Last reviewed on September 28, 2026 by the Government.biz editorial team. Verify contract numbers, fees, and procedures with the Pennsylvania Department of General Services COSTARS Program before you rely on them.

What COSTARS is

COSTARS is the Commonwealth of Pennsylvania's cooperative purchasing program, run by the Department of General Services (DGS) Bureau of Procurement. DGS describes it as the conduit through which registered Pennsylvania local public procurement units (LPPUs) and state-affiliated entities do business with suppliers through contracts DGS has already competitively established. The name stands for Cooperative Sourcing to Achieve Reductions in Spend.

The legal foundation is the Commonwealth Procurement Code (62 Pa.C.S.). Section 1902 of the original 1998 Code allowed local public procurement units to buy cooperatively with the Commonwealth, and Act 77 of 2004 directed DGS to create contracts exclusively for local and state-affiliated buyers. Because DGS awards those contracts through its own competitive process, DGS states that COSTARS purchases meet the Procurement Code's cooperative purchasing requirements for local government buying — so a township or school district can issue a purchase order instead of writing specifications and advertising a bid.

9,500+
Registered COSTARS member buyers (per DGS)
100+
Pre-negotiated vendor contracts (per DGS)
$166
Lowest annual admin fee (verified SDB / veteran-owned)

For the broader Pennsylvania market — state agency buying, PennDOT, and certification — see our Pennsylvania state contracts guide. This page focuses on COSTARS itself.

Who can buy through COSTARS

COSTARS "membership" is for buyers, not sellers. According to the DGS COSTARS Supplier Guide, eligible members include:

Members must register with DGS, and suppliers are expected to confirm a buyer's membership in the online member list before selling under COSTARS. Participation is voluntary: a member may use COSTARS, another cooperative, or its own bid process.

State agencies are not COSTARS buyers. Commonwealth executive and independent agencies do not purchase through COSTARS-exclusive contracts. They buy from DGS statewide contracts. If your target is a state department, you need a statewide contract, not a COSTARS-exclusive one.

Two kinds of COSTARS contracts

COSTARS-exclusive contracts

Numbered contracts such as COSTARS-3 or COSTARS-26, created solely for members. DGS issues an Invitation for Bids and awards a contract to every responsive and responsible bidder. Bid price is not scored for award; members compare suppliers and pick the best value for each purchase. Bids are accepted on a continuous basis.

Statewide COSTARS-participating contracts

Regular DGS statewide contracts (including many Invitation to Qualify, or ITQ, contracts) where the awarded supplier elects into COSTARS during bidding. Those suppliers can then sell to members on the same terms. On PA eMarketplace, a "Yes" in the COSTARS column shows who has opted in.

COSTARS contract numbers and categories

The table below reflects the COSTARS-exclusive contracts listed in DGS's Guide to COSTARS Contracts (December 2024 edition). DGS adds, rebids, and retires categories, so check the current COSTARS contract search before you rely on a number.

ContractCategory
COSTARS-1Copiers, Document Imaging and Multifunction Devices
COSTARS-3IT Hardware (excludes IT services, software licenses, and cloud)
COSTARS-4Office, School and Library Supplies
COSTARS-5Janitorial Supplies
COSTARS-6Software (on-premise, downloadable, and "shrink wrap"; excludes supplier- and cloud-hosted solutions)
COSTARS-7Foods
COSTARS-8Maintenance, Repair & Operation (MRO) Equipment and Supplies
COSTARS-9Graphic & Printing Services, Equipment and Supplies
COSTARS-11Toiletries
COSTARS-12 / 13Emergency Responder Equipment and Supplies / Emergency Responder Vehicles
COSTARS-14Recreational and Fitness Equipment
COSTARS-15 / 16Water & Wastewater Treatment Consumables / Plant Components
COSTARS-17 to 21Waste and Recycling Containers; LED Traffic Signal Modules; Medical Supplies; Laboratory Supplies; Pest Control
COSTARS-24 / 25 / 26Traffic Signs / Municipal Work Vehicles / Passenger Vehicles
COSTARS-28 to 30Energy Conservation Management Supplies; Grounds Keeping Services and Supplies; Energy Consulting Services
COSTARS-32 / 33Signage / Street Lighting, Parking Meters and Street Furniture ("Streetscape")
COSTARS-34 to 38Theater (Auditorium) Furniture, Fixtures and A/V; Furniture and Window Treatments; Appliances, Cafeteria Equipment and Supplies; Uniforms; Heavy Equipment Rental
COSTARS-39 / 40Voting Systems and ePollbooks / Security and Surveillance Systems and Fire Alarm Systems
COSTARS-41 / 42Stormwater Management Products and Services / Electronic Monitoring Services and Equipment
Where IT software and services actually live. People often search for "COSTARS-33 IT software services," but in DGS's guide COSTARS-33 is Streetscape — street lighting, parking meters, parking enforcement hardware and software, and street furniture. For IT, the relevant COSTARS-exclusive contracts are COSTARS-3 (IT Hardware) and COSTARS-6 (Software). IT services and hosted software (SaaS) run through statewide contracts that allow COSTARS participation, such as the Master Information Technology (IT) Services ITQ (DGS lists ITQ categories including ITQ-26 MOTS SaaS, ITQ-27 Software Development Services, and ITQ-28 Subscription-Based Web Application Services/SaaS), IT Staff Augmentation Services, and several networking and data-center contracts. The IT Services ITQ documents are posted on PA eMarketplace and DGS's ITQ pages.

