Audit: Web-based procurement could’ve saved state $1 billion

SALEM, Ore. (AP) – An audit has found that if the state of Oregon had used a web-based procurement app in the last biennium, it could have saved more than $1 billion.

Secretary of State Dennis Richardson said Wednesday that adoption of a statewide eProcurement system, if quickly implemented statewide, could close Oregon’s 2019-21 budget gap of $623 million without raising taxes.

The review of the Department of Administrative Services and the Office of the State Chief Information Officer found that Oregon has the potential for massive savings by using modern technology instead of what it called outdated procurement systems and practices.

Auditors recommended acquiring a modern procurement system that would provide detailed purchase data to better analyze spending.

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News release:

Republican Leader Carl Wilson Calls for accountability in wake of procurement audit from Oregon Secretary of State

Salem, Ore. – House Republican Leader Representative Carl Wilson, (R-Grants Pass) called for greater accountability in state spending practices today in the wake of the procurement audit by the office of the Secretary of State.

Leader Wilson’s statement on the audit:

” The findings from today’s audit are shocking and instructive. This level of mismanagement, indeed the utter lack of management should raise the ire of all Oregon taxpayers. Based on this audit, the state is wasting between $400 million to $1.6 billion taxpayer dollars a biennium. This is unacceptable. As an example, agencies that are blocks away from each other in Salem are paying wildly different prices for the exact same equipment. This level of complacency and negligence can only exist when there is a lack of accountability that comes from years of one-party rule.

“It is crystal clear from this audit that there is no need to raise taxes in order to balance the budget when there is rampant wasteful spending and mismanagement. On behalf of Oregonians, I call for far greater accountability and an effective statewide procurement system before we even discuss raising taxes or implementing new taxation schemes. We must do better as a government before reaching into Oregonians’ wallets for more of their hard-earned money.

“In the coming days, House Republicans will be putting forth legislation based on the recommendations of the Secretary of State that call for the immediate implementation of a statewide procurement system to be better stewards of the people’s money.”

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News release from the Oregon Senate Republican Caucus:

DAS Procurement Practices Audit Reveals Substantial Government Waste and Mismanagement

Salem, Ore. – Today, Secretary of State Dennis Richardson released the results of an audit on the Department of Administrative Services (DAS) and their procurement practices.

Today’s audit revealed that DAS could have saved as much as $1.6 billion if they had purchasing policies in place that that kept the state budget and taxpayers in mind. The unfunded portion of the budget that is currently being used to explain the need for increased taxes is $623 million.

“This is another huge example of how in Oregon, revenue is not the problem, spending is the problem,” said Senator Herman Baertschiger, Jr. (R-Grants Pass). “Let’s take a good hard look at government spending and clean up practices at the state.”

The audit shows systemic issues with procurement practices across state agencies. Currently there is no standardized procurement system in place, but the adoption of a statewide eProcurement system, such as OregonBuys, could save the state millions of dollars while providing the necessary data needed to analyze statewide spending practices.