OklahomaHB 3420Oklahoma 2026 Regular SessionHouse

State government; Central Purchasing Act; powers and duties of Director; limitation on entering contract; definition of person and agency; effective date.

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 5 benefits, 1 costs, 4 mixed.

CIO controls all state IT buying

The Chief Information Officer has sole authority over state IT and telecom purchases. When the CIO does not use competitive bidding, the CIO must write the reason and keep negotiation records.

Fixed-rate service contracts get guardrails

Beginning November 1, 2026, fixed and uniform rates may be used only for services that directly benefit the person getting the service. Agencies must get approval from the State Purchasing Director and hold a public hearing before using a fixed rate. The Director can review, suspend, or end these contracts if they are not needed or are excessive.

Stricter ethics and staffing limits for agencies

Beginning November 1, 2026, agencies cannot award a sole-source or professional services contract to someone who left that same agency within the past year. Contracts made in violation are void, and the violator is barred from state contracts for five years. Agencies also cannot use contracts to get around FTE staff limits set by law. The law expands who counts as a “person” and an “agency,” so these rules cover more officials, employees, school districts, courts, boards, and commissions. Rehiring the person as a state employee is still allowed.

Stronger bidding standards and public reviews

Beginning November 1, 2026, agencies must award bids to the lowest and best or best value bidder. For solicitations run through Central Purchasing, both the Division and the agency must evaluate bids, consider cost and technical skill, and publish the evaluation report. Reverse auctions are allowed. Food buys from certain public trusts must follow bidding rules. Agencies may use cooperative contracts only if the cooperative met state bid rules. If federal grant money is used, federal procurement rules apply. A court order that does not name a supplier does not let an agency skip bidding.

Tighter rules for no-bid contracts

Beginning November 1, 2026, a sole source buy is exempt from bidding, but a sole brand buy must still be bid. Agencies must get and keep signed certifications for every sole source or sole brand, and face job loss and a five‑year bar for false statements. All contracts also need a conflict‑of‑interest certification, with narrow exceptions for research and certain Commerce deals. Agencies must tell the State Purchasing Director within 15 days after any exempt buy. The state posts details online for time‑sensitive exemptions before acting, and publishes a monthly report by the 15th listing sole source and sole brand deals with supplier name and tax ID. Suspected violations are sent to the Attorney General for review.

One-year cap on contracting pilots

Beginning November 1, 2026, any pilot, proof of concept, or test for contracting can last no more than 12 months. After one year, the agency must end it or seek new approval.

Professional services: no bids, more oversight

Beginning November 1, 2026, agencies do not have to bid certain professional services defined in law. Some finance and retirement system specialists, like investment managers and actuaries, are also exempt from competitive bids. Agencies may evaluate performance on larger professional service contracts, must monitor and audit these contracts, and must include an audit clause. If a contract creates a public report, the agency must file it with the State Librarian and Archivist.

Some agencies can bypass purchase limits

Beginning November 1, 2026, an agency may buy outside set dollar limits if it has subject-matter experts and legal/procurement staff, and OMES certifies no conflict with statewide spend plans. The agency must manage and monitor its own contracts, cover protest and legal costs, follow OMES rules, and report contracts every quarter to OMES Central Purchasing. It cannot issue statewide, multistate, or multigovernmental contracts under this authority.

State buying rules and dollar limits tighten

Beginning November 1, 2026, agencies must send big purchases to Central Purchasing. A requisition is required above $50,000 or an agency limit set by the State Purchasing Director, up to $250,000. Before awarding contracts of $250,000 or more, the state checks supplier registration and franchise tax status. Agencies may use contracts set up by the State Purchasing Director. The Director can charge agencies only their share of training costs. The Director must document steps on cost‑saving deals and send an annual savings report to state leaders.

Targeted contracting exceptions and special cases

Beginning November 1, 2026, the Energy Resources Committee can hire local suppliers for special events. The Tourism Commission may skip bids for feasibility studies, and the State Purchasing Director audits this twice a year. The Rehabilitation Department can buy for clients under written, Director‑approved standards. The Attorney General must get at least three proposals to pick a structured‑settlement administrator. Agencies may contract with qualified interpreters for the deaf and part‑time certified court reporters. Certain health and infrastructure agencies may contract with retired professionals to support services and readiness.

Sponsors & Cosponsors

Sponsor

Judd Strom
Republican • House

Cosponsors

Nick Archer
Republican • House
Mark Chapman
Republican • House
Denise Crosswhite Hader
Republican • House
Mike Dobrinski
Republican • House
Andy Fugate
Democratic • House
Carri Hicks
Democratic • Senate
Josh West
Republican • House
Mike Kelley
Republican • House
Gerrid Kendrix
Republican • House
Michelle McCane
Democratic • House
Annie Menz
Democratic • House
Marilyn Stark
Republican • House
Preston Stinson
Republican • House
Max Wolfley
Republican • House
Gabe Woolley
Republican • House

Roll Call Votes

All Roll Calls

Yes: 160 • No: 5

Senate vote • 4/28/2026

THIRD READING

Yes: 43 • No: 1

Senate vote • 4/14/2026

Top_of_Page

Yes: 0 • No: 0

Senate vote • 4/14/2026

Committee vote: Retirement & Government Resources

Yes: 8 • No: 0

House vote • 3/24/2026

THIRD READING

Yes: 87 • No: 4

House vote • 3/5/2026

DO PASS

Yes: 15 • No: 0

House vote • 2/10/2026