Procurement for State Agencies

Understanding New York State's Buying Process

Procurement involves the purchasing of goods (commodities) and services. If you are a government organization in New York State, the buying process can be understood in five steps:

 
Step 1: Identify your need and timeline.
Step 2: Determine your buying process & follow it.
Step 3: Select a vendor & make an award.
Step 4: Receive the goods, services, or commodities.
Step 5: Receive & pay the invoice.
 

The buying process is different for each type of organization in New York State, and it's important that you understand which rules and regulations apply to you.

State agencies must procure commodities or services in the following order according to State Finance Law:

1. From a Preferred Source vendor.
2. Through an OGS Procurement Services centralized contract.
3. Piggybacking on existing contracts. This means that you can receive the same services and commodities as the contract holders at the same price.
4. Conducting your own procurement, including discretionary purchases. This form of competitive bidding requires you to follow your own rules and regulations. Contracts are awarded on a basis of best value and lowest bidder. 

Pay the invoice after the procurement is complete. For State agencies that are customers of the OGS Business Services Center, invoices should be reviewed and approved by the agency and then emailed to Accounts Payable at [email protected].