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Back to HB 3420
Oklahoma Legislature· HB 3420Approved by Governor 05/01/2026

An act relating to state government, the official text

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1                   STATE OF OKLAHOMA

2   2nd Session of the 60th Legislature (2026)

3 HOUSE BILL 3420                 By: Strom

4

5                   AS INTRODUCED

6   An Act relating to state government; amending 74 O.S.

    2021, Section 85.5 as amended by Section 1, Chapter

7   102, O.S.L. 2024; 74 O.S. 2021, Section 85.7, as last

    amended by Section 1, Chapter 339, O.S.L. 2023 (74

8   O.S. Supp. 2025, Sections 85.5, and 85.7); amending

    74 O.S. 2021, Section 85.41; 74 O.S. 2021, Section

9   85.42, as amended by Section 9, Chapter 336, O.S.L.

    2025 (74 O.S. Supp. 2025, Section 85.42); 74 O.S.

10  2021, Section 85.44D.1, which relate to the Oklahoma

    Central Purchasing Act; modifying the powers and

11  duties of the State Purchasing Director; requiring

    the Chief Information Officer to document

12  justification for not bidding certain contracts and

    document negotiation efforts; requiring certain pilot

13  projects to not last longer than twelve months;

    directing the State Purchasing Director to document

14  negotiation efforts; modifying exemptions from the

    competitive bidding requirements; clarifying state

15  agencies that acquire professional services do not

    have to bid certain professional services; directing

16  the Office of Management and Enterprise Services to

    publish a report on their website; expanding

17  definition of person to include employees of state

    officials; providing a definition of agency; and

18  providing an effective date.

19

20

21 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

22  SECTION 1.      AMENDATORY  74 O.S. 2021, Section 85.5, as

23 amended by Section 1, Chapter 102, O.S.L. 2024 (74 O.S. Supp. 2025,

24 Section 85.5), is amended to read as follows:

    Req. No. 15277                                         Page 1
1   Section 85.5. A. Except as otherwise provided in this section,

2 the State Purchasing Director, under the supervision of the Director

3 of the Office of Management and Enterprise Services, shall have sole

4 and exclusive authority and responsibility for all acquisitions by

5 state agencies. In order to carry out the powers and duties of the

6 Chief Information Officer and the Information Services Division, the

7 Chief Information Officer shall have sole and exclusive authority

8 and responsibility for all acquisitions of information and

9 telecommunications technology, equipment, software, products and

10 related peripherals and services by state agencies. Public

11 construction contracts are awarded pursuant to Title 61 of the

12 Oklahoma Statutes and are not subject to the Oklahoma Central

13 Purchasing Act.

14  B. Every state agency shall determine its own quantitative

15 needs for acquisitions and the general class or nature of the

16 acquisitions. The State Purchasing Director, after consultation

17 with the requisitioning state agency, shall have authority to

18 determine the particular brand, model or other specific

19 classification of each acquisition and to draft or invoke pursuant

20 to the Oklahoma Central Purchasing Act specifications establishing

21 the requirements for all necessary contracts or purchase orders.

22  C. The Director of the Office of Management and Enterprise

23 Services shall have authority and responsibility to promulgate rules

24

    Req. No. 15277                                                 Page 2
1 in connection with provisions of the Oklahoma Central Purchasing Act

2 for:

3   1. The time, manner, authentication and form of making

4 requisitions for acquisitions;

5   2. Inspection, analysis and testing of acquisitions or samples

6 bidders submit prior to contract award;

7   3. The form and manner of submission for bids or proposals a

8 bidder submits and the manner of accepting and opening bids or

9 proposals;

10  4. The conditions under which the Office of Management and

11 Enterprise Services shall require written contracts for

12 acquisitions, the conditions under which acquisitions may be made on

13 an open account basis, and the conditions and manner of negotiating

14 such contracts;

15  5. Obtaining acquisitions produced by state institutions;

16  6. Conditions under which any of the rules herein authorized

17 may be waived;

18  7. The amounts of and deposits on any bond or other surety

19 required to be submitted with a bid or contract for the furnishing

20 of acquisitions and the conditions under which such bond or other

21 surety shall be required;

22  8. The manner and conditions of delivery, which shall include

23 the designation of the common carrier of property to be used to

24 transport acquisitions whenever a common carrier is used, and the

    Req. No. 15277                                                  Page 3
1 acceptance, or rejection, including check of quantities, of any

2 acquisitions;

3   9. The form of any estimate, order or other information

4 required in connection with an acquisition;

5   10. State agency acquisitions not exceeding the acquisition

6 threshold amount requiring competitive bid to ensure

7 competitiveness, fairness, compliance with the Oklahoma Central

8 Purchasing Act and Section 3001 et seq. of this title, which relates

9 to the State Use Committee. The rules shall include separate

10 provisions based on acquisition amounts as follows:

