WHEREAS, Idaho State departments and agencies procure millions of dollars worth of goods and services annually, by contract, through public and private vendors; and

        WHEREAS, the citizens of Idaho are entitled to know how and where their tax dollars are being spent, including whether their taxes are being spent to utilize workers located in countries outside of the United States; and

        WHEREAS, the citizens of Idaho are also entitled to know the economic effect of state contracts performed outside the United States; and

        WHEREAS, international outsourcing can potentially decrease revenue and draw jobs away from Idahoans and Americans;

        NOW, THEREFORE, I, C.L. “BUTCH” OTTER, Governor of the State of Idaho, by virtue of the power and authority vested in me under the Constitution and laws of Idaho do hereby order:

1. The Division of Purchasing in the Department of Administration shall develop policies and procedures
     to ensure that all vendors seeking to enter into a service contract with the State or a contract to
     develop, sell or lease software to the State of Idaho disclose:

    a. The location by country where services under or related to the contract will be performed; and
    b. The location by country where any subcontracted services under or related to the contract will be
         performed.

2. In developing the policies and procedures directed under this Executive Order, the Division of
    Purchasing must consider the requirements of Idaho’s competitive bidding and contracting laws, the
    best interest of the State of Idaho and its citizens, as well as applicable federal requirements.

3. The Division of Purchasing shall not award a service contract to a vendor that fails to provide the
     information required above or adhere to polices and procedures established by the Division of
     Purchasing.

4. The Division of Purchasing shall not award a contract to a vendor who submits a bid or proposal to
     perform services, or have a subcontractor perform services, at a site outside the United States, or for
     the development, sale or licensing of software for the State unless one of the following conditions is
     met:

     a. The vendor or its subcontractor provides a unique service or software; the particular service or
         software is deemed mandatory for the purpose of the purchasing agency or department; and no
         comparable domestically provided service or software can adequately match the unique features of
         that provided by the vendor or its subcontractor; or
     b. The vendor or its subcontractor is a foreign firm hired to market Idaho services or products to a
         foreign country; or
     c. The State, as determined by the Division of Purchasing and the using agency, if applicable, would
         incur a significant and substantial cost if it failed to use the vendor or subcontractor; or
     d. The vendor or its subcontractor maintains a significant business presence in the United States and
         only performs a de minimus portion of work under the contract outside the United States.

5. If the contractor or subcontractor declares that services or work under the contract will be performed in
    the United States during the term of a contract and then proceeds to shift services or work outside of the
    United States, the contractor shall be in breach of the contract, unless the Division of Purchasing and
    the using agency first determine in writing that extraordinary circumstances require the shift or that a
    failure to shift would result in economic hardship to the State of Idaho.

6. For the purposes of this Executive Order, and only this Order, the term “State” or “State of Idaho” shall
    mean all state offices, departments, divisions, bureaus, boards, commissions, excluding the legislative
    and judicial branches of government and excluding the lieutenant governor, the secretary of state, the
    state controller, the state treasurer, the attorney general and the superintendent of public instruction.

IN WITNESS WHEREOF, I have hereunto set my hand and caused to be affixed the Great Seal of the State of Idaho in Boise on this 31st day of August in the year of our Lord two thousand and seven, and of the Independence of the United States of America the two hundred thirty-second and of the Statehood of Idaho the one hundred eighteenth.

BEN YSURSA
SECRETARY OF STATE