NJSTART FAQs

 Vendor 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. Vendors paying the 1% fee will be able to load their catalogs of products or services for searching and ordering in the Vendor Marketplace. Many of those vendors 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 vendors 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 vendors 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. Fees will not be assessed on invoices related to Release PO’s encumbered before the start of a Vendor’s participation in the PEP. All Release POs issued under contracts once participating in PEP need to be reported and are subject to the fee. 

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 SOVRA team may direct your request to the appropriate contact at the State Division of Purchase and Property. 

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 vendors 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 vendors 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. 

Only State Agency and New Jersey Cooperative Purchasing Entity end users can view marketplace presences in the NJSTART Marketplace. Vendors cannot view other vendors presences or related item pricing when logged into NJSTART. 

The terms of the PEP require vendor participation to build their online Marketplace presence. If the vendor does not participate, SOVRA and the State reserve the right to create that online presence on behalf of the vendor. 

No. Vendors will not be required to build punchout sites associated with the Marketplace. Some vendors will want to do so and will be supported in that process. Others may simply upload their catalogs into Marketplace for searching and shopping. 

Step 1: Sign the contract amendment and return it to suppliers-NJSTART@mdfcommerce.com

Step 2: Look out for an email from SOVRA with links to a quick training video on how to setup your presence in Marketplace.

Step 3: Work with SOVRA to load your marketplace presence.

Step 4: Start receiving orders.

Step 5: Report quarterly on all purchases made through your contract and pay your convenience fee.

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.