Oklahoma Administrative Code › Title 1 - EXECUTIVE ORDERS › Section 1:2023-4

Current through Vol. 41, No. 20, July 1, 2024
EXECUTIVE ORDER 2023-4
It is my intention that state agencies strictly comply with the
			 Central Purchasing Act ("CPA"), which requires-with some legislatively created
			 exceptions-that "[a]ll activities of any state agency, department, or
			 institution relating to purchasing shall be under the direction of the
			 [Central] Purchasing Division" within the Office of Management and Enterprise
			 Services (hereafter "Central Purchasing"). 74 O.S. §§ 85.3(A), (D).
			 In fiscal year 2022, Central Purchasing provided oversight of approximately
			 $839 million in state contracts. The Central Purchasing team provides integral
			 guidance to state agencies as they ensure each agency complies with the
			 CPA.
Starting in the Spring of 2020, COVID-19 posed a serious public
			 health emergency to our state. As part of our efforts to effectively respond to
			 the pandemic, pursuant to my powers under the Oklahoma Constitution, the
			 Oklahoma Emergency Management Act of 2003, and the Catastrophic Health
			 Emergency Powers Act, certain provisions of the CPA were waived if those
			 purchases were necessary to respond to the COVID-19 public health emergency.
			 All Such purchases were limited to a monetary threshold and subject to audit. A
			 number of our state agencies undoubtedly utilized these emergency provisions to
			 assist in their responses to the COVID-19 pandemic. However, it is no longer
			 necessary to exempt these agencies from the CPA. I want to ensure that our
			 state agencies are not continuing these emergency practices moving
			 forward.
Additionally, I have instructed my administration to review the
			 CPA, its implementation, and ways to improve it. As Governor, I am committed to
			 transparent operations that allow for a level playing field for vendors
			 desiring to win the State's business and create a more efficient government.
			 Along with other measures, reduction in the availability of exceptions to the
			 CPA will be a meaningful step to accomplish these goals. We are prepared to
			 work with the legislature toward that end.
In order to help ensure that state agencies are complying with
			 the CPA, I, J. Kevin Stitt, Governor of the State of Oklahoma, pursuant to the
			 authority vested in me by Sections 1 and 2 of Article VI of the Oklahoma
			 Constitution, Section
			 61.3 of Title 74 of the Oklahoma
			 Statutes, and to the fullest extent of Oklahoma law, do hereby direct Central
			 Purchasing to take the following actions:
1. The State Purchasing Director shall
		  conduct agency purchasing audits, pursuant to 74 O.S. § 85.5(C)(12) &
		  OAC 260:115-5-19, of all state
		  agencies by December 31, 2023;
2.
		  Barring exigent circumstances that far exceed the statutory bar, the State
		  Purchasing Director shall cease granting exceptions, pursuant to §
		  85.5(N), of the CPA;
3. Evaluate
		  agency purchasing procedures that have been submitted pursuant to § 85.39
		  of the CPA and work with each relevant agency on ways to improve their
		  procedures;
4. The State Purchasing
		  Director shall create a small fraud protection unit within the Central
		  Purchasing Division for the purpose of minimizing fraudulent
		  activity;
5. The Central Purchasing
		  Division shall coordinate with agencies that are not currently using Peoplesoft
		  to convert to the state's unified financial platform;
6. The Central Purchasing Division shall
		  create and begin issuing a monthly report showing a listing of transactions
		  using direct purchase orders-by agency and dollar amount. The first report
		  shall be issued to my Office on or before June 1, 2023;
7. The State Purchasing Director shall create
		  a plan and policy to eliminate the use of direct purchase orders. The State
		  Purchasing Director shall begin working with state agencies to implement this
		  plan on or before January 1, 2024;
8. The Central Purchasing Division shall
		  create and begin issuing a monthly report showing a listing of all sole source
		  contracts-by agency and dollar amount. The first report shall be issued to my
		  Office on or before June 1, 2023;
9. The State Purchasing Director shall form
		  an advisory committee, pursuant to § 85.3A(B) of the CPA. The Committee
		  shall "consist[] of representatives from entities exempted from the provisions
		  of the Oklahoma Central Purchasing Act. The purpose of the committee shall be
		  to allow committee members to provide input into the development of shared
		  state purchasing contracts, collaboratively participate in the integration of
		  their purchasing platforms or electronic purchasing catalogs, analyze solutions
		  that may be used by state government to meet the purchasing needs of the
		  entities . . . ." 74 O.S. § 85.3A(B).
Additionally, in order to continue government efficiency measures
			 that were implemented in Executive Order 2019-13, I hereby order the following
			 directives remain in effect:
1.
		  Advance written notification must be given for any of the following:
(1) agency, State, and public employee or
		  officer membership(s) in any private or public organization, if said
		  membership(s) collectively total over $500;
(2) non-essential out-of-state travel for
		  agency employees and officers that is wholly paid for by an entity other than
		  the State; and
(3) non-emergency
		  purchase(s)1 that exceed $25,000.00 (collectively,
		  "proposed expense").
a. Notification shall
		  contain:
1) a brief description of the
		  proposed expense, including its cost, the reason for its necessity, and the
		  costs (if any) that could attach to the State if the request is denied;
		  and
2) any deadlines for receiving
		  approval.
b. Notification
		  shall be submitted to the agency's Cabinet Secretary by the agency's Chief
		  Administrative Officer.
c. If the
		  Cabinet Secretary denies a proposed expense or fails to provide the agency with
		  an approval by the requested deadline, the agency may submit the notification
		  as established in subsection (a), above, to the Governor designee at the Office
		  of the Governor for consideration.
d. In the event the Cabinet Secretary is not
		  available to review a proposed expense in a timely manner, the Governor
		  designates the State Chief Operating Officer to perform the review and approval
		  function described herein.
e.
		  Written approval as provided in subsections (b) or (c), above, must be obtained
		  prior to incurring any legal obligation to pay a proposed
		  expense.