Survey of State Practices Fact Sheet: Administrative Fees

This report provides a  look at the use of administrative fees by state procurement offices as reported in the 2022 NASPO Survey of State Procurement Practices.

Forty-five states and territories participated in the survey.

Creating and facilitating dynamic, multi-award cooperative contracts requires more time, personnel, and other resources than contracts that would only be used by one public entity. This is true whether the purchasing entity is a state office, federal department, or cooperative organization.

One of the ways public agencies offset these additional costs is by levying administrative fees. Administrative fees are assessed to cover the administrative costs associated with developing, establishing, and managing a contract. Beyond the contracting process, administrative fees can also encompass fees charged by central procurement offices for other services and tools provided to outside entities.

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