11  a. state agencies shall make acquisitions not exceeding

12               Twenty-five Thousand Dollars ($25,000.00), provided

13               the acquisition process is fair and reasonable and is

14               conducted pursuant to rules authorized pursuant to

15               this section, and

16  b. state agencies with certified procurement officers and

17               internal purchasing procedures found compliant by the

18               State Purchasing Director may make acquisitions in

19               excess of the fair and reasonable acquisition

20               threshold amount provided for in this section and not

21               exceeding Two Hundred Fifty Thousand Dollars

22               ($250,000.00), pursuant to rules authorized by this

23               section;

24

    Req. No. 15277                                                 Page 4
1   11. Training by the State Purchasing Director of state agency

2 procurement officers;

3   12. Review and audit by the State Purchasing Director of state

4 agency acquisitions;

5   13. The conditions for increasing acquisition limits for state

6 agencies which have had a prior reduction in acquisition limit by

7 the Director of the Office of Management and Enterprise Services;

8   14. Use of a state purchase card to make acquisitions;

9   15. Any other matter or practice which relates to the

10 responsibilities of the State Purchasing Director;

11  16. Conditions for determination and authorization of

12 acquisition threshold amounts of state agencies;

13  17. The form and manner of verification by suppliers that the

14 supplier is eligible to do business in the State of Oklahoma and has

15 obtained all necessary permits and licenses, pursuant to applicable

16 provisions of law; and

17  18. Payment procedure rules for state agencies to adhere to

18 regarding statewide contracts.

19  D. The State Purchasing Director shall provide training for

20 state agency procurement officials, and other procurement staff, and

21 is authorized to require retraining of such procurement personnel

22 found not to be in compliance with provisions of the Oklahoma

23 Central Purchasing Act or associated rules. The training may

24 include any matters related to state procurement practices. State

    Req. No. 15277                                                Page 5
1 agency purchasing officials that demonstrate proficiency shall be

2 certified as "certified procurement officers" by the State

3 Purchasing Director and shall be authorized to make acquisitions

4 pursuant to provisions of the Oklahoma Central Purchasing Act and

5 associated rules. The State Purchasing Director may assess a fee to

6 state agencies for the training that does not exceed each state

7 agency's pro rata share of the costs the State Purchasing Director

8 incurs to provide the training.

9   E. The State Purchasing Director shall review state agency

10 acquisitions for the purposes of:

11  1. Ensuring state agency compliance with provisions of the

12 Oklahoma Central Purchasing Act;

13  2. Ensuring state agency compliance with rules promulgated by

14 the Office of Management and Enterprise Services pursuant to the

15 Oklahoma Central Purchasing Act;

16  3. Ensuring state agency compliance with provisions of Section

17 3001 et seq. of this title pertaining to the State Use Committee;

18  4. Reporting any acquisition by any state agency found not to

19 be in compliance with those sections or rules to the Director of the

20 Office of Management and Enterprise Services;

21  5. A determination by the State Purchasing Director to reduce a

22 state agency's acquisition authority amount when the state agency is

23 found not to be in compliance with the Oklahoma Central Purchasing

24

    Req. No. 15277                                                 Page 6
1 Act or associated rules or requirements of the State Purchasing

2 Director pursuant to this section; and

3   6. A determination by the State Purchasing Director to increase

4 a state agency's acquisition authority amount after the agency cures

5 deficiencies in connection with a prior reduction in the authority

6 amount by the State Purchasing Director.

7   F. Based on written findings and when recommended by the State

8 Purchasing Director, the Director of the Office of Management and

9 Enterprise Services may:

10  1. Transmit written findings by the State Purchasing Director

11 to the State Auditor and Inspector for further investigation,

12 indicating purchasing procedures that do not conform to the Oklahoma

13 Central Purchasing Act or associated rules; or

14  2. Transmit to the Attorney General or the State Auditor and

15 Inspector for further investigation a report made by the State

16 Purchasing Director that the Director of the Office of Management

17 and Enterprise Services reasonably believes indicates that an action

18 that constitutes a criminal violation pursuant to the Oklahoma

19 Central Purchasing Act or other laws has been taken by any state

20 agency, state agency official, bidder or supplier.

21  G. 1. Pursuant to the requirements of the Oklahoma Central

22 Purchasing Act, the State Purchasing Director shall have authority

23 to enter into any statewide, multistate or multigovernmental

24 contract. The state entity designated by law, as specified in

    Req. No. 15277                                                 Page 7
1 Section 1010.3 of Title 56 of the Oklahoma Statutes, shall

2 participate in the purchase of pharmaceuticals available through

3 such multistate or multigovernmental contracts entered into by the

4 State Purchasing Director.

5   2. Whenever it appears advantageous to the state or to any

6 state agency to purchase or otherwise acquire any acquisition which

7 may be offered for sale by the United States government or any

8 agency thereof, the State Purchasing Director may execute a contract

9 for the acquisition with the federal government or federal agency

10 and may also utilize contracts awarded by other governmental

11 agencies including, but not limited to, agencies of the United

12 States of America.

13  3. The State Purchasing Director may designate, for use by

14 state agencies, contracts described in this subsection and contracts

15 awarded on behalf of one or more state agencies.

