Learn how to report your sales and pay the related PEP fees
Reporting Your Sales
Participating PEP vendors in the NJSTART Marketplace Program will report Net Purchases under their contracts with the State of New Jersey, including sales to both State agencies and local public purchasing entities. Reporting should include both State Agency sales and sales from all local public purchasing participants such as municipalities, colleges and universities, local governments, school districts and special districts/entities (inclusive of political subdivisions).
Reporting is not retroactive. Reporting starts on the effective date of a newly awarded contract or for a contract with a Participating Amendment, the date the new amendment was fully executed.
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.
Why isn’t the State paying for its procurement operations and systems?
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.
Does the 1% fee apply to all sales on my State contract?
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.
If a supplier holds multiple NJ State Contracts, are fees paid collectively or separately by contract?
Reporting and fees are paid separately by contract.
Can I negotiate the 1% PEP fee?
To ensure equity and fairness for the suppliers, the 1% PEP Fee is being applied consistently across all eligible state contract suppliers.
Can I reflect the 1% PEP Fee as a separate price line on my contract and/or invoices?
No, all expenses for doing business must be worked into your contract pricing.
What if I have other business with New Jersey public purchasing entities that isn’t or won’t be sourced through the State contract, do I have to pay the PEP Fee?
No, the PEP Fee will only apply to sales made using the State of New Jersey’s contract vehicle.
Does the PEP Fee apply to gross purchases on the contract?
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.
Contract Terms
Will my current contract still be valid?
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.
Will the State agree that the fee will not be applied retroactively, and that any invoice that relates to an encumbrance (Release PO) issued prior to the signing of the PEP Fee Amendment will not be subject to the fee?
Yes. Fees will not be assessed on invoices related to Release PO’s encumbered before the start of a Supplier’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.
Can I redline the amendment and/or terms for the PEP?
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.
Are there exemptions to participating in the PEP?
Exemptions are provided on a limited basis at the discretion of the Division of Purchase and Property.
Payment
What options do I have to pay the PEP Fee? The current payment options are:
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
Reporting
When must I submit reporting and pay the PEP Fee?
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.
What will my company need to Include in Quarterly Sales Reporting
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.
Must I still comply with other reporting requirements in my State contract?
All reporting requirements of your contract with the State are in effect.
Must my company report and pay the PEP Fee if the transaction was not done through the NJSTART system?
Yes, the reporting and fee requirements are related to your contract with the State of New Jersey regardless of how sales are transacted.
Marketplace
Who can see my catalog in 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.
Are Suppliers required to build a Catalog in the Marketplace?
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.
Will suppliers be required to develop “punchouts” in the e Marketplace?
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.
Participation
What do I need to do to participate (if my contract language does not include the PEP terms)?
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.
Support
Who do I reach out to if I have questions about NJSTART?
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.
Contact Form
Questions about submitting a report or remitting your fee? Contact the Compliance Team by emailing them directly:
