FEDERAL BUSINESS DEVELOPMENT

State Term Contracts: What They Are and How They Compare to a GSA Schedule

A state term contract is a pre-competed purchasing agreement between a vendor and a state, or a group of states, that lets eligible public buyers order without running a new competition each time. It works like a state-level version of a GSA Multiple Award Schedule (MAS) contract, but each state sets its own rules, so what works in one state may not work in another.

What is a state term contract?

Once a state awards the contract, eligible entities, which may include state agencies, counties, cities, school districts, and universities, can buy directly from it at the awarded terms. Names vary by state: statewide contracts, price agreements, master agreements, state schedules, or cooperative contracts.

How do state term contracts work?

The details vary, but the general flow is:

1. The state issues a solicitation or opens a registration process
2. Vendors submit prices, terms, and qualifications
3. The state awards contracts for a base term with renewal options
4. Eligible buyers issue orders against the contract

Each state has its own registration, reporting, fee, and audit rules. Some require quarterly or annual sales reports and an administrative fee.

Can a GSA Schedule help?

In some states, yes. A few states have programs that let a vendor use an existing GSA contract as the basis for a state contract. Examples include California’s California Multiple Award Schedules (CMAS) and the Texas Multiple Award Schedule (TXMAS). Terms, eligibility, fees, and the categories covered differ, and programs change, so verify with the state agency that runs the program.

What is cooperative purchasing?

Cooperatives combine buying power across many government entities. Well-known examples include NASPO ValuePoint (a multi-state cooperative), Sourcewell, and OMNIA Partners. Vendors typically win a competitive award from the lead agency, and then members can use the contract. Requirements vary by cooperative, and fees and reporting are common.

These are separate from GSA’s own programs for state and local buyers. Cooperative Purchasing lets eligible state and local governments buy from certain GSA MAS categories, such as information technology and security and law enforcement items, and Disaster Recovery Purchasing allows eligible buyers to use MAS contracts in response to declared emergencies. Eligibility depends on the program and SIN. See What Is a GSA Schedule?.

How should you decide?

Start with where your customers are. If you already sell to a state agency, ask about the contract vehicle they prefer. Compare the cost of proposal preparation and administration with realistic sales. Then choose one or two programs rather than many.