16  4. Prior to exercising the authority to cancel a contract, the

17 State Purchasing Director may authorize renegotiation of an existing

18 contract with an incumbent supplier for the purposes of obtaining

19 more favorable terms for the state.

20  5. The State Purchasing Director shall have the authority to

21 designate certain contracts for state agencies as statewide

22 contracts and mandatory statewide contracts. In order to carry out

23 the powers and duties of the Chief Information Officer and

24 Information Services Division, the Chief Information Officer shall

    Req. No. 15277                                                 Page 8
1 have the authority to designate certain information technology and

2 telecommunication contracts as statewide contracts and mandatory

3 statewide contracts and may negotiate consolidation contracts,

4 enterprise agreements and high technology system contracts in lieu

5 of or in conjunction with competitive bidding procedures to reduce

6 acquisition cost, must document the justification for not bidding

7 any such contracts or agreements, and must document such negotiation

8 efforts.

9   6. The State Purchasing Director may publish such

10 specifications relating to materials, supplies, equipment and

11 services to be acquired for the state as may best promote

12 competition and apprise potential suppliers of the type of product

13 desired.

14  H. 1. The State Purchasing Director may develop and test new

15 contracting policies, procedures and innovations that hold potential

16 for making state procurement more effective and efficient and

17 identify, and make recommendations to the Legislature of, any

18 appropriate changes in law. Such development and testing, proof of

19 concept, pilot project or other similar test shall not be considered

20 an acquisition subject to the Oklahoma Central Purchasing Act last

21 longer than twelve (12) months.

22  2. The State Purchasing Director is authorized to explore and

23 investigate cost savings in energy, resource usage and maintenance

24 contracts and to identify and negotiate contract solutions

    Req. No. 15277                                                Page 9
1 including, but not limited to, pilot projects to achieve cost

2 savings for this state. The State Purchasing Director shall

3 document such negotiation efforts.

4   I. The State Purchasing Director shall endeavor to satisfy

5 state agencies in terms of cost, quality and timeliness of the

6 delivery of acquisitions by using bidders who have a record of

7 successful past performance, promoting competition, minimizing

8 administrative operating costs and conducting business with

9 integrity, fairness and openness.

10  J. The State Purchasing Director shall undertake the following:

11  1. The use of electronic commerce pursuant to the Oklahoma

12 Online Bidding Act for solicitation, notification and other

13 purchasing processes;

14  2. Monitoring rules promulgated pursuant to the Oklahoma

15 Central Purchasing Act to ensure that the rules satisfy the

16 interests of the state, are clear and succinct and encourage

17 efficiency in purchasing processes;

18  3. A program to identify suppliers' performance records;

19  4. Development of criteria for the use of sealed bid

20 contracting procedures, negotiated contracting procedures, selection

21 of types of contracts, postaward administration of purchase orders

22 and contracts, addendums, termination of contracts and contract

23 pricing;

24

    Req. No. 15277                                                Page 10
1   5. Continual improvement in the quality of the performance of

2 the Purchasing Division through training programs, management

3 seminars, development of benchmarks and key management indicators,

4 and development of standard provisions, clauses and forms;

5   6. The State Purchasing Director shall prescribe standardized

6 contract forms and all other forms or certifications requisite or

7 deemed necessary by the State Purchasing Director to effectuate the

8 provisions of the Oklahoma Central Purchasing Act and associated

9 rules;

10  7. Development of programs to improve customer relations

11 through training, improved communications and appointment of

12 technical representatives;

13  8. Provide for public two-way communication between procurement

14 officers and potential bidders who have questions regarding a

15 request for proposal or invitation to bid; and

16  9. Determine whether and to what extent information included in

17 a bid or similar offer is confidential and reject all requests to

18 disclose the information so designated.

19  K. The State Purchasing Director may utilize and authorize

20 state agencies to utilize reverse auctions to obtain acquisitions.

21  L. Prior to the award of a contract to a supplier, the State

22 Purchasing Director shall verify, pursuant to applicable provisions

23 of law, that the supplier is eligible to do business in this state

24 by confirming registration with the Secretary of State and franchise

    Req. No. 15277                                                Page 11
1 tax payment status pursuant to Sections 1203 and 1204 of Title 68 of

2 the Oklahoma Statutes. The provisions of this subsection shall be

3 applicable only if the contract amount is Two Hundred Fifty Thousand

4 Dollars ($250,000.00) or greater.

5   M. On an annual basis, the State Purchasing Director shall

6 transmit to the Governor, Speaker of the House of Representatives

7 and President Pro Tempore of the Senate a report documenting the

8 savings realized by each agency through the application of best

9 spend practices including the collection and tracking of spend data,

10 strategic sourcing programs and implementation of managed and

11 mandatory statewide contracts and include in the report information

12 regarding emergency acquisitions.

13  N. The acquisition threshold amount applicable to an

14 acquisition made pursuant to this act or associated rules shall not

15 apply to state agency purchases; provided, the State Purchasing

16 Director determines the agency has subject matter experts on staff

17 having the specialized expertise to purchase goods or services, the

18 agency possesses the necessary legal and procurement staff to

19 procure and monitor the contracts and provided the Director of the

20 Office of Management and Enterprise Services shall certify that the

21 proposed purchase does not conflict with consolidated statewide

22 spend initiatives.

23  1. Nothing in this subsection shall give an agency authority to

24 issue statewide, multistate or multigovernmental contracts.

    Req. No. 15277                                                Page 12
1   2. Agencies making purchases pursuant to this subsection shall:

2   a. be responsible for contracts awarded pursuant to this

3   subsection, which includes, but may not be limited to,

4   contract management, protest costs, all costs

5   connected with or incurred as a result of the

6   contract, including legal representation,

7   b. comply with rules and policies of the Office of

8   Management and Enterprise Services, and

9   c. report contracts issued pursuant to this subsection to

10  the Office of Management and Enterprise Services,

11  Central Purchasing Division, on a quarterly basis.

12  3. Purchases made in accordance with this subsection shall be

13 made pursuant to rules authorized by this section.

14  O. The State Purchasing Director, with approval by the Director

15 of the Office of Management and Enterprise Services, is authorized

16 to make use of any state laboratories for the tests and analyses

17 authorized in this section wherever practicable and to use private

18 laboratories or the laboratories of another government agency if it

19 is impracticable to use state laboratories. The State Purchasing

20 Director is further authorized to cooperate in test and analysis

21 programs or agreements with other states or the United States

22 government and to accept federal funds and funds donated by private

23 endowments or foundations for the purpose of participation in such

24 testing programs.

    Req. No. 15277                                                Page 13
1   P. The State Purchasing Director shall require all contractors

2 or subcontractors who have entered into a contract with a public

3 employer to submit an affidavit that the contractor or subcontractor

4 is in compliance with the provisions of Section 1313 of Title 25 of

5 the Oklahoma Statutes. If the State Purchasing Director determines

6 that a contractor or subcontractor has knowingly submitted a false

7 affidavit:

8   1. The contractor or subcontractor shall be liable for an

9 administrative penalty of Five Thousand Dollars ($5,000.00) for the

10 first offense, which shall increase by Two Thousand Dollars

11 ($2,000.00) for each subsequent offense; and

12  2. The public employer or the Office of Management and

13 Enterprise Services may terminate the contract with the contractor

14 or subcontractor.

15  SECTION 2.        AMENDATORY  74 O.S. 2021, Section 85.7, as

16 last amended by Section 1, Chapter 339, O.S.L. 2023 (74 O.S. Supp.

17 2025, Section 85.7), is amended to read as follows:

18  Section 85.7. A. 1. Except as otherwise provided by the

19 Oklahoma Central Purchasing Act, or associated rules:

20  a. every state agency shall initiate all acquisitions by

21              the submission of a requisition to the Purchasing

22              Division, and

23  b. no state agency shall make an acquisition for an

24              amount exceeding Fifty Thousand Dollars ($50,000.00)

    Req. No. 15277                                              Page 14
1   or the limit determined by the State Purchasing

2   Director pursuant to rules authorized by Section 85.5

3   of this title, not to exceed Two Hundred Fifty

4   Thousand Dollars ($250,000.00), without submission of

5   a requisition to the Purchasing Division for issuance

6   of a solicitation for the acquisition on behalf of the

7   agency. Any exemption from competitive bid

8   requirements of the Oklahoma Central Purchasing Act

9   further exempts the acquisition from requisition

10  requirements of the act.

11  2. The State Purchasing Director may request additional

12 information necessary to adequately review a requisition to ensure

13 compliance with the Oklahoma Central Purchasing Act and associated

14 rules. If the State Purchasing Director determines that an

15 acquisition is not necessary, excessive or not justified, the State

16 Purchasing Director shall deny the requisition.

17  3. The provisions of the Oklahoma Central Purchasing Act shall

18 not preclude a state agency from:

19  a. accepting gifts or donations in any manner authorized

20  by law, or

21  b. making an acquisition for itself without submitting a

22  requisition under this section when authorized in

23  writing by the State Purchasing Director.

24

    Req. No. 15277                                             Page 15
1   4. Any acquisition a state agency makes shall be made pursuant

2 to the Oklahoma Central Purchasing Act and associated rules. No

3 agency shall use split purchasing for the purpose of evading the

4 requirement of competitive bidding or other requirement of the

5 Oklahoma Central Purchasing Act or associated rules. Violation of

6 this provision shall be cause for discipline of a state employee up

7 to and including termination.

8   5. The State Purchasing Director may waive or increase the

9 limit authorized for a state agency acquisition made pursuant to its

10 own competitive procedures. To perfect an otherwise valid

11 acquisition inadvertently exceeding the limit due to administrative

12 error by a state agency or unforeseeable circumstances, the state

13 agency shall request a limited waiver or increase upon the discovery

14 of the error or circumstance to the State Purchasing Director. The

15 State Purchasing Director shall report requests for waivers or

16 increases, stating the amount and whether the request was granted or

17 denied, upon request by the Governor, President Pro Tempore of the

18 Senate or Speaker of the House of Representatives.

19  6. Competitive bidding requirements of this section shall not

20 be required for the following:

21  a. contracts for master custodian banks or trust

22  companies, investment managers, investment

23  consultants, and actuaries for the state retirement

24  systems, and Oklahoma Employees Insurance and Benefits

    Req. No. 15277                                                 Page 16
1   Board, pension fund management consultants of the

2   Oklahoma State Pension Commission and the

3   Commissioners of the Land Office, examiners, experts,

4   or consultants for the Insurance Department whose job

5   duties are tied to Market Conduct Exams, Financial

6   Exams, and Insurance Business Transfers, financial

7   institutions to act as depositories and managers of

8   the Oklahoma College Savings Plan accounts and other

9   professional services as defined in Section 803 of

10  Title 18 of the Oklahoma Statutes. When requested by

11  the Oklahoma Employees Insurance and Benefits Board or

12  the governing board of a state retirement system

13  authorized to hire investment managers, the Purchasing

14  Division shall assist in the process of selecting

15  investment managers,

16  b. a state agency making such an acquisition shall notify

17  the State Purchasing Director within fifteen (15) days

18  following completion of the acquisition. A list of

19  the exempt contracts shall be provided, upon request,

20  to a member of the Appropriations and Budget Committee

21  of the House of Representatives or Appropriations

22  Committee of the Senate,

23  c. purchases of postage by state agencies made pursuant

24  to Sections 90.1 through 90.4 of this title,

    Req. No. 15277                                    Page 17
1   d. a sole source acquisition made in compliance with

2   Section 85.44D.1 of this title,

3   e. an acquisition for design, development, communication

4   or implementation of the state employees flexible

5   benefits plan; provided, procedures used for the

6   acquisition are consistent with competitive bid

7   requirements of the Oklahoma Central Purchasing Act

8   and associated rules,

9   f. any acquisition of a service which the Office of

10  Management and Enterprise Services has approved as

11  qualifying for a fixed and uniform rate, subject to

12  the following:

13  (1) the Purchasing Division shall establish criteria

14                  and guidelines for those services which may

15                  qualify for a fixed and uniform rate,

16  (2) fixed and uniform rate contracts authorized by

17                  this subsection shall be limited to contracts for

18                  those services furnished to persons directly

19                  benefiting from such services and shall not be

20                  used by a state agency to employ consultants or

21                  to make other acquisitions,

22  (3) any state agency desiring to have a service

23                  qualified for a fixed and uniform rate shall make

24                  a request for service qualification to the State

    Req. No. 15277                                               Page 18
1                   Purchasing Director and submit documentation to

2                   support the request. The State Purchasing

3                   Director shall approve or deny the request. If

4                   approved, the state agency shall establish a

5                   fixed and uniform rate for the service. No

6                   contracts shall be entered into by the state

7                   agency until the rate has been approved by the

8                   state agency in a public hearing. The proposed

9                   rate shall be clearly and separately identified

10                  in the agenda of the state agency for the hearing

11                  and shall be openly and separately discussed

12                  during such hearing. The state agency shall

13                  notify the State Purchasing Director of its

14                  pending consideration of the proposed rate at

15                  least thirty (30) days before the state agency is

16                  to meet on the proposed rate and deliver a copy

17                  of the agenda items concerning the proposed rate

18                  with supporting documentation. The State

19                  Purchasing Director shall communicate any

20                  observation, reservation, criticism or

21                  recommendation to the agency, either in person at

22                  the time of the hearing or in writing delivered

23                  to the state agency before or at the time of the

24                  hearing. The State Purchasing Director shall

    Req. No. 15277                                              Page 19
1                   specifically note in the written communications

2                   whether the Director has determined the rate to

3                   be excessive. Any written communication

4                   presented in the absence of the State Purchasing

5                   Director shall be presented orally during the

6                   public hearing. Whether made in person or in

7                   writing, any comment made by the State Purchasing

8                   Director shall be made a part of the minutes of

9                   the hearing in full,

10  (4) within two (2) weeks after the convening of the

11                  Legislature, the administrative officer of the

12                  state agency shall furnish to the Speaker of the

13                  House of Representatives, the President Pro

14                  Tempore of the Senate and to any member of the

15                  House or Senate, if requested by the member, a

16                  complete list of all of the types of services

17                  paid for by uniform fixed rates, the amount of

18                  the rate last approved by the agency for the

19                  service and the number of contracts then in

20                  existence for each type of service. Any rate

21                  which has been determined to be excessive by the

22                  State Purchasing Director shall be specifically

23                  identified in the list by the state agency, and

24

    Req. No. 15277                                               Page 20
1       (5) at any time, the State Purchasing Director may

2                   review, suspend or terminate a contract entered

3                   into pursuant to the provisions of this paragraph

4                   if the Director determines the contract is not

5                   necessary, is excessive or is not justified,

6   g.

7   f. an acquisition for a client of the State Department of

8       Rehabilitation Services; provided, the agency develops

9       and maintains standards for such an acquisition. The

10      agency may elect to utilize the Purchasing Division

11      for an acquisition. The standards shall foster

12      economy, provide a short response time, include

13      appropriate safeguards, require written records,

14      ensure appropriate competition for economical and

15      efficient purchasing and shall be approved by the

16      State Purchasing Director,

17  h.

