Piggybacking (Using Other Existing Contracts)

Piggybacking (Using Other Existing Contracts)

Another procurement tool you can use is piggybacking. This is when you use an existing contract to acquire the same commodities or services at the same or lower price from another public entity contract. If you are interested in piggybacking, the best place to start is by reading the contract and then contacting the contracting agency. 

For state agencies and New York City who want to use another existing contract, you should review the Procurement Services Guide for Piggybacking in NYS and then complete the Contract Use Request Form. Submit it along with a copy of the contract and other supporting documentation to [email protected] for approval prior to buying off of the other contract. Once submitted, you should receive a notice of receipt from Customer Services.

All other local governments and other entities wishing to piggyback or use cooperative contracts should refer to the guidance from the Office of State Comptroller.

New York State Finance Law Article 11, §163 (10)(e) empowers OGS to authorize purchases required by state agencies from contracts let by other state agencies, the U.S. government, or any other state with the concurrence of the Office of the State Comptroller and under appropriate circumstances. This type of procurement option is called "piggybacking."

As with other forms of state procurement, contracting through piggybacking remains subject to internal and external review, and must be consistent with the policies and principles of government public contracting. When using this form of procurement, the requesting agency should examine and weigh the following factors in order to determine the appropriateness of piggybacking as a preferred methodology over other contracting alternatives:

1. Subject Matter Comparison: There should be an equivalency between the product or service sought and the original contract which should reflect your Agency's form, function, and utility requirements. Does the existing contract encompass the product or service sought? Did it anticipate the possibility of a contract extension? All relevant factors in the proposed extension procurement (including but not limited to price, quality, and nature of deliverable) should be clearly identified and compared to the original procurement.
2. Procurement Method: The size and scope of the new contract should be evaluated in comparison to the original contract and its method of award. Does the proposed use significantly unbalance the original scope, or change the nature, quantity, and scope of the original contract? Could a substantially different procurement response or increased bidder pool involving greater competition reasonably be expected based upon the volume of your proposed request?
3. Notice to Originating Agency: Where the subject of the original procurement is a New York State Agency-specific contract, the original contracting entity must be contacted and advised of the intended use. Concerns about the intended use, including the diminution of supply and vendor capacity, must be forwarded to OGS with the request for approval. Where the requesting Agency proposes using an amendment to an existing contract, consent of the originating Agency must be obtained. Notification to the originating Agency is not necessary for centralized contracts open to multiple entities.
4. Consent of Vendor & Terms of Use: The vendor's consent to the request must be in written legal form (contract, letter agreement, etc.), separate from a purchase order, which sets forth the agreed terms of the request. A decision on whether to amend the original agreement or to execute a separate, independent contract based on the original contract must be considered based on your facts and circumstances. In either event, the legal form should set forth, not only the agreed terms of the contract, but also its effect on the original agreement, including liability for default, and aggregation of volume and pricing discounts for the intended procurement as well as for subsequent procurements under the original agreement.
5. Absence of Other Acceptable Established Contracting Alternatives: Why are established Agency or multi-Agency contracts the appropriate mechanism to use for this procurement (i.e., timing, level playing field, nature of use)? Were other procurement methodologies considered? Are there any special, unusual, or exigent market circumstances underlying this extension request?
6. Pricing Justification: Similar to other methods of procurement, your Agency must document that the price for the proposed contract is reasonable under the circumstances. You should indicate whether pricing concessions have been requested and obtained from the vendor based on the increased volume of purchases under the agreement.

OGS Review: Prior to making a purchase, the Agency must submit a Contract Use Request Form, along with a copy of the contract and supporting documentation, to OGS for review and approval.

OGS Contract Use Request Form

Piggybacking Guidelines

NOTE: The Agency must seek prior approval for the use of a piggyback contract from OGS. Finally, the Agency must create an Agency New York State contract and obtain all approvals necessary for the specified contract value (e.g. OAG and OSC approval)