Requires cost analysis in certain cases when State department contracts out work.

New Jersey Senate Bill S2733 requires state departments to conduct a cost analysis before contracting out work exceeding $100,000 that is typically performed by state employees. The analysis must evaluate labor, equipment, displacement costs, and other factors to determine if using private contractors is more cost-effective than hiring state staff, while also assessing public interest in direct state performance. Departments must file this analysis with the Office of Management and Budget for public review and provide copies to labor unions and legislative committees, allowing 20 business days for union input before finalizing contracts. The bill permits pilot projects for new work types but prohibits contracts with contractors whose principals previously worked for the relevant state department in the past two years.