Tier Two: State Entity Contracts

If you are a state procurement employee, you must purchase goods and services that are available on existing contracts established by your state entity after determining a mandatory statewide contract cannot satisfy the need.

Any deviation from a state entity contract requires documented approval by your Agency Procurement Officer (APO) or College/University Procurement Officer (CUPO).

Open and Fixed Contracts

There are two types of contracts that the state uses for purchasing goods and services: open and fixed.

• Fixed contracts are ones where the total amount that will be spent is known ahead of time. You need to be careful that spending on these contracts does not exceed the agreed-upon amount.
• "Open" contracts are ones where exact quantities needed are not known at the time the contract is established.

Incidentally, a state entity does not normally have a contract for the same goods or services as those covered by a statewide contract. However, if there is one, you should notify SPD so they can coordinate the transition from the state entity contract to the statewide contract.