that do not meet stringent criteria, including a review by the Office of the State Comptroller.

The bill sets strict regulations for political subdivisions and public bodies regarding contracts for services previously performed by agency employees, specifically prohibiting contracts of $500,000 or more for political subdivisions and $1 million or more for public bodies unless certain conditions are met. These conditions include soliciting competitive sealed bids and ensuring compliance with wage and benefit standards. Agencies are also required to publicly announce contract award decisions within 60 days of bidding completion and undergo reviews by the Office of the State Comptroller. The State Auditor will conduct post-audits to confirm that projected savings are achieved without sacrificing service quality or workforce standards, with penalties for noncompliance potentially including debarment or contract rescission. The provisions apply to contracts initiated after the bill's effective date, excluding those established prior.