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An Act
ENROLLED HOUSE
BILL NO. 3420 By: Strom, West (Josh), Archer,
Crosswhite Hader,
Dobrinski, Stinson, Fugate,
Woolley, Kendrix, Kelley,
McCane, Chapman, Wolfley,
Stark and Menz of the House
and
Hicks of the Senate
An Act relating to state government; amending 74 O.S.
2021, Section 85.5 as amended by Section 1, Chapter
102, O.S.L. 2024; 74 O.S. 2021, Section 85.7, as last
amended by Section 1, Chapter 339, O.S.L. 2023 (74
O.S. Supp. 2025, Sections 85.5 and 85.7); amending 74
O.S. 2021, Section 85.41; amending 74 O.S. 2021,
Section 85.42, as amended by Section 9, Chapter 336,
O.S.L. 2025 (74 O.S. Supp. 2025, Section 85.42); and
amending 74 O.S. 2021, Section 85.44D.1, which relate
to the Oklahoma Central Purchasing Act; modifying the
powers and duties of the State Purchasing Director;
requiring the Chief Information Officer to document
justification for not bidding certain contracts and
document negotiation efforts; requiring certain pilot
projects to not last longer than twelve months;
directing the State Purchasing Director to document
negotiation efforts; modifying exemptions from the
competitive bidding requirements; clarifying state
agencies that acquire professional services do not
have to bid certain professional services; directing
the Office of Management and Enterprise Services to
publish a report on its website; expanding definition
of person to include employees of state officials;
providing a definition of agency; and providing an
effective date.
SUBJECT: State government
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
ENR. H. B. NO. 3420 Page 2
SECTION 1. AMENDATORY 74 O.S. 2021, Section 85.5, as
amended by Section 1, Chapter 102, O.S.L. 2024 (74 O.S. Supp. 2025,
Section 85.5), is amended to read as follows:
Section 85.5. A. Except as otherwise provided in this section,
the State Purchasing Director, under the supervision of the Director
of the Office of Management and Enterprise Services, shall have sole
and exclusive authority and responsibility for all acquisitions by
state agencies. In order to carry out the powers and duties of the
Chief Information Officer and the Information Services Division, the
Chief Information Officer shall have sole and exclusive authority
and responsibility for all acquisitions of information and
telecommunications technology, equipment, software, products and
related peripherals and services by state agencies. Public
construction contracts are awarded pursuant to Title 61 of the
Oklahoma Statutes and are not subject to the Oklahoma Central
Purchasing Act.
B. Every state agency shall determine its own quantitative
needs for acquisitions and the general class or nature of the
acquisitions. The State Purchasing Director, after consultation
with the requisitioning state agency, shall have authority to
determine the particular brand, model or other specific
classification of each acquisition and to draft or invoke pursuant
to the Oklahoma Central Purchasing Act specifications establishing
the requirements for all necessary contracts or purchase orders.
C. The Director of the Office of Management and Enterprise
Services shall have authority and responsibility to promulgate rules
in connection with provisions of the Oklahoma Central Purchasing Act
for:
1. The time, manner, authentication and form of making
requisitions for acquisitions;
2. Inspection, analysis and testing of acquisitions or samples
bidders submit prior to contract award;
3. The form and manner of submission for bids or proposals a
bidder submits and the manner of accepting and opening bids or
proposals;
4. The conditions under which the Office of Management and
Enterprise Services shall require written contracts for
acquisitions, the conditions under which acquisitions may be made on
ENR. H. B. NO. 3420 Page 3
an open account basis, and the conditions and manner of negotiating
such contracts;
5. Obtaining acquisitions produced by state institutions;
6. Conditions under which any of the rules herein authorized
may be waived;
7. The amounts of and deposits on any bond or other surety
required to be submitted with a bid or contract for the furnishing
of acquisitions and the conditions under which such bond or other
surety shall be required;
8. The manner and conditions of delivery, which shall include
the designation of the common carrier of property to be used to
transport acquisitions whenever a common carrier is used, and the
acceptance, or rejection, including check of quantities, of any
acquisitions;
9. The form of any estimate, order or other information
required in connection with an acquisition;
10. State agency acquisitions not exceeding the acquisition
threshold amount requiring competitive bid to ensure
competitiveness, fairness, compliance with the Oklahoma Central
Purchasing Act and Section 3001 et seq. of this title, which relates
to the State Use Committee. The rules shall include separate
provisions based on acquisition amounts as follows:
a. state agencies shall make acquisitions not exceeding
Twenty-five Thousand Dollars ($25,000.00), provided
the acquisition process is fair and reasonable and is
conducted pursuant to rules authorized pursuant to
this section, and
b. state agencies with certified procurement officers and
internal purchasing procedures found compliant by the
State Purchasing Director may make acquisitions in
excess of the fair and reasonable acquisition
threshold amount provided for in this section and not
exceeding Two Hundred Fifty Thousand Dollars
($250,000.00), pursuant to rules authorized by this
section;
ENR. H. B. NO. 3420 Page 4
11. Training by the State Purchasing Director of state agency
procurement officers;
12. Review and audit by the State Purchasing Director of state
agency acquisitions;
13. The conditions for increasing acquisition limits for state
agencies which have had a prior reduction in acquisition limit by
the Director of the Office of Management and Enterprise Services;
14. Use of a state purchase card to make acquisitions;
15. Any other matter or practice which relates to the
responsibilities of the State Purchasing Director;
16. Conditions for determination and authorization of
acquisition threshold amounts of state agencies;
17. The form and manner of verification by suppliers that the
supplier is eligible to do business in the State of Oklahoma and has
obtained all necessary permits and licenses, pursuant to applicable
provisions of law; and
18. Payment procedure rules for state agencies to adhere to
regarding statewide contracts.
