A Senate committee Wednesday backed a measure aimed at stepping up oversight of multimillion-dollar contracts for large-scale computer projects and state purchases.

A similar bill was vetoed last year by Republican Gov. Bill Owens.

Sen. Peter Groff, D-Denver, revived his bill after highway workers complained a new $39 million system at the Colorado Department of Transportation short- changed them overtime.

"I think this bill will reduce waste and create transparency and create much-needed accountability in tracking these large projects," Groff said.

Senate Bill 228 passed on a party-line vote. Democrats favored it; Republicans opposed it.

Sen. Dave Schultheis, R-Colorado Springs, balked that the state will have to hire 36 full-time employees and spend $1.2 million to monitor private vendors.

"It never ceases to amaze me we have to spend all of this money to save so-called money," he said.

But backers pointed out the state spends nearly $4 billion annually on private vendors.

Groff's measure would put in place tougher vendor performance standards. It requires state agencies to monitor contracts over $500,000 and calls for creation of a centralized database to track the work of vendors as well as provide information on how and why a particular vendor was selected.

The crackdown comes after multimillion-dollar computer projects undertaken by the state in recent years ran aground.

CDOT Director Russ George on Wednesday told the Joint Budget Committee he will need more money to take care of the computer system he inherited when he took over the department in January after Democrat Bill Ritter became governor.

George said he's still assessing the amount.

JBC officials were relieved to hear that the system is salvageable, and a chunk of the problems have been corrected by fixing coding and properly training workers.

In 2005, the Colorado Department of Labor and Employment and the secretary of state were forced to dump two computer contracts totaling $51 million.

And the computer system that pays welfare benefits, the Colorado Benefits Management System, is suspected of $98 million in overpayments to clients. Counties and the state may have to reimburse the federal government.

"Those glitches and hiccups and partial performances are costing us millions of dollars," Groff said. "If we have something in place to save money up front, we won't have those issues."