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Legislation Document
SPONSOR:
Rep. Berry & Sen. Huxtable
Rep. K. Johnson; Sen. Lockman
HOUSE OF REPRESENTATIVES
153rd GENERAL ASSEMBLY
HOUSE JOINT RESOLUTION NO. 12
ESTABLISHING A TASK FORCE TO STUDY AND MODERNIZE DELAWARE’S PROCUREMENT, GRANTMAKING, AND CONTRACTING PRACTICES WITH CONTRACTED SERVICE PROVIDERS.
WHEREAS, nonprofit and for-profit organizations provide critical services on behalf of the State of Delaware, including healthcare, behavioral health, housing assistance, food security, disability services, child welfare, workforce development, and other essential state service programs; and
WHEREAS, these organizations serve Delaware residents efficiently and cost effectively while supporting vulnerable populations and filling essential service gaps that would otherwise require direct State operation and administration; and
WHEREAS, many contracted services providers have indicated that State reimbursement rates may benefit from updates to better reflect current market conditions and the cost of delivering services, including workforce compensation, healthcare, technology, facilities, compliance, and other indirect operating expenses; and
WHEREAS, ensuring adequate reimbursement for contracted services supports workforce stability, employee retention, operational sustainability, and the continued delivery of quality services for Delaware residents; and
WHEREAS, nonprofit and for-profit providers have shared feedback regarding opportunities to strengthen Delaware's procurement, grantmaking, and contracting processes, including areas such as reporting requirements, contract execution timelines, agency procedures, administrative processes, and contract term flexibility; and
WHEREAS, states across the nation are adopting reforms to procurement and contracting systems that support full cost recovery, improve accountability and transparency, streamline administration, and strengthen the sustainability of contracted service providers; and
WHEREAS, Delaware would benefit from a comprehensive review of its procurement, grantmaking, and contracting systems to identify reforms that improve efficiency, reduce administrative burdens, promote fiscal accountability, and ensure continuity and quality of services delivered to Delaware residents.
NOW, THEREFORE:
BE IT RESOLVED by the House of Representatives and the Senate of the 153rd General Assembly of the State of Delaware, with the approval of the Governor, that the Delaware Task Force on Procurement and Contracting Modernization (“Task Force”) is hereby established.
BE IT FURTHER RESOLVED that the Task Force be comprised of the following members, or a designee selected by a member serving by virtue of position:
(1) One member of the Senate, from the Majority Caucus, appointed by the President Pro Tempore of the Senate, who shall serve as Co-Chair.
(2) One member of the House, from the Majority Caucus, appointed by the Speaker of the House, who shall serve as Co-Chair.
(3) One member of the Senate, from the Minority Caucus, appointed by the President Pro Tempore of the Senate.
(4) One member of the House, from the Minority Caucus, appointed by the Speaker of the House.
(5) The Director of the Office of Management and Budget.
(6) The Secretary of Finance.
(7) The Secretary of Health and Social Services.
(8) A member of the Contracting and Purchasing Advisory Council, appointed by the Governor.
(9) A representative of the Office of the Governor, appointed by the Governor.
(10) The Treasurer.
(11) The Executive Director of the Delaware Alliance for Nonprofit Advancement.
(12) A representative of a nonprofit organization that currently provides contracted services on behalf of the State, appointed by the President Pro Tempore of the Senate.
(13) A representative of a nonprofit organization that currently provides contracted services on behalf of the State, appointed by the Speaker of the House.
(14) A representative of a for-profit organization that currently provides contracted services on behalf of the State, appointed by the President Pro Tempore of the Senate.
(15) A representative of a for-profit organization that currently provides contracted services on behalf of the State, appointed by the Speaker of the House.
(16) A public member with expertise in public procurement, accounting, finance, or contract administration, appointed by the President Pro Tempore of the Senate.
(17) A public member with expertise in public procurement, accounting, finance, or contract administration, appointed by the Speaker of the House.
BE IT FURTHER RESOLVED that members serving by virtue of position who are granted the ability to designate another individual to attend a Task Force meeting must provide the designation in writing to the Co-Chairs. An individual attending a meeting for a member serving by virtue of position has the same duties and rights as the member serving by virtue of position.
BE IT FURTHER RESOLVED that the Co-Chairs of the Task Force be responsible for guiding the administration of the Task Force by, at a minimum, doing all of the following:
(1) Notifying the individuals who are members of the Task Force and, if applicable, notifying a person of the need to nominate or appoint a member.
(2) Setting a date, time, and place for all meetings.
(3) Supervising the preparation and distribution of Task Force meeting notices, agendas, minutes, correspondence, and reports.
(4) Providing meeting notices, agendas, and minutes to the Director of the Division of Legislative Services.
BE IT FURTHER RESOLVED that the Task Force must hold its first meeting not later than September 30, 2026.
BE IT FURTHER RESOLVED that: official action by the Task Force, including making findings and recommendations, requires the approval of a quorum of the Task Force. A quorum of the Task Force is a majority of its members.
BE IT FURTHER RESOLVED that the Task Force shall examine Delaware’s procurement, grantmaking, and contracting practices and make recommendations regarding all of the following:
(1) Measures to improve the timely execution, renewal, modification, payment, and reimbursement of State contracts, grants, and federal pass-through agreements.
(2) Methods for ensuring that reimbursement rates and contract amounts better reflect the actual cost of providing contracted services, including reasonable indirect, administrative, workforce, compliance, technology, and facility costs.
(3) Opportunities to standardize core contract, grant, and procurement practices across State agencies, including application requirements, reporting requirements, compliance obligations, contract language, renewal procedures, and advance notice of material changes.
(4) Opportunities to improve public transparency, data collection, and reporting regarding State contracts, grants, federal pass-through funds, contract amounts, payment status, renewals, and agency procurement practices.
(5) Legislative, regulatory, administrative, or budgetary changes necessary to reduce unnecessary administrative burdens, strengthen accountability, support provider sustainability, and ensure continuity of services for Delaware residents.
BE IT FURTHER RESOLVED that the Task Force shall submit a report by September 30, 2027, including findings and recommendations and any recommended legislation, to the Governor, the Director of the Division of Legislative Services, and the Secretary of the Senate and the Chief Clerk of the House of Representatives for distribution to all members.
SYNOPSIS
This House Joint Resolution establishes the Delaware Task Force on Procurement and Contracting Modernization. It also requires the Task Force to submit a report by September 30, 2027, with its findings and recommendations and any recommended legislation to improve Delaware’s procurement, grantmaking, and contracting practices.