Cooperative Purchasing: State and Local Government Sales

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

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