Oklahoma Procurement Regulations Overview
Regulations of Oklahoma Procurement
Module 2
1
Students will:
•
D
escribe the
difference
between
“express”
and
“implied”
authority.
•
I
dentify the title
where
the
Central
Purchasing
Act
resides.
•
N
ame
who
has
sole
and
exclusive
authority
and
responsibility
for
all acquisitions used
or
consumed
by
state
agencies.
•
L
ist
the title
of
state
agency purchasing officials
and
their duties
related
to
procurement.
•
N
ame
the title
of
purchasing
staff
who
demonstrate
proficiency
in
principles
of
state
procurement practices
and who appoints them.
•
Recall the continuing education requirements to retain a Certified
Purchasing Officer certification.
•
Memorize the minimum provisions that should be included in state
agency internal purchasing procedures.
•
Identify the process for agency one-time purchasing exception.
Learner
Outcomes
2
Hierarchy
of
Regulatory
Authority
•
Generally,
federal
regulations
supersede
state
regulations.
•
When
there’s
a
discrepancy,
the
strictest
regulation
applies.
•
Sometimes
the
agency
procedures
are
stricter
than
other
government
regulations.
•
The
strictest
regulation
always
applies.
3
Constitutions
and
Statutes
•
Provide
specific guidance
to
conduct
procurement
activities.
Rules
•
Provide
flexible
operating
metrics
needed
to
implement
the
statutes
.
•
Provide g
uidance
that
may
be further clarified
by
agency
internal
procedures.
4
Constitutions,
Statutes
and
Rules
Constitutions,
Statutes
and
Rules
•
Constitutions,
statutes
and rules
tell
the
what
or
why
.
•
Internal procedures tell
how
the
procurement
transaction
is
to
occur.
5
•
Oklahoma
Constitution, adopted
in 1907
by
the
people of Oklahoma as the
governing document
of
the
state.
•
Provides
for
the
rights and privileges
of
citizens.
•
Article
IV,
Section
1
broadly
divides
the
powers
of
each
branch
of
government.
–
Legislative.
–
Executive.
–
Judicial.
Oklahoma
Constitution
6
•
Constitutional
authority
to
make
law to govern
the
people and
processes
of the
state.
–
May delegate
its power
and
discretion
to
others
to
carry
out
governmental
functions.
–
The
Oklahoma
State
Legislature
has
enacted
statutes
creating
the
Office
of
Management
and
Enterprise
Services
(former Office
of
State
Finance/Department
of
Central
Services)
and
delineating
the
authority
of the
department
with respect
to
purchases
made
on
behalf
of the
state,
all in
accordance
with
the
constitution.
Legislative
Branch
7
•
The
governor
is
charged
with
the
execution
of
laws.
Article VI,
Section
8 of the
Oklahoma Constitution
provides
that
“[t]he
Governor shall cause
the
laws
of the
State
to
be
faithfully
executed.”
•
Section
8 of the
constitution
further
requires
the
governor
to
conduct
all business
of the
state,
either
in
person
or as
allowed
by
law.
•
If
authorized by
law,
the
governor
may
appoint
others
to
help
accomplish
the
mighty
task
of
conducting
all
state
business.
Executive
Branch
8
The
Legislative
Delegation
Model
•
Legislatures
delegate
significant law-making
authority
to
government
agencies.
•
Delegation,
in this
case,
is the
extra
legal
authority
to
government
agencies
to
write and
administer law
subject
to
Legislative
Oversight
.
9
Legislative
Oversight
Legislative
Oversight
is the
process
of
review
and
approval
of
administrative
rules,
regulations,
policies and
procedures
such as
the
Oklahoma
Administrative
Code
.
A
fundamental objective
of
legislative
oversight
is
to
hold
executive
officials
accountable
for
the
implementation of
delegated
authority.
10
The
Central
Purchasing
Administrative
Rules
are hosted
on
the
OMES
website:
http://www.ok.gov/DCS/Central_Purchasing/CP_Processes,_Rules_&_Statutes/index.html
They
changed in
September
2014 under
OAC
260.
Central
Purchasing
Administrative
Rules
11
These rules
are administered
by
Central
Purchasing
to
provide
direction
and
ensure compliance
with
the
Oklahoma
Central
Purchasing
Act, and other
state
laws
and rules, which
may
be
applicable
to
state
agency
acquisitions.
Central
Purchasing
Administrative
Rules
12
The
purpose
of these rules is
to
:
•
Provide information
and
procedures
for
bidders
and
suppliers
who
desire
to
sell
products
and services
to
state
agencies;
•
Provide information
and
procedures
for
state
agencies subject
to
the
Central
Purchasing
Act;
and
•
Establish
fair
and
consistent
purchasing processes
that
satisfy
the
needs of the
state.
