State spending on outside contracts more than doubled over the past decade before dropping slightly last year to $743.7 million, according to a report released Friday.

State Sen. Robert Cowles, R-Green Bay, said the report gives added weight to his call for a more concise method for the state to outsource work to contractors and more stringent standards for deciding when such work is necessary.

“This is a biggie that we need to get our arms around and solve,” Cowles said.

The Department of Administration compiled figures on outside contracts amid concerns of the growing costs and questions over whether state employees could do the work cheaper themselves.

It was reported in August the state had agreed to spend nearly $165,000 to contract out a job tracking road signs rather than keeping the work in-house for about $52,000.

The report found state spending on outside contracts for professional services, information technology and other work jumped 127 percent over the decade that ended June 30, 2003, to $747 million. The cost of those contracts dropped $3.3 million over the following fiscal year, which ended June 30, to $743.7 million.

Farley said the tally was the first the state had done since 1999. The software the state used in the past was not Y2K compliant and was never updated. The system the Administration Department used for this tally only breaks down contracting costs in general categories.

The University of Wisconsin System was the biggest contractor among state agencies, spending $220 million on outside contracts in the fiscal year that ended June 30.

UW System spokesman Doug Bradley said he could not provide specifics, but he said the system has begun hiring others to implement an integrated accounting program so each campus tracks information in various areas the same way.

He said the endeavor has high upfront costs but is expected to save the system money in the long run.

Gov. Jim Doyle issued a series of orders to his agency heads last month to review service contracts and find ways to cut their costs. The order includes identifying existing contracts that could be consolidated, eliminated or rebid for less money. The governor also asked agency heads to make recommendations for eliminating unneeded contracts in the next two-year budget.

Doyle spokeswoman Melanie Fonder said it is part of the governor’s effort to control state spending and cut the size of state government.

“State government during the 1990s grew at an unprecedented rate,” she said. “Gov. Doyle is working to ensure that this trend is reversed.”

Still, Cowles said the governor has yet to furnish details on how the state can create a standardized process for contract bidding. He said many companies refuse to bid on state contracts because the process is so complicated. The easier it is to bid on contracts, the more people will make offers, driving down the costs, he said.

Cowles said the state also needs to take a close look at all of its contracts because he fears many of them are wasteful.

“As we peel off the various levels of this onion, you’re going to find some rotten points in there. The goal is to save money,” he said.

The Post Crescent

-- Anonymous, October 16, 2004