Statewide Contracts Administrative Fee – NEW INFORMATION - January 1, 2018
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.
Report Form and Fee Payments:
The State of Arizona is making improvements to the Cooperative Purchasing Program that will be effective January 2018. We are moving both the reporting and the payment tools online. Your AFIS ID and contract number will be your login information, and allow you to submit your quarterly report. Starting January 2nd, we will begin the collection period for the previous quarter (October 1st – December 31st). The Excel report has been eliminated, while the online reporting tool is styled the same, with dropdowns to hold both State and Coop member information.
The administrative fees have not changed, and the 1% will be totaled by the report. You will be able to submit reports with no usage. A report is still required for zero spend, and will show a zero-balance due instead. Once your total is processed you can proceed to the payment gateway. We are only set up to accept Automated Clearing House (ACH) payments so you will need bank account and routing information. Please do NOT send a check.
To help to answer questions on the new web process, a training video has been posted.
There should be only one Usage Report and payment submitted per contract number.
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 payment 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 email address: