When the General Assembly wrapped up its work last month, it did so after passing some legislation that didn’t generate a lot of media attention but will significantly benefit Tennesseans in the years ahead.
For example, there is a new law on the books that should significantly improve the process the State of Tennessee uses to purchase goods and services. This law promises to provide savings to the taxpayers as well as making the purchasing system fairer and easier to understand for companies that wish to do business with the state.
|
|
And your state
senator, Bill Ketron of Murfreesboro, was instrumental in making it
happen.
As chairman of the General Assembly’s Fiscal Review
Committee, the legislative committee that supervises the finances of our
state government, he saw firsthand that the state’s system lacked
efficiency, accountability and policy compliance. And he took it upon
himself to educate his colleagues about the problems he had seen.
|
|
Vendors were having difficulty doing
business with the state. Citizens did not know how much was paid for
goods and services or how contracts were awarded.
In committee
meeting after committee meeting, Sen. Ketron held up a chart that
resembled a maze in a puzzle magazine. This chart showed how complex the
system had become: There were actually two separate processes — one for
purchasing goods and the other for purchasing services.
Tennessee’s
rules really offered the worst of two possible worlds — they were
overly convoluted with no clear chain of command, but flexible enough to
allow abuse and perceived favoritism. To put it simply, they were a
confused mess.
Because many vendors were discouraged from
participating, the system lacked robust competition. As a result, the
taxpayers weren’t always getting the best deals for their money.
We needed real reform.
Sen. Ketron
introduced legislation to simplify and streamline the purchasing
process. It combined the purchasing of goods and services under the
oversight and direction of a single leader directly responsible to the
governor.
The new law requires purchasing policy decisions to be
centralized — as part of a strategic plan — after input has been
received from affected state agencies and vendors.
The law also
requires more emphasis on professional development and training for
employees and for qualified vendors involved in the procurement process.
Georgia
had enacted similar legislation five years ago. The head of Georgia’s
purchasing department told members of the Fiscal Review Committee to
expect resistance from those who were benefiting under the old system.
After
Georgia adopted the reforms, competition flourished. Vendors came to
trust the system and to believe the process was fair. Georgia saved tens
of millions of dollars as a result of these reforms.
Remarkably, a study done in Tennessee
several years ago had identified many of the same problems here that
were described in Georgia.
But after Sen. Ketron’s bill was
introduced, the governor’s administration here initially raised all
sorts of questions about the proposed law. As was the case in Georgia,
vendors who had become comfortable with the status quo here also
resisted change and attempted to subvert the proposed legislation.
Delays
were suggested.
“Major legislation can’t be done in just one
year,” the naysayers said.
“Let’s let the new governor have his
say,” they said.
And, ridiculously, some of them tried to attach
political motivations to changes that simply make for a better state
government.
Sen. Ketron persisted, though, and ultimately, the
General Assembly approved the legislation with strong bipartisan
support.
There are several ways
we should be able to save money under the new law. A fairer and simpler
system should encourage more vendors to participate, which should help
drive down the prices we pay for goods and services. Also, centralized
purchasing will allow us to purchase items in greater quantities, which
can help us negotiate price discounts.
We will save the taxpayers
money. And we will have a fairer, more competitive and more open
purchasing system.
Those should not be revolutionary concepts,
but sometimes it takes strong leadership to make them happen.
Justin
P. Wilson is Tennessee’s State Comptroller.
Comments
Post has no comments.