18  g. structured settlement agreements entered into by the

19      Attorney General's office in order to settle any

20      lawsuit involving the state, the Legislature, any

21      state agency or any employee or official of the state

22      if:

23      (1) prior to entering into any contract for the

24                  services of an entity to administer a structured

    Req. No. 15277                                        Page 21
1                   settlement agreement, the Attorney General

2                   receives proposals from at least three entities

3                   engaged in providing such services, and

4       (2) the selection of a particular entity is made on

5                   the basis of the response to the request which is

6                   the most economical and provides the most

7                   competent service which furthers the best

8                   interests of the state,

9   i.

10  h. an acquisition by a state agency pursuant to a

11      contract the State Purchasing Director enters into on

12      behalf of a state agency or awards and designates for

13      use by state agencies,

14  j.

15  i. an acquisition by the Committee for Sustaining

16      Oklahoma's Energy Resources pursuant to a contract

17      with a local supplier for the purpose of holding a

18      special event or an exhibition throughout the state,

19      and

20  k.

21  j. contracts for the study, analysis, and planning, as

22      reasonably necessary, to aid in determining the

23      feasibility of leasing, selling, or privately managing

24      or developing the property or facilities under control

    Req. No. 15277                                              Page 22
1       of the Oklahoma Tourism and Recreation Commission.

2       The Commission shall be exempt from the competitive

3       bidding requirements of the Oklahoma Central

4       Purchasing Act for the purpose of soliciting,

5       negotiating, and effectuating such a contract or

6       contracts; provided, that the State Purchasing

7       Director shall review and audit all uses of the

8       exemptions provided in this subparagraph biannually.,

9       and

10  7.

11      k. Notwithstanding any other provision of law, an

12      acquisition may be exempted from requirements of this

13      section by the State Purchasing Director when in the

14      State Purchasing Director's discretion unusual, time-

15      sensitive or unique circumstances exist which make

16      such exemption in the best and immediate interest of

17      the state. As used in this subsection, "State

18      Purchasing Director" shall not mean a designee. Any

19      such acquisitions shall be described in detail and

20      publicly posted as a data feed. The description shall

21      include the name of the supplier, cost of the

22      acquisition, reason for exemption and, as applicable,

23      detailed comparison of the acquisition with comparable

24      items, any identified cost savings resulting from the

    Req. No. 15277                                         Page 23
1   acquisition and a description of benefits to the

2   state. The State Purchasing Director shall take no

3   action under the provisions of this subsection prior

4   to such public posting.

5   B. Competitively bid acquisitions shall be awarded to the

6 lowest and best, or best value, bidder or bidders.

7   C. Bids for an amount requiring submission of requisitions to

8 the Purchasing Division shall be evaluated by the Purchasing

9 Division and the state agency receiving the acquisition. At a

10 minimum, cost and technical expertise shall be considered in

11 determining the lowest and best, or best value, bid. Further, the

12 state agency shall present its evaluation and recommendation to the

13 State Purchasing Director. A documented evaluation report

14 containing the evaluations of the Purchasing Division or the state

15 agency shall be completed prior to the contract award and such

16 report shall be a matter of public record.

17  D. Except as otherwise specifically provided by law, the

18 acquisition of food items or food products by a state agency from a

19 public trust created pursuant to Sections 176 through 180.56 of

20 Title 60 of the Oklahoma Statutes shall comply with competitive

21 bidding requirements of this section.

22  E. Cooperative contracts shall not be utilized unless the

23 purchasing cooperative and its affiliated suppliers have complied

24

    Req. No. 15277                                                 Page 24
1 with competitive bid requirements of the Oklahoma Central Purchasing

2 Act and associated rules.

3   F. Notwithstanding any provision of the Oklahoma Central

4 Purchasing Act, in all cases where federal granted funds are

5 involved, the federal laws, rules and regulations thereto shall

6 govern to the extent necessary to inure to the benefit of such funds

7 to this state.

8   G. A court order requiring an acquisition by a state agency,

9 whether or not such state agency is subject to the Oklahoma Central

10 Purchasing Act, shall not invalidate competitive bidding procedures

11 required by this section if such court order does not specify a

12 specific supplier. Any such acquisition shall comply with

13 competitive bid procedures.

14  SECTION 3.      AMENDATORY  74 O.S. 2021, Section 85.41, is

15 amended to read as follows:

16  Section 85.41. A. A state agency that acquires professional

17 services shall comply with the provisions of this section but does

18 not otherwise have to bid professional services as defined in

19 Section 803 of Title 18 of the Oklahoma Statutes.

20  B. The state agency may evaluate the performance of the

21 professional services provided pursuant to all professional services

22 contracts exceeding the fair and reasonable acquisition threshold

23 amount. The performance evaluation shall indicate the quality of

24 service or work product of the supplier. The state agency shall

    Req. No. 15277                                                Page 25
1 retain the evaluation in the document file the state agency

2 maintains for the acquisition pursuant to Section 85.39 of this

3 title. If the evaluation indicates deficiencies with the supplier's

4 work, the state agency shall send a copy of the evaluation to the

5 State Purchasing Director.

6   C. If the work product of the contract is a report subject to

7 disclosure under state or federal law or regulation, the state

8 agency shall file the report with the State Librarian and Archivist.

