Waste of the Day: Oregon Has “Sluggish” Procurement
Topline: The State of Oregon logged 40,000 transactions worth $2.14 billion in its new online procurement system last year, but staffing shortages and poor oversight mean officials are “generally not aware” of inefficient spending and fraud risks within the system, according to a new audit from the Secretary of State’s office.
Key facts: Oregon’s Department of Administrative Services is supposed to oversee state procurement and teach other agencies how to use OregonBuys, an online system that tracks purchases. According to the Secretary of State audit, Administrative Services has been training staff with “outdated manuals,” has “inexperienced staff,” and its communication with other agencies is “sluggish.” The department is also understaffed and gives conflicting advice.
Auditors asked 29 state employees to rate the Administrative Services’ training courses on a scale of one to five. Twenty-three people gave a score of three or lower.
Most respondents also gave OregonBuys a score of two or lower for ease of use. Some staffers said they are still using old software because OregonBuys is so confusing it would cause them to miss key deadlines.
The Administrative Services staff has the power to audit other agencies, but it is not doing so, making it difficult to “identify and prevent costly and time-consuming contract failures.” Audits happen when the governor requests them, but Administrative Services staffers do not initiate the audits themselves. Until that happens, Oregon “cannot systematically identify fraudulent activity or prevent the waste and abuse of public funds,” according to the report.
Background: Executives in the Department of Administrative Services are among the top-paid employees in Oregon. Chief Information Officer Terrence Woods made $328,536 in 2024, and two others made more than $300,000. An additional 22 people made at least $200,000, and Diversity, Equity & Inclusion Administrator Melinda Gross made $192,288.
Search all federal, state and local salaries and vendor spending with the world’s largest government spending database at OpenTheBooks.com.
Summary: If state governments are to be entrusted with billions of dollars of taxpayer money, they must be able to manage it effectively and responsibly.
The #WasteOfTheDay is brought to you by the forensic auditors at OpenTheBooks.com
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