Frequently Asked Questions for Cooperative Purchasing
(Source: GSA)

1 - What is Cooperative Purchasing?
Section 211 of the E-Government Act of 2002 (the Act) amended the Federal Property and Administrative Services Act, to allow for "Cooperative Purchasing." Cooperative Purchasing allows for the Administrator of General Services to provide states and localities access to certain items offered through the General Services Administration's (GSA's), Federal Supply Schedule 70, Information Technology (IT) and Corporate Schedule contracts, containing IT Special Item Numbers (SINs). The information technology available to state and local governments includes automated data processing equipment (including firmware), software, supplies, support equipment, and services.
Last Updated: 2/1/05

2 - Can state and local governments purchase from all Federal Supply Schedules?
No. Section 211 of the Act only allows for state and local government entities to purchase from Federal Supply Schedule 70, Information Technology, and Corporate Schedule contracts, containing IT SINs. State and local government entities may not purchase information technology from any other GSA Schedules
Last Updated: 2/1/05

3 - Can state and local governments utilize Federal Supply Service (FSS) Governmentwide Acquisition Contracts (GWACs) under Cooperative Purchasing?
No. State and local government entities may only purchase information technology from Federal Supply Schedule 70, Information Technology, and Corporate Schedule contracts containing IT SINs. Federal Supply Service Governmentwide Acquisition Contracts (GWACs) are not authorized for use by state and local government entities under Section 211 of the E-Government Act of 2002. GSA Federal Supply Schedule 70 contracts and Corporate Schedule contracts are indefinite delivery, indefinite quantity (IDIQ) contracts that GSA awards and administers pursuant to section 201 of the Federal Property and Administrative Services Act of 1949, as amended. Under the GSA Schedules Program, GSA enters into governmentwide contracts with commercial firms. Agencies place orders directly with Schedule contractors. Interagency agreements are not required to use GSA Schedule contracts. The Economy Act does not apply to orders placed against GSA Schedule contracts. Governmentwide acquisition contracts (GWACs) are task order or delivery order contracts for information technology established by one agency for governmentwide use. Each GWAC is operated by an executive agent designated by the Office of Management and Budget pursuant to section 5112(e) of the Clinger-Cohen Act. The Economy Act does not apply to orders under GWACs.
Last Updated: 2/1/05

4 - When does Cooperative Purchasing go into effect?
Technically, Cooperative Purchasing was effective upon publication of the Interim Rule in the Federal Register (May 7, 2003). However, existing Schedule 70 and Corporate Schedule contracts, containing IT SINs, must be modified, as mutually agreed between the Schedule contractor and the Federal Supply Service, to allow for Cooperative Purchasing.
Last Updated: 2/1/05

5 - How are state and local governments defined?
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."
Last Updated: 2/1/05

6 - Can contractors or grantees of state and local government entities purchase from the Schedule contracts?
No. Neither contractors nor grantees are authorized to purchase from GSA Schedule contracts under the Cooperative Purchasing Program.
Last Updated: 2/1/05

7 - Are Cooperative Purchasing orders subject to the Industrial Funding Fee (IFF)?
Yes. Each Schedule contract price includes an industrial funding fee, which is represented in the prices paid by ordering activities and passed on to GSA by Schedule contractors. The IFF reimburses GSA for procurement and administrative costs incurred to operate the GSA Schedules Program.
Last Updated: 2/1/05

8 - Will the GSA waive, or give a portion of, the IFF to state and local government entities?
No.
Last Updated: 2/1/05

9 - 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 have full discretion to decide if they wish to make a Federal Supply Schedule purchase, subject to any limitations that may be established under state and local laws and procedures. Similarly, Schedule contractors have the option of deciding whether they will accept orders placed by state or local government buyers. Schedule contractors will make this decision on two levels. First, on the contract level, Schedule contractors will decide which SIN(s) they want to offer under Cooperative Purchasing and enter into a mutual agreement with GSA to modify the contract. 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 or 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.
Last Updated: 2/1/05

10 - How do I place an order against a Schedule contract?
State and local government entities are encouraged to use GSA's Schedule Ordering Procedures to ensure the benefit of receiving the best value from GSA Schedule contractors. When it is not feasible to use GSA's Schedule ordering procedures, state and local entities may follow their own ordering procedures for buying products and services under Cooperative Purchasing.
Last Updated: 2/1/05

11 - 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?
No. Acceptance of an order by the Schedule contractor under Cooperative Purchasing constitutes the formation of 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 the majority of the terms and conditions of the Schedule contract are incorporated by reference into the Cooperative Purchasing order (see Question 12 below 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. However, 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.
Last Updated: 2/1/05

12 - 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 or the statement of objectives and must not conflict with the terms and conditions of the GSA Schedule contract.
Last Updated: 2/1/05

13 - 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 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.
Last Updated: 2/1/05

14 - Are Prompt Payment provisions incorporated into Cooperative Purchasing orders?
Yes. Clause 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.
Last Updated: 2/1/05

15 - Are state and local government preference programs affected by Cooperative Purchasing?
No. Cooperative Purchasing does not impact state and local government preference programs.
Last Updated: 2/1/05

16 - May 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 and contractors may voluntarily accept credit cards for orders exceeding the micro-purchase threshold.
Last Updated: 2/1/05

17 - Can state and local governments issue Blanket Purchase Agreements (BPAs) under the Schedule contracts?
Yes. State and local government entities may issue BPAs under the Schedule contracts.
Last Updated: 2/1/05

18 - Can state and local governments use existing BPAs under the Schedule contract?
No. State and local governments cannot use existing BPAs, unless they were initially included as authorized users of the BPA. Existing BPAs cannot be modified to include state and local government entities.
Last Updated: 2/1/05

19 - Can state and local government entities be granted additional price reductions under the Schedule contracts?
Yes. State and local government entities may be granted additional price reductions under Cooperative Purchasing.
Last Updated: 2/1/05

20 - Will a spot discount to state and local government entities under the GSA Schedule contract trigger the Price Reductions clause? No. Granting state and local government entities additional price
No. Granting state and local government entities additional price discounts under the GSA Schedule contract will not trigger the Price Reductions clause.
Last Updated: 2/1/05

21 - 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 in question 12, will apply to contracts between the GSA Schedule contractor and state and local government entities.
Last Updated: 2/1/05