Oregon acts to require greater discipline through technology contracting

Gov. Kate Brown of Oregon is expected to soon sign HB 2375, legislation that requires greater discipline by state officials and contracting agencies in the development of solicitation documents, specifically contract forms and contract templates. Under the measure, agencies “may not vary the terms and conditions without the advice of the Attorney General or legal counsel that the Attorney General approves if the state contracting agency anticipates that the contract form or contract template will be the basis for a public contract with a contract price that exceeds $150,000.”

The IT Alliance for Public Sector (ITAPS) had raised concerns as the bill was being considered during the legislative process. Our concerns, on behalf of the IT vendor community, centered on a requirement that all agencies use a contract template “without alternations.” Thankfully, the bill’s sponsor, state Rep. Nancy Nathanson, agreed to amend her bill to address ITAPS’s concern. In a statement for the record, Rep. Nathanson stated, “the bill is about the process of these contracts, not the content of these contracts.” She also pointed out that “a question raised was whether the state agency could still negotiate the contract. The ability for a state agency to negotiate terms and conditions are fundamental to the contracting code. This bill doesn’t change that. The intent is to ensure the ability to negotiate individual contracts.”

Among other changes, the law will also require the Department of Administrative Services (DAS) to:

  • Establish standards for education, training, and experience required to conduct procurement or administer a public contract;
  • Sign and retain in the state contracting agency’s records a statement that acknowledges that the head of the state contracting agency has reviewed the advice and recommendations by DAS and the Department of Justice or other legal counsel;
  • Develop and evaluate advice and recommendations for promoting best practices;
  • Evaluate the feasibility and practicality of, and methods by which, the state may develop and implement a system of peer review or a reservoir of shared expertise among state agencies; and,
  • Report to an interim legislative committee by November 31, 2015.

In sum, this new law represents several positive steps forward for Oregon (e.g., more procurement training, greater focus on best practices). As for the vendor community, we hope state officials will indeed be willing to negotiate the terms of its IT contracts once an agency has notified a vendor that it has selected a bidder. If not, the outcome will be predictable – fewer bidders, less competition, and, therefore, higher prices for the state and its taxpayers.

Public Policy Tags: Public Sector

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