OMES unified purchasing saves millions for state

-- NEWS RELEASE --

For Immediate Release

PRESTON L. DOERFLINGER
Secretary
Finance, Administration
and Information Technology

MARY FALLIN
Governor

Feb. 15, 2017

OMES unified purchasing saves millions for state

State purchasing director submits report on savings to House committee

OKLAHOMA CITY The Central Purchasing division of the Office of Management and Enterprise Services has saved the State of Oklahoma millions of dollars through competitive statewide contracts and negotiating better pricing for state and local government agencies, State Purchasing Director Ferris Barger told legislators today.

“We have $76 million in savings through our practices,” Barger told the House Government Modernization Committee, summing up the fiscal year 2016 Procurement Cost Savings Report issued by OMES. “We had a very positive year. As we continue on through our unification process, you’ll see even more positives.”

Barger said of the FY 16 savings that a good portion, about $46 million, come from being able to negotiate statewide contracts for information technology purchases. Those contracts save money because of the greater purchasing power afforded through the unification of the state’s IT assets. Unification, legislatively mandated by HB 1304 in 2011, partners agencies with OMES to streamline and consolidate IT efforts and allows bulk IT purchases instead of individual agencies paying a higher price.

“It has become even more evident as we start adding up the numbers that the unification of IT not only affords agencies enhanced cybersecurity and administration, but also provides greater monetary savings and purchasing power,” said Secretary of Finance, Administration and Information Technology Preston L. Doerflinger, who is the director of OMES.

“Calls to exempt certain agencies from the unification process or unwind the unification process are simply misguided and would cost Oklahoma taxpayers millions,” Doerflinger said. “The purchasing power and savings, cybersecurity enhancements, less computer down time and better technical assistance are just a few of the benefits of unifying the state’s information technology.”

To date, 58 of 78 legislatively mandated agencies have unified their information technology with OMES. Another 31 agencies have voluntarily unified their IT with OMES. The remaining 20 legislatively mandated agencies are expected to be unified with OMES by the end of the fiscal year. Unifying IT services has resulted in a combined reduced spending and projected savings of about $129 million.

Barger said all statewide contracts are aimed at giving agencies better pricing through increased purchasing power. Negotiating specific bulk prices allows agencies to save money and relieves them of the burden of negotiating, he said.

“Contracts are a lot more complicated than one might expect,” Barger said. “We competitively bid and get that pricing down. There’s no other hidden cost out there.”

The full Procurement Cost Savings Report can be found at https://www.ok.gov/DCS/documents/ProcurementSavingsReportFY2016.pdf.


Media Contact

MICHAEL BAKER
Director of Public Affairs
(405) 522-4265 | michael.baker@omes.ok.gov


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About the Office of Management and Enterprise Services

The Office of Management and Enterprise Services provides financial, property, purchasing, human resources and information technology services to all state agencies, and assists the Governor’s Office on budgetary policy matters. Our mission: Supporting our partners through unified business services. For more information, visit OMES.OK.gov.