Date - Press Release - Department of Administration

Governor Signs Legislation to Update Purchasing Laws

March 6, 2001

BOISE, ID – After 25 years without major modifications, many of Idaho’s purchasing laws will be changed to reflect today’s electronic and Internet marketplace, making it easier for businesses to "do business" with the State of Idaho.

SB1025-Purchasing Modernization legislation, signed by Governor Kempthorne earlier this month, will enable Idaho state government agencies and vendors to post on-line notices and solicitations for goods and services; and will also allow business vendors to submit their bids via the Internet.

The new law will remove the statutory vendor registration requirement and associated $10 fee, allowing vendors the ability to electronically list and maintain current information about their businesses and product offerings.

Effective July 1, 2001, the legislation will move the State quickly into the realm of on-line purchasing where agencies can take advantage of new technologies to obtain the best values for taxpayers and to streamline the costs of the purchasing process.

"In this new global economy, the State of Idaho must rely upon all available tools to

attract investment and development. Government also sets the tone for a state's economic vitality and progress. By reforming our procurement system and using the technology of electronic commerce, we are demonstrating that the State is a key player in today’s fast-paced business world," Governor Kempthorne stated, signing the bill March 7.

Purchasing statutes were last changed in 1974 and were based upon a paper-based system, which is rapidly being replaced by enterprise-wide electronic purchasing systems by state governments throughout the country.

According to Pam Ahrens, Director of the Idaho Department of Administration, the legislation is an outcome of ongoing procurement reform efforts, laying the all-important groundwork for constructive change over the past four years by the Department’s Division of Purchasing. "We are working toward a comprehensive electronic approach to acquire government goods and services," Ahrens said.

The Division introduced its successful Purchasing Card ‘P-Card’ in 1998 where state agencies use a MasterCard that is accepted by the state’s suppliers just as any credit card is. Employees from over 40 agencies use the card, which allows the state to save substantially on purchasing costs, receive goods faster, and eliminate paperwork. Use of the P-Card also makes it possible to complete purchases via the Internet and the state’s business partners now receive payment within three days, rather than 30 to 60 days as before.

Idaho was also one of five states selected to participate in an Electronic Mall pilot project in early 1998-99 to explore early concepts of on-line purchasing as developed by the Commonwealth of Massachusetts.

Jan Cox, administrator for the Division of Purchasing, explained that the transition to electronic purchasing will greatly benefit business vendors by reducing costs associated with placing bids. With the traditional methods, bids had to be delivered by a date and time in order to be considered. This meant mail, express delivery services, or someone had to physically bring the bidding documents to the purchasing office. Electronic bidding removes these problems. Bids can be submitted right up to the last minute, and mistakes can be corrected at the last moment as well, he said.

"Costs associated with mailing, express or personal deliveries will be a thing of the past. Vendors will know that their electronic bid was received because the system will generate two notices to them," Cox added.

Ahrens attributed the bill’s passage to support from both inside and outside of government, including such business groups as Buy Idaho, the Idaho Retailers Association and Micron Electronics. "Given that our efforts involved 20 changes to 12 sections of the Idaho Code and that it has been some 25 years since the purchasing statutes have received this extensive a review and updating, achieving this legislative milestone is remarkable," she said.

Training on the new electronic system has begun. The system, SYSCOM Inc. Public Buy.net, interactively incorporates a vendor database for posting and retrieval of bid information, and also allows placement of orders through electronic catalogs over the Internet. The system is expected to be fully operational by July 1. "Our next step is to apply a similar electronic application to the state’s Public Works acquisitions," Ahrens added.

Bill Signing Photograph Governor Dirk Kempthorne signs SB 1025, Idaho Purchasing Modernization Legislation on March 6, 2001, with Department of Administration Director Pam Ahrens and Division of Purchasing Administrator, Jan Cox, looking on.