Purchasing Modernization Bill Passes House Committee

CONTACT:

Jennifer Monies, Press Secretary

Oklahoma House of Representatives

Office of House Speaker Chris Benge

Office: 405-962-7679

Cell: 405-550-8144

Email: jenniferm@okhouse.gov



Purchasing Modernization Bill Passes House Committee



OKLAHOMA CITY (Feb. 9, 2009) – Legislation giving certain state agencies more purchasing flexibility to allow for greater savings unanimously passed out of House committee today.

House Bill 1410, by Rep. Jason Murphey, amends the Central Purchasing Act to allow for a restructuring of the Department of Central Service’s caseload. If the legislation is enacted, state buyers will have more time to focus on leveraging state spending patterns into more competitive prices. The buyers will also have more time for ongoing vendor performance monitoring to ensure quality.

“Government modernization is a top priority for the House this session, and a slower budget year gives us an opportunity to realize real savings,” said House Speaker Chris Benge, R-Tulsa. “We see this as a chance to make our government leaner and more efficient while still maintaining quality services to all Oklahomans.”

The bill also authorizes DCS’s State Purchasing Director to renegotiate existing contrasts in an attempt to get better rates for the state. An annual report documenting savings realized by each agency will also be required by the legislation.

“These are the type of savings that the state should have realized years ago,” said Murphey, R-Guthrie. “In a down budget year, we have an opportunity to find efficiencies without a painful impact on services seen on the street. This legislation will help us better leverage the state’s purchasing power.”

Murphey said he is pleased the governor included $35 million in purchasing savings in his budget proposal released last week, which was based on the results of hearings House Republicans held over the last two years showing huge efficiency and savings potential in the state’s purchasing practices.

A report conducted by IBM in 2007 showed Oklahoma could realize as much as $70 million in savings if purchasing best practices were put in place. A second report conducted recently by a company on contract with DCS found similar savings potential.

The legislation, which will now proceed to the full House for a vote, is part of the House Republican agenda to modernize and streamline government.