State of Texas Centralized Purchasing Study

Work by Dr. Broils includes assisting the Comptroller in the State of Texas to conduct a study examining the feasibility and practicality of consolidating state purchasing functions into fewer state agencies or one state agency. Senate Bill 20 enacted by the 84th Legislature directed the Comptroller’s office to conduct the study.

Approach

The project started with analysis of agency expenditure data captured on state accounting systems and information provided directly from agencies. It was determined that 108 state agencies, boards, commissions, courts and legislative entities contracted for more than $11 billion annually in fiscal years 2014 and 2015 with more than 40,000 vendors. A questionnaire was sent to each agency seeking data about the procurement and contracting personnel and purchasing practices. The study shed light on the complexity of state purchasing and contracting and highlighted the pros/cons of either wholly centralizing or decentralizing state purchasing.

The study concluded that state agencies should continue to focus on ensuring the best value standard is achieved in purchasing; understand and adhere to purchasing statutes; develop effective contracts; work in cooperation; and continue to improve data reporting so that opportunities for efficiencies can be identified that will benefit the taxpayers of Texas.

Link to the Texas SB20 Centralized Purchasing Study report: https://comptroller.texas.gov/purchasing/sb20/docs/sb20.pdf