All
bidders, suppliers
and
state
agencies
are
responsible
for
knowing
the
requirements
of these
r
ules.
Central
Purchasing
Administrative
Rules
13
•
Oklahoma
State
Law
•
OMES
•
Central
Purchasing
•
Agency
Procurement
Procedures
•
Procurement
Professionals
Delegation
of
Authority
14
All
state
agency activities
relating
to
purchasing
shall be
under the
direction
of
Central
Purchasing
unless
otherwise
provided by
the Oklahoma
Central
Purchasing
Act.
Central
Purchasing
Act
Title 74
O.S.
§
85.1
15
•
Title
74,
Section
61.1
of
the
Oklahoma
Statutes
directs that
the
governor
shall
appoint
the
director
of
the
Office
of
Management
and
Enterprise
Services. The
director,
pursuant
to statutory
authority and
executive
power,
is
charged
with
the
responsibility
to
administer
and
enforce
our
state
purchasing
laws
within the
executive
authority.
•
The
Office
of
Management
and
Enterprise
Services
serves
its
legislative
purpose
by providing
a
means
by
which
state
agencies
may
make
contracts
for
the
acquisition of
goods,
services and supplies needed
in an
economic and
efficient
manner.
16
Office of Management
and Enterprise Services
Central Purchasing
•
The director of OMES is further required by statute to hire the
director of Central Purchasing in section 85.3 of title 74.
•
Within each title, the statutes are divided into subgroups
relating to the laws about a particular subject or “act.” One
such act entitled The Oklahoma Central Purchasing Act is
located in Title 74 O.S. §§ 85.1-85.44C, 85.45j-85.45k. These
statutes provide detailed information to purchasing officers,
agencies, vendors and the public concerning how agencies
may make purchases and contract for the goods and services
needed from suppliers through the Office of Management
and Enterprise Services.
17
•
§
85.5
the
State
Purchasing
Director,
under the
supervision
of
the
Director
of
the Office
of
Management
and
Enterprise
Services,
shall have sole
and
exclusive
authority
and
responsibility
for
all
acquisitions
used or
consumed
by
state
agencies.
•
Authority
like
this which is designated in writing is
called
“express”
authority
,
whereas
authority that is
inferred
from
the acts of parties is “implied”
authority.
Central
Purchasing
18
•
The
chief
information
officer
shall
have
sole and
exclusive
authority and
responsibility
for
all
acquisitions
of
information
and
telecommunications
technology,
equipment,
software, products
and
related
peripherals
and
services
used or
consumed by
state
agencies.
Chief
Information
Officer
19
Agency Purchasing
No
state
agency,
department,
or
institution subject
to
the
Oklahoma
Central
Purchasing
Act
shall
have
or
maintain
a
purchasing
section without the prior
approval
in
writing
of
the
Purchasing
Division
unless otherwise
provided
in
the Oklahoma
Central
Purchasing
Act.
20
State
agencies
are
authorized
to
make
acquisitions
not
exceeding
$5,000
provided:
•
The acquisition
process
is
fair
and
reasonable.
•
The acquisition
process
is
conducted according
to
rules
authorized
pursuant to
the
Central
Purchasing
Act.
For
acquisitions
above
$50,000 a
requisition must
be
submitted
to
Central
Purchasing
.
Agenc
y Purchasing
21
22
Agency Purchasing
One-Time
Purchases
Exception
State
Agencies
with
:
•
Certified
Procurement Officers
(CPOs)
.
•
Subject
Matter
Expert(s)
.
•
Legal
Counsel
.
•
Internal
purchasing
procedures that
are
found
compliant
by
the
director
of
the Office
of
Management
and
Enterprise
Services
…
may
apply
to
OMES
for
a
one-time acquisition
in
excess
of $50,000
and
not
exceeding
$100,000 that
does not
conflict
with
a
consolidated
statewide
spend
initiative
in
accordance
with
the
Central Purchasing
Act
and
Central
Purchasing
Administrative
Rules.
23
Agency Internal Purchasing
Procedures
§ 85.39. Agency Internal Purchasing Procedures
•
Each state agency shall develop internal purchasing procedures for
acquisitions by the state agency. Procedures shall, at a minimum, include
provisions for the state agency's needs assessment, funding, routing,
review, audits, monitoring, and evaluations. Following development, the
state agency shall submit the procedures to the State Purchasing
Director.
