(1) No contingency-based contract shall be deemed valid unless the head of the principal department of state government entering into the contract or containing the agency entering into the contract submits the contract and an analysis of the contract to the office as required by paragraph (b) of subsection (2) of this section and the office approves the contract and transmits its approval in writing to the department. The state controller shall also promptly forward each contingency-based contract that it reviews pursuant to section 24-30-202 to the office. (2) (a) Whenever a principal department of state government or another state agency enters into a contingency-based contract, the department or agency shall prepare an analysis of the contract that addresses: (I) The extent to which the contract requires the vendor's compensation to be computed on a contingency basis and the maximum potential contractual liability to pay contingency-based compensation to the vendor; (II) The extent to which it is necessary to offer contingency-based compensation to the vendor and the amount of any reduction in fixed contractual costs achieved by offering contingency-based compensation; (III) The extent to which the contractually specified performance measure used to determine contingency-based compensation is appropriate and capable of being accurately determined; (IV) The extent to which the contingency-based compensation specified in the contract might affect the state budgeting and appropriations process; and (V) Any other factors that the department or agency deems relevant to consider in evaluating the contract. (b) The head of a principal department of state government entering into a contingency- based contract or containing an agency entering into a contingency-based contract shall sign both the contract and the analysis prepared pursuant to paragraph (a) of this subsection (2) and shall submit both the contract and the analysis to the office so that the office may approve or disapprove the contract. (c) Upon receipt of a contingency-based contract and analysis, the office shall review and either approve or disapprove the contract. The office shall promptly transmit written notification of a decision to approve a contingency-based contract to the head of the principal department that submitted the contract to the office and the joint budget committee of the general assembly. The office shall promptly transmit written notification of a decision to disapprove a contingency-based contract only to the head of the principal department that submitted the contract to the office.
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