Have an active State of New Jersey Cooperative Contract
If your contract does not contain NJSTART Procurement Efficiency Program (PEP) Marketplace terms and conditions, sign the contract amendment and return it to suppliers-NJSTART@mdfcommerce.com.
2
Start receiving orders.
3
Report quarterly on all purchases made through your contract and pay your PEP fee online in our Reconciler system.
Vendor PEP FAQ
ABOUT THE PEP PROGRAM
The Procurement Efficiency Program (PEP) was established through NJAC 17:12-1.5 to create a sustainable funding model for the State of New Jersey’s procurement operations. The PEP and related initiatives have been implemented in partnership with Periscope, an mdf commerce company.
No, the NJSTART Marketplace is a catalog software integrated with NJSTART. You can find out more about the Marketplace by reviewing these FAQs.
The Supplier Convenience Fee language has been updated to align more closely with NJAC 17:12-1.5 and is now called the Procurement Efficiency Program Fee (PEP Fee).
Periscope is the developer and implementer of the ePro eProcurement system (branded as NJSTART in New Jersey). Periscope also provides other products and services for government procurement and purchasing including its suite of Periscope S2G products including the operation of a national public sector procurement supplier network. Periscope is managing PEP behalf of the State.
Periscope is collecting the PEP Fee on behalf of the State to fund State procurement and purchasing operations, support New Jersey Cooperative Purchasing Program buyers, and enable eProcurement through NJSTART.
PEP PROGRAM BENEFITS
A typical question is “What’s in it for me?” Based on independent research and similar State eProcurement initiatives, it’s been proven that eProcurement system brings many benefits to suppliers, including:
• The enablement of catalogs for direct searching and ordering, which makes it easier for purchasers to find what's on contract, understand the products and services, and quickly order. When purchasers can search the web for products, services, information, and solutions it greatly increases visibility and ordering (meaning increased sales).
• The system and catalogs are available to State agencies and to all Cooperative Purchasing Program Entities (e.g. New Jersey local governments, school districts, counties, and cities), which increases the reach of state contracts.
• Support as a marketing arm for the statewide contracts to encourage knowledge and use by buyers, providing additional marketing resources directly for statewide contract suppliers.
Statewide contracts will be marketed to New Jersey public purchasing entities. For example, we will advertise online and in print publications about what goods and services are available to buyers. We will manage ongoing outreach throughout the year to buyers, feature participating supplier logos at tradeshows, conduct webinars with suppliers, etc. The PEP will increase the visibility of statewide contracts and result in larger sales volumes for those suppliers.
Additionally, we have a password protected site with Marketing Communications templates and assets for use in your collateral.
Visit it here: https://njstart.info/njstart-pep-vendor-resources.
NOTE: If you do not have this password, reach out to suppliers-njstart@mdfcommerce.com with your request and they will get right back to you.
ABOUT THE PEP FEE:
Supplier fees to fund procurement operations, cooperative programs, and systems are very common across the U.S. These fees are used to modernize the procurement operations and sourcing experience for buyers, as well as improve services to the supplier community. Suppliers paying the 1% fee will be able to load their catalogs of products or services for searching and ordering in the Supplier Marketplace. Many of those suppliers can also benefit from promotional campaigns to public sector buyers and assistance with existing and expanded reporting and remittance requirements.
Many other states have taken similar approaches to funding procurement operations and related software. Participating suppliers are funding the technology and the team that will sign up new users, market and advertise your state contract items, and help drive increased purchases through state contracts.
Yes. On September 6, 2022, the New Jersey Administrative Code (N.J.A.C. 17:12, subsection 1.5) was amended. The PEP was updated to assess a percentage fee to suppliers from the value of all transactions on each contract, including Cooperative Purchasing Participants.
Reporting is not retroactive. Reporting starts on the effective date of a newly awarded contract, or for an existing contract on the date the new amendment was fully executed. Please confirm your State Contract terms and conditions prior to starting your quarterly sales reporting.
Reporting and fees are paid separately by contract.
Yes, other than the amendment, other terms in the supplier’s contract will remain the same. Those existing terms include reporting and auditing, which is an existing condition of most State contracts.
Yes. Fees will not be assessed on invoices related to PO’s encumbered before the start of a Supplier’s participation in the PEP.
Payment Option 1: ACH – Direct to Periscope
Bank: Texas Capital Bank, N.A.
