1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 HOUSE BILL 3129 By: Williams
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6 AS INTRODUCED
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7 An Act relating to state government; amending 74 O.S.
7 2021, Sections 85.5, 85.7, as last amended by Section
8 1, Chapter 339, O.S.L. 2023 (74 O.S. Supp. 2023,
8 Section 85.7), 85.33 and 85.44d.1, which relate to
9 the Oklahoma Central Purchasing Act; modifying powers
9 and duties of the State Purchasing Director;
10 prohibiting state agencies from certain contracts;
10 providing exception; removing certain fee amount;
11 modifying sole source acquisition; removing sole
11 brand; and providing an effective date.
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15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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16 SECTION 1. AMENDATORY 74 O.S. 2021, Section 85.5, is
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17 amended to read as follows:
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18 Section 85.5 A. Except as otherwise provided in this section,
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19 the State Purchasing Director, under the supervision of the Director
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20 of the Office of Management and Enterprise Services, shall have sole
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21 and exclusive authority and responsibility for all acquisitions by
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22 state agencies. In order to carry out the powers and duties of the
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23 Chief Information Officer and the Information Services Division, the
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24 Chief Information Officer shall have sole and exclusive authority
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 1 and responsibility for all acquisitions of information and
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2 telecommunications technology, equipment, software, products and
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3 related peripherals and services by state agencies. Public
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4 construction contracts are awarded pursuant to Title 61 of the
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5 Oklahoma Statutes and are not subject to the Oklahoma Central
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6 Purchasing Act.
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7 B. Every state agency shall determine its own quantitative
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8 needs for acquisitions and the general class or nature of the
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9 acquisitions. The State Purchasing Director, after consultation
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10 with the requisitioning state agency, shall have authority to
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11 determine the particular brand, model or other specific
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12 classification of each acquisition and to draft or invoke pursuant
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13 to the Oklahoma Central Purchasing Act specifications establishing
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14 the requirements for all necessary contracts or purchase orders.
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15 C. The Director of the Office of Management and Enterprise
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16 Services shall have authority and responsibility to promulgate rules
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17 in connection with provisions of the Oklahoma Central Purchasing Act
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18 for:
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19 1. The time, manner, authentication and form of making
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20 requisitions for acquisitions;
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21 2. Inspection, analysis and testing of acquisitions or samples
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22 bidders submit prior to contract award;
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 1 3. The form and manner of submission for bids or proposals a
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2 bidder submits and the manner of accepting and opening bids or
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3 proposals;
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4 4. The conditions under which the Office of Management and
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5 Enterprise Services shall require written contracts for
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6 acquisitions, the conditions under which acquisitions may be made on
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7 an open account basis, and the conditions and manner of negotiating
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8 such contracts;
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9 5. Obtaining acquisitions produced by state institutions;
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10 6. Conditions under which any of the rules herein authorized
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11 may be waived;
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12 7. The amounts of and deposits on any bond or other surety
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13 required to be submitted with a bid or contract for the furnishing
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14 of acquisitions and the conditions under which such bond or other
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15 surety shall be required;
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16 8. The manner and conditions of delivery, which shall include
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17 the designation of the common carrier of property to be used to
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18 transport acquisitions whenever a common carrier is used, and the
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19 acceptance, or rejection, including check of quantities, of any
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20 acquisitions;
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21 9. The form of any estimate, order or other information
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22 required in connection with an acquisition;
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23 10. State agency acquisitions not exceeding the acquisition
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24 threshold amount requiring competitive bid to ensure
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 1 competitiveness, fairness, compliance with the Oklahoma Central
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2 Purchasing Act and Section 3001 et seq. of this title, which relates
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3 to the State Use Committee. The rules shall include separate
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4 provisions based on acquisition amounts as follows:
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5 a. state agencies shall make acquisitions not exceeding
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6 Twenty-five Thousand Dollars ($25,000.00), provided
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7 the acquisition process is fair and reasonable and is
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8 conducted pursuant to rules authorized pursuant to
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9 this section, and
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10 b. state agencies with certified procurement officers and
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11 internal purchasing procedures found compliant by the
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12 State Purchasing Director may make acquisitions in
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13 excess of the fair and reasonable acquisition
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14 threshold amount provided for in this section and not
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15 exceeding Two Hundred Fifty Thousand Dollars
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16 ($250,000.00), pursuant to rules authorized by this
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17 section;
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18 11. Training by the State Purchasing Director of state agency
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19 procurement officers;
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20 12. Review and audit by the State Purchasing Director of state
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21 agency acquisitions;
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22 13. The conditions for increasing acquisition limits for state
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23 agencies which have had a prior reduction in acquisition limit by
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24 the Director of the Office of Management and Enterprise Services;
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 1 14. Use of a state purchase card to make acquisitions;
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2 15. Any other matter or practice which relates to the
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3 responsibilities of the State Purchasing Director;
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4 16. Conditions for determination and authorization of
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5 acquisition threshold amounts of state agencies;
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6 17. The form and manner of verification by suppliers that the
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7 supplier is eligible to do business in the State of Oklahoma and has
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8 obtained all necessary permits and licenses, pursuant to applicable
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9 provisions of law; and
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10 18. Payment procedure rules for state agencies to adhere to
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11 regarding statewide contracts.
