PURCHASING IN OKLAHOMA LEGISLATIVE

INTERIM STUDY

November 8, 2011

OSBI Facing Budget Shortfalls◦Hiring Freeze◦Vehicle and Equipment on Hold◦Training Budget Reduced◦Service Contracts Reduced◦Possible Furloughs

Products and Services

HB 1674

Products and Services Used by OSBI

Compared Same or Like ItemsIncluded Shipping CostsGoal – Save Money

SPREADSHEETS

Doing a Great Job

Mandatory vs Non-Mandatory

Best Interest of the State

DCS

Lab Supplies - $80,000 moreMaintenance, Repair and Operations – MRO ◦ Thousands of Items – Impossible to Assure Lowest

Price◦ More Items Added – Trash Bags – 20-30 Gallon

Cancelled Contract - $24.99 MRO - $59.05 136% Increase

◦ Exemption Requests – OSBI and Others

STATEWIDE CONTRACTS

Best Interest of the State◦ Conditions Change◦ Prices Fluctuate◦ Fewer Providers Can Result in Higher Prices◦ 5 Year Contract – No Incentive to Lower Price◦ DCS Renegotiating - Not Realistic◦ Large Vendor Pools vs. Small Vendor Pools◦ Manufacturers Retail Price - Discount

Successful Mandatory Contracts◦ Extensive knowledge and expertise◦ Multiple commodities◦ Time constraints

STATEWIDE CONTRACTS

1.5% Administrative FeeQuarterly ReportsMust be Registered With DCS◦Even on contracts awarded at agency level

◦Sole source vendors◦Other States

SUPPLIERS

Assists Persons with Developmental Disabilities

SupportPaying 1000% Higher Unreasonable

Exception for Price Not Possible

STATE USE

Blu Ray Disks – Optical Optimum – 50 Pk◦ State Use - $307.85◦ Newegg.com - $37.99 + $.99 shipping - $38.98◦ Difference of 690%

#2 Pencils◦ State Use - $.18 each◦ Federal GSA Contract – Office Depot - $.02 (free

shipping)◦ Difference of 800%

Ink Pens – 1000% Toner Cartridges and CD Sleeves – Almost 400%

STATE USE

Trained to do Purchasing Experts for Designated Agency Conscientious About Getting Best Value for

Taxpayer $ Should Be Given Opportunity to Buy at the

Lowest Price Exception Requests

Certified Procurement Officers

If Better Pricing From Open Market ◦ Allow Purchase From the One Who Provides Best

Value for Taxpayer $◦ Without Exception Request◦ Small % Markup in Calculation for Admin Fee and

reporting requirements Not Mandatory - Could Motivate Vendors to

Bid More Competitively

FLEXIBILITY

THANK YOU