Hearings Focus On Government Modernization

House Republican leaders spearheading a series of hearings on government modernization raised concerns today about Oklahoma's state purchasing system, and they pointed to a two-year-old IBM study that showed the state could save tens of millions of dollars through simple reforms.

"We're encouraged that the Department of Central Services is taking to heart some of IBM's recommendations, but clearly more needs to be done," said Rep. Ken Miller, vice chair of the House Appropriations and Budget Committee. "This study was performed two years ago, and we shouldn't delay its implementation any longer."

Miller and other members of the House Appropriations and Budget Committee asked DCS Director John Richard about a study performed by IBM consultants two years ago, which examined state purchasing practices to identify cost savings.

IBM projected tens of millions of dollars in possible savings and found problems with current DCS purchasing practices.

"When we began these hearings and said Oklahoma needed to move beyond the horse-and-buggy era, we didn’t mean it literally," said Speaker Lance Cargill, R-Harrah. "But today we heard testimony that DCS cannot adequately track and monitor state contracts and that some employees who manage hundreds of millions of dollars of taxpayer-funded contracts are not proficient in things like Excel and spreadsheet programs. We heard that DCS cannot move to online bidding to save taxpayers money because some vendors don't know how to use e-mail or get online."

"Whose interests is the state protecting? Some technological dinosaur vendors who won't learn to use e-mail, or the taxpayers of this state?" Cargill continued. "What's the delay in implementing IBM's recommendations? Tens of millions of dollars are at stake annually. I think there needs to be some urgency."

Cargill pointed out that the state's surplus storage practices are also a concern. The state leases some 20 separate agency warehouses storing massive amounts of surplus items, and even outright junk.

"The state doesn't even really know how many desks we own," said Cargill. "It's clear we need a central inventory system, and it's concerning that we don't have one."

Richard testified that he was working to implement some of IBM's recommendations. But he also conceded that much work remains to be done.

The House A&B Committee will continue its series of government modernization hearings on December 4th.

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