•
The State Purchasing Director shall review the procedures submitted
pursuant to paragraph 1 of this subsection to determine compliance with
the Oklahoma Central Purchasing Act, rules promulgated pursuant
thereto, Sections 3001 through 3010 of this title, and provisions of
paragraph 1 of this subsection. The State Purchasing Director shall
provide written findings, including details of noncompliance, if any, to
the Director of the Office of Management and Enterprise Services.
24
Agency Internal Purchasing
Procedures
§ 85.39. Agency Internal Purchasing Procedures
•
The
Director
of the
Office
of
Management
and
Enterprise
Services
(delegated to State P
urchasing Director)
shall, within
fifteen
(15)
days
after
the
procedures
are
submitted,
notify the
state
agency that the
procedures
are
in compliance or
indicate
revisions
necessary
to
bring the
procedures
into
compliance.
•
A
state
agency shall not
make
acquisitions
exceeding
Five
Thousand
Dollars
($5,000.00)
pursuant
to
Section 85.5 of this title, unless the
Director
of the
Office
of
Management
and
Enterprise
Services
provides
notice of
compliance.
•
Each
state
agency shall
maintain
a document file
for
each acquisition the
state
agency
makes
which shall include,
at
a minimum,
justification
for
the
acquisition, supporting
documentation, copies
of all
contracts,
if
any,
pertaining
to
the acquisition,
evaluations,
written
reports
if
required by
contract,
and
any
other
information
the
State
Purchasing Director requires
be
kept.
25
•
OAC
260:115-5-3(b)
Certification.
The
s
tate
p
urchasing
d
irector
shall certify
state
agency purchasing officials
and
other
purchasing
staff
who demonstrate
proficiency in principles
of
state
procurement
practices
,
basic
contracting, provisions
of the
Oklahoma
Central Purchasing
Act,
provisions
of
State
Use
Committee
and other
matters
which
relate to
procurement
practices.
•
OAC
260:115-5-3 (c)
Authority.
A
CPO
shall be
authorized
to
make
acquisitions
for state
agencies.
Agency
Purchasing
26
As a
certified procurement officer
, you are
authorized
to
make
purchases
not
to
exceed
an
assigned
cost
threshold:
•
$0-$5,000
•
$5,001-$10,000
•
$10,001-$25,000
•
$25,001-$50,000
•
$50,001-$100,000*
*
Requires
special
authorization
from
OMES.
Certified Procurement Officers
27
•
Keep
in
mind
that
:
•
The thresholds mentioned in the
previous slide
will
never
exceed
the
threshold
delegated by your internal
agency
procedures.
•
Federal statutes, statutes
and rules of the
State
of Oklahoma
and the
purchasing
agency
are
the
source
of authority
for
public
procurement.
•
Public
procurement
authority is
delegated by
the
state
purchasing
director,
and
•
Exceeding
the
degree
of authority
conferred
through
delegation
constitutes
an
unauthorized
act.
Certified Procurement Officers
28
•
Requires
24 hours of
continuing education
units
(CEUs).
in 24
months
beginning at the
first
of the year
following
your initial
certification.
•
Form
022
must
be
completed
for
all
courses
not
appearing on the
approved
form.
•
All
classes
need
to
be
pre-approved
by
Central
Purchasing
prior
to
attendance.
http://www.ok.gov/OSF/
Central
Purchasing
CPO
Program
CEU
Report
(006A) – Course(s)
approved
for
CPO
credit
Two-Year
CPO
Revalidation
29
Exceeding
Authority
Resolution
may
include:
•
Ratifying
–
paying
the
vendor
or
returning
the
product.
Sanctions
may
include:
•
Reducing
the
person’s
delegated
purchasing
amount.
•
Reducing
the
agency’s delegated
purchasing
amount.
•
Losing
purchasing
privileges.
30
CONTINUE TO MODULE 3
29
Learners in this module will understand the nuances of procurement regulations in Oklahoma, including topics such as express vs. implied authority, the Central Purchasing Act, agency hierarchy, and the role of constitutions, statutes, and rules in governing procurement activities. The content emphasizes the importance of understanding regulatory authority, internal procedures, and the Oklahoma Constitution in the context of procurement processes.
