PEER: Opportunities for Implementing Increased Centralization in Procurement

Below is a press release from the Mississippi Joint Legislative PEER Committee:

The PEER Committee recently released a new issue brief titled Opportunities for Implementing Increased Centralization in Procurement.

Some of the Committee’s major findings and recommendations include:

  • Centralized purchasing or centralized procurement is a system where a single team or a department handles all the purchasing or procurement for the organization.
  • All states have a central procurement office, but authority of each office varies based on its enabling legislation. In most states, judicial and legislative branches as well as university systems are exempt from the oversight of the central procurement office. According to the National Association of State Procurement Officials, 34 jurisdictions have statutory or regulatory authority to delegate portions of their authority to other state agencies.
  • Typically, the purchasing category of the good or service being sought will dictate the level of authority and oversight a central procurement office will have on that purchase based on the central procurement office’s authority granted by its enabling statutes.
  • Mississippi has evolved from a highly decentralized state with limited restrictions on procurements to one with a central authority empowered to adopt procurement rules and policies that agencies must follow to procure commodities.
  • Mississippi has established authority for central oversight of agency personal services contracting from most agencies in instances where the value of the contract exceeds $75,000.
  • Increased centralization in personal services contract procurement could result in more efficient control over the procurement process thereby saving agency funds, and eliminating delays in contract approval.
  • The Legislature should amend MISS. CODE ANN. Section 27-104-7 (1972) to provide that the Public Procurement Review Board shall require that the staff of DFA shall do all things necessary to conduct personal services contracting solicitations in excess of $75,000.00 for the Department of Marine Resources; the Department of Wildlife, Fisheries, and Parks; the Mississippi Emergency Management Agency; the Department of Public Safety; and the Mississippi Development Authority with assistance from the departments set out above.
  • Additionally, the Legislature should ensure that all vendors with an office in the state of Mississippi may compete for personal services and other contracts without regard to the office’s location in the state.

Should you have questions about the report, please contact James F. (Ted) Booth, PEER Executive Director, at 601-359-1226.

You can read the full report HERE.

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