Ohio Governor Announces Reforms to State Procurement Process

Photo: Ohio Gov. Ted Strickland

Ohio Gov. Ted Strickland yesterday signed two executive orders aimed at maximizing the state's purchasing power for cost savings and increasing the effectiveness of two programs that help grow Ohio's minority-owned and disadvantaged businesses.

"The initiatives announced today will greatly improve the way that the state conducts its business when purchasing goods and services," Strickland said. "Both executive orders are part of our continuing effort to reform government operations in a way that maintains our state's competitive advantage and attracts business to Ohio."

The first executive order reinforces the state's commitment to minority-owned and disadvantaged businesses by increasing participation in the Minority Business Enterprise (MBE) and Encouraging Diversity, Growth and Equity (EDGE) programs.

In this executive order, Strickland calls on each agency to appoint an equal employment opportunity officer and improve access to state contracts for MBE and EDGE vendors. Additionally, the executive order directs state agencies to track their spending with MBE and EDGE vendors through a scorecard system, set goals for improvement, and work closely with the Department of Administrative Services' Equal Opportunity Division, which oversees the programs and assists agencies with compliance.

"All businesses should have equal access to compete for and enter into state contracts," Strickland said. "While these programs exist to help bridge the economic gap for minorities and the disadvantaged, they ultimately create jobs and help small businesses grow and succeed."

Strickland also signed an executive order that outlines procurement reform efforts and directs all state agencies to work together for cost savings and efficiencies when purchasing supplies and services. In addition, the executive order directs the Department of Administrative Services to hire a chief procurement officer to oversee agency purchasing functions.

"By increasing collaboration among state agencies and ensuring accountability in our financial decisions, we will save money and allow government to run more efficiently," Strickland said.

State government spends $3.5 billion each year on supplies and services. By maximizing the state's purchasing power, state agencies are estimated to save between $34 million and $72 million annually -- not including the additional savings that may be realized by collaboration among higher education institutions as well as local governments.

The executive order also implements Think Ohio First practices, which will promote economic development by maximizing the use of Ohio businesses when agencies conduct purchases. Additionally, the executive order calls for making greater use of technology in tracking and performing purchases statewide.

In early 2007, Strickland launched Advantage Ohio, which addresses regulatory reform, procurement reform, adjudicative hearing reform, and expansion of the Ohio Business Gateway. The procurement executive order implements the second piece of the four-part initiative as well as recommendations from a procurement reform panel that was formed last year.

The Advantage Ohio Procurement Reform Panel, which included representatives from the public and private sectors, made seven recommendations for state government procurement reform: Create a center-led supply organization, maximize purchasing power through leverage, apply a consistent strategic sourcing process, attract and retain talented supply management professionals, set annual targets and report results of procurement efforts, maximize the use of information technology, and accomplish the objectives without comprising supplier diversity and the quality of goods and services.

"By implementing these recommendations, we will make the most effective use of state resources while continuing to provide quality services to the people of Ohio," Strickland said.

Executive Order 2008 - 12S

Enhancing the State's Procurement Process through the Establishment of "Think Ohio First" and other Procurement Best Practices

1. Ohio's State Agencies Are Major Purchasers of Supplies and Services. Collectively, various entities of the State's government purchase billions of dollars of supplies and services annually that facilitate the State's ability to provide needed services to Ohioans. The Office of