Cooperative Purchasing allows state and local governments to purchase from Schedule 70 for information technology and Schedule 84 for law enforcement and security products and services, at any time, for any reason, using any funds available.
What statute authorized the Cooperative Purchasing program?
Section 211 of the E-Government Act of 2002 (Public Law 107-347) authorized state and local governments access to Federal Supply Schedule 70, Information Technology (IT), and Consolidated (formerly Corporate Contracts) Schedule contracts, containing IT Special Item Numbers (SINs).
The Local Preparedness Acquisition Act (Public Law 110-248), authorized state and local governments access to Federal Supply Schedule 84, Total Solutions for Law Enforcement, Security, Facility Management Systems, Fire, Rescue, Special Purpose Clothing, Marine Craft, and Emergency/Disaster Response.
What types of products and services are available under Cooperative Purchasing?
Schedule 70 includes automated data processing equipment (including firmware), software, supplies, support equipment, and services.
Schedule 84 includes alarm and signal systems, facility management systems, firefighting and rescue equipment, law enforcement and security equipment, marine craft and related equipment, special purpose clothing, and related services.
Can state and local governments purchase from all GSA Schedules?
No. The Cooperative Purchasing program allows state and local governments access to GSA Schedule 70 contracts containing IT SINs awarded under the Consolidated (formerly Corporate Contracts) Schedule, and GSA Schedule 84 only.
Can state and local government entities use GSA Governmentwide Acquisition Contracts (GWACs) to purchase information technology under the Cooperative Purchasing program?
No. State and local government entities are not authorized to use GSA GWACs under this program.
What’s the legal definition of state and local government?
40 U.S.C § 502 (c) offers the following definition of state or local government:
"The term, "State or local government" includes any state, local, regional, or tribal government, or any instrumentality thereof (including any local educational agency or institution of higher education)."
The term does not include contractors or grantees of state or local governments.
Each Schedule contract price includes an industrial funding fee (IFF) (.75%), which reimburses GSA for the procurement and administrative costs incurred to operate the GSA Schedules program.
It’s represented in the prices paid by ordering activities and passed on to GSA by Schedule contractors. Schedule vendors send the IFF to GSA every quarter.
Are state and local government entities required to use the GSA Schedules program?
No. Cooperative Purchasing is voluntary for both state and local government entities and for Schedule contractors. State and local entities can decide if they wish to make a GSA Schedule purchase, subject to any limitations that may be established under state and local laws and procedures.
Are Schedule contractors required to accept orders from state and local government entities?
No. Schedule contractors have the option of accepting orders placed by state and local government buyers. Schedule contractors decide their level of participation at two levels;
First, at the Schedule contract level, contractors decide whether or not to participate in the program. Schedule contractors will then either enter into a mutual agreement with GSA to modify the existing Schedule contract, or indicate, before contract award, their intent to offer their Schedule products and services under Cooperative Purchasing.
Second, even after an existing contract is modified or a new contract awarded, a Schedule contractor will retain the right to decline orders received from state and local government entities on a case-by-case basis. Schedule contractors may decline an order, for any reason, within a five-day period after receipt of the order. However, credit card orders must be declined within 24 hours (GSAM 552.232-79).
How do state and local government entities place orders against Schedule contracts?
State and local governments must follow their own state and local acquisition regulations to meet competition thresholds and requirements when buying through Schedule. To incorporate GSA terms and conditions, list the GSA Schedule contract number on the order.
Entities are encouraged, but not required, to use GSA's Schedule Ordering Procedures to ensure competition and to receive the best value from GSA Schedule contractors.
Ordering Procedures for Supplies, and Services Not Requiring a Statement of Work (Federal Acquisition Regulation (FAR) 8.405-1), or the Ordering Procedures for Services Requiring a Statement of Work (FAR 8.405-2) is a best practices.
If the contractor does not perform acceptably under a Cooperative Purchasing order issued by a state or local entity, should the ordering activity request the GSA contracting officer take corrective measures?
Contractor acceptance of an order under Cooperative Purchasing means forming a new contract between the non-federal ordering activity and the Schedule contractor. The ordering activity's contracting officer is responsible for all contract administration under the new contract.