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12 D. The State Purchasing Director shall provide training for
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13 state agency procurement officials, and other procurement staff, and
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14 is authorized to require retraining of such and to withdraw access
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15 to state procurement systems for procurement personnel found not to
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16 be in compliance with provisions of the Oklahoma Central Purchasing
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17 Act or associated rules. The training may include any matters
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18 related to state procurement practices. State agency purchasing
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19 officials that demonstrate proficiency shall be certified as
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20 "certified procurement officers" by the State Purchasing Director
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21 and shall be authorized to make acquisitions pursuant to provisions
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22 of the Oklahoma Central Purchasing Act and associated rules. The
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23 State Purchasing Director may assess a fee to state agencies for the
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24 training that does not exceed each state agency's pro rata share of
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 1 the costs the State Purchasing Director incurs to provide the
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2 training.
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3 E. The State Purchasing Director shall review state agency
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4 acquisitions for the purposes of:
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5 1. Ensuring state agency compliance with provisions of the
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6 Oklahoma Central Purchasing Act;
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7 2. Ensuring state agency compliance with rules promulgated by
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8 the Office of Management and Enterprise Services pursuant to the
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9 Oklahoma Central Purchasing Act;
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10 3. Ensuring state agency compliance with provisions of Section
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11 3001 et seq. of this title pertaining to the State Use Committee;
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12 4. Reporting any acquisition by any state agency found not to
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13 be in compliance with those sections or rules to the Director of the
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14 Office of Management and Enterprise Services;
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15 5. A determination by the State Purchasing Director to reduce a
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16 state agency's acquisition authority amount when the state agency is
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17 found not to be in compliance with the Oklahoma Central Purchasing
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18 Act or associated rules or requirements of the State Purchasing
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19 Director pursuant to this section; and
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20 6. A determination by the State Purchasing Director to increase
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21 a state agency's acquisition authority amount after the agency cures
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22 deficiencies in connection with a prior reduction in the authority
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23 amount by the State Purchasing Director.
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 1 F. Based on written findings and when recommended by the State
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2 Purchasing Director, the Director of the Office of Management and
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3 Enterprise Services may:
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4 1. Transmit written findings by the State Purchasing Director
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5 to the State Auditor and Inspector for further investigation,
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6 indicating purchasing procedures that do not conform to the Oklahoma
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7 Central Purchasing Act or associated rules; or
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8 2. Transmit to the Attorney General or the State Auditor and
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9 Inspector for further investigation a report made by the State
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10 Purchasing Director that the Director of the Office of Management
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11 and Enterprise Services reasonably believes indicates that an action
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12 that constitutes a criminal violation pursuant to the Oklahoma
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13 Central Purchasing Act or other laws has been taken by any state
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14 agency, state agency official, bidder or supplier.
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15 G. 1. Pursuant to the requirements of the Oklahoma Central
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16 Purchasing Act, the State Purchasing Director shall have authority
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17 to enter into any statewide, multistate or multigovernmental
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18 contract. The state entity designated by law, as specified in
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19 Section 1010.3 of Title 56 of the Oklahoma Statutes, shall
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20 participate in the purchase of pharmaceuticals available through
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21 such multistate or multigovernmental contracts entered into by the
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22 State Purchasing Director.
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23 2. Whenever it appears advantageous to the state or to any
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24 state agency to purchase or otherwise acquire any acquisition which
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 1 may be offered for sale by the United States government or any
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2 agency thereof, the State Purchasing Director may execute a contract
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3 for the acquisition with the federal government or federal agency
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4 and may also utilize contracts awarded by other governmental
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5 agencies including, but not limited to, agencies of the United
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6 States of America.
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7 3. The State Purchasing Director may designate, for use by
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8 state agencies, contracts described in this subsection and contracts
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9 awarded on behalf of one or more state agencies.
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10 4. Prior to exercising the authority to cancel a contract, the
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11 State Purchasing Director may authorize renegotiation of an existing
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12 contract with an incumbent supplier for the purposes of obtaining
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13 more favorable terms for the state.
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14 5. The State Purchasing Director shall have the authority to
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15 designate certain contracts for state agencies as statewide
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16 contracts and mandatory statewide contracts. State agencies shall
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17 not contract with a supplier outside of a statewide contract for the
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18 same products or services offered by the supplier within a statewide
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19 contract. In order to carry out the powers and duties of the Chief
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20 Information Officer and Information Services Division, the Chief
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21 Information Officer shall have the authority to designate certain
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22 information technology and telecommunication contracts as statewide
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23 contracts and mandatory statewide contracts and may negotiate
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24 consolidation contracts, enterprise agreements and high technology
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 1 system contracts in lieu of or in conjunction with competitive
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2 bidding procedures to reduce acquisition cost.
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3 6. The State Purchasing Director may publish such
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4 specifications relating to materials, supplies, equipment and
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5 services to be acquired for the state as may best promote
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6 competition and apprise potential suppliers of the type of product
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7 desired.
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8 H. 1. The State Purchasing Director may develop and test new
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9 contracting policies, procedures and innovations that hold potential
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10 for making state procurement more effective and efficient and
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11 identify, and make recommendations to the Legislature of, any
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12 appropriate changes in law. Such development and testing, proof of
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13 concept, pilot project or other similar test shall not be considered
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14 an acquisition subject to the Oklahoma Central Purchasing Act.
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15 2. The State Purchasing Director is authorized to explore and
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16 investigate cost savings in energy, resource usage and maintenance
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17 contracts and to identify and negotiate contract solutions
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18 including, but not limited to, pilot projects to achieve cost
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19 savings for this state.
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20 I. The State Purchasing Director shall endeavor to satisfy
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21 state agencies in terms of cost, quality and timeliness of the
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22 delivery of acquisitions by using bidders who have a record of
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23 successful past performance, promoting competition, minimizing
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 1 administrative operating costs and conducting business with
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2 integrity, fairness and openness.
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3 J. The State Purchasing Director shall undertake the following:
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4 1. The use of electronic commerce pursuant to the Oklahoma
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5 Online Bidding Act for solicitation, notification and other
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6 purchasing processes;
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7 2. Monitoring rules promulgated pursuant to the Oklahoma
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8 Central Purchasing Act to ensure that the rules satisfy the
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9 interests of the state, are clear and succinct and encourage
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10 efficiency in purchasing processes;
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11 3. A program to identify suppliers' performance records;
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12 4. Development of criteria for the use of sealed bid
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13 contracting procedures, negotiated contracting procedures, selection
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14 of types of contracts, postaward administration of purchase orders
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15 and contracts, addendums, termination of contracts and contract
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16 pricing;
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17 5. Continual improvement in the quality of the performance of
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18 the Purchasing Division through training programs, management
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19 seminars, development of benchmarks and key management indicators,
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20 and development of standard provisions, clauses and forms;
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21 6. The State Purchasing Director shall prescribe standardized
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22 contract forms and all other forms or certifications requisite or
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23 deemed necessary by the State Purchasing Director to effectuate the
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 1 provisions of the Oklahoma Central Purchasing Act and associated
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2 rules;
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3 7. Development of programs to improve customer relations
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4 through training, improved communications and appointment of
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5 technical representatives;
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6 8. Provide for public two-way communication between procurement
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7 officers and potential bidders who have questions regarding a
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8 request for proposal or invitation to bid; and
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