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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 3623 By: Harris
COMMITTEE SUBSTITUTE
An Act relating to state government; amending 74 O.S.
2021, Section 85.5, which relates to the powers and
duties of the State Purchasing Director ; requiring
submission of certain affidavit ; providing for
penalties; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 85.5, is
amended to read as follows:
Section 85.5 A. Except as otherwise provided in this section,
the State Purchasing Director, under the supervision of the Direc tor
of the Office of Management and Enterprise Services, shall have sole
and exclusive authority and responsibility for all acquisitions by
state agencies. In order to carry out the powers and duties o f the
Chief Information Officer and the Information Se rvices Division, the
Chief Information Officer shall have sole and exclusive authority
and responsibility for all acquisitions of information and
telecommunications technology, equipment, software, prod ucts and
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related peripherals and services by state age ncies. Public
construction contracts are awar ded pursuant to Title 61 of the
Oklahoma Statutes and are not subject to the Oklahoma Central
Purchasing Act.
B. Every state agency shall determine its own quantitative
needs for acquisitions and the general c lass or nature of the
acquisitions. The State Purchasing Director, after consultation
with the requisitioning state agency, shall have authority to
determine the particular brand, model or other specif ic
classification of each acquisition and to draft or invoke pursuant
to the Oklahoma Central Purcha sing Act specifications establishing
the requirements for all necessary contracts or purchase orders.
C. The Director of the Office of Management and Enter prise
Services shall have authority and responsibility to promulgate rules
in connection with provis ions of the Oklahoma Central Purchasing Act
for:
1. The time, manner, authentication and form of making
requisitions for acquisitions;
2. Inspection, anal ysis and testing of acquisitions or samples
bidders submit prior to contract award;
3. The form and manner of submission for bids or proposals a
bidder submits and the manner of accepting and opening bids or
proposals;
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4. The conditions under which the O ffice of Management and
Enterprise Services shall requ ire written contracts for
acquisitions, the co nditions under which acquisitions may be made on
an open account basis, and the conditions and manner of negotiating
such contracts;
5. Obtaining acquisiti ons produced by state institutions;
6. Conditions under which any of the rules herein authorized
may be waived;
7. The amounts of and deposits on any bond or other surety
required to be submitted with a bid or contract for the furnishing
of acquisitions and the conditions under which such bond or other
surety shall be required;
8. The manner and condi tions of delivery, which shall include
the designation of the common carrier of property to be used to
transport acquisitions whenever a common carrier is u sed, and the
acceptance, or rejection, including check of quantities, of any
acquisitions;
9. The form of any estimate, order or other information
required in connection with an acquisition;
10. State agency acquisitions not exceeding the acquisition
threshold amount requiring competitive bid to ensure
competitiveness, fairness, compliance with the Okl ahoma Central
Purchasing Act and Section 3001 et seq. of this title, which relates
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to the State Use Committee. The rules shall include separate
provisions based on acquisition amounts as follows:
a. state agencies shall make acquisitions not exceeding
Twenty-five Thousand Dollars ($25,000.00), provided
the acquisition process is fair and reasonable and is
conducted pursuant to rules authorized pursuant to
this section, and
b. state agencies with certified procu rement officers and
internal purchasing proced ures found compliant by the
State Purchasing Director may make acquisitions in
excess of the fair and reasonable acquisition
threshold amount provided for i n this section and not
exceeding Two Hundred Fifty Tho usand Dollars
($250,000.00), pursuant to rules authorized by this
section;
11. Training by the State Purchasing Director of state agency
procurement officers;
12. Review and audit by the State Purchas ing Director of state
agency acquisitions;
13. The conditions for increasing acquisition limits for state
agencies which have had a prior reduction in acquisition limit by
the Director of the Office of Management and Enterprise Services;
14. Use of a state purchase card to make acquisitions;
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15. Any other matter or practice which relates to the
responsibilities of the State Purchasing Director;
16. Conditions for determination and authorization of
acquisition threshold amounts of state agencies;
17. The form and manner of verification by suppliers that th e
supplier is eligible to do business in the S tate of Oklahoma and has
obtained all necessary permits and licenses, pursuant to applicable
provisions of law; and
18. Payment procedure rules for state a gencies to adhere to
regarding statewide contracts.
D. The State Purchasing Director shall provide training for
state agency procurement officials, and other procurement staff, and
is authorized to require retraining of such procurement personnel
found not to be in compliance with provisions of the Oklahoma
Central Purchasing Act or associated rules. T he training may
include any matters related to state procurement practices. State
agency purchasing officials that demonstrate proficiency shall be
certified as "certified procurement officers " by the State
Purchasing Director and shall be authorized to m ake acquisitions
pursuant to provisions of the Oklahoma Central Purchasing Act and
associated rules. The State Purchasing Director may assess a fee to
state agencies for the training that does not exceed each state
agency's pro rata share of the costs the State Purchasing Director
incurs to provide the training.