9   D. A state agency shall administer, monitor and audit the

10 professional services contract and may be required to report the

11 status of an unfinished professional services contract to the State

12 Purchasing Director.

13  E. A professional services contract shall include an audit

14 clause which provides that all items of the supplier that relate to

15 the professional services are subject to examination by the state

16 agency, the State Auditor and Inspector and the State Purchasing

17 Director.

18  F. Except for a contract renewal, the final product of the

19 professional services contract is a written proposal, report or

20 study, the professional services contract shall require the supplier

21 to certify that the supplier has not previously provided the state

22 agency or another state agency with a final product that is a

23 substantial duplication of the final product of the proposed

24 contract.

    Req. No. 15277                                                Page 26
1   SECTION 4.      AMENDATORY  74 O.S. 2021, Section 85.42, as

2 amended by Section 9, Chapter 336, O.S.L. 2025 (74 O.S. Supp. 2025,

3 Section 85.42), is amended to read as follows:

4   Section 85.42. A. 1. Except as otherwise provided for in this

5 section or other applicable law, any agency, whether or not such

6 agency is subject to the Oklahoma Central Purchasing Act, shall be

7 prohibited from entering into a sole-source contract or agreement or

8 a contract or agreement for professional services with or for the

9 services of any person who has terminated employment with or who has

10 been terminated by that agency for one (1) year after the

11 termination date of the employee from the agency. Any contract or

12 agreement entered into in violation of this subsection shall be

13 void. Any person found to have violated this subsection shall be

14 prohibited from entering into any state contract for a period of

15 five (5) years from the date of the execution of the contract or

16 agreement. The provisions of this subsection shall not prohibit an

17 agency from hiring or rehiring such person as a state employee.

18  2. Any chief administrative officer of an agency, whether or

19 not such agency is subject to the Oklahoma Central Purchasing Act,

20 shall not enter into any contract for nonprofessional or

21 professional services for the purpose of or which would result in

22 the circumvention of the full-time-equivalent employee limitation

23 established by law for such agency.

24

    Req. No. 15277                                            Page 27
1   B. Each contract, including change orders, extensions,

2 renewals, or amendments, entered into by any person or firm with the

3 State of Oklahoma shall include a statement certifying that no

4 person who has been involved in any manner in the development,

5 approval, or negotiation of such contract while employed by the

6 state shall be employed or given anything of value to fulfill any of

7 the services provided for under the contract. Each contract,

8 including change orders, extensions, renewals, or amendments, shall

9 include a statement from the chief executive officer or head of the

10 contracting state agency certifying that no known officer or

11 employee of the contracting state agency who has any direct or

12 indirect financial, pecuniary, or other personal interest in the

13 contract has been involved in any manner in the development,

14 approval, or negotiation of the contract through influence,

15 decision, recommendation, or otherwise. This subsection shall not

16 preclude faculty and staff of the institutions within The Oklahoma

17 State System of Higher Education from negotiating and participating

18 in research grants and educational contracts. This subsection shall

19 not apply to Oklahoma Department of Commerce personnel who contract

20 to provide services to the Oklahoma Capital Investment Board.

21  C. As used in this section, "person" means any state official

22 or and their employees as well as every employee of a every state

23 agency, and "agency" means every state department, board, bureau,

24 commission, agency, trusteeship, authority, council, committee,

    Req. No. 15277                                                 Page 28
1 trust, school district, fair board, state court, executive office,

2 advisory group, task force, and study group, that is supported in

3 whole or in part by public funds or entrusted with the expenditure

4 of public funds or administering or operating public property, and

5 all committees, as well as every committee or subcommittees thereof,

6 judges, justices and state legislators subcommittee of every such

7 agency.

8   D. Notwithstanding anything to the contrary in this section,

9 the following sole-source or professional services contracts are

10 allowed at any time:

11  1. A contract for professional services at any time with a

12 person who is a qualified interpreter for the deaf; and

13  2. A contract between a business entity that is a part-time

14 certified court reporter and the Administrative Office of the

15 Courts, on behalf of the district courts, or the Office of the

16 Attorney General.

17  E. Provided the provisions specified in subsection B of this

18 section are satisfied, the following professional services contracts

19 are allowed:

20  1. The Department of Transportation, Oklahoma Water Resources

21 Board, Department of Environmental Quality, Oklahoma Tourism and

22 Recreation Department, the Oklahoma Turnpike Authority and the

23 Oklahoma Department of Agriculture, Food, and Forestry may contract

24 with a person who has retired from state service;

    Req. No. 15277                                                 Page 29
1   2. To maintain public health infrastructure and preparedness,

