DGS Information Technology (IT) Delegation Guidelines
As well as offering IT products, services and staffing under various CMAS contracts, we also offer products and services on the open market. Purchasing on the open market can sometimes make better economic sense for our customers.
For example: Most CMAS contracts define all freight terms as "FOB Destination," which means that the vendor is not allowed to charge freight to the customer. Open market purchase orders are negotiated per order. If the vendor has a freight cost of $100.00 for a heavy item and is not allowed to pass that charge on to the agency, then it is more than likely the vendor will add the $100.00 into the cost of the product before marking up the product to the agency. This can usually be done without exceeding the CMAS contract price. What this does, in effect, is cause the agency to pay unnecessary tax on freight charges rather than separating out the freight and keeping it non-taxable.
At Allied Network Solutions, we like to be able to present our customers with several options if it is in the best interest of the agency. We find that customers appreciate being informed and like the opportunity to make decisions that can benefit both the agency and the State of California.