Governor Announces Plans To Seek Comprehensive State Purchasing Reform

Governor Announces Plans To Seek Comprehensive State Purchasing Reform

Gov. Joe Manchin today announced his plans to seek comprehensive reform of the state purchasing system; the latest step in the Governor's continuing series of "Responsible Government" initiatives.

"For West Virginia to be truly open for business, we need to make positive changes relating to the manner we procure our necessary products and services from our suppliers," the governor said. "In order to accomplish this mission, we need to take proactive steps to be more inviting to the business community by simplifying our processes and utilizing the technology that is available to us."

Governor Manchin has charged Department of Administration Secretary Robert W. Ferguson, Jr., to aggressively pursue positive change and work closely with state lawmakers during the upcoming 2006 regular session to produce viable solutions and improvements in the system.

Department of Administration officials recently submitted more than 20 suggestions for reform that could restructure the foundation of the state purchasing system to bring about positive results. Additional suggestions throughout the reform process could further drive down change in various areas to save time, enhance efficiencies and generate savings.

Suggested changes include replacing the 15-year old purchasing system that uses antiquated technology; allowing for multi-state purchasing cooperatives; requiring contract management for large contracts; increasing development of statewide contracts; offering reverse auctions; and clarifying West Virginia Code for vendor suspension and debarment.

"Purchasing reform will be welcomed by state agencies and our business partners alike," said Secretary Ferguson. "We will come together with our legislators to make the changes necessary while maintaining the integrity of the procurement process."

Millions of dollars in potential savings are expected from this reform initiative, from leveraging the buying power of the state to eliminating non-essential manual tasks resulting in loss of productivity and time. The existing process is often viewed as challenging and complex, governed by very strict laws and rules, according to Purchasing Division Director Dave Tincher. He added that he was pleased to have the opportunity to offer ways to improve the stringent procedures.

"Recognizing that many of our laws were written more than 50 years ago, it is easy to understand the basis for the need for change. Although there has been interest from various groups to change or reform state purchasing in the past, rarely, if ever, has the Purchasing Division had the opportunity to participate," Tincher said. "The Purchasing Division desires to be a world class leader in providing procurement services effectively and efficiently while satisfying and exceeding customer's expectations and assuring the citizens of the State of West Virginia that expenditures made are for the best products and services at the highest possible quality and the lowest possible cost."

According to Secretary Ferguson, retooling the purchasing process will be a monumental undertaking, but the potential outcomes are overwhelmingly positive.

"Not only will we join together the best minds in state government to determine the prudent path to follow to bring positive change, but also will seek advice from other states as well as our state business leaders," Ferguson said.

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