Statewide Contracts Administrative Fee – NEW INFORMATION - July 1, 2014
Program description and other resources associated with the administrative fee program applicable to Statewide Contracts.
In accordance with ARS § 41-2633 the Department of Administration, State Procurement Office includes an Administrative Fee, in the majority of its Statewide contracts – multiple agency, multiple government, cooperative contracts. The Administrative Fee is used by the State to defray the additional costs associated with soliciting, awarding and administering statewide contracts.
In addition to the State agencies, boards and commissions, statewide contracts are available to members of the State Purchasing Cooperative including cities, counties, school districts, special districts, other state governments, agencies of the federal government, tribal nations, schools, medical institutions, and nonprofit organizations.
The Administrative Fee is the responsibility of the contractor. The Administrative Fee is a part of the contractor’s unit prices and is not to be charged directly to the customer in the form of a separate line item. Further, Statewide contracts maintain one set of pricing for all customers and not separate prices for State agency customers and State Purchasing Cooperative customers.
Unless defined differently within the contract, the Statewide Contracts Administrative Fee shall be one percent (1.0%) of quarterly sales receipts under an active Statewide contract, transacted by only the members of the State Purchasing Cooperative, minus any taxes or regulatory fees, minus any returns or credits, and minus any shipping charges not already included in the unit prices. The Administrative Fee percentage is only applicable to amounts actually received by the contractor during the quarter and is not applicable to amounts ordered by customers but not yet paid for. The administrative fee is not paid on transactions with state agency customers.
Method of Assessment:
At the completion of each quarter, the contractor reviews all sales under their contract in preparation for submission of their Usage Report. The contractor identifies all sales receipts transacted by members of the State Purchasing Cooperative and assesses one percent (1.0%) of this amount in their Usage Report. The contractor summarizes all sales, along with all assessed Administrative Fee amounts within their Usage Report, including total amounts for the following.
•Total sales receipts from State agencies, boards and commissions
•Total sales receipts from members of the State Purchasing Cooperative
•Total Administrative Fee amount based on one percent (1.0%) of the sales receipts from members of the State Purchasing Cooperative
Within thirty (30) days following the end of the quarter, the contractor submits their Usage Report and if applicable, a check in the amount of one percent (1%) of their sales receipts from members of the State Purchasing Cooperative, to the Department of Administration, State Procurement Office. Usage Report and Administrative Fee Submission schedule is as follows.
•State Fiscal Quarter 1 (Jul 1 - Sept 30): Due by Oct 30
•State Fiscal Quarter 2 (Oct 1 - Dec 31): Due by Jan 30
•State Fiscal Quarter 3 (Jan 1 - Mar 31): Due by Apr 30
•State Fiscal Quarter 4 (Apr 1 - Jun 30): Due by Jul 30
Usage Reports and any questions are to be submitted by email to the state's designated usage report email address:
Statewide contractors are required to use the following forms when submitting their Usage Report. If permitted under their contract, similar forms may be permitted as long as these forms, at a minimum, include the same data found in the State's forms and they are approved by the Procurement Officer. Contractors should inquire with their Procurement Officer if they have questions in this regard. Upon review, report submissions that do not contain all the required information or have entries that are listed incorrectly will be returned to the contractor for correction.
In the event there is no activity on the contract in a reporting period, the contractor is to submit Form 799 with "$0.00" in the amount fields."
Checks are to be made out to the "State Procurement Office" and mailed to:
Department of Administration
ATTN: “Statewide Contracts Administrative Fee”
100 N. 15th Avenue, Suite 202
Phoenix, AZ 85007
It is important that you indicate on the check stub or an attached document your contract number and the quarter for which you are paying. If paying for multiple contracts or quarters, please break down the amount to show how it is to be applied.