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OAC 260:115-9-7 - State agency and supplier disputes

  1. Quality assurance inspections by state agencies. A state agency must establish quality assurance procedures that ensure timely and thorough inspection of acquisitions delivered to the agency. It is critical that problems with delivery or the quality of the acquisition delivered be promptly communicated to the agency’s primary procurement official and the State Purchasing Director. 
  2. Resolution of dispute between a state agency and supplier. Whenever a supplier provides a state agency with defective products or fails to perform in accordance with contract requirements, a state agency shall notify the supplier in writing of the deficiency and include information necessary for the supplier to resolve the problem. If the state agency and supplier are unable to resolve the dispute, the state agency shall submit a written request for dispute resolution to the State Purchasing Director. 
  3. State agency submission of supplier performance evaluation form. A state agency shall request the State Purchasing Director seek dispute resolution by submitting a Supplier Performance Quality Report, whenever a supplier: 
    1. fails to timely retrieve and replace an acquisition that does not meet or exceed contract specifications; 
    2. does not refund payment for an acquisition that does not meet or exceed contract specifications; or, 
    3. fails to resolve any other problem that conflicts with the contract specifications in a timely manner. 
  4. State Purchasing Director dispute resolution action. 
    1. State Purchasing Director resolves dispute. If the State Purchasing Director resolves the dispute, the supplier and state agency shall be notified of the dispute resolution terms and conditions. 
      1. Supplier fails to meet terms or conditions. If the supplier fails to meet terms or conditions of the dispute resolution, the State Purchasing Director shall terminate the contract between the supplier and the state agency, and may suspend the supplier. 
      2. State agency fails to meet conditions. If the state agency fails to meet conditions of the dispute resolution, the State Purchasing Director may order an audit of the state agency’s acquisitions pursuant to 260:115-5-19. 
    2. State Purchasing Director fails to resolve the dispute. If the State Purchasing Director fails to resolve the dispute between the state agency and the supplier, the State Purchasing Director shall take an action in this subparagraph. 
      1. Supplier fails to meet terms and conditions. If the State Purchasing Director determines that the supplier fails to meet terms and conditions of the contract, the State Purchasing Director shall terminate the contract between the supplier and the state agency, and may suspend the supplier. 
      2. State agency fails to meet contract terms and conditions. If the State Purchasing Director determines that actions of the state agency fail to meet terms of the contract, the State Purchasing Director may order an audit of the state agency’s acquisitions pursuant to 260:115-5-19. 

Associated Statutes

Oklahoma Central Purchasing Act
74 O.S. § 85.5 Powers and Duties of State Purchasing Director
74 O.S. § 85.6 Grade and Quality of Merchandise Delivered
74 O.S. § 85.39 Agency Internal Purchasing Procedures
74 O.S. § 85.41 Professional Services Contracts

Purchasing Reference Guide

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