Commonwealth of Pennsylvania Cooperative Purchasing Program (COSTARS)

COSTARS is the Commonwealth of Pennsylvania's Cooperative Purchasing Program that allows eligible local governments, school districts, and certain nonprofit entities to purchase goods and services through contracts that have already been competitively awarded by the state. The program is administered by the Pennsylvania Department of General Services (DGS).

What Is COSTARS?

COSTARS is the Commonwealth of Pennsylvania's Cooperative Purchasing Program. It allows eligible local governments, school districts, and certain nonprofit entities to purchase goods and services through contracts that have already been competitively awarded by the state.

The program is administered by the Pennsylvania Department of General Services (DGS).

COSTARS leverages statewide contracts to streamline procurement and achieve cost savings for participating entities.

Key Characteristics of COSTARS

Instead of conducting their own procurement, a municipality identifies a need, searches available COSTARS contracts, and makes purchases directly from an approved supplier — eliminating the need for separate competitive bidding at the local level in many cases.

Eligible Members

Entities that may participate include local governments, school districts, municipal authorities, and nonprofit organizations in certain categories.

State-Awarded Contracts

COSTARS contracts are competitively solicited and awarded by DGS in compliance with Pennsylvania procurement law.

Approved Suppliers

Vendors awarded COSTARS contracts can sell directly to registered members under pre-negotiated terms.

Membership Registration

Entities must register to participate, but membership is typically free.

Regulatory Framework

COSTARS operates under:

The Pennsylvania Procurement Code (62 Pa.C.S.)

Procurement policies issued by the Pennsylvania Department of General Services

These statutes authorize cooperative purchasing and ensure contracts are awarded through competitive processes.

Why COSTARS Matters for Contractors

For vendors, COSTARS provides:

Access to thousands of Pennsylvania local government entities

Reduced need to bid separately for each municipality

Streamlined sales under pre-established contract terms

Increased market visibility across the state

However, vendors must respond to DGS solicitations to become approved COSTARS suppliers, comply with pricing, reporting, and administrative fee requirements, and maintain contract compliance standards.

For example, if a Pennsylvania borough needs road maintenance equipment, instead of issuing its own RFP it may purchase directly through a COSTARS heavy equipment contract, relying on the state's competitive award process. This accelerates procurement and reduces administrative burden.

Award on a COSTARS contract does not guarantee sales but significantly expands market reach.

Common Misconceptions About COSTARS

COSTARS is only for large purchases.

It can be used for purchases of various sizes, depending on contract scope.

Only government entities can join.

Certain nonprofit organizations may also qualify as COSTARS members.

Vendors automatically qualify once registered.

Vendors must compete and be awarded a COSTARS contract through DGS.

Frequently Asked Questions

Is membership required to purchase through COSTARS?

Yes. Eligible entities must register as COSTARS members.

Is there a cost to join?

Membership for eligible entities is generally free.

How do vendors participate?

Vendors must respond to solicitations issued by the Pennsylvania Department of General Services.

Does COSTARS replace competitive bidding?

It satisfies competitive requirements when purchases are made under properly awarded statewide contracts.