SANTA FE, NM - Today, State Auditor Tim Keller issued Executive Order 2017-001 to support New Mexico businesses. The order applies to the Office of the State Auditor (OSA) and takes effect immediately. The order lists specific ways the office will help to level the playing field for local business in the procurement process. While state law provides certain local preferences for large government contracts, much of state agencies' spending falls below that threshold. The Executive Order is aimed at ensuring that New Mexico businesses have the opportunity to compete for these smaller purchases.

"Our recent reports on vast amounts of government dollars flowing to out-of-state companies shows what an opportunity we have to support our local economy through changes in procurement practices," stated State Auditor Tim Keller. "While we highlight statewide trends, it's important to do what we can in our own office. That's why I issued an Executive Order to level the playing field when the State Auditor's office is procuring goods and services. Though we are but a small agency, this is a way to demonstrate leadership for how any agency or local government can step up and use its purchasing power for the good of our state."

The Executive Order lists three key items:

1. The OSA will compare price quotes on a pre-tax basis. This change will address the structural tax disadvantage New Mexico companies face when competing for state business. Many out-of-state companies pay a lower gross receipts tax, creating a disincentive to hire local companies in providing services.
2. The OSA will take reasonable steps to ensure that it reaches out to New Mexico businesses when seeking quotes. This applies to small purchases that do not go through a formal competitive procurement process but make up the majority of government spending.
3. State Auditor Tim Keller calls upon other agency heads to consider these steps as well. For these changes to have a broad impact to New Mexico's economy, the administration would need to issue similar requirements across state government.

The Executive Order is below.

The Office of the State Auditor helps government work better by providing transparency and accountability for government spending; informing policy choices; and tackling fraud, waste and abuse. OSA is an independently elected executive agency responsible for examining the use of public dollars in New Mexico.

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