How suppliers join COSTARS

DGS lays out the path in four steps.

  1. Register as a Commonwealth vendor in the PA Supplier Portal and receive a six-digit vendor number. Registration alone does not make you a COSTARS supplier.
  2. Certify as a Small Business or Small Diverse Business if you qualify (optional, but it lowers your fee and helps on statewide bids).
  3. Submit an electronic bid on the COSTARS-exclusive contract(s) that fit what you sell, through COSTARS Electronic Bidding. Since February 2022, paper bids are no longer accepted.
  4. Pay the annual administrative fee per awarded contract once DGS tells you your bid is responsive and responsible.

Per the DGS supplier FAQ, it normally takes about 4–6 weeks from a correctly completed Bid Item Workbook to the responsive-and-responsible determination, and the contract is awarded within ten business days of receiving the fee. Only after the award letter, payment, and posting of the contract (with a "Yes" in the COSTARS column) can a member buy from you through COSTARS.

What goes in a COSTARS bid

Application periods

For COSTARS-exclusive contracts there is generally no annual application window. DGS operates a continuous bidding procedure: bids can be submitted on any Commonwealth business day, and if something is missing, you can fix it and resubmit. Statewide contracts that allow COSTARS election, by contrast, have fixed solicitation dates — sign up for DGS e-Alerts by commodity code to catch them.

Fees and reporting

Supplier classificationAnnual administrative fee (per contract)
DGS-verified Small Diverse Business$166
DGS-verified Veteran-owned Business$166
DGS self-certified Small Business$500
All others$1,500

DGS emphasizes that, unlike many national cooperatives, COSTARS charges no percentage-of-sales fee. The annual fee covers program administration and includes a non-exclusive license to use the COSTARS name and logo, access to the member contact list, and help from COSTARS marketing staff. Small and SDB bidders must include a copy of their active certificate with the bid to qualify for the lower fee.

Awarded suppliers must report COSTARS sales electronically at least quarterly through the COSTARS Supplier Gateway in the PA Supplier Portal, listing each member purchaser, sales dates, and dollar volume. DGS may suspend a supplier's participation for failing to file reports on time — report "zero sales" quarters too if your contract terms require it.

How members buy — and why that shapes your sales strategy

A COSTARS member orders directly from the supplier with its own purchase order and pays the supplier directly; each purchase order incorporates the contract terms. DGS does not guarantee any volume. Because most COSTARS-exclusive contracts have many awardees, DGS urges members to negotiate with several suppliers to get best value, and members decide what "best value" means — price, compatibility, delivery time, or keeping spending local.

Two practical consequences for suppliers:

Watch ancillary services. Installation and other ancillary services can trigger Pennsylvania's Prevailing Wage Act on public works projects above $25,000, as well as the Separations Act and Public School Code requirements. You can leave ancillary pricing "to be negotiated" in your workbook — but any price you do list becomes part of your contract and cannot be exceeded.

Portals: the Pennsylvania procurement systems you'll touch

People searching for the "Pennsylvania procurement portal" usually mean one of several DGS systems, each with a different job:

COSTARS-exclusive contracts are public records under the Right-to-Know Law and are posted where anyone can read them — including your competitors. Use that to benchmark pricing structures before you bid.

