Cooperative Procurement | Fleet Management
A strategy where multiple government agencies collaborate to purchase vehicles and related equipment through a single contract, leveraging combined buying power to secure better terms and lower costs. Also known as piggybacking.
Cooperative procurement is a strategic approach wherein multiple government agencies collaborate to purchase goods and services—such as vehicles and related equipment—through a single, consolidated contract. This method leverages the collective buying power of participating entities to negotiate more favorable pricing, terms, and conditions than they might achieve individually. By aggregating demand, agencies can reduce administrative costs, streamline procurement processes, and achieve economies of scale, leading to significant cost savings and increased efficiency.[1]
A common form of cooperative procurement is “piggybacking,” where an agency utilizes an existing contract established by another agency without participating in the original solicitation process. In this arrangement, the piggybacking agency agrees to the terms and pricing set forth in the original contract, allowing for expedited procurement and reduced administrative burden. However, it’s important to note that piggybacking may not always yield the most aggressive pricing, as suppliers were not aware of the additional volume during the initial contract negotiation.[2][3]
Cooperative procurement, including piggybacking, offers numerous benefits to public agencies, such as cost savings, reduced procurement timelines, and access to pre-negotiated contracts. It also fosters standardization across agencies, particularly beneficial in sectors like fleet management, where uniformity in vehicles and equipment can lead to simplified maintenance and training. By participating in cooperative purchasing agreements, agencies can enhance their procurement capabilities while ensuring compliance with relevant laws and regulations.[4]
[2]Cooperative Purchasing 101 – Bespoke Guide