THIS IS THE FIRST COOPERATIVE GAO AUDIT OF A STATE'S PROCUREMENT PROGRAM AND IS PRIMARILY CONCERNED WITH THE CENTRAL AUTHORITY FOR STATE AGENCY PROCUREMENTS, THE OREGON DEPARTMENT OF GENERAL SERVICES. MAJOR ELEMENTS OF PROGRAM MANAGEMENT ARE EVALUATED: ORGANIZATION, POLICIES, PROCEDURES, REPORTING, ETC. THE OREGON SYSTEM WAS MEASURED AGAINST THE COUNCIL OF STATE GOVERNMENT'S 'STATE AND LOCAL GOVERNMENT PURCHASING' REPORT AND GAO'S EXPERIENCE IN AUDITING PROCUREMENT OPERATIONS. SECTIONS PRESENT OREGON'S PROCUREMENT BACKGROUND, REQUIREMENTS DETERMINATION AND PLANNING, CONTRACTING AND ADMINISTRATION, DELEGATION OF PROCUREMENT AUTHORITY, AND COOPERATIVE PURCHASING. COMMENTS FROM OREGON'S SECRETARY OF STATE, GUIDELINES FOR AUDIT OF STATE AND LOCAL PROCUREMENT ENTITIES, AND A GLOSSARY OF TERMS ARE PROVIDED. (AUTHOR ABSTRACT MODIFIED--RBM)