Tuesday, November 25, 2003

BY JOE DONOHUE
Star-Ledger Staff

New Jersey could save tens of millions of dollars annually by shifting more transportation engineering work from private contractors to state workers, according to Department of Transportation studies released yesterday.

Copies of the three studies were distributed at a news conference by members of the Communications Workers of America, which has battled for years against increased reliance on private contractors by state government.

CWA members worked hard to elect Gov. James E. McGreevey two years ago. Once he took office, DOT officials in his administration promised to investigate the issue.

Separate studies of three key areas where the DOT uses engineers -- project design, bridge inspections and construction projects -- arrived at the same conclusion: The state would save money by using its own personnel to do more engineering work.

Overall, the studies estimated it would cost an average of 38.3 percent less to use in-house engineers rather than hiring outside contractors, and recommended the state begin hiring more workers.

According to CWA officials, the DOT paid $67.3 million for the three types of engineering services in 2002. They estimated the state could have saved $26 million last year alone based on the results of the DOT studies.

Anna Farneski, spokeswoman for the DOT, said her agency would like to hire more engineers. But budget constraints are a problem. For one thing, the state has trouble paying salaries that are competitive with private industry. Early retirement programs pared the department's payroll by 500 people last year, she added.

She said Commissioner Jack Lettiere shares the CWA's view that the department should move away from reliance on private consultants, and is working with union leaders to "realize more efficiency here at DOT. We take it very seriously."

Jim Marketti, president of CWA Local 1032, said public workers generally can perform services more cheaply than private engineers because they don't have to produce a profit.

He said a previous DOT study a decade ago found similar savings. But the department kept hiring outside contractors and, over the decade, has reduced its in-house engineering work force by 500 positions, he said.

Marketti speculated why private contractors have become more popular: They are a ready source for campaign cash. A CWA study released yesterday found consulting engineers donated $8.5 million to state and county fund- raising committees since 1999.

"Private engineering firms give $2 million a year to politicians and, in exchange, everyone looks the other way while engineering firms charge $26 million more for their overpriced services," he said.

Farneski said the DOT adheres to strict procurement guidelines dictated by the federal government, and does not award contracts of any type based on political connections.

Joe Donohue covers state government. He can be reached at jdono hue@starledger.com or (609) 989-0208.