D. The State Purchasing Director shall provide training for
state agency procurement officials, and other procurement staff, and
is authorized to require retraining of such procurement personnel
found not to be in compliance with provisions of the Oklahoma
Central Purchasing Act or associated rules. The training may
include any matters related to state procurement practices. State
agency purchasing officials that demonstrate proficiency shall be
certified as "certified procurement officers" by the State
Purchasing Director and shall be authorized to make acquisitions
pursuant to provisions of the Oklahoma Central Purchasing Act and
associated rules. The State Purchasing Director may assess a fee to
state agencies for the training that does not exceed each state
agency's pro rata share of the costs the State Purchasing Director
incurs to provide the training.
E. The State Purchasing Director shall review state agency
acquisitions for the purposes of:
ENR. H. B. NO. 3420 Page 5
1. Ensuring state agency compliance with provisions of the
Oklahoma Central Purchasing Act;
2. Ensuring state agency compliance with rules promulgated by
the Office of Management and Enterprise Services pursuant to the
Oklahoma Central Purchasing Act;
3. Ensuring state agency compliance with provisions of Section
3001 et seq. of this title pertaining to the State Use Committee;
4. Reporting any acquisition by any state agency found not to
be in compliance with those sections or rules to the Director of the
Office of Management and Enterprise Services;
5. A determination by the State Purchasing Director to reduce a
state agency's acquisition authority amount when the state agency is
found not to be in compliance with the Oklahoma Central Purchasing
Act or associated rules or requirements of the State Purchasing
Director pursuant to this section; and
6. A determination by the State Purchasing Director to increase
a state agency's acquisition authority amount after the agency cures
deficiencies in connection with a prior reduction in the authority
amount by the State Purchasing Director.
F. Based on written findings and when recommended by the State
Purchasing Director, the Director of the Office of Management and
Enterprise Services may:
1. Transmit written findings by the State Purchasing Director
to the State Auditor and Inspector for further investigation,
indicating purchasing procedures that do not conform to the Oklahoma
Central Purchasing Act or associated rules; or
2. Transmit to the Attorney General or the State Auditor and
Inspector for further investigation a report made by the State
Purchasing Director that the Director of the Office of Management
and Enterprise Services reasonably believes indicates that an action
that constitutes a criminal violation pursuant to the Oklahoma
Central Purchasing Act or other laws has been taken by any state
agency, state agency official, bidder or supplier.
G. 1. Pursuant to the requirements of the Oklahoma Central
Purchasing Act, the State Purchasing Director shall have authority
to enter into any statewide, multistate or multigovernmental
ENR. H. B. NO. 3420 Page 6
contract. The state entity designated by law, as specified in
Section 1010.3 of Title 56 of the Oklahoma Statutes, shall
participate in the purchase of pharmaceuticals available through
such multistate or multigovernmental contracts entered into by the
State Purchasing Director.
2. Whenever it appears advantageous to the state or to any
state agency to purchase or otherwise acquire any acquisition which
may be offered for sale by the United States government or any
agency thereof, the State Purchasing Director may execute a contract
for the acquisition with the federal government or federal agency
and may also utilize contracts awarded by other governmental
agencies including, but not limited to, agencies of the United
States of America.
