Definitions

As used in 965 CMR 4.00, unless the context otherwise requires, the terms set forth in 965 CMR 4.02 are defined as follows: Consumer Price Index (CPI) shall mean the United States Department of Labor’s Bureau of Labor Statistics Index, All Urban Consumers, U.S. City Average, for all items (1982-84=100). CPI for Most Current Year (CPI-CY) shall mean the average CPI from the most recent December through November period. CPI for Previous Year (CPI-PY) shall mean the average CPI from the second most recent December through November period. CPI Change shall mean the difference between the CPI-CY and the CPI-PY. Current Privatization Threshold Amount shall mean the prior year’s Privatization Threshold Amount plus the Privatization Threshold Change. Department shall mean the Department of the State Auditor. Original Threshold Amount shall mean $500,000. Percent Change in CPI shall mean the percent increase or decrease in the average CPI from the previous year calculated by dividing the CPI Change by the CPI-PY. Privatization Contract shall mean an agreement or combination or series of agreements by which a non-governmental person or entity agrees with an agency to provide services, valued at the Current Threshold Amount, which are substantially similar to and in lieu of, services theretofore provided, in whole or in part, by regular employees of an agency. Any subsequent agreement, including any agreement resulting from a rebidding of previously privatized service, or any agreement renewing or extending a privatization contract, shall not be considered a privatization contract. A contract for information technology services shall not be considered a privatization contract if an employee organization recognized under M.G.L. c. 150E as the exclusive representative of an affected employee, as determined by the Secretary of Administration and Finance, agrees to the terms of the contract in writing. An agreement solely to provide legal, management consulting, planning, engineering, or design services shall not be considered a privatization contract. 4.02: continued Privatization Threshold Amount shall mean the dollar amount at which point a contract may be subject to M.G.L. c. 7, §§ 52 through 55. Privatization Threshold Change shall mean the prior year’s Privatization Threshold Amount multiplied by the Percent Change in the CPI.