A centralized contract is a contract let by the Office of General Services (OGS) for use by State agencies and other authorized users. State Finance Law requires agencies use centralized contracts to purchase commodities and services that meet agencies’ requirements with respect to form, function, and utility. Information about the use of specific centralized contracts can be found on the OGS website.

Agency instructions for purchasing from centralized contracts are provided by OGS in the contract award notices available on the OGS website. Agencies are encouraged to negotiate more favorable prices than those contained in the centralized contract. OSC approval is required for purchase orders and contracts valued at over $200,000 issued from, or under, centralized contracts.

Process and Document Preparation:

Statewide OGS centralized contracts are created by OGS in the Statewide Financial System (SFS) using the Corporate Contract functionality. Agencies should refer to the OGS website for information on how to use a specific centralized contract and should refer to the SFS website for information about processing transactions against centralized contracts.

OSC approval is required for purchases from OGS centralized contracts exceeding the OSC approval thresholds. The process for obtaining OSC approval is as follows:

Purchases from an OGS centralized contract that require a specific mini-bid contract identification number

SFS users will create a contract transaction in the SFS using the appropriate Audit Type below. SFS users will submit the agreement (contract) and procurement record documents to OSC through the Electronic Document Submission System (EDSS).

Purchases from an OGS centralized contract through a purchase order or authorized agreement

SFS users will create a transaction in the SFS using an “OC” prefix to identify the transaction as an OGS centralized contract purchase subject to OSC approval. The Begin Date should be the earliest date the purchase order would be dispatched to the vendor. The Expire Date should be the last day of the fiscal year in which the purchase will be made unless the purchase specifies a later date. The NYS Description should contain the group number, award number and OGS contract number. The contract value should equal the amount of the purchase and the transaction should be created using the NYS Vendor Id associated with the centralized contract from which you are purchasing. No pre-encumbrance (fund reservation) is required for the “OC” transaction.

SFS users will select one of the appropriate Audit Types below as a mechanism to obtain OSC approval. SFS users will submit the transaction and procurement record documentation to OSC through EDSS that supports the purchase from the vendor based on the terms of the centralized contract and OGS’ instructions on how to use the contract. At a minimum, this should include the justification for the selection of the vendor and its particular offerings, and a detailed list of the goods and/or services being purchased and associated costs. A copy of the agency unauthorized purchase order should also be included in the submission.

Once SFS users receive notification of the OC transaction approval users will proceed with the normal process of issuing a purchase order against the centralized contract. Please note, no purchase orders are to be issued from the “OC” transaction; “OC” transactions are used only as the process for obtaining OSC approval.

VALUE–ADDED RESELLERS

Value-added resellers, if allowed under the terms and conditions of the contract, are associated with the centralized contract by OGS. Each value-added reseller has its own NYS Vendor ID, and purchase orders are issued directly to value-added resellers associated with the contract in the Statewide Financial System (SFS).

Guide to Financial Operations

REV. 03/29/2023