3. The State Purchasing Director may designate, for use by
state agencies, contracts described in this subsection and contracts
awarded on behalf of one or more state agencies.
4. Prior to exercising the authority to cancel a contract, the
State Purchasing Director may authorize renegotiation of an existing
contract with an incumbent supplier for the purposes of obtaining
more favorable terms for the state.
5. The State Purchasing Director shall have the authority to
designate certain contracts for state agencies as statewide
contracts and mandatory statewide contracts. In order to carry out
the powers and duties of the Chief Information Officer and
Information Services Division, the Chief Information Officer shall
have the authority to designate certain information technology and
telecommunication contracts as statewide contracts and mandatory
statewide contracts and may negotiate consolidation contracts,
enterprise agreements and high technology system contracts in lieu
of or in conjunction with competitive bidding procedures to reduce
acquisition cost, must document the justification for not bidding
any such contracts or agreements, and must document such negotiation
efforts.
6. The State Purchasing Director may publish such
specifications relating to materials, supplies, equipment and
services to be acquired for the state as may best promote
competition and apprise potential suppliers of the type of product
desired.
ENR. H. B. NO. 3420 Page 7
H. 1. The State Purchasing Director may develop and test new
contracting policies, procedures and innovations that hold potential
for making state procurement more effective and efficient and
identify, and make recommendations to the Legislature of, any
appropriate changes in law. Such development and testing, proof of
concept, pilot project or other similar test shall not be considered
an acquisition subject to the Oklahoma Central Purchasing Act last
longer than twelve (12) months.
2. The State Purchasing Director is authorized to explore and
investigate cost savings in energy, resource usage and maintenance
contracts and to identify and negotiate contract solutions
including, but not limited to, pilot projects to achieve cost
savings for this state. The State Purchasing Director shall
document such negotiation efforts.
I. The State Purchasing Director shall endeavor to satisfy
state agencies in terms of cost, quality and timeliness of the
delivery of acquisitions by using bidders who have a record of
successful past performance, promoting competition, minimizing
administrative operating costs and conducting business with
integrity, fairness and openness.
J. The State Purchasing Director shall undertake the following:
1. The use of electronic commerce pursuant to the Oklahoma
Online Bidding Act for solicitation, notification and other
purchasing processes;
2. Monitoring rules promulgated pursuant to the Oklahoma
Central Purchasing Act to ensure that the rules satisfy the
interests of the state, are clear and succinct and encourage
efficiency in purchasing processes;
3. A program to identify suppliers' performance records;
4. Development of criteria for the use of sealed bid
contracting procedures, negotiated contracting procedures, selection
of types of contracts, postaward administration of purchase orders
and contracts, addendums, termination of contracts and contract
pricing;
5. Continual improvement in the quality of the performance of
the Purchasing Division through training programs, management
ENR. H. B. NO. 3420 Page 8
seminars, development of benchmarks and key management indicators,
and development of standard provisions, clauses and forms;
6. The State Purchasing Director shall prescribe standardized
contract forms and all other forms or certifications requisite or
deemed necessary by the State Purchasing Director to effectuate the
provisions of the Oklahoma Central Purchasing Act and associated
rules;
7. Development of programs to improve customer relations
through training, improved communications and appointment of
technical representatives;
8. Provide for public two-way communication between procurement
officers and potential bidders who have questions regarding a
request for proposal or invitation to bid; and
9. Determine whether and to what extent information included in
a bid or similar offer is confidential and reject all requests to
disclose the information so designated.
K. The State Purchasing Director may utilize and authorize
state agencies to utilize reverse auctions to obtain acquisitions.
L. Prior to the award of a contract to a supplier, the State
Purchasing Director shall verify, pursuant to applicable provisions
of law, that the supplier is eligible to do business in this state
by confirming registration with the Secretary of State and franchise
tax payment status pursuant to Sections 1203 and 1204 of Title 68 of
the Oklahoma Statutes. The provisions of this subsection shall be
applicable only if the contract amount is Two Hundred Fifty Thousand
Dollars ($250,000.00) or greater.
M. On an annual basis, the State Purchasing Director shall
transmit to the Governor, Speaker of the House of Representatives
and President Pro Tempore of the Senate a report documenting the
savings realized by each agency through the application of best
spend practices including the collection and tracking of spend data,
strategic sourcing programs and implementation of managed and
mandatory statewide contracts and include in the report information
regarding emergency acquisitions.
