In Fiscal Year 2004-05 state agencies purchased more than $6.4 billion in goods and services. Of the $3 billion spent on non-construction related goods and services, slightly over half was exempted from the state's competitive purchasing processes. The Department of Management Services and state agencies have taken steps to increase the value of goods and services purchased through state-level term contracts and related initiatives. However, further improvements are needed, especially for acquisitions of complex services.
We recommend that the Legislature take steps to