2 the State Department of Health and city-county health departments

3 may contract with a physician assistant, Registered Nurse, advanced

4 practice nurse, Nurse-Midwife, registered dietician, occupational

5 therapist, physical therapist or speech-language pathologist who has

6 retired from state service; and

7   3. The Department of Mental Health and Substance Abuse Services

8 may contract with a physician, Registered Nurse, registered

9 pharmacist or person meeting the definition of a licensed mental

10 health professional, as defined in Title 43A of the Oklahoma

11 Statutes, who has separated and/or retired from state service.

12  SECTION 5.      AMENDATORY        74 O.S. 2021, Section 85.44D.1, is

13 amended to read as follows:

14  Section 85.44D.1. A. 1. A sole source acquisition is exempt

15 from competitive bidding procedures as a sole source or requirements

16 of this act, but a sole brand acquisition is subject to such

17 competitive bidding requirements.

18  2. For each sole source or sole brand acquisition, the state

19 agency shall retain in the state agency's acquisition file and

20 attach to the requisition, a certification signed by the chief

21 administrative officer of the state agency, in the following form:

22                  SOLE SOURCE OR SOLE BRAND ACQUISITION

23                              CERTIFICATION

24  STATE AGENCY ________________________

    Req. No. 15277                                                 Page 30
1   SUPPLIER NAME ________________________

2   SUPPLIER ADDRESS  ________________________

3   SUPPLIER CONTACT INFORMATION ________________________

4   In connection with the attached requisition or contract, I

5 hereby affirm that

6                     (Name of Supplier)

7   is the only business entity singularly qualified to provide the

8 acquisition, or is the only brand satisfying the acquisition

9 requirements, for the following reasons:

10  ______________________________________________________

11  ______________________________________________________

12  ______________________________________________________

13  ______________________________________________________

14  ______________________________________________________

15  The following is a brief description of all efforts made to

16 verify that the acquisition qualifies as a sole source or sole brand

17 acquisition:

18  ______________________________________________________

19  ______________________________________________________

20  ______________________________________________________

21  ______________________________________________________

22  ______________________________________________________

23  I understand that the signing of this certification knowing such

24 information to be false may result in forfeiture of my position and

    Req. No. 15277                                              Page 31
1 ineligibility for appointment to or employment in state service for

2 a period of five (5) years following forfeiture of position.

3   _____________________________

4   (Chief administrative officer)

5   3. A court order requiring a particular acquisition, but which

6 does not specify a brand or supplier shall not substitute for the

7 certification required by this section or otherwise invalidate

8 acquisition procedures required by the Oklahoma Central Purchasing

9 Act.

10  4. Upon a determination by the Director of the Office of

11 Management and Enterprise Services that there are reasonable grounds

12 to believe that a violation of this section has occurred, the

13 Director shall send findings to the Attorney General that support

14 the determination. The Attorney General shall review the findings

15 and determine whether to investigate or prosecute the person.

16  5. Prior to approving a requisition for a sole source or sole

17 brand acquisition, the Purchasing Division shall require the signed

18 certification documenting the need for a sole source or sole brand

19 acquisition and shall retain the certification in accordance with

20 state record retention requirements.

21  6. For a sole source or sole brand acquisitions exceeding the

22 fair and reasonable acquisition threshold amount and not requiring

23 submission of a requisition to the Purchasing Division, the state

24 agency's certified procurement officer shall retain, in the

    Req. No. 15277                                                Page 32
1 acquisition file, the signed certification documenting the need for

2 the sole source or sole brand acquisition in accordance with state

3 record retention requirements.

4   B. By the fifteenth day of each month, or the first working day

5 thereafter, the Office of Management and Enterprise Services shall

6 provide a report to:

7   1. The Speaker of the House of Representatives and the

8 President Pro Tempore of the Senate; and

9   2. Any member of the Legislature requesting the report publish

10 a report on its website.

11  The report shall detail sole source and sole brand acquisitions

12 by state agencies for the month prior to the month preceding the

13 submission of the report. The report shall be titled "Monthly Sole

14 Source and Sole Brand Contracting Report of Oklahoma State Agencies"

15 and indicate the time period of the report. The report shall be

16 provided by the Director of the Office of Management and Enterprise

17 Services or the Director's designee. The report shall be in

18 columnar database format and shall include at least the following

19 fields of information: state agency number; state agency name; date

20 created by the Office of Management and Enterprise Services for the

21 requisition; date of either approval or disapproval of the

22 requisition; if disapproved, the reason why such contract

23 requisition was disapproved; estimated amount of the requisition

24 acquisition; purchase order amount; purchase order number; actual

    Req. No. 15277                                              Page 33
1 business name of supplier; supplier federal employer identification

2 number; and the commodity classification listing at the appropriate

3 level to distinguish between similar acquisitions. Information

4 required by this subsection shall be reported and maintained on each

5 report through the next reporting period after an acquisition is

6 made. The applicable data in the fields of information specified in

7 this subsection shall be listed even if the state agency requisition

8 is disapproved.

9   SECTION 6. This act shall become effective November 1, 2026.

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11  60-2-15277      MJ  01/13/26

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Every fact on this page links to its source, starting with the official bill record.