N. The acquisition threshold amount applicable to an
acquisition made pursuant to this act or associated rules shall not
apply to state agency purchases; provided, the State Purchasing
ENR. H. B. NO. 3420 Page 9
Director determines the agency has subject matter experts on staff
having the specialized expertise to purchase goods or services, the
agency possesses the necessary legal and procurement staff to
procure and monitor the contracts and provided the Director of the
Office of Management and Enterprise Services shall certify that the
proposed purchase does not conflict with consolidated statewide
spend initiatives.
1. Nothing in this subsection shall give an agency authority to
issue statewide, multistate or multigovernmental contracts.
2. Agencies making purchases pursuant to this subsection shall:
a. be responsible for contracts awarded pursuant to this
subsection, which includes, but may not be limited to,
contract management, protest costs, all costs
connected with or incurred as a result of the
contract, including legal representation,
b. comply with rules and policies of the Office of
Management and Enterprise Services, and
c. report contracts issued pursuant to this subsection to
the Office of Management and Enterprise Services,
Central Purchasing Division, on a quarterly basis.
3. Purchases made in accordance with this subsection shall be
made pursuant to rules authorized by this section.
O. The State Purchasing Director, with approval by the Director
of the Office of Management and Enterprise Services, is authorized
to make use of any state laboratories for the tests and analyses
authorized in this section wherever practicable and to use private
laboratories or the laboratories of another government agency if it
is impracticable to use state laboratories. The State Purchasing
Director is further authorized to cooperate in test and analysis
programs or agreements with other states or the United States
government and to accept federal funds and funds donated by private
endowments or foundations for the purpose of participation in such
testing programs.
P. The State Purchasing Director shall require all contractors
or subcontractors who have entered into a contract with a public
employer to submit an affidavit that the contractor or subcontractor
is in compliance with the provisions of Section 1313 of Title 25 of
ENR. H. B. NO. 3420 Page 10
the Oklahoma Statutes. If the State Purchasing Director determines
that a contractor or subcontractor has knowingly submitted a false
affidavit:
1. The contractor or subcontractor shall be liable for an
administrative penalty of Five Thousand Dollars ($5,000.00) for the
first offense, which shall increase by Two Thousand Dollars
($2,000.00) for each subsequent offense; and
2. The public employer or the Office of Management and
Enterprise Services may terminate the contract with the contractor
or subcontractor.
SECTION 2. AMENDATORY 74 O.S. 2021, Section 85.7, as
last amended by Section 1, Chapter 339, O.S.L. 2023 (74 O.S. Supp.
2025, Section 85.7), is amended to read as follows:
Section 85.7. A. 1. Except as otherwise provided by the
Oklahoma Central Purchasing Act, or associated rules:
a. every state agency shall initiate all acquisitions by
the submission of a requisition to the Purchasing
Division, and
b. no state agency shall make an acquisition for an
amount exceeding Fifty Thousand Dollars ($50,000.00)
or the limit determined by the State Purchasing
Director pursuant to rules authorized by Section 85.5
of this title, not to exceed Two Hundred Fifty
Thousand Dollars ($250,000.00), without submission of
a requisition to the Purchasing Division for issuance
of a solicitation for the acquisition on behalf of the
agency. Any exemption from competitive bid
requirements of the Oklahoma Central Purchasing Act
further exempts the acquisition from requisition
requirements of the act.
2. The State Purchasing Director may request additional
information necessary to adequately review a requisition to ensure
compliance with the Oklahoma Central Purchasing Act and associated
rules. If the State Purchasing Director determines that an
acquisition is not necessary, excessive or not justified, the State
Purchasing Director shall deny the requisition.
ENR. H. B. NO. 3420 Page 11
3. The provisions of the Oklahoma Central Purchasing Act shall
not preclude a state agency from:
a. accepting gifts or donations in any manner authorized
by law, or
b. making an acquisition for itself without submitting a
requisition under this section when authorized in
writing by the State Purchasing Director.
4. Any acquisition a state agency makes shall be made pursuant
to the Oklahoma Central Purchasing Act and associated rules. No
agency shall use split purchasing for the purpose of evading the
requirement of competitive bidding or other requirement of the
Oklahoma Central Purchasing Act or associated rules. Violation of
this provision shall be cause for discipline of a state employee up
to and including termination.
5. The State Purchasing Director may waive or increase the
limit authorized for a state agency acquisition made pursuant to its
own competitive procedures. To perfect an otherwise valid
acquisition inadvertently exceeding the limit due to administrative
error by a state agency or unforeseeable circumstances, the state
agency shall request a limited waiver or increase upon the discovery
of the error or circumstance to the State Purchasing Director. The
State Purchasing Director shall report requests for waivers or
increases, stating the amount and whether the request was granted or
denied, upon request by the Governor, President Pro Tempore of the
Senate or Speaker of the House of Representatives.
