R33-8-101b. Transitional Costs -- Cost-Benefit Analysis

  (1) For the purpose of this section, the following definitions shall apply:

  (a) "Competing type of procurement item" means a type of procurement item that is the same, equivalent, or superior to the existing type of procurement item currently under contract in all material aspects including:

  (i) performance;

  (ii) specifications;

  (iii) scope of work; and

  (iv) provider qualifications, certifications, and licensing.

  (b) "Competing provider" means another provider other than the existing provider under contract that provides a competing type of procurement item.

  (c) "Significant", "unreasonable or cost-prohibitive" transitional costs are defined as costs associated with changing from an existing provider of a procurement item to another provider of that procurement item or from an existing type of procurement item to another type that:

  (i) constitute a measurably large amount that would likely have an influence or effect on the award of a contract if a competitive procurement were to be conducted for the procurement item being considered; and

  (ii) provides a compelling justification for not conducting a competitive standard procurement process.

  (2) Transitional costs that must be considered in a cost-benefit analysis include:

  (a) Costs that are directly associated with changing from an existing provider of a procurement item to a competing provider of that procurement item or from an existing type of procurement item to a competing type of procurement item; and

  (b) A full lifecycle cost analysis of the existing type of procurement item and competing type of procurement items in order to determine which procurement item is more cost-effective.

  (3) Transitional costs that may be considered in a cost-benefit analysis include:

  (a) Costs identified in Subsection 63G-6a-103;

  (b) Costs offered by a competing provider(s) for a competing type of procurement item in a competitive bid or RFP process conducted within the last 12 months;

  (c) Costs offered by a competing provider(s) for a competing type of procurement item in a competitive bid or RFP process conducted prior to the most recent 12 months, updated using an applicable price index;

  (d) Written cost estimates obtained by the conducting procurement unit from a competing provider(s) for a competing type of procurement item; and

  (e) Other transitional costs determined to be applicable by the chief procurement officer or head of a procurement unit with independent procurement authority.

  (4) Transitional costs or other information that may not be considered in a cost-benefit analysis include:

  (a) Costs prohibited in Subsection 63G-6a-103;

  (b) Data provided by the existing provider for the purpose of establishing:

  (i) the market value of the existing type of procurement item; or

  (ii) a competing provider's price for a competing type of procurement item;

  (c) Costs associated with any other procurement item other than the existing type of procurement item or a competing type of procurement item;

  (d) Non-monetary factors, such as the provider's performance, agency preference, and other data or information not specific to the transitional costs associated with the existing type of procurement item or a competing type of procurement item;

  (e) Factors other than the monetary transitional costs directly associated with changing from an existing provider of a procurement item to a competing provider of that procurement item or from an existing type of procurement item to a competing type of procurement item; and

  (f) Other transitional costs or other information deemed inappropriate by the chief procurement officer or head of a procurement unit with independent procurement authority.

  (5) The conducting procurement unit shall complete a written cost-benefit analysis and submit it to the issuing procurement unit for approval.

  (6) The cost-benefit analysis should not be overly time-consuming to complete or involve hiring costly consultants or financial analysts.