Schedule contractors must decline orders within five days of receipt or 24 hours for credit card orders OR the order is considered accepted.
The General Services Administration Acquisition Manual (GSAM) Part 538.7001, Definitions, offers the following definition of state and local governments:
“The States of the United States, counties, municipalities, cities, towns, townships, tribal governments, public authorities (including public or Indian housing agencies under the United States Housing Act of 1937), school districts, colleges and other institutions of higher education, council of governments (incorporated or not), regional or interstate government entities, or any agency or instrumentality of the preceding entities (including any local educational agency or institution of higher education) and including legislative and judicial departments.”
The term does not include contractors, or grantees of state or local governments.
The COOP PURCH icon and DISAST RECOV icon in both GSA eLibrary and GSA Advantage!® indicates that authorized state and local government entities may purchase items from these contracts.
State and local government entities are encouraged to use existing Schedule ordering procedures (refer to FAR Subpart 8.4), but are not required to do so. State and local governments must meet their own state or local purchasing and competitive requirements when purchasing via Schedules. State and local preference programs are not waived or otherwise affected by these regulations.
Whenever a Schedule contractor accepts an order from a state or local government, a new contract is formed.
The terms and conditions of the underlying Schedule contract will be incorporated, by reference, into the new contract between the state or local government and the Schedule contractor.
The following clauses are excluded from Cooperative Purchasing orders: the disputes clause, the patent indemnity clause, and the portion of the Commercial Item Contract Terms and Conditions that specifies “compliance with laws unique to government contracts” (which applies only to contracts with the Executive Branch of the U.S. Government).
The terms and conditions of a state’s prompt payment law apply to orders placed by eligible non-federal ordering activities. If the ordering activity is not subject to a state prompt payment law, the Federal Prompt Payment Act will cover the activity in the same manner as federal ordering activity.
The Federal Government will not be liable for the performance or nonperformance of contracts established between Schedule contractors and state or local government entities. Disputes may be litigated between the state or local entity and the Schedule contractor in any state or federal court with jurisdiction over the parties, using the principles of federal procurement law and the Uniform Commercial Code, as applicable and appropriate.