Cooperative Purchasing Agreement Definition

The advantages of this purchasing model are the lowest possible prices due to the guaranteed demand. In this procurement model, governments could reduce administrative costs and achieve economies of scale. It is clear who the participants are. Requirements are estimated and there is no obligation for some purchases. Bidders` confidence in estimates is often determined by price. Local governments and non-traditional suppliers are finding ways to do business beyond demand for supply (RfP). One of these alternative purchasing mechanisms is cooperative acquisition. Cooperative procurement is “procurement by or on behalf of one or more public procurement entities” within the meaning of the American Bar Association Model Procurement Code for State and Local Governments. There`s a good chance that using a cooperation agreement will save you time, which can be especially valuable given the staff and budget cuts that have lasted since the recent recession. However, it`s not always true that the prices negotiated by co-ops are actually better than what you could get through your own competitive process, especially if you`re buying on behalf of a large city or jurisdiction.

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