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Procurement


Secrets to Using Cooperative Purchasing Agreements Successfully

Secrets to Using Cooperative Purchasing Agreements Successfully

What is the "secret" to using cooperative purchasing agreements successfully? We asked survey respondents and got a wide range of responses.
  • Written by Larry Anderson
  • 1st August 2011

What is the “secret” to using cooperative purchasing agreements successfully? We asked survey respondents and got a wide range of responses. Here is a sampling.

Communication.“information, communication and active contract management; “working together;” “get buy-in from department heads;” “communicate with all potential parties;” “encompass end-user’s needs by communicating before the solicitation is posted.”

Pricing: “competitive pricing;” “use comparative analysis to select from multiple cooperatives to obtain the best value;” “check as much as possible to make sure it is the best price available;” “use due diligence to ensure you get the terms, pricing and service you would require if you were doing the solicitation yourself;” “use it as another bid … another price quote …. compete, compete, compete if you have choices.”

Understand the contract: “monitoring and updating contracts;” “reading the contract and following instructions;” “incorporate your special terms and conditions;” “to be sure of all terms and conditions that apply to the contract, especially shipping costs to remote areas;” “study the details to ensure it truly is the best value for your agency;” “verify Terms, Conditions, Specifications and confirm with the Awarding Agency – not just the vendor;” “navigate the contract complexities to find if what you want is covered, and [if] the terms are good for you.”

Research: “do your homework;” “research and comparison-shop among coops,” “tak[e] time to research and review the contracts available.” “mak[e] sure it is a competitive option;” “network with professionals in procurement;” “know what is available;” “research things on your own and never assume it’s a better deal because it’s through a cooperative;” “know the marketplace and conduct research to determine best value;” “be aware at all times of what is current.”

Service: “offering products at a volume discount rate while still receiving customer service at a local level.”

General: “inclusiveness;” “knowledge;” “strategic planning;” “money saved and earned;” “piggyback if it is in the best interest of your municipality;” “being flexible;” “identify common items many agencies need and cooperatively bid the opportunity first;” “understand most of the leg work is done already;” “evaluat[e] the business case and best value when comparing cooperative contracts and single agency-only solicitation methods.”

Warnings: “stop thinking you are unique;” “know when to use them and when to go it alone;” “remember it’s just a tool in the toolbox;” “adhere to statutes and share information;” “full disclosure and strong specifications;” “know [y]our procurement laws in the state.”

None: “No secret, just a huge time saving tool due to cuts in staff.”

  • Read the main story, “Cooperative purchasing today,” to see exclusive research on the popularity of cooperative purchasing among government agencies.

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