“Today, I am disappointed that the Bloomberg administration failed to approve the Outsourcing Accountability Act. This fiscally responsible, common sense legislation would have amended a 1994 law to ensure that the City routinely weigh the necessity of outside contracts that cost taxpayers billions of dollars each year.

This past week, the Council held an oversight hearing on outsourced information technology ventures – an area of contract expenditure that the Administration conceded would benefit from greater oversight. The Outsourcing Accountability Act would increase transparency and allow Council oversight of such projects at their inception, while fostering greater competition and maximizing cost efficiencies when the City considers entering into a broader universe of service contracts.

Local Law 35 of 1994 intended to further such goals by requiring City agencies to perform cost benefit analyses whenever outsourcing would result in the displacement of City employees. But the Administration, whose predecessor also vetoed that legislation, has interpreted and applied the law in a way that has failed to effectuate its goals. By vetoing this bill, the Administration stifles both the intent of the 1994 law and the increased competition that the amended legislation would bring. The Council simply wants City agencies to consider costs and thoughtfully review decisions to outsource. These tough economic times demand nothing less.

This bill does not limit the City’s ability to outsource. Nor does it add an unnecessary bureaucratic layer to contracting. Rather, the bill intends to ensure that when the City outsources, it does so in the best economic interests of all City taxpayers.

The Council’s unanimous vote in favor of the Outsourcing Accountability Act underscores the need for — and merits — of this legislation. We plan to override this veto as soon as possible.”

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