Cooperative Procurement

Cooperative procurement is a purchasing strategy where multiple government agencies use a shared contract to buy vehicles or equipment. By combining their buying power, these agencies can secure better pricing and more favorable terms than they might on their own.

Instead of running separate procurement processes, organizations can access pre-negotiated contracts that are already in place. This helps reduce duplication, save time, and simplify the overall purchasing process.

One common approach within cooperative procurement is piggybacking. This is when one agency uses a contract that was originally established by another. It can speed up purchasing and reduce administrative work, although pricing may not always reflect the added volume from additional participants.

In practice, cooperative procurement offers several advantages:

• Lower costs through shared purchasing volume
• Faster procurement timelines compared to running a full bid process
• Reduced administrative burden for participating agencies
• Greater consistency and standardization across organizations

Cooperative procurement is widely used in public sector fleet management as a way to streamline purchasing while staying aligned with procurement rules and requirements.