I'm looking into how our city purchasing department can buy office supplies. I've heard about "statewide term contracts" and am wondering if we can use those. My understanding is that a statewide term contract is an agreement the state procurement office makes with a vendor for certain goods or services at a set price. We are a city agency and our NAICS code is 921190, Other General Government Support. Can our city piggyback on these state contracts, or do we have to do our own solicitations for everything? What are the rules for local governments using them?
How do 'statewide term contracts' work, and can local governments use them?
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Yes, your city purchasing department can generally use statewide term contracts for office supplies, as these contracts are often structured for use by local government entities. A statewide term contract is an agreement between a state procurement office and a vendor for specific goods or services, typically at pre-negotiated prices and terms, and they often include clauses that allow political subdivisions, like cities, to participate. The rules for local governments using them vary by state, so your city would need to consult your state's procurement code and the specific vendor guide or user instructions for the statewide term contracts. These resources will outline the process for "piggybacking" on state contracts, which is known as cooperative purchasing. Many states encourage cooperative purchasing to leverage greater buying power and simplify procurement for local agencies, reducing the need for individual solicitations for common items like office supplies. Your city's NAICS code of 921190, Other General Government Support, is relevant for identifying the types of services your city performs, but the eligibility to use a statewide term contract will primarily depend on your status as a political subdivision of the state, as defined by state law and the contract's terms.