While most of the terms and conditions of the Schedule contract are incorporated by reference into the Cooperative Purchasing order (see question 16 and 17, for exceptions), the federal government is not liable for the contractor's performance or non-performance.
Disputes that cannot be resolved by the parties may be litigated in any state or federal court with jurisdiction, using the principles of federal procurement law and the uniform commercial code, as applicable and appropriate.
State and local government entities may submit information concerning a contractor's performance to the GSA contracting officer for consideration when evaluating the contractor's overall performance under the GSA Schedule contract.
Under Cooperative Purchasing, can ordering activities include terms and conditions required by state or local statutes, ordinances, regulations, or orders?
Yes. However, the additional terms and conditions must be included as a part of the Statement of Work (SOW) or the Statement of Objectives (SOO) and must not conflict with the terms and conditions of the GSA Schedule contract.
Are any GSA Schedule contract terms and conditions not incorporated by reference into Cooperative Purchasing orders?
Yes. The following contract terms and conditions are not incorporated by reference into Cooperative Purchasing orders:
Disputes Clause;
Patent Indemnity Clause; and
Certain Commercial Item Contract Terms and Conditions. Portions of the commercial item contract terms and conditions that specify compliance with laws unique to federal government contracts are not applicable to Cooperative Purchasing orders.
Are Prompt Payment provisions incorporated into Cooperative Purchasing orders?
Yes. GSAM 552.232-81, Payments by Non-Federal Ordering Activities, allows for the terms and conditions of a state's prompt payment law to apply to orders placed by eligible non-federal ordering activities.
However, if the ordering activity is not otherwise subject to a state prompt payment law, the activity is covered by the federal prompt payment act in the same manner as federal ordering activities.
Can state and local government entities use credit cards to purchase products and services under this program?
Yes. Schedule contractors may accept any state and local government-issued credit cards for orders placed under Cooperative Purchasing.
Contractors are required to accept credit cards for orders up to the micro-purchase threshold. Contractors may voluntarily accept credit cards for orders exceeding the micro-purchase threshold.
Does the Trade Agreements Act apply to contracts between the Schedule contractor and state and local government entities?
Yes. All Schedule contract terms and conditions, except those stated above as exceptions, apply to contracts between the GSA Schedule contractor and state and local government entities.
Can federal grantees purchase products and services from GSA Schedule under the Cooperative Purchasing program?
Under the Cooperative Purchasing program, state and local government entities, as defined in GSA Acquisition Manual (GSAM) 538.7001, receiving federal grant dollars, are eligible to purchase products and services from approved GSA Schedules.
Federal grantees that fall outside the definition of state and local government, are not authorized to buy under the Cooperative Purchasing program.
Can state and local government entities use GSA Advantage!® to place orders under Cooperative Purchasing?
Yes. Government entities may use the GSA Advantage!® online shopping and ordering system to purchase products and services from Schedule contractors that have agreed to offer Cooperative Purchasing. Products and services available for Cooperative Purchasing are identified on GSA Advantage!® with the Cooperative Purchasing icon.
Orders placed through GSA Advantage!® will be transmitted directly to GSA Schedule contractors. Schedule contractors will, in turn, ship the products and/or perform the services before billing the customer's credit card. GSA does not ship merchandise or bill the customer's credit card. All order/billing problems and/or discrepancies must be addressed directly with Schedule contractors.
Payments for state and local government purchases on GSA Advantage!® are limited to credit card payments using a state or local government-issued credit card. No other form of payment will be accepted at this time.
State and local government customers must register and obtain the necessary approvals from a supervisor or approving official as part of the registration process.
State and local government ordering activities are responsible for ensuring that only authorized representatives of their governments place orders, and that the products and services purchased will only be used for governmental purposes.
Can state and local government entities use eBuy under Cooperative Purchasing?
Yes. State and local government entities can use the eBuy online Request for Quotation (RFQ) tool to request information, find sources to fulfill their requirements, and request quotations under Cooperative Purchasing. By using eBuy, state and local government entities can now leverage the Internet’s power to increase contractor participation, and obtain quotations that result in best value purchase decisions.