6. Competitive bidding requirements of this section shall not
be required for the following:
a. contracts for master custodian banks or trust
companies, investment managers, investment
consultants, and actuaries for the state retirement
systems, and Oklahoma Employees Insurance and Benefits
Board, pension fund management consultants of the
Oklahoma State Pension Commission and the
Commissioners of the Land Office, examiners, experts,
or consultants for the Insurance Department whose job
duties are tied to Market Conduct Exams, Financial
Exams, and Insurance Business Transfers, financial
institutions to act as depositories and managers of
the Oklahoma College Savings Plan accounts and other
ENR. H. B. NO. 3420 Page 12
professional services as defined in Section 803 of
Title 18 of the Oklahoma Statutes. When requested by
the Oklahoma Employees Insurance and Benefits Board or
the governing board of a state retirement system
authorized to hire investment managers, the Purchasing
Division shall assist in the process of selecting
investment managers,
b. a state agency making such an acquisition shall notify
the State Purchasing Director within fifteen (15) days
following completion of the acquisition. A list of
the exempt contracts shall be provided, upon request,
to a member of the Appropriations and Budget Committee
of the House of Representatives or Appropriations
Committee of the Senate,
c. purchases of postage by state agencies made pursuant
to Sections 90.1 through 90.4 of this title,
d. a sole source acquisition made in compliance with
Section 85.44D.1 of this title,
e. an acquisition for design, development, communication
or implementation of the state employees flexible
benefits plan; provided, procedures used for the
acquisition are consistent with competitive bid
requirements of the Oklahoma Central Purchasing Act
and associated rules,
f. any acquisition of a service which the Office of
Management and Enterprise Services has approved as
qualifying for a fixed and uniform rate, subject to
the following:
(1) the Purchasing Division shall establish criteria
and guidelines for those services which may
qualify for a fixed and uniform rate,
(2) fixed and uniform rate contracts authorized by
this subsection shall be limited to contracts for
those services furnished to persons directly
benefiting from such services and shall not be
used by a state agency to employ consultants or
to make other acquisitions,
ENR. H. B. NO. 3420 Page 13
(3) any state agency desiring to have a service
qualified for a fixed and uniform rate shall make
a request for service qualification to the State
Purchasing Director and submit documentation to
support the request. The State Purchasing
Director shall approve or deny the request. If
approved, the state agency shall establish a
fixed and uniform rate for the service. No
contracts shall be entered into by the state
agency until the rate has been approved by the
state agency in a public hearing. The proposed
rate shall be clearly and separately identified
in the agenda of the state agency for the hearing
and shall be openly and separately discussed
during such hearing. The state agency shall
notify the State Purchasing Director of its
pending consideration of the proposed rate at
least thirty (30) days before the state agency is
to meet on the proposed rate and deliver a copy
of the agenda items concerning the proposed rate
with supporting documentation. The State
Purchasing Director shall communicate any
observation, reservation, criticism or
recommendation to the agency, either in person at
the time of the hearing or in writing delivered
to the state agency before or at the time of the
hearing. The State Purchasing Director shall
specifically note in the written communications
whether the Director has determined the rate to
be excessive. Any written communication
presented in the absence of the State Purchasing
Director shall be presented orally during the
public hearing. Whether made in person or in
writing, any comment made by the State Purchasing
Director shall be made a part of the minutes of
the hearing in full,
(4) within two (2) weeks after the convening of the
Legislature, the administrative officer of the
state agency shall furnish to the Speaker of the
House of Representatives, the President Pro
Tempore of the Senate and to any member of the
House or Senate, if requested by the member, a
complete list of all of the types of services
paid for by uniform fixed rates, the amount of
ENR. H. B. NO. 3420 Page 14
the rate last approved by the agency for the
service and the number of contracts then in
existence for each type of service. Any rate
which has been determined to be excessive by the
State Purchasing Director shall be specifically
identified in the list by the state agency, and
(5) at any time, the State Purchasing Director may
review, suspend or terminate a contract entered
into pursuant to the provisions of this paragraph
if the Director determines the contract is not
necessary, is excessive or is not justified,
g.
