Contact:  Darlene Schlicher (615) 741-6336 or email:  darlene.schlicher@capitol.tn.gov

 (NASHVILLE, TN), April 22, 2010  --  Major legislation overhauling the way state government contracts for the purchase of up to $25 billion in goods and services has been approved by the Senate State and Local Government Committee.  The legislation, Senate Bill 3598, sponsored by Senator Bill Ketron (R-Murfreesboro), is designed to implement cost saving strategies taken from the best practices implemented by procurement officials nationwide that could save Tennessee hundreds of millions of dollars over the long run.
 
 “This bill streamlines the way we do business to help ensure Tennessee taxpayers get the best value for our dollars in state contracting,” said Senator Ketron, who is Chairman of the Fiscal Review Committee,  the legislature’s financial watchdog panel.  “We will save hundreds of millions of dollars for the taxpayers over the long run by applying best practices and modernizing how state government manages the procurement of goods and services.”

The bill uses information contained in a State of Tennessee Procurement Assessment showing state authority for contracting is divided with one path for procuring goods and routine services and another path for the purchase of professional services.  Each path has its own rules, players, decision makers, databases, technology, policies and staff.   Without a single entity in charge of or accountable for statewide procurement spending, there is currently no easy way to manage a coherent, comprehensive, statewide cost saving strategy for procurement.  The report also said it was confusing for vendors to do business with the state due to inefficient and redundant processes.

The proposed legislation would combine procurement of goods and services for the state into one central office housed in a department to be chosen by the governor.  The governor would also appoint a single Chief Procurement Officer who has extensive qualifications and experience in contract administration to head the agency.  The Chief Procurement officer would lead a staff of 88 well trained professionals to carryout the function of procurement management, contract management, contract compliance /quality assurance, and vendor customer relations. 
 
An Advisory Council for State Procurement would be established to provide counsel to the new agency, replacing the present Board of Standards and Review Committee.  It would consist of representatives from state agencies, the legislative branch and those with expertise from the vendor community. 

“The new statewide system could also take advantage of the government’s clout as a volume-buyer to leverage more competitive bidding,” added Ketron. Other objectives of the legislation is to provide opportunity and fairness in state contracting and implementation of performance measures to make sure taxpayer dollars are used efficiently and effectively. 

“We are in very tough financial times right now and, if we are going to move forward, we must restructure state government from the way we know it,” added Ketron.  

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