14.8 Contracting Out

1. Purpose

The purpose of this section is to guarantee that the State does not incur unnecessary, additional costs by contracting out work appropriately performed at less expense to the State by bargaining unit employees, consistent with the terms of this section. In achieving this purpose the parties do not intend this section to expand the State’s ability to contract out for personal services. The parties agree that this section shall not be interpreted or applied in a manner which results in a disruption of services provided by State departments.

2. Policy Regarding Personal Services Contracts and Cost Savings

Except in extremely unusual or urgent, time-limited circumstances, or under other circumstances where contracting out is recognized or required by law, Federal mandate, or court decisions/orders, the State must make every effort to hire, utilize and retain bargaining unit employees before resorting to the use of private contractors. Contracting may also occur for reasons other than cost savings as recognized or required by law, Federal mandate, or court decisions/orders.

3. Information Regarding Contracts To Be Let
1. Departments will provide the Union’s designated representative with copies of Requests for Proposals (RFPs) and Invitations for Bid (IFBs) for personal services contracts when released for publication if they call for services found in bargaining unit class specifications.
2. To the extent that a department is preparing to enter into a contract (or amend a contract) and it does not require an RFP or IFB, the department shall provide the Union’s designated representative with a copy of the Standard Form 215 (or its departmental equivalent) if and when the Form 215 is completed, but no less than five (5) business days thereafter, provided the contract is/will be for services found in bargaining unit class specifications. If the Form 215 contains confidential or proprietary information, it shall be redacted as discussed below in subsection D (1).
3. The purpose of this subsection C is to provide the Union with notice and an opportunity to present alternatives which mitigate or avoid the need for contracting out, while still satisfying the needs of the State to provide services. Directors (or their designee) shall therefore meet with the Union for this purpose, if requested by the Union.
4. Review of Personal Services Contracts In Existence
1. Upon request of the Union each department shall submit copies of any or all personal services contracts that call for services found in bargaining unit class specifications. For each contract, departments shall provide additional documents establishing the number, scope, duration, justification, total costs of all such contracts, and payment of all overhead and administrative costs paid through each contract, provided it does not disclose confidential

or proprietary information, in which case it shall be redacted as discussed below. The requested contract and related information shall be provided as soon as reasonably possible. The parties expect that this shall be provided no more than twenty-one (21) calendar days following the request by the Union, or longer if approved by the Union and the department.

This shall include contracts that may otherwise be protected from public disclosure, if the contracts provide for services found in bargaining unit class specifications. However, the State may redact those portions of protected contract(s) that are proprietary, necessary to protect the competitive nature of the bid process, and that which does not pertain to the costing of personnel services found in bargaining unit classifications. The goal shall be to protect against disclosure of information which should remain confidential, while at the same time providing the Union with sufficient information to determine whether unnecessary, additional costs are being incurred by contracting out work found in bargaining unit class specifications. Costing information provided to the Union for protected contracts shall include total personnel costs for personnel services found in bargaining unit classifications plus any overhead charges paid to the contractor for these services, provided such disclosure does not breach confidentiality requirements or include proprietary information.