f. an acquisition for a client of the State Department of
Rehabilitation Services; provided, the agency develops
and maintains standards for such an acquisition. The
agency may elect to utilize the Purchasing Division
for an acquisition. The standards shall foster
economy, provide a short response time, include
appropriate safeguards, require written records,
ensure appropriate competition for economical and
efficient purchasing and shall be approved by the
State Purchasing Director,
h.
g. structured settlement agreements entered into by the
Attorney General’s office in order to settle any
lawsuit involving the state, the Legislature, any
state agency or any employee or official of the state
if:
(1) prior to entering into any contract for the
services of an entity to administer a structured
settlement agreement, the Attorney General
receives proposals from at least three entities
engaged in providing such services, and
(2) the selection of a particular entity is made on
the basis of the response to the request which is
the most economical and provides the most
competent service which furthers the best
interests of the state,
ENR. H. B. NO. 3420 Page 15
i.
h. an acquisition by a state agency pursuant to a
contract the State Purchasing Director enters into on
behalf of a state agency or awards and designates for
use by state agencies,
j.
i. an acquisition by the Committee for Sustaining
Oklahoma’s Energy Resources pursuant to a contract
with a local supplier for the purpose of holding a
special event or an exhibition throughout the state,
and
k.
j. contracts for the study, analysis, and planning, as
reasonably necessary, to aid in determining the
feasibility of leasing, selling, or privately managing
or developing the property or facilities under control
of the Oklahoma Tourism and Recreation Commission.
The Commission shall be exempt from the competitive
bidding requirements of the Oklahoma Central
Purchasing Act for the purpose of soliciting,
negotiating, and effectuating such a contract or
contracts; provided, that the State Purchasing
Director shall review and audit all uses of the
exemptions provided in this subparagraph biannually.
7. B. Notwithstanding any other provision of law, an
acquisition may be exempted from requirements of this section by the
State Purchasing Director when in the State Purchasing Director’s
discretion unusual, time-sensitive or unique circumstances exist
which make such exemption in the best and immediate interest of the
state. As used in this subsection, “State Purchasing Director”
shall not mean a designee. Any such acquisitions shall be described
in detail and publicly posted as a data feed. The description shall
include the name of the supplier, cost of the acquisition, reason
for exemption and, as applicable, detailed comparison of the
acquisition with comparable items, any identified cost savings
resulting from the acquisition and a description of benefits to the
state. The State Purchasing Director shall take no action under the
provisions of this subsection prior to such public posting.
ENR. H. B. NO. 3420 Page 16
B. C. Competitively bid acquisitions shall be awarded to the
lowest and best, or best value, bidder or bidders.
C. D. Bids for an amount requiring submission of requisitions
to the Purchasing Division shall be evaluated by the Purchasing
Division and the state agency receiving the acquisition. At a
minimum, cost and technical expertise shall be considered in
determining the lowest and best, or best value, bid. Further, the
state agency shall present its evaluation and recommendation to the
State Purchasing Director. A documented evaluation report
containing the evaluations of the Purchasing Division or the state
agency shall be completed prior to the contract award and such
report shall be a matter of public record.
D. E. Except as otherwise specifically provided by law, the
acquisition of food items or food products by a state agency from a
public trust created pursuant to Sections 176 through 180.56 of
Title 60 of the Oklahoma Statutes shall comply with competitive
bidding requirements of this section.
E. F. Cooperative contracts shall not be utilized unless the
purchasing cooperative and its affiliated suppliers have complied
with competitive bid requirements of the Oklahoma Central Purchasing
Act and associated rules.
F. G. Notwithstanding any provision of the Oklahoma Central
Purchasing Act, in all cases where federal granted funds are
involved, the federal laws, rules and regulations thereto shall
govern to the extent necessary to inure to the benefit of such funds
to this state.
G. H. A court order requiring an acquisition by a state agency,
whether or not such state agency is subject to the Oklahoma Central
Purchasing Act, shall not invalidate competitive bidding procedures
required by this section if such court order does not specify a
specific supplier. Any such acquisition shall comply with
competitive bid procedures.
SECTION 3. AMENDATORY 74 O.S. 2021, Section 85.41, is
amended to read as follows:
Section 85.41. A. A state agency that acquires professional
services shall comply with the provisions of this section but does
ENR. H. B. NO. 3420 Page 17
not otherwise have to bid professional services as defined in
Section 803 of Title 18 of the Oklahoma Statutes.