Small Diverse Business and COSTARS

Pennsylvania's small business programs are run by the DGS Bureau of Diversity, Inclusion, and Small Business Opportunities (BDISBO). A self-certified Small Business meets the Commonwealth's size standards; a verified Small Diverse Business is additionally verified as owned and controlled by, for example, minority, women, veteran, service-disabled veteran, LGBT, or disability-owned business owners. On COSTARS the most tangible benefit is the reduced administrative fee ($166 or $500 versus $1,500). On statewide contracts, SDB and small business participation can also factor into evaluation and subcontracting commitments. Pennsylvania certification is separate from federal SBA programs and from city programs in Philadelphia and Pittsburgh.

COSTARS vs. statewide contracts vs. national cooperatives

COSTARS-exclusiveDGS statewide contractNational cooperatives
BuyersRegistered PA local and state-affiliated members onlyCommonwealth agencies; COSTARS members too if supplier elects inPublic agencies in many states, per each program's rules
Award basisAll responsive and responsible bidders; price not scoredCompetitive (low bid, best value, or ITQ qualification)Varies by cooperative and lead agency
When you can bidContinuouslyFixed solicitation datesFixed solicitation dates
Fee modelFlat annual admin fee per contractCOSTARS admin fee if you elect inOften a percentage of sales

Step-by-step for small vendors (no consultant required)

  1. Confirm your category. Match your products or services to a COSTARS-exclusive contract, or identify the statewide contract (often an ITQ) that covers them.
  2. Register in the PA Supplier Portal and get your six-digit vendor number. Make sure your Department of State registration is current.
  3. Self-certify as a Small Business and, if eligible, seek SDB or veteran verification through BDISBO to cut your admin fee.
  4. Take the free DGS COSTARS supplier training in the COSTARS Training Center, which walks through bidding on a COSTARS contract.
  5. Gather manufacturer or distributor authorization letters for every line you plan to offer.
  6. Complete the Bid Item Workbook carefully and submit electronically. If DGS flags an omission, correct and resubmit.
  7. Pay the administrative fee promptly when notified, so your award issues and your contract is posted.
  8. Market to members. Pull the member list from the Supplier Gateway, target the municipalities, school districts, and authorities in your region, and put your COSTARS contract number on every quote.
  9. File quarterly sales reports on time and keep your workbook current.

Common mistakes

Frequently asked questions

What is COSTARS in Pennsylvania?

COSTARS is the Commonwealth of Pennsylvania's cooperative purchasing program, run by the Department of General Services (DGS). It lets registered local public procurement units and state-affiliated entities buy from DGS-established contracts instead of running their own bids. DGS reports more than 9,500 member buyers.

How does a supplier get a COSTARS contract?

Register in the PA Supplier Portal to get a six-digit vendor number, submit an electronic bid on a COSTARS-exclusive solicitation through COSTARS Electronic Bidding, and pay the annual administrative fee once DGS finds the bid responsive and responsible. Statewide contract holders can instead elect into COSTARS when they bid.

Is there an application deadline for COSTARS?

Not for most COSTARS-exclusive contracts. DGS operates them under a continuous bidding procedure, so bids can be submitted on any Commonwealth business day and corrected and resubmitted if something is missing. Statewide contracts that allow COSTARS election have fixed solicitation dates.

How much does it cost to be a COSTARS supplier?

There is no percentage-of-sales fee. Suppliers pay an annual administrative fee per contract: $166 for DGS-verified Small Diverse Businesses and Veteran-owned Businesses, $500 for DGS self-certified Small Businesses, and $1,500 for all others, per DGS.

Is COSTARS-33 an IT software contract?

No. In DGS's COSTARS contract guide, COSTARS-33 is Street Lighting, Parking Meters and Street Furniture (Streetscape), which includes parking enforcement hardware and software. On-premise software is COSTARS-6, IT hardware is COSTARS-3, and IT services and hosted software run through statewide IT ITQ contracts.

Can a small business win COSTARS contracts without a consultant?

Yes. COSTARS-exclusive contracts are awarded to every responsive and responsible bidder, bid price is not scored, DGS offers free training, and bids can be corrected and resubmitted. The harder part is marketing to members after award, which no consultant can do for you.

Can state agencies buy from COSTARS-exclusive contracts?

No. Commonwealth executive and independent agencies do not buy through COSTARS-exclusive contracts; they use DGS statewide contracts. COSTARS-exclusive contracts are only for registered local public procurement units and state-affiliated entities.

Related pages

Authoritative sources: DGS COSTARS Cooperative Purchasing, How to Become a COSTARS Supplier, COSTARS Supplier Guide, and Guide to COSTARS Contracts. This page is general information, not legal advice.