Key takeaways
- A cooperative contract is competitively solicited once by a lead agency or cooperative, then made available to other eligible public entities.
- Agencies use them to save time, reduce administrative work and buy from contracts that already meet competition requirements.
- Major programs include Sourcewell, OMNIA Partners, NASPO ValuePoint, TIPS, BuyBoard, HGACBuy and E&I, plus GSA programs open to state and local governments.
- An award gets you on the shelf. Agencies still need to know you're there — which takes outreach.
What is cooperative purchasing?
Cooperative purchasing is when public entities share the work of competitive procurement: one lead agency or cooperative runs the solicitation, and other eligible agencies can buy from the resulting contract.
When an agency buys from a contract another public entity already competed, it's often called piggybacking. Whether an agency can do this — and under what conditions — depends on its own state law and procurement policy, so each buyer confirms the contract fits its rules.
Why agencies use cooperative contracts
- Time. Skipping a full solicitation can save months.
- Effort. Small agencies in particular may not have the staff to run complex procurements.
- Compliance. The contract was already competitively solicited.
- Pricing. Aggregated demand can mean better terms.
Major cooperative purchasing programs
| Program | What it is |
|---|---|
| Sourcewell | A Minnesota-based government organization whose cooperative contracts are used by tens of thousands of government, education and nonprofit organizations. |
| OMNIA Partners | A national cooperative purchasing organization serving public-sector agencies. |
| NASPO ValuePoint | The cooperative purchasing program of the National Association of State Procurement Officials, with contracts led by state procurement offices. |
| TIPS | The Interlocal Purchasing System, which began in 2002 as a regional cooperative of Texas's Region 8 Education Service Center and now serves members well beyond Texas. |
| BuyBoard | A member-governed purchasing cooperative widely used by Texas schools and local governments. |
| HGACBuy | The nationwide cooperative purchasing program of the Houston-Galveston Area Council, a regional council of governments. |
| E&I Cooperative Services | A member-owned, nonprofit sourcing cooperative focused on education. |
There are many more, including state contracts that local governments can use and regional programs run by councils of governments. KSG tracks dozens of cooperative programs and their awarded vendors.
GSA programs for state and local governments
Federal GSA Schedule contracts can also be used by state and local governments through specific programs:
- Cooperative Purchasing Program — information technology, law enforcement and security solutions, identified by Special Item Number.
- Disaster Purchasing Program — Schedule offerings for preparation, response and recovery tied to a presidential disaster or emergency declaration.
- Public Health Emergency Program — Schedule offerings when spending federal grant funds in response to a declared public health emergency.
- 1122 Program — specific items for counterdrug, homeland security and emergency response, coordinated through a state point of contact.
Vendors may choose whether to accept these state and local orders, and the buying agency remains responsible for following its own procurement rules.
Winning a cooperative award
Cooperatives award contracts through their own competitive solicitations, much like any public agency. Expect to respond to a solicitation, meet evaluation criteria and negotiate terms. Many cooperatives fund their operations through administrative fees on sales made through their contracts, and awarded vendors usually take on sales reporting obligations.
An award isn't a sale
A cooperative award puts you on the shelf; it doesn't put you in the cart. Agencies still have to know you hold the contract, believe your product solves their problem and have the budget to buy. The vendors who get the most from cooperative contracts pair the award with steady outreach to eligible agencies — leading with the problem they solve and making clear that buying can be simple.
How KSG helps
- We reach cooperative-eligible agencies in your target segment and start conversations about their needs.
- We make the buying path clear: "you can buy this through your existing cooperative membership."
- We use cooperative and contract data to identify agencies already buying in your category.