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Presentation Transcript
Regulations of Oklahoma Procurement Module 2 1
Learner Outcomes Students will: Describe the difference between express and implied authority. Identify the title where the Central Purchasing Act resides. Name who has sole and exclusive authority and responsibility for all acquisitions used or consumed by state agencies. List the title of state agency purchasing officials and their duties related to procurement. Name the title of purchasing staff who demonstrate proficiency in principles of state procurement practices and who appoints them. Recall the continuing education requirements to retain a Certified Purchasing Officer certification. Memorize the minimum provisions that should be included in state agency internal purchasing procedures. Identify the process for agency one-time purchasing exception. 2
Hierarchy of Regulatory Authority Generally, federal regulations supersede state regulations. When there s a discrepancy, the strictest regulation applies. Sometimes the agency procedures are stricter than other government regulations. The strictest regulation always applies. 3
Constitutions, Statutes and Rules Constitutions and Statutes Provide specific guidance to conduct procurement activities. Rules Provide flexible operating metrics needed to implement the statutes. Provide guidance that may be further clarified by agency internal procedures. 4
Constitutions, Statutes and Rules Constitutions, statutes and rules tell the what or why. Internal procedures tell how the procurement transaction is to occur. 5
Oklahoma Constitution Oklahoma Constitution, adopted in 1907 by the people of Oklahoma as the governing document of the state. Provides for the rights and privileges of citizens. Article IV, Section 1 broadly divides the powers of each branch of government. Legislative. Executive. Judicial. 6
Legislative Branch Constitutional authority to make law to govern the people and processes of the state. May delegate its power and discretion to others to carry out governmental functions. The Oklahoma State Legislature has enacted statutes creating the Office of Management and Enterprise Services (former Office of State Finance/Department of Central Services) and delineating the authority of the department with respect to purchases made on behalf of the state, all in accordance with the constitution. 7
Executive Branch The governor is charged with the execution of laws. Article VI, Section 8 of the Oklahoma Constitution provides that [t]he Governor shall cause the laws of the State to be faithfully executed. Section 8 of the constitution further requires the governor to conduct all business of the state, either in person or as allowed by law. If authorized by law, the governor may appoint others to help accomplish the mighty task of conducting all state business. 8
The Legislative Delegation Model Legislatures delegate significant law-making authority to government agencies. Delegation, in this case, is the extra legal authority to government agencies to write and administer law subject to Legislative Oversight. 9
Legislative Oversight Legislative Oversight is the process of review and approval of administrative rules, regulations, policies and procedures such as the Oklahoma Administrative Code. A fundamental objective of legislative oversight is to hold executive officials accountable for the implementation of delegated authority. 10
Central Purchasing Administrative Rules The Central Purchasing Administrative Rules are hosted on the OMES website: http://www.ok.gov/DCS/Central_Purchasing/CP_Processes,_Rules_&_Statutes/index.html They changed in September 2014 under OAC 260. 11
Central Purchasing Administrative Rules These rules are administered by Central Purchasing to provide direction and ensure compliance with the Oklahoma Central Purchasing Act, and other state laws and rules, which may be applicable to state agency acquisitions. 12
Central Purchasing Administrative Rules The purpose of these rules is to: Provide information and procedures for bidders and suppliers who desire to sell products and services to state agencies; Provide information and procedures for state agencies subject to the Central Purchasing Act; and Establish fair and consistent purchasing processes that satisfy the needs of the state. All bidders, suppliers and state agencies are responsible for knowing the requirements of these rules. 13
Delegation of Authority Oklahoma State Law OMES Central Purchasing Agency Procurement Procedures Procurement Professionals 14
Central Purchasing Act Title 74 O.S. 85.1 All state agency activities relating to purchasing shall be under the direction of Central Purchasing unless otherwise provided by the Oklahoma Central Purchasing Act. 15
Office of Management and Enterprise Services Title 74, Section 61.1 of the Oklahoma Statutes directs that the governor shall appoint the director of the Office of Management and Enterprise Services. The director, pursuant to statutory authority and executive power, is charged with the responsibility to administer and enforce our state purchasing laws within the executive authority. The Office of Management and Enterprise Services serves its legislative purpose by providing a means by which state agencies may make contracts for the acquisition of goods, services and supplies needed in an economic and efficient manner. 16
Central Purchasing The director of OMES is further required by statute to hire the director of Central Purchasing in section 85.3 of title 74. Within each title, the statutes are divided into subgroups relating to the laws about a particular subject or act. One such act entitled The Oklahoma Central Purchasing Act is located in Title 74 O.S. 85.1-85.44C, 85.45j-85.45k. These statutes provide detailed information to purchasing officers, agencies, vendors and the public concerning how agencies may make purchases and contract for the goods and services needed from suppliers through the Office of Management and Enterprise Services. 17