B. The state agency may evaluate the performance of the
professional services provided pursuant to all professional services
contracts exceeding the fair and reasonable acquisition threshold
amount. The performance evaluation shall indicate the quality of
service or work product of the supplier. The state agency shall
retain the evaluation in the document file the state agency
maintains for the acquisition pursuant to Section 85.39 of this
title. If the evaluation indicates deficiencies with the supplier's
work, the state agency shall send a copy of the evaluation to the
State Purchasing Director.
C. If the work product of the contract is a report subject to
disclosure under state or federal law or regulation, the state
agency shall file the report with the State Librarian and Archivist.
D. A state agency shall administer, monitor and audit the
professional services contract and may be required to report the
status of an unfinished professional services contract to the State
Purchasing Director.
E. A professional services contract shall include an audit
clause which provides that all items of the supplier that relate to
the professional services are subject to examination by the state
agency, the State Auditor and Inspector and the State Purchasing
Director.
F. Except for a contract renewal, the final product of the
professional services contract is a written proposal, report or
study, the professional services contract shall require the supplier
to certify that the supplier has not previously provided the state
agency or another state agency with a final product that is a
substantial duplication of the final product of the proposed
contract.
SECTION 4. AMENDATORY 74 O.S. 2021, Section 85.42, as
amended by Section 9, Chapter 336, O.S.L. 2025 (74 O.S. Supp. 2025,
Section 85.42), is amended to read as follows:
Section 85.42. A. 1. Except as otherwise provided for in this
section or other applicable law, any agency, whether or not such
agency is subject to the Oklahoma Central Purchasing Act, shall be
prohibited from entering into a sole-source contract or agreement or
ENR. H. B. NO. 3420 Page 18
a contract or agreement for professional services with or for the
services of any person who has terminated employment with or who has
been terminated by that agency for one (1) year after the
termination date of the employee from the agency. Any contract or
agreement entered into in violation of this subsection shall be
void. Any person found to have violated this subsection shall be
prohibited from entering into any state contract for a period of
five (5) years from the date of the execution of the contract or
agreement. The provisions of this subsection shall not prohibit an
agency from hiring or rehiring such person as a state employee.
2. Any chief administrative officer of an agency, whether or
not such agency is subject to the Oklahoma Central Purchasing Act,
shall not enter into any contract for nonprofessional or
professional services for the purpose of or which would result in
the circumvention of the full-time-equivalent employee limitation
established by law for such agency.
B. Each contract, including change orders, extensions,
renewals, or amendments, entered into by any person or firm with the
State of Oklahoma shall include a statement certifying that no
person who has been involved in any manner in the development,
approval, or negotiation of such contract while employed by the
state shall be employed or given anything of value to fulfill any of
the services provided for under the contract. Each contract,
including change orders, extensions, renewals, or amendments, shall
include a statement from the chief executive officer or head of the
contracting state agency certifying that no known officer or
employee of the contracting state agency who has any direct or
indirect financial, pecuniary, or other personal interest in the
contract has been involved in any manner in the development,
approval, or negotiation of the contract through influence,
decision, recommendation, or otherwise. This subsection shall not
preclude faculty and staff of the institutions within The Oklahoma
State System of Higher Education from negotiating and participating
in research grants and educational contracts. This subsection shall
not apply to Oklahoma Department of Commerce personnel who contract
to provide services to the Oklahoma Capital Investment Board.
C. As used in this section, "person" means any state official
or and their employees as well as every employee of a every state
agency, and "agency" means every school district and every state
court and every department, board, bureau, commission, agency,
trusteeship, authority, council, committee, trust, school district,
fair board, court, executive office, advisory group, task force, and
ENR. H. B. NO. 3420 Page 19
study group, that is supported in whole or in part by public funds
or entrusted with the expenditure of public funds or administering
or operating public property, and all committees, as well as every
committee or subcommittees thereof, judges, justices and state
legislators subcommittee of every such agency.
D. Notwithstanding anything to the contrary in this section,
the following sole-source or professional services contracts are
allowed at any time:
1. A contract for professional services at any time with a
person who is a qualified interpreter for the deaf; and
2. A contract between a business entity that is a part-time
certified court reporter and the Administrative Office of the
Courts, on behalf of the district courts, or the Office of the
Attorney General.
