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glossary

Cooperative Purchasing

What is cooperative purchasing?

Cooperative purchasing lets one public agency buy goods or services using a contract that another agency or a purchasing cooperative has already competed and awarded. Rather than each city, county, school district, or state running its own solicitation for the same thing, they share the work and the buying power. It is sometimes called piggybacking.

How it works

A lead agency or a cooperative organization runs a full competition and awards a contract written so that other eligible members can place their own orders against it. Members get pre-vetted pricing and skip a lengthy procurement; the awarded vendor gets access to many buyers from a single competition. National cooperatives and state programs administer thousands of these contracts, and GSA's cooperative purchasing authority even lets state and local governments buy certain IT and security products off federal Schedules.

Why it matters to contractors

Winning one cooperative contract can open the door to hundreds of state, local, and education buyers at once, which makes cooperatives one of the most efficient ways into the SLED market. The flip side is that the initial competition is high-stakes and crowded. Knowing which cooperatives your target buyers actually use is the first step, and our guide to the top states for SLED opportunities is a useful starting point.

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