Address: 2000 McKinney Ave., Dallas, TX 75201
Phone: 877-839-2265
Account Type: Checking Routing: 111017979
Account Number: 4011036870
Account Name: Periscope Intermediate Corp, New Jersey Operating Account
Payment Option 2: Remittance Addresses for Checks
First Class Mail
Periscope Intermediate Corp
PO BOX 674844
DALLAS TX 75267-4844
Overnight
Periscope Intermediate Corp
LOCKBOX NUMBER 674844
1200 E CAMPBELL RD STE 108
RICHARDSON TX 75081
Any exceptions to the terms of the PEP Fee Amendment should be submitted in writing to suppliers-njstart@mdfcommerce.com. To request changes to your contract with the State of New Jersey because of the PEP, please submit your requests in writing to suppliers- njstart@mdfcommerce.com so that the Periscope team may direct your request to the appropriate contact at the State Division of Purchase and Property.
Exemptions are provided on a limited basis at the discretion of the Division of Purchase and Property.
To ensure equity and fairness for the suppliers, the 1% PEP Fee is being applied consistently across all eligible state contract suppliers.
No, all expenses for doing business must be worked into your contract pricing.
No, the PEP Fee will only apply to sales made using the State of New Jersey’s contract vehicle.
Quarterly Sales reports are due no later than thirty (30) calendar days after the end of each calendar quarter. The calendar quarters end March 31, June 30, September 30, and December 31.
• Complete and accurate details of all sales, credits, returns, refunds, and the like for the reporting quarter;
• Purchasing entity;
• Total of PEP Fee amount due for the reporting quarter;
• Such other information as the State may reasonably request; and
• If no sales were made during the reporting quarter, then a report shall be submitted showing zero sales and zero PEP Fee due.
All reporting requirements of your contract with the State are in effect.
This answer will depend on how your contract was included in the PEP :
For suppliers with contracts awarded from a solicitation or participating addendum that included the PEP Fee, the PEP Fee only applies to “Net Purchases” on your State contract. Net Purchases are your total sales on the contract less credits, taxes, regulatory fees, and separately stated shipping charges not included in the unit prices.
For suppliers with contracts awarded from a solicitation that did NOT include the PEP Fee, the PEP Fee only applies to “Net Purchases” on your State contract. Net Purchases are your total sales on the contract less credits, taxes, regulatory fees, clearly agreed to “pass throughs,” and separately stated shipping charges not included in the unit prices.
Yes, the reporting and fee requirements are related to your contract with the State of New Jersey regardless of how sales are transacted.
ABOUT MARKETPLACE:
Only State Agency and New Jersey Cooperative Purchasing Entity end users can view catalogs in the NJSTART Marketplace. Suppliers cannot view other suppliers’ catalogs or related item pricing when logged into NJSTART.
The terms of the PEP require supplier participation to build their online Marketplace presence. If the supplier does not participate, Periscope and the State reserve the right to create that online presence on behalf of the supplier.
No. Suppliers will not be required to build punchout sites associated with the Marketplace. Some suppliers will want to do so and will be supported in that process. Others may simply upload their catalogs into Marketplace for searching and shopping.
ABOUT JOINING THE PEP:
• Step 1: Sign the contract amendment and return it to suppliers-NJSTART@mdfcommerce.com
• Step 2: Look out for an email from Periscope with links to a quick training video on how to setup your catalog in Marketplace.
• Step 3: Work with Periscope to load your catalog.
• Step 4: Start receiving orders.
• Step 5: Report quarterly on all purchases made through your contract and pay your convenience fee.
CONTACT US:
Email suppliers-NJSTART@mdfcommerce.com. Provide as much information as possible regarding your question in the email, including your company name and state contract number.
For information about using NJSTART-Reconciler to report sales and pay fees, please contact reconciler@mdfcommerce.com. Please include your company name and state contract number.
*This list of State Agencies and Organizations only reflects State Agencies and Organizations. State Cooperative Purchasing Entities such as Municipalities, Counties, School Districts, Volunteer Fire Departments, Volunteer First Aid and Rescue Squads, County and State Colleges, Independent Authorities, Quasi-State Agencies, and Independent Institutions of Higher Education are not listed, but must still be reported in your quarterly NJSTART Marketplace Sales Reports. If you need assistance, contact the Reconciler support team at reconciler@mdfcommerce.com
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