NASPO ValuePoint (NASPO ValuePoint)
NASPO ValuePoint is a cooperative purchasing program facilitated by the National Association of State Procurement Officials. It enables state and local governments to use competitively sourced contracts to purchase goods and services at negotiated, multi-state pricing. It leverages collective buying power to increase efficiency, reduce duplication, and achieve cost savings.
What Is NASPO ValuePoint?
NASPO ValuePoint is a cooperative purchasing program facilitated by the National Association of State Procurement Officials (NASPO). It enables state and local governments to use competitively sourced contracts to purchase goods and services at negotiated, multi-state pricing [citation:4].
It leverages collective buying power to increase efficiency, reduce duplication, and achieve cost savings. Started in 1992, NASPO ValuePoint is the cooperative purchasing arm of NASPO, a non-profit association dedicated to strengthening the procurement community [citation:9].
Key Characteristics
Multi-state cooperative purchasing program using a Lead State Model™ [citation:4]
Master agreements available for participating entities after a competitive solicitation [citation:6]
Broad category coverage including IT, cloud solutions, data communications, public safety, and professional services [citation:3][citation:10]
Open to eligible state, local, and educational entities as determined by each state's procurement official [citation:3][citation:9]
Requires payment of an administrative fee (typically 0.25%) on expenditures [citation:1]
How It Works in Government Contracting
Where it appears in the procurement lifecycle
NASPO ValuePoint contracts are used during the acquisition phase when agencies need pre-competed cooperative contracts instead of running their own full solicitation.
Who uses it
State procurement offices, local governments, school districts, public universities, and other eligible public entities [citation:3]. Eligibility is determined by each participating state's procurement official [citation:5][citation:9].
Why it matters
It reduces administrative burden, shortens procurement timelines, and provides access to volume-based pricing by aggregating demand across multiple states [citation:8].
Practical application
One state conducts a competitive solicitation as the lead state, forming a sourcing team with volunteers from other states [citation:6]. After award, other participating states and eligible entities may execute participation agreements (Participating Addendums) and purchase under the master contract [citation:5][citation:8].
Regulatory Framework
NASPO ValuePoint contracts are conducted under individual state procurement statutes and competitive bidding laws. While not governed by the Federal Acquisition Regulation for state purchases, cooperative use must comply with:
State procurement codes
Local government purchasing authority rules
Intergovernmental cooperative purchasing statutes
Each participating entity must confirm that cooperative purchasing is legally authorized in its jurisdiction [citation:5]. The State Chief Procurement Official determines eligibility and participation authority [citation:9].
Why It Matters for Contractors
Vendors can access multiple states and local agencies through one awarded master agreement, avoiding repetitive bid preparation expenses for separate state contracts [citation:6].
Contractors must meet pricing, reporting, and performance requirements across participating states. This includes paying administrative fees (0.25%) and participating in annual performance reviews [citation:1][citation:2].
Winning a NASPO ValuePoint contract can significantly expand geographic reach without pursuing separate state contracts, positioning contractors as preferred vendors in the public sector market.
Risk Considerations: Volume expectations may vary, price concessions negotiated at the master level can affect profitability, and contractors must maintain accurate product catalogs in the NASPO eMarketPlace [citation:7]. Contracts may be terminated if utilization does not warrant administration [citation:2].
Common Misconceptions
NASPO ValuePoint is a federal contract vehicle.
It is a state-led cooperative program administered by NASPO, not a federal procurement system [citation:4].
Only large corporations benefit.
Small and mid-sized businesses can compete and participate; many master agreements include opportunities for authorized dealers and subcontractors [citation:6].
Agencies must use it.
Participation is optional and subject to local authority approval; states choose whether to participate in specific master agreements through Participating Addendums [citation:5][citation:9].
Frequently Asked Questions
Is NASPO ValuePoint the same as a GSA Schedule?
No. GSA Schedules are federal contract vehicles. NASPO ValuePoint is a state-led cooperative program for state and local government procurement [citation:4].
How does a contractor become a NASPO ValuePoint vendor?
A contractor must respond to a competitive solicitation issued by a designated lead state during an open RFP period. Contracts cannot be joined mid-term, but may be reopened for refresh or resolicitation [citation:6].
Can local governments use NASPO ValuePoint contracts?
Yes, if cooperative purchasing is permitted under their local procurement laws and the state's Participating Addendum authorizes local entity use [citation:3][citation:5].
Does every state automatically participate?
No. States and entities choose whether to participate in specific master agreements by executing a Participating Addendum [citation:5].
Related Government Contracting Topics
Cooperative Purchasing Agreements: Agreements that allow government entities to combine their purchasing power and share contracts.
Intergovernmental Agreements: Formal arrangements between government entities to cooperate on shared objectives, including procurement.
State Procurement Code: State-level laws governing public purchasing, which determine eligibility for cooperative programs.
Lead State Contracting: A model where one state manages a competitive solicitation on behalf of multiple participating states.
Master Agreements: Pre-negotiated contracts establishing terms and conditions, under which specific purchases are made.
Competitive Sealed Proposals: A procurement method often used in lead-state solicitations to evaluate both price and non-price factors.
NASPO ValuePoint streamlines public procurement by offering pre-competed, multi-state contracts. For contractors, winning a position on these agreements provides access to a vast customer base across all 50 states without pursuing separate state contracts, but requires navigating a rigorous lead-state solicitation process and ongoing compliance obligations.