Cooperative Purchasing: State and Local Government Sales

Leverage federal contracts to sell to state and local governments.

intermediate9 min readStep-by-step guide

Source & Authority Information

Information as of: January 2026
Author: GovContractFinder Team
Additional sources:

Understanding Cooperative Purchasing

Types of Cooperative Purchasing Programs

Federal Cooperative Purchasing

Multi-State Cooperatives

Regional and National Cooperatives

  • Sourcewell (formerly NJPA): One of the largest national cooperative purchasing programs, serving over 50,000 member entities including schools, cities, counties, states, and nonprofits across the United States and Canada
  • OMNIA Partners: Major purchasing cooperative serving both public sector and private sector members with contracts covering numerous categories
  • US Communities: National cooperative managed by the US Communities Government Purchasing Alliance, specializing in contracts for local government
  • HGAC Buy: Houston-Galveston Area Council cooperative with contracts accessible by government entities nationwide
  • TIPS (The Interlocal Purchasing System): Texas-based cooperative that has expanded to serve members across multiple states
  • E&I Cooperative Services: Focused primarily on educational institutions but available to many government entities

Benefits of Cooperative Contract Placement

Dramatic Market Expansion

Reduced Sales and Procurement Costs

Faster Customer Acquisition

Credibility and Marketing Value

Obtaining Cooperative Contract Placement

  1. 1
    Research Available Programs

    Identify cooperative purchasing programs relevant to your products or services. Research each program's membership base and geographic coverage, purchasing volume and growth trends, categories and scope of contracts offered, competitive process and evaluation criteria, and administrative requirements and fees. Prioritize cooperatives aligned with your target markets and growth strategy.

  2. 2
    Understand Program Requirements

    Each cooperative has specific requirements for participation. Review solicitation documents carefully to understand pricing requirements and discount expectations, reporting obligations and frequency, administrative fees as a percentage of sales, insurance and bonding requirements, and technology requirements for order processing. Ensure you can meet these requirements profitably before investing in pursuit.

  3. 3
    Prepare a Competitive Response

    Cooperative contracts are typically awarded through competitive procurement, often against established competitors. Prepare your proposal to demonstrate competitive pricing that works across the member base, relevant experience and past performance, operational capability to serve geographically dispersed customers, customer service and support capabilities, and value-added offerings that differentiate from competitors.

  4. 4
    Execute Administrative Requirements

    If awarded a contract, complete all administrative requirements including master agreements and participation documents, insurance certificates and bonding if required, registration in ordering and reporting systems, marketing materials and catalog listings, and training on program procedures and expectations.

  5. 5
    Actively Market Your Placement

    Contract placement creates potential, but you must actively market to convert potential into sales. Develop marketing strategies to reach eligible members including promotional communications, conference participation, digital marketing, and direct sales outreach. Many contractors underestimate the marketing investment needed to capitalize on cooperative placement.

GSA Schedule Cooperative Purchasing

Eligible Cooperative Purchasers

  • Federal agencies: The primary purpose and largest market for GSA Schedules
  • State governments: Authorized for information technology purchases under Section 211
  • Local governments: Cities, counties, and other local entities for IT purchases
  • Tribal organizations: Federally recognized tribes and their entities
  • Certain educational institutions: As authorized under specific provisions
  • Disaster purchasing: Expanded access during declared emergencies

Pricing Implications

Managing Cooperative Contract Performance

Order Processing Systems

Sales Reporting Requirements

Administrative Fee Management

Marketing Your Cooperative Contract Placement

Effective Marketing Strategies

  • Feature cooperative contract status prominently in all marketing materials, website, and sales collateral
  • Attend conferences and trade shows where cooperative members gather, such as state purchasing conferences and educational institution meetings
  • Train sales staff on cooperative purchasing benefits so they can educate potential customers on how to use your contract
  • Create educational content—webinars, guides, blog posts—helping customers understand and use cooperative purchasing
  • Partner with cooperative program staff who often support contractor marketing to members
  • Develop targeted campaigns for specific member segments: schools, cities, counties, healthcare facilities
  • Use cooperative program marketing channels including catalogs, websites, and member communications

Challenges and Risk Considerations

  • Competition from multiple vendors on the same cooperative vehicle can create pricing pressure
  • Administrative burden of managing multiple cooperative contracts with different requirements
  • Reporting and fee payment obligations requiring dedicated administrative resources
  • Customer education needed to help buyers understand how to use cooperative contracts properly
  • Contract renewal and recompete risk—cooperative contracts are not permanent positions
  • Geographic service challenges when customers are widely dispersed
  • Cash flow implications of administrative fee timing and payment terms
Gov Contract Finder Logo
© Copyright 2026 Gov Contract Finder.