Prohibits contracting where performance of work by civil service employees is less costly unless urgent need for contract. Prohibits contracts which Controller or awarding agency determines are against public interest, health, safety or where quality of work would be lower than civil service work. Contractors must indemnify state in suits related to performance of contracts. Requires defined competitive bidding of state-funded design and engineering contracts over $50,000, unless delay from bidding would endanger public health or safety. Provisions severable and should be harmonized with similar measures on subject.