2. Within ten (10) workdays after receipt of the personal services contracts and associated documents as provided for in paragraph D(1) above, the Union and the department shall begin reviewing the contracts. The Union and the department shall examine the contracts based on the purpose of this section, the terms of the contracts, all applicable laws, Federal mandates and court decisions/orders. In this regard, the Union and the department will consider which contracts should and can be terminated immediately, which contracts will take additional time to terminate, which contracts may continue (for how long and under what conditions) and how (if necessary and cost effective) to transition contract employees or positions into civil service. All determinations shall be through express mutual agreement of the Union and department.
3. The Union and the department will continue to meet as necessary to examine personal services contracts which have been let.
4. If savings are generated by the termination of personal services contracts under this provision, it is the intent of the State to implement agreements of the Union and the department for utilization of said savings. Such agreements may include:
1. Contributing toward position reductions which would otherwise be accomplished by the layoff, salary reduction or displacement of bargaining unit employees;
2. Enabling the employment of bargaining unit employees for services currently performed by contractors;
3. Enabling of the conversion to bargaining unit civil service employment of qualified contract employees who wish to become State employees, as otherwise permitted by law, regulations, provisions of the contracts and resolutions by the SPB;
4. Providing timely, adequate and necessary recruitment efforts. These efforts may include focused recruitment, publicizing in professional journals, use of the media, job fairs, expedited hiring, expedited background checks, spot testing authorized by the SPB, State employee registries, and recruitment and retention incentives;
5. Such other purposes as may be mutually agreed upon.
5. Displacement Avoidance
1. The objective of this subsection is to ensure that bargaining unit employees have preference over contract employees consistent with, but not limited to the following principles:
1. The duties at issue are consistent with the bargaining unit employee’s classification;
2. The bargaining unit employee is qualified to perform the job; and,
3. There is no disruption in services.
2. To avoid or mitigate bargaining unit employee displacement for lack of work, the appointing power shall review all existing personal services contracts to determine if work consistent with the affected employee’s classification is being performed by a contractor. Displacement includes layoff, involuntary demotion, involuntary transfer to a new class, involuntary transfer to a new location requiring a change of residence, and time base reductions. If the Union and the department that review personal services contracts determine that the terms and purpose of the contract permit the State to assign the work to a bargaining unit employee who would otherwise be displaced, this shall be implemented consistent with the other terms of this section. The State and the Union shall meet and confer for purposes of entering into an agreement about the means by which qualified employees are notified and provided with such assignments. This shall include developing a process that ensures that savings realized by terminating the contract and reassigning the work to a bargaining unit employee to avoid displacement, are utilized to offset that employee’s moving and relocation costs, the amount of which shall be consistent with the Moving/Relocation section of the parties’ collective bargaining agreement.
6. Nothing in this section shall be interpreted or applied in such a manner as to interfere with the State or Federal court orders, the authority of the State or Federal courts or the authority of the special masters or receiver.
7. Relationship Between This Section And Related Statutes

The State is mindful of the constitutional and statutory obligations (e.g., Govt. Code § 19130) as it pertains to restriction on contracting out. Thus, nothing in this section is intended to interfere with pursuit of remedies for violation of these obligations as provided by law (e.g., Public Contract Code § 10337).

14.9.1 Classification Study: Investigative Auditor Work Classification Study (Unit 1)

The State and the Union agree to meet regarding investigative audit work performed by Bargaining Unit 1 classifications within the Board of Equalization, California Department of Tax and Fee Administration and Office of Tax Appeals, the Investigative Auditors at the Department of Justice, and the Investigative Certified Public Accountant class.

The State and the Union shall each be entitled to select a maximum of five (5) representatives. The State and Union shall each select its own representatives. The State agrees that the Union representatives who are State employees shall serve without loss of compensation.

If changes to the class specification becomes necessary, such changes will be done in accordance with section 14.1 of this Agreement.

14.9.11 Classification Review of Laboratory Assistant Series (Unit 11)

1. CalHR shall initiate a workgroup with departments employing the classifications listed below to determine the feasibility of conducting a classification review and/or classification consolidation necessary and appropriate to better align with current and projected workforce needs.
1. Laboratory Assistant
2. Laboratory Assistant (Correctional Facility)
3. Senior Laboratory Assistant
4. Senior Laboratory Assistant (Correctional Facility)
5. Supervising Laboratory Assistant I
2. Within six months of ratification by both parties, CalHR shall provide an update on this effort to the union. The parties shall discuss the merits of conducting a classification review and/or classification consolidation as well as a specific plan of action that may be established where such action(s) are deemed to have merit.
3. Any changes to the classification(s) shall be handled consistent with section 14.1 of this MOU.

14.9.14 Classification Review of Printing Trades Specialist Trainee Series (Unit 14)

1. Upon the Union’s request, the State agrees to meet with representatives of the Union to determine if changes to the class specifications for the Printing Trades Specialist Trainee Series are needed. These meetings will not exceed six (6) in total unless mutually agreed by both parties.
2. The State and the Union may each select up to four (4) representatives. The State agrees that the Union representatives who are State employees shall serve without loss of compensation.
3. Upon completion of the classification review, the State and the Union will jointly identify recommendations for changes to the Printing Trade Specialist Trainee Series. The Union shall be permitted to submit separate recommendations to the State. If the State determines that changes to the specifications are appropriate, the State agrees to pursue the revisions in accordance with section 14.1.

14.10.1 Classification Study: Television Specialist Classification Study (Unit 1)

During the term of this contract, the California Department of Human Resources will conduct a classification and specification review of the Television Specialist series.

If changes to the class specification become necessary, such changes will be done in accordance with section

14.1 of this Agreement.