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Statewide Contracts Administrative Fee

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 as well as eligible educational and health care 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.

Fee Amount

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 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.

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.

  • Fiscal Quarter 1 (Jul 1 - Sept 30)..........Due by Oct 30
  • Fiscal Quarter 2 (Oct 1 - Dec 31)..........Due by Jan 31
  • Fiscal Quarter 3 (Jan 1 - Mar 31)...........Due by Apr 30
  • Fiscal Quarter 4 (Apr 1 - Jun 30)...........Due by Jul 31

Usage Reports and Administrative Fees may be submitted in hardcopy or electronically, and any questions associated with either, may be directed to the following.

Department of Administration
State Procurement Office
ATTN: “Statewide Contracts Administrative Fee”
100 N. 15th Avenue
Suite 201
Phoenix, AZ 85007

Checks may be made out to the "State Procurement Office"


Statewide contractors may use the following forms when submitting their Usage Report.  If permitted under their contract, substantially similar forms may also be permitted so long as these forms, at a minimum, include the same data found in the State's forms.  Contractors should inquire with their Procurement Officer if they have question in this regard.

  • SPO Form 799 - Usage Report Cover Letter (Sample) (file:)
  • SPO Form 801 - Quarterly Usage Report
    (Sample B, separate customer lists, with formulas) (file: SPO_Form_801 )



State Set Aside Program



2011 NIGP Award

2011 NIGP Innovations in Public Procurement Award

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