Numerous New York State contracting entities 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 contracting entities a variety of telecommunication services, including toll-free service. Under these contracts, vendors charge for time of connection plus applicable taxes and surcharges.

Contracting entities 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 contracting entities 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 contracting entities to maintain complete and accurate records to ensure vendors only charge contracting entities for toll-free telephone numbers that belong to them.

When initially procuring toll-free services, a contracting entity 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 contracting entity’s needs, the contracting entity should procure toll-free services under this contract. If the CTS contract does not meet its needs, the contracting entity should procure toll-free telephone numbers in accordance with the State’s Procurement Guidelines.

Contracting entities 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 contract entity 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. Contracting entities 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. Contracting entities should request refunds and/or credits for any inappropriate charges.
• Ensure that vendors only bill for toll-free telephone numbers for which the contracting entity is responsible. Contracting entities should request refunds and/or credits for any inappropriate charges.

Guide to Financial Operations

REV. 07/09/2026