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E. The State Purchasing Director shall review state agency
acquisitions for the purposes of:
1. Ensuring state agency compliance with provisions of t he
Oklahoma Central Purchasing Act;
2. Ensuring state agency compliance with rules promulgated by
the Office of Management and Enterprise Services pursuant to the
Oklahoma Central Purchasing Act;
3. Ensuring state agency compliance with provisions of Sec tion
3001 et seq. of this title pertaining to the State Use Committee;
4. Reporting any acquisition by any state agency found not to
be in compliance with those sections or rules to the Director of the
Office of Management and Enterprise Services;
5. A determination by the State Purchasing Director to reduce a
state agency's acquisition authority amount when the state agency is
found not to be in compliance with the Oklahoma Central Purchasing
Act or associated rules or requirements of the State Purchasin g
Director pursuant to this section; and
6. A determination by the State Purchasing Director to increase
a state agency's acquisition authority amount after the agency cures
deficiencies in connection with a prior reduction in the authority
amount by the State Purchasing Director.
F. Based on written findings and when recommended by the State
Purchasing Director, the Director of the Office of Management and
Enterprise Services may:
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1. Transmit written findings by the State Purchasing Director
to the State Auditor and Inspector for further investigat ion,
indicating purchasing procedures that do not conform to the Oklahoma
Central Purchasing Act or associated rules; or
2. Transmit to the Attorney Genera l or the State Auditor and
Inspector for further inves tigation a report made by the State
Purchasing Director that the Director of the Office of Management
and Enterprise Services reasonably believes indicates that an action
that constitutes a criminal vio lation pursuant to the Oklahoma
Central Purchasing Act or other laws has been taken by any state
agency, state agency official, bidder or supplier.
G. 1. Pursuant to the requirements of the Oklahoma Central
Purchasing Act, the State Purchasing Director s hall have authority
to enter into any statewide, multi state or multigovernmental
contract. The state entity designated by law, as specified in
Section 1010.3 of Title 56 of the Oklahoma Statutes, shall
participate in the purchase of pharmaceuticals availa ble through
such multistate or multigovernmental contr acts entered into by the
State Purchasing Dire ctor.
2. Whenever it appears advantageous to the state or to any
state agency to purchase or otherwise acquire any acquisition which
may be offered for sal e by the United States government or any
agency thereof, the State Purchasing Director may execute a contract
for the acquisition with the federal government or federal agency
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and may also utilize contracts awarded by other governmental
agencies including, but not limited to, agencies of the United
States of America.
3. The State Purchasing Director may designate, for use by
state agencies, contracts described in this subsection and contracts
awarded on behalf of one or more state agencies.
4. Prior to exercising the authority to cancel a contract, the
State Purchasing Director may authorize renegotiati on of an existing
contract with an incumbent supplier for the purposes of obtaining
more favorable terms for the state.
5. The State Purchasing Director sh all have the authority to
designate certain contracts for state agencies as statewide
contracts and mandatory statewide contracts. In order to carry out
the powers and duties of the Chief Information Officer and
Information Services Division, the Chief In formation Officer shall
have the authority to designat e certain information technology and
telecommunication contracts as statewide contracts and mandatory
statewide contracts and may negotiate consolidation contracts,
enterprise agreements and high techno logy system contracts in lieu
of or in conjunction wit h competitive bidding procedures to reduce
acquisition cost.
6. The State Purchasing Director may publish such
specifications relating to materials, supplies, equipment and
services to be acquired for the state as may best promote
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competition and apprise potential suppliers of the type of product
desired.
H. 1. The State Purchasing Director may develop and test new
contracting policies, procedures and innovations that hold potential
for making state procurement more effective and efficient and
identify, and make recommendations to the Legislature of , any
appropriate changes in law. Such development and testing, proof of
concept, pilot project or other similar test shall not be considered
an acquisition subject to the Oklahoma Central Purchasing Act.
2. The State Purchasing Director is authorized to explore and
investigate cost savings in energy, resource usage and maintenance
contracts and to identify and negotiate contract solutions
including, but not limited to, pilot projects to achieve cost
savings for this state.
I. The State Purchasing Direct or shall endeavor to satisfy
state agencies in terms of cost, quality and timeliness of the
delivery of acquisitions by using bidders who have a record of
successful past performance, promoting competition, min imizing
administrative operating costs and con ducting business with
integrity, fairness and openness.