Central Purchasing 85.5 the State Purchasing Director, under the supervision of the Director of the Office of Management and Enterprise Services, shall have sole and exclusive authority and responsibility for all acquisitions used or consumed by state agencies. Authority like this which is designated in writing is called express authority, whereas authority that is inferred from the acts of parties is implied authority. 18
Chief InformationOfficer The chief information officer shall have sole and exclusive authority and responsibility for all acquisitions of information and telecommunications technology, equipment, software, products and related peripherals and services used or consumed by state agencies. 19
Agency Purchasing No state agency, department, or institution subject to the Oklahoma Central Purchasing Act shall have or maintain a purchasing section without the prior approval in writing of the Purchasing Division unless otherwise provided in the Oklahoma Central Purchasing Act. 20
Agency Purchasing State agencies are authorized to make acquisitions not exceeding $5,000 provided: The acquisition process is fair and reasonable. The acquisition process is conducted according to rules authorized pursuant to the Central Purchasing Act. For acquisitions above $50,000 a requisition must be submitted to Central Purchasing. 21
A Fair and Reasonable price is the price point for a good or service that is fair to both parties involved in the transaction. This amount is based on the agreed-upon conditions, promised quality and timeliness of contract performance. In public purchasing, a fair and reasonable price is subject to statutory and regulatory limitations. 22
Agency Purchasing One-Time Purchases Exception State Agencies with: Certified Procurement Officers (CPOs). Subject Matter Expert(s). Legal Counsel. Internal purchasing procedures that are found compliant by the director of the Office of Management and Enterprise Services may apply to OMES for a one-time acquisition in excess of $50,000 and not exceeding $100,000 that does not conflict with a consolidated statewide spend initiative in accordance with the Central Purchasing Act and Central Purchasing Administrative Rules. 23
Agency Internal Purchasing Procedures 85.39. Agency Internal Purchasing Procedures Each state agency shall develop internal purchasing procedures for acquisitions by the state agency. Procedures shall, at a minimum, include provisions for the state agency's needs assessment, funding, routing, review, audits, monitoring, and evaluations. Following development, the state agency shall submit the procedures to the State Purchasing Director. The State Purchasing Director shall review the procedures submitted pursuant to paragraph 1 of this subsection to determine compliance with the Oklahoma Central Purchasing Act, rules promulgated pursuant thereto, Sections 3001 through 3010 of this title, and provisions of paragraph 1 of this subsection. The State Purchasing Director shall provide written findings, including details of noncompliance, if any, to the Director of the Office of Management and Enterprise Services. 24
Agency Internal Purchasing Procedures 85.39. Agency Internal Purchasing Procedures The Director of the Office of Management and Enterprise Services (delegated to State Purchasing Director) shall, within fifteen (15) days after the procedures are submitted, notify the state agency that the procedures are in compliance or indicate revisions necessary to bring the procedures into compliance. A state agency shall not make acquisitions exceeding Five Thousand Dollars ($5,000.00) pursuant to Section 85.5 of this title, unless the Director of the Office of Management and Enterprise Services provides notice of compliance. Each state agency shall maintain a document file for each acquisition the state agency makes which shall include, at a minimum, justification for the acquisition, supporting documentation, copies of all contracts, if any, pertaining to the acquisition, evaluations, written reports if required by contract, and any other information the State Purchasing Director requires be kept. 25
Agency Purchasing OAC 260:115-5-3(b) Certification. The state purchasing director shall certify state agency purchasing officials and other purchasing staff who demonstrate proficiency in principles of state procurement practices, basic contracting, provisions of the Oklahoma Central Purchasing Act, provisions of State Use Committee and other matters which relate to procurement practices. OAC 260:115-5-3 (c) Authority. A CPO shall be authorized to make acquisitions for state agencies. 26
Certified Procurement Officers As a certified procurement officer, you are authorized to make purchases not to exceed an assigned cost threshold: $0-$5,000 $5,001-$10,000 $10,001-$25,000 $25,001-$50,000 $50,001-$100,000* *Requires special authorization from OMES. 27
Certified Procurement Officers Keep in mind that: The thresholds mentioned in the previous slide will never exceed the threshold delegated by your internal agency procedures. Federal statutes, statutes and rules of the State of Oklahoma and the purchasing agency are the source of authority for public procurement. Public procurement authority is delegated by the state purchasing director, and Exceeding the degree of authority conferred through delegation constitutes an unauthorized act. 28
Two-Year CPO Revalidation Requires 24 hours of continuing education units (CEUs). in 24 months beginning at the first of the year following your initial certification. Form 022 must be completed for all courses not appearing on the approved form. All classes need to be pre-approved by Central Purchasing prior to attendance. http://www.ok.gov/OSF/ Central Purchasing CPO Program CEU Report (006A) Course(s) approved for CPO credit 29
Exceeding Authority Resolution may include: Ratifying paying the vendor or returning the product. Sanctions may include: Reducing the person s delegated purchasing amount. Reducing the agency s delegated purchasing amount. Losing purchasing privileges. 30
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