Agency: Administrative Services

Line Item: Purchasing

Function

In 1997 the Legislature reorganized the Department of Administrative Services, merging Central Copying, Central Mail, and Central Stores into the Division of Purchasing. The new division became the Division of Purchasing and General Services. The procurement function that enables other agencies to contract for goods and services is currently transitioning from an appropriated function to an Internal Service Fund (ISF). After the transition a small portion of administrative personnel will remain appropriated from General Funds while the rest of the division will be funded through internal service fund fee revenues.

The division provides a centralized purchasing function for all state agencies. Purchasing manages hundreds of statewide contracts that are used by state agencies, education, and local governments. Furthermore, the division oversees agency contracts and procurement processes that value more than a billion dollars annually.

Statutory Authority

The Utah Procurement Code UCA 63G-6-204 requires the chief procurement officer to:

• Procure or supervise procurement of all supplies, services, and construction needed by the state
• Exercise supervision and control over all inventories or supplies belonging to the state
• Establish and maintain programs for the inspection, testing, and acceptance of supplies, services, and construction
• Prepare statistical data concerning the procurement and usage of all supplies, services, and construction
• Approve new information technology contracts only after the chief information officer has submitted a written needs analysis

Intent Language

Under Section 63J-1-603 of the Utah Code the Legislature intends that appropriations provided for Purchasing in Item 22 of Chapter 12 Laws of Utah 2012 not lapse at the close of Fiscal Year 2013. The use of any nonlapsing funds is limited to the following; on-line procurement training for procurement for purchasing agents making small purchases - new requirement by statute, office remodeling to relocate purchasing agents from 5th floor of SOB to 3rd floor, and upgrade to State's on-line bidding system - $200,000.

Performance

State Purchasing manages cooperative contracts that are utilized by state agencies, institutions of higher education, school districts, and local governments. Usage of the contracts is mandatory by state agencies, but voluntary by political subdivisions. Thus political subdivision usage of the contracts is a barometer of whether the contracts provide best value. Note that the Governor's Office of Management and Budget is currently revamping the performance measures for Administrative Services.

Funding Detail

Dedicated Credits are generated by contract management cost reimbursements. The division participates in and manages several multi-state contracts for the Western States Contracting Alliance (WSCA) -- a contracting alliance of fifteen western states. Utah has the lead on data communications, small package delivery, and other types of contracts.