J. The State Purchasing Director shall undertake the following:
1. The use of electronic commerce pursuant to the Oklahoma
Online Bidding Act for solici tation, notification and other
purchasing processes;
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2. Monitoring rules promulgated pursuant to the Oklahoma
Central Purchasing Act to ensure that the rules satisfy the
interests of the state, are cle ar and succinct and encourage
efficiency in purchasing processes;
3. A program to identify supplier s' performance records;
4. Development of criteria for the use of sealed bid
contracting procedures, negotiated contracting procedures, selection
of types of contracts, postaward administration of purchase ord ers
and contracts, addendums, termination of c ontracts and contract
pricing;
5. Continual improvement in the quality of the performance of
the Purchasing Division through training programs, management
seminars, development of benchmarks and key management indicators,
and development of standard provi sions, clauses and forms;
6. The State Purchasing Director shall prescribe standardized
contract forms and all other forms or certifications requisite or
deemed necessary by the State Purchasing Director to ef fectuate the
provisions of the Oklahoma Centra l Purchasing Act and associated
rules;
7. Development of programs to improve customer relations
through training, improved communications and appointment o f
technical representatives;
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8. Provide for public tw o-way communication between procurement
officers and potential bidders who have questions regarding a
request for proposal or invitation to bid; and
9. Determine whether and to what extent information included in
a bid or similar offer is confidential and reject all requests to
disclose the informati on so designated.
K. The State Purchasing Director may utilize and authorize
state agencies to utilize reverse auctions to obtain acquisitions.
L. Prior to the award of a contract to a supplier, the State
Purchasing Director shall verify, pursuant to app licable provisions
of law, that the supplier is eligible to do business in this state
by confirming registration with the Secretary of State and franchise
tax payment status pursuant to Sections 1203 and 1204 o f Title 68 of
the Oklahoma Statutes. The prov isions of this subsection shall be
applicable only if the contract amount is Two Hundred Fifty Thousand
Dollars ($250,000.00) or greater.
M. On an annual basis, the State Purchasing Director shall
transmit to the Governor, Speaker of the House of Represen tatives
and President Pro Tempore of the Senate a report documenting the
savings realized by each agency through the application of best
spend practices including the collection and tracking of spend data,
strategic sourcing programs and implementation of managed and
mandatory statewide contracts and include in the report information
regarding emergency acquisitions.
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N. The acquisition threshold amount appli cable to an
acquisition made pursuant to this act or a ssociated rules shall not
apply to state agenc y purchases; provided, the State Purchasing
Director determines the agency has subject matter experts on staff
having the specialized expertise to purchase goods or services, the
agency possesses the necessary legal and procurement staff to
procure and monitor the contracts and provided the Director of the
Office of Management and Enterprise Services shall certify that the
proposed purchase does not conflict with consolidated statewide
spend initiatives.
1. Nothing in this subsection shall give an agency a uthority to
issue statewide, multistate or multigovernmental contracts.
2. Agencies making purchases pursuant to this subsection shall:
a. be responsible for contracts awarded pursuant to this
subsection, which includes, but may not be limited to,
contract management, protest costs, all costs
connected with or incurred as a result of the
contract, including legal representation,
b. comply with rules and poli cies of the Office of
Management and Enterprise Servic es, and
c. report contracts issued pursuant to this subsection to
the Office of Management and Enterprise Services,
Central Purchasing Division, on a quarterly basis.
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3. Purchases made in accordance wi th this subsection shall be
made pursuant to rules aut horized by this section.
O. The State Purchas ing Director, with approval by the Director
of the Office of Management and Enterprise Services, is authorized
to make use of any state laboratories for the tests and analyses
authorized in this section whereve r practicable and to use private
laboratories or the laboratories of another government agency if it
is impracticable to use state laboratories. The State Purchasing
Director is further authorized to c ooperate in test and analysis
programs or agreements w ith other states or the United States
government and to accept federal funds and funds donated by private
endowments or foundations for the purpose of participation in such
testing programs.
P. The State Purchasing Director shall require all contractors
or subcontractors who have entered into a contract with a public
employer to submit an affidavit that the contractor or subcontractor
is in compliance with the provisions of Section 1313 of Title 25 of
the Oklahoma Statutes. If the State Purchasing Directo r determines
that a contractor or subcontractor has knowingly submitted a false
affidavit:
1. The contractor or subcontractor shall be liable for a n
administrative penalty of Five Thousand Dollars ($5,000.00) for the
first offense, which shall increase by Two Thousand Dollars
($2,000.00) for each subsequent offense; and
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2. The public employer or the Office of Management and
Enterprise Services may terminate the contract with the contractor
or subcontractor.
SECTION 2. This act shall become effe ctive November 1, 2024.
59-2-10551 LRB 03/04/24