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State DGS: We'll Use Audit Findings to Improve Procurement

In the wake of a state audit report that faulted two agencies' oversight of noncompetitive state contracts, senior leaders of both departments said this week that they agreed with the recommendations and intend to implement them.

In the wake of a state audit report that faulted two agencies' oversight of noncompetitive state contracts, senior leaders of both departments said this week that they agreed with the recommendations and intend to implement them. 

The audit, issued by State Auditor Elaine Howle, cited the departments of General Services and Technology for bypassing the state’s bid process, “potentially putting the state at risk of not receiving the best value.”

DGS Director Daniel Kim said his department “is firmly committed to ensuring competitive procurements and contracting that promotes and provides for open and fair competition.”

Of the 27 noncompetitive contracts reviewed by the state auditor, between fiscal years 2011-12 and 2015-16, nine lacked justification for bypassing the competitive bid process and 14 failed to show that the vendor’s prices were reasonable.

The Department of General Services will learn from the audit, said Assistant Deputy Director Michael Liang in the Public Affairs Office.

“DGS takes very seriously the recommendations put forth by the state auditor in her review of the department’s management of non-competitive procurements,” Liang wrote in an email to Techwire. “This audit provides us with the opportunity to better serve our clients and protect the public’s interest. DGS is firmly committed to efficiently and economically managing state procurement practices in order to provide fair and reasonable competition among bidders and secure the lowest prices for taxpayers.”

Kayla Nick-Kearney was a staff writer for Techwire from March 2017 through January 2019.