OKLAHOMA CITY – The state could realize millions of dollars in savings if legislation passed by the House today becomes law.

House Bill 1410, by Rep. Jason Murphey, amends the state Central Purchasing Act to allow DCS personnel to make better use of state spending patterns to negotiate the best possible terms and prices for the state. The change will also give state buyers more time for ongoing vendor performance monitoring to ensure quality.

"The department needs to spend more time on the larger state contracts to ensure the taxpayers are getting the best deal where the most money is being spent," said Murphey, R-Guthrie. "By empowering certain agencies to handle their own smaller state contracts, the department can focus on finding savings across the board."

The bill also authorizes DCS's state purchasing director to renegotiate existing contrasts in an attempt to get better rates for the state. An annual report documenting savings realized by each agency will also be required by the legislation.

The changes in HB 1410 will shift the focus of DCS from an agency that primarily processes purchases to one that applies more strategy in managing the state's purchasing.

"In a down budget year, it is more critical than ever to make sure our government is as efficient as possible," said House Speaker Chris Benge, R-Tulsa. "We owe it to the taxpayers of this state to spend their hard-earned dollars in a responsible way while also ensuring quality services remain available to all Oklahomans."

Murphey noted that the governor included $35 million in purchasing savings in his budget proposal released earlier this month, which was based on the results of hearings House Republicans held over the last two years showing huge efficiency and savings potential in the state's purchasing practices.

A report conducted by IBM in 2007 showed Oklahoma could realize as much as $70 million in savings if purchasing best practices were put in place. A second report conducted recently by a company on contract with DCS found similar savings potential.

"There are tough budget decisions we will have to make this year, but this bill is not one of them," said House Appropriations and Budget Chairman Ken Miller, R-Edmond.

The legislation—which is part of the House Republican agenda to modernize and streamline government—passed the House with a vote of 61-37 and will now move to the Senate for consideration.