Secretary of State Audit: Oregon Must Do More to Ensure Contracts, Purchasing Get the Most Value for Oregonians' Tax Dollars

The State of Oregon can be doing more to manage contracts, oversee purchasing, and get the most value for Oregonians’ tax dollars, according to an audit released today by the Secretary of State Audits Division.

“Right now, Oregonians are stretching every dollar, and the state should too,” said Secretary of State Tobias Read. “We’re spending billions of dollars on contracts and procurements every year, and every one of those choices needs to be looked at closely. These audit recommendations will help the state spot and stop risky decisions and get Oregonians the most for their money.”

Government agencies regularly engage in procurement and contracting practices to purchase goods and services. These can range from buying office supplies and paying for janitorial services up to complex, multi-million-dollar IT projects developed by outside vendors. In fiscal year 2024, the state’s eProcurement system, OregonBuys, alone housed more than 40,000 transactions totaling $2.14 billion.

But, poorly managed contracts and purchases can undermine the most well-intended projects, waste Oregonians’ tax dollars, and tie up state resources for years at a time.

Auditors had three major findings:

1. Oregon lacks a centralized compliance program to identify or prevent risky procurement and contracting decisions. DAS has the authority to perform compliance reviews of most contracts, but there’s no comprehensive program to ensure those reviews are happening.
2. DAS State Procurement Services needs to be doing more to provide consistent and high-quality customer service to help state agencies comply with regulations and make sure procurements are working as effectively as possible.
3. OregonBuys is performing most of its intended functions, but a significant gap remains: the eProcurement system does not capture all state spend, limiting DAS’s ability to make informed, strategic sourcing decisions.

Auditors had eight recommendations for DAS to support the effective administration of public contracts, improve and resource the support services it provides to state agencies, and ensure OregonBuys is fully operational and maximizing benefits to the state. Several of these recommendations require reporting progress and updates to the Legislature.

Read the full report on the Secretary of State website.