Oklahoma

Key Agency(ies):  The Office of Management and Enterprise Services (OMES) – Central Purchasing Division, is the central authority for Oklahoma Executive branch procurement. The State Purchasing Director leads the Central Purchasing Division within OMES.

Key Statute: Oklahoma’s procurement laws are largely located in Title 74 and Title 61 of the Oklahoma Statutes (Okla. Stat.).

Title 74 contains the Oklahoma Central Purchasing Act, which establishes the Central Purchasing Division within OMES and the State Purchasing Director’s powers and duties.

Title 61 contains the Public Competitive Bidding Act, which governs public construction and public works contracts for the state.

Key Regulations: The Director of OMES is authorized to promulgate rules to implement the Central Purchasing Act, which are published in the Oklahoma Administrative Code (Okla. Admin. Code).

The key rules governing state regulation processes are located in Okla. Admin. Code Title 260 Chapter 115 (Procurement).

Procurement Types/Highlights:

Procurements valued at over $25,000 must be conducted using competitive bidding methods, which includes sealed bidding and request for proposals. For acquisitions below $25,000, agencies may use simplified acquisition procedures as long as the purchase is “fair and reasonable,” under Okla. Stat. § 74-85.5.

In addition, the State Purchasing Director has the authority to establish statewide contracts for certain goods/services. Some of these may be mandatory statewide contracts, and agencies must purchase those items from the contracted supplier unless granted an exemption, such as office supply contracts and fleet vehicle contracts.

Bid Protests:

• Oklahoma’s bid protest procedures are governed by Okla. Admin. Code § 260:115-3-19.
• A supplier may protest a contract award by a state agency or OMES to the State Purchasing Director.

Timeliness Rules:

• The deadline to file a protest is 10 business days from the contract award or notice of intended award.

Protest Process:

• Once the protest is filed, the State Purchasing Director reviews the protest and the contract award documentation.
• The SPD may also delegate the protest review to the contracting agency.
• A decision on the protest must be issued within 10 days after receiving the protest.

Appeals:

• If a vendor receives an adverse decision, they may appeal to the OMES Director. The appeal must be filed within 10 business days of the protest denial.
• The OMES Director must then conduct proceedings pursuant to the Oklahoma Administrative Procedures Act.
• After reviewing evidence and potentially conducting a hearing, the Director must issue a decision on the protest appeal. The Director’s decision is the final administrative remedy available.

Claims: Most contract claims are governed by Okla. Admin. Code § 260:115-9-7.

If a contractor has a dispute with an agency during performance of a contract, the parties must communicate their claim in writing and attempt to resolve the dispute informally. If the agency and supplier cannot resolve the dispute, the agency must submit a written request for dispute resolution to the State Purchasing Director (SPD). Once notified, the SPD will intervene to resolve the dispute. If the SPD cannot broker a resolution acceptable to both parties, the SPD must determine who is at fault. If the SPD determines the contractor is in breach, the SPD may terminate the contract and may suspend the contractor as appropriate.  If the SPD determines the agency is at fault, the SPD may order an audit or other corrective action for the agency.

In addition, Oklahoma has waived sovereign immunity for breach of contract claims. If a vendor believes the state has not fulfilled its contractual obligations, the contractor may bring an action against the State to enforce the contract.

Suspension & Debarment: Oklahoma’s suspension and debarment rules are governed by Okla. Admin. Code § 260:115-3-21.

The SPD has the power to suspend and debar suppliers. The SPD may suspend suppliers pending an investigation or corrective action. Debarments in Oklahoma may be for a period of no more than three years. Causes for debarment include convictions involving fraud, bribery, or corruption, chronic failure to successfully perform contracts, debarment by federal agencies, or convictions of a felony indicating a lack of business integrity.

Before debarring a contractor, the SPD must send the supplier a notice to show cause as to why they should not be debarred. The supplier has an opportunity to respond and present mitigating facts. If the SPD proceeds with the debarment, they must issue a debarment order stating the reasons for and length of the debarment. Contractors have the right to appeal a debarment decision. They must file their appeal to the OMES director within 10 business days of the debarment notice.

Interesting/Distinctions: Oklahoma laws establish a State Use Program, which requires purchasing preferences for nonprofits employing people with disabilities, and a requirement to purchase certain goods from Oklahoma Correctional Industries. Pursuant to Okla. Stat. § 74-3007.B, state agencies are prohibited from evading purchasing goods or services listed on the State Use procurement schedule.