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Virginia gov orders evaluation of state contracts

Wednesday - 7/9/2014, 4:50pm  ET

RICHMOND, Va. (AP) -- Virginia Gov. Terry McAuliffe is ordering the evaluation of the state's major information technology and service contracts.

McAuliffe on Wednesday directed Virginia's secretaries of administration, finance and technology to deliver a report on the state's contracting practices.

According to the executive directive, McAuliffe is requesting the review out of concern that the state is dependent on expensive contract labor when state employees can perform at a higher level at a lower cost.

The secretaries are to make recommendations on how to spend taxpayer dollars with greater efficiency and accountability. They also are to evaluate the impacts of insourcing versus outsourcing contract services and study the extent to which contracting companies may misclassify workers in a way that could result in them being denied benefits such as health coverage.


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