Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 554 - BUREAU OF GENERAL SERVICES › Chapter 155 - RULES FOR DEFINING AN EQUIVALENT BASIS FOR COST COMPARISON BETWEEN STATE EMPLOYEE AND PRIVATE CONTRACTOR PROVISION OF SERVICES › Part One - GENERAL › Section 554-155-One-Two - Definitions

Current through 2024-29, July 17, 2024
Summary:
This section defines terms used in
					 the rule. Terms may be found in the text of the rule or the associated forms
					 which require completion by the agency/department and bidders. Statutory
					 definitions relating to the subject matter are contained in 5 MRSA1825-A.
					 Definitions.
Administrative Costs
The charges made by a contractor providing personal
								services to recruit, select, retain, train, place, and supervise temporary
								workers; profit; and associated allowed costs, calculated on an annualized
								basis per FTE.
Classification Specification
Positions so sufficiently alike with respect to
								duties, responsibilities and authority that the same descriptive title may be
								used with clarity to designate each such position; the same knowledge, skill,
								and ability applied; the same process used to recruit, qualify and examine
								persons for each such position; and the same schedule of pay applied with
								equity to each such position.
Comparable Position
A state position that completes job duties similar
								to those being requested under a personal services contract. Job duties of
								state workers must be those described in a comparable classification
								specification.
Competitive Bidding Process
CBP
Depending on the circumstances, a process which
								allows use of either a solicited proposal or quotation for services from all
								known service providers in an area if the expected annual contract value is
								less than twenty thousand dollars (<$20,000).
Cost Differentials
In general, the difference between the temporary
								worker base cost and the state worker base cost. Cost differentials are
								calculated in the aggregate over the life of the contract.
Equivalent Basis (see mathematical expression)
The dollar value of an employee's Fully Burdened
								Employee Cost (FBEC) less health benefits and retirement benefits, calculated
								on an annualized basis. Equivalent Basis = FBEC - (health insurance +
								retirement benefit costs).
Full Time Equivalent
FTE
(see
								mathematical expression)
A computed statistic representing the number of
								full-time employees that could have been employed if the reported number of
								hours worked by part-time, temporary, or intermittent employees had been worked
								by full-time employees. This statistic is calculated by dividing the hours
								worked per year by 2080 and is commonly reported as a whole number, decimal or
								fraction. Full Time Equivalent = hours worked in 12 months/2080
Fully Burdened Employee Cost
FBEC
The total cost of an employee's salary and benefits
								including the base salary and all premium adjustments and stipends, state paid
								amounts for retirement, health, dental, and life insurance, and the amount
								associated with workers' compensation. This amount is found as the "total cost"
								on the employee Position Profile Report.
Health Benefit Costs
Annualized dollar value of major medical and dental
								insurance provided at the expense of the employer, covering the employee only.
								For state workers, these are the health and dental costs shown on the Position
								Profile Report.
Job Duties
The functional tasks of a position, expressed in
								percentage of time per FTE, describing fundamental responsibilities which
								account for five percent (5%) or more of the work. Job duties for state workers
								must significantly correlate to or be those listed in the classification
								specification of the specific position.
Lay-off Notice Cost (see mathematical expression)
The cost associated with the lay-off notice period.
								This cost is the sum of total benefits and total salary as taken from the
								Position Profile Report divided by 52 and multiplied by the number of weeks of
								the lay-off notice period. Lay-off Notice Cost = FBEC/52 x Number of Weeks in
								Lay-off Notice Period.
Lay-off Notice Period
The period of notice required for lay-offs of state
								workers as specified in collective bargaining agreements.
Position Profile Report
A report from the Budget and Financial Management
								System produced for each authorized position in state government summarizing
								the salary and benefit costs of the position.
Request For Proposal
RFP
A formal and structured inquiry published by an
								agency or department of state government soliciting information by which a
								selection may be made of a contractor to provide specific services.
Retirement Benefit Costs
Annualized employer contributions to Social Security
								or the Maine State Retirement System. Retirement benefits for state workers are
								the sum of normal and unfunded liability and administrative costs on behalf of
								the Retirement System and health costs taken from the Position Profile Report.
Social Security
Contributions made by the employer pursuant to the
								Federal Insurance Contributions Act.
State Worker Base Cost
SWBC
(see
								mathematical expression)
The cost to the state to utilize state employees to
								provide services. This is calculated as the Fully Burdened Employee Cost (FBEC)
								less health and retirement benefits plus a supervisory adjustment, unemployment
								costs, and the lay off notice cost at step 3 of the pay range. SWBC = FBEC -
								(health insurance and retirement benefit costs) + supervisory adjustment +
								unemployment costs + lay off notice cost.
Supervisory Adjustment
The estimated additional cost to the State,
								calculated on an annualized basis, associated with the need to add supervisory
								staff to deal with the administration of state workers when temporary workers
								cannot be hired. It is the product of the number of additional supervisors
								required and the supervisors' compensation.
Supervisor's Compensation
The sum of the total salary and the value of the
								total benefits, taken from the Position Profile Report, for the supervisor of
								the comparable position.
Temporary Worker Base Cost
TWBC
(see mathematical expression)
The annualized cost for the provision of temporary,
								non-civil service workers. This is calculated as the annual value of the hourly
								wage less the combined health and retirement benefits plus administrative
								costs. TWBC = Hourly Wage Annualized - (health insurance and retirement benefit
								costs) + administrative costs.
Total Benefits
The total benefits of a specific position, taken
								from the Position Profile Report.
Total Salary
The total salary of a specific position, taken from
								the Position Profile Report.
Unemployment Costs
The arithmetic mean of the state's total
								unemployment costs over the preceding five years, or years for which data are
								available, expressed as the product of a percentage of the base cost and the
								state worker base salary over a 26 week period. Unemployment Costs = (([]State
								Unemployment Cost/[]State Payroll)n1..n5/n) * Annual Equivalent Cost * 0.5) The
								sum of State Unemployment Costs divided by the sum of State Payroll Costs for
								up to 5 years multiplied by the Annual Equivalent Cost times 0.5.