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PURCHASING IN OKLAHOMA LEGISLATIVE INTERIM STUDY

PURCHASING IN OKLAHOMA LEGISLATIVE INTERIM STUDY. November 8, 2011. HB 1674. OSBI Facing Budget Shortfalls Hiring Freeze Vehicle and Equipment on Hold Training Budget Reduced Service Contracts Reduced Possible Furloughs Products and Services. SPREADSHEETS.

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PURCHASING IN OKLAHOMA LEGISLATIVE INTERIM STUDY

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  1. PURCHASING IN OKLAHOMA LEGISLATIVE INTERIM STUDY November 8, 2011

  2. HB 1674 • OSBI Facing Budget Shortfalls • Hiring Freeze • Vehicle and Equipment on Hold • Training Budget Reduced • Service Contracts Reduced • Possible Furloughs • Products and Services

  3. SPREADSHEETS • Products and Services Used by OSBI • Compared Same or Like Items • Included Shipping Costs • Goal – Save Money

  4. DCS • Doing a Great Job • Mandatory vs Non-Mandatory • Best Interest of the State

  5. STATEWIDE CONTRACTS • Lab Supplies - $80,000 more • Maintenance, 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

  6. 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

  7. SUPPLIERS • 1.5% Administrative Fee • Quarterly Reports • Must be Registered With DCS • Even on contracts awarded at agency level • Sole source vendors • Other States

  8. STATE USE • Assists Persons with Developmental Disabilities • Support • Paying 1000% Higher Unreasonable • Exception for Price Not Possible

  9. 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%

  10. Certified Procurement Officers • 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

  11. FLEXIBILITY • 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

  12. THANK YOU

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