E. Provided the provisions specified in subsection B of this
section are satisfied, the following professional services contracts
are allowed:
1. The Department of Transportation, Oklahoma Water Resources
Board, Department of Environmental Quality, Oklahoma Tourism and
Recreation Department, the Oklahoma Turnpike Authority and the
Oklahoma Department of Agriculture, Food, and Forestry may contract
with a person who has retired from state service;
2. To maintain public health infrastructure and preparedness,
the State Department of Health and city-county health departments
may contract with a physician assistant, Registered Nurse, advanced
practice nurse, Nurse-Midwife, registered dietician, occupational
therapist, physical therapist or speech-language pathologist who has
retired from state service; and
3. The Department of Mental Health and Substance Abuse Services
may contract with a physician, Registered Nurse, registered
pharmacist or person meeting the definition of a licensed mental
health professional, as defined in Title 43A of the Oklahoma
Statutes, who has separated and/or retired from state service.
SECTION 5. AMENDATORY 74 O.S. 2021, Section 85.44D.1, is
amended to read as follows:
ENR. H. B. NO. 3420 Page 20
Section 85.44D.1. A. 1. A sole source acquisition is exempt
from competitive bidding procedures as a sole source or requirements
of this act, but a sole brand acquisition is subject to such
competitive bidding requirements.
2. For each sole source or sole brand acquisition, the state
agency shall retain in the state agency's acquisition file and
attach to the requisition, a certification signed by the chief
administrative officer of the state agency, in the following form:
SOLE SOURCE OR SOLE BRAND ACQUISITION
CERTIFICATION
STATE AGENCY ________________________
SUPPLIER NAME ________________________
SUPPLIER ADDRESS ________________________
SUPPLIER CONTACT INFORMATION ________________________
In connection with the attached requisition or contract, I
hereby affirm that
(Name of Supplier)
is the only business entity singularly qualified to provide the
acquisition, or is the only brand satisfying the acquisition
requirements, for the following reasons:
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
The following is a brief description of all efforts made to
verify that the acquisition qualifies as a sole source or sole brand
acquisition:
ENR. H. B. NO. 3420 Page 21
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
I understand that the signing of this certification knowing such
information to be false may result in forfeiture of my position and
ineligibility for appointment to or employment in state service for
a period of five (5) years following forfeiture of position.
_____________________________
(Chief administrative officer)
3. A court order requiring a particular acquisition, but which
does not specify a brand or supplier shall not substitute for the
certification required by this section or otherwise invalidate
acquisition procedures required by the Oklahoma Central Purchasing
Act.
4. Upon a determination by the Director of the Office of
Management and Enterprise Services that there are reasonable grounds
to believe that a violation of this section has occurred, the
Director shall send findings to the Attorney General that support
the determination. The Attorney General shall review the findings
and determine whether to investigate or prosecute the person.
5. Prior to approving a requisition for a sole source or sole
brand acquisition, the Purchasing Division shall require the signed
certification documenting the need for a sole source or sole brand
acquisition and shall retain the certification in accordance with
state record retention requirements.
6. For a sole source or sole brand acquisitions exceeding the
fair and reasonable acquisition threshold amount and not requiring
submission of a requisition to the Purchasing Division, the state
agency's certified procurement officer shall retain, in the
acquisition file, the signed certification documenting the need for
the sole source or sole brand acquisition in accordance with state
record retention requirements.
ENR. H. B. NO. 3420 Page 22
B. By the fifteenth day of each month, or the first working day
thereafter, the Office of Management and Enterprise Services shall
provide a report to:
1. The Speaker of the House of Representatives and the
President Pro Tempore of the Senate; and
2. Any member of the Legislature requesting the report publish
a report on its website.
The report shall detail sole source and sole brand acquisitions
by state agencies for the month prior to the month preceding the
submission of the report. The report shall be titled "Monthly Sole
Source and Sole Brand Contracting Report of Oklahoma State Agencies"
and indicate the time period of the report. The report shall be
provided by the Director of the Office of Management and Enterprise
Services or the Director's designee. The report shall be in
columnar database format and shall include at least the following
fields of information: state agency number; state agency name; date
created by the Office of Management and Enterprise Services for the
requisition; date of either approval or disapproval of the
requisition; if disapproved, the reason why such contract
requisition was disapproved; estimated amount of the requisition
acquisition; purchase order amount; purchase order number; actual
business name of supplier; supplier federal employer identification
number; and the commodity classification listing at the appropriate
level to distinguish between similar acquisitions. Information
required by this subsection shall be reported and maintained on each
report through the next reporting period after an acquisition is
made. The applicable data in the fields of information specified in
this subsection shall be listed even if the state agency requisition
is disapproved.
SECTION 6. This act shall become effective November 1, 2026.
ENR. H. B. NO. 3420 Page 23
Passed the House of Representatives the 24th day of March, 2026.
Presiding Officer of the House
of Representatives
Passed the Senate the 28th day of April, 2026.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________