What is cooperative procurement?
Cooperative procurement is when two or more entities utilize the same contract to make a purchase. A public entity is able to use the contract that another entity has already established, through a formal solicitation process of their own, to purchase from the same supplier on the same or similar terms.
- Satisfies the formal solicitation requirement: The awarded supplier on a cooperative contract has already gone through a formal solicitation process for the particular goods/services provided under that contract. This means the supplier can sell to other public entities under the same terms of the contract without responding to another formal solicitation process.
- Is a legal, well-established best practice: Cooperative procurement is not a workaround; it is a legal best practice. Local governments are able to use cooperative contracts based on joint powers, intergovernmental cooperation, or cooperative procurement laws in their respective jurisdictions.
- Is a huge and growing sales tactic: Already, 20% of local government purchasing spend flows through cooperative contracts. Suppliers are increasingly becoming aware of the benefits of cooperative procurement, including faster sales cycles and broader distribution.