Numerous New York State agencies use toll-free telephone numbers to disseminate information and allow the public to contact them at no cost. The Office of General Services (OGS) negotiated statewide Comprehensive Telecommunications Services (CTS) contracts, which offer agencies a variety of telecommunication services, including toll-free service. Under these contracts, vendors charge for time of connection plus applicable taxes and surcharges.

Agencies are generally able to obtain better rates by using the CTS contract when compared to the rates obtained through a single contract procurement or discretionary purchase.

Regardless of the contracting method used, it is important for agencies to be diligent in ensuring charges from toll-free vendors do not contain errors and/or unauthorized taxes and surcharges. It is equally important for agencies to maintain complete and accurate records to ensure vendors only charge agencies for toll-free telephone numbers that belong to them.

When initially procuring toll-free services, an agency should review the terms and conditions of the CTS contract to determine if this contract meets its form, function, and utility needs and provides toll-free services in the most cost-effective manner. If the CTS contract meets the agency’s needs, the agency should procure toll-free services under this contract. If the CTS contract does not meet its needs, the agency should procure toll-free telephone numbers in accordance with the State’s Procurement Guidelines.

Agencies with existing toll-free telephone numbers may be able to reduce the cost for toll-free services by taking the following steps:

• If the existing numbers are obtained through contracts other than CTS, contact agency Counsel regarding the potential for and consequences of terminating those contracts and, instead, utilizing the CTS contract. If there is no current contract in place, convert existing toll-free telephone numbers not procured under the CTS contract to the CTS contract if doing so reduces the cost.
• Periodically evaluate the need for and cost effectiveness of each toll-free telephone number. Agencies should eliminate toll-free telephone numbers no longer needed and identify alternatives for toll-free telephone numbers that receive minimal or no calls.
• Review charges from toll-free vendors to ensure all surcharges and taxes are allowable under the terms and conditions of the contract. Agencies should request refunds and/or credits for any inappropriate charges.
• Ensure that vendors only bill for toll-free telephone numbers for which the agency is responsible. Agencies should request refunds and/or credits for any inappropriate charges.

Guide to Financial Operations

REV. 03/19/2012