Public procurement professionals are constantly balancing tight budgets, complex compliance requirements, and the need to deliver value to their communities. Cooperative procurement, also called group purchasing or cooperative purchasing, is a powerful tool that helps agencies achieve more with less.
But with different rules and regulations in each state—and even locality or jurisdiction—it can be difficult to know if all or some cooperative contracts are available for your use.
What Is Cooperative Procurement?
Cooperative procurement is when public agencies use the same competitively awarded contract to purchase goods or services. Instead of each agency running its own lengthy solicitation process, one lead agency conducts a full, public competitive solicitation on behalf of all participating agencies. The resulting award is then available for other agencies to use. It is important to note that cooperatives do not make an award determination, it is the lead public agency.
When a contract has been awarded through a competitive and compliant process, other eligible agencies can legally and efficiently purchase from it—often called “piggybacking.” This practice saves time, reduces administrative burden, and leverages the collective buying power of multiple agencies to secure better pricing and terms.
For example, instead of 50 school districts running their own Request for Proposal (RFP) process for technology equipment, one lead agency can complete a solicitation and the other authorized districts then piggyback onto that award, accessing competitively solicited pricing and terms immediately.
Is Cooperative Purchasing Legal?
Cooperative purchasing is not only efficient, it’s authorized by law in most states. Statutes in these states explicitly allow public agencies to use contracts awarded by other agencies, provided the procurement process meets all competitive requirements. Before using a cooperative contract, procurement teams should review their local and state rules to confirm eligibility.
To help agencies navigate these requirements, GovMVMT maintains a state-by-state list of cooperative purchasing statutes so that your agency can interpret its legal authority to participate.
Are all cooperative contracts competitively solicited?
The Lead Agency Model—recognized by procurement professionals for decades as the gold standard—ensures that each contract was competitively solicited, awarded, and managed directly by a real public agency: a city, county, state, school district, special district or higher education institution. Some cooperative contracts are led by third-party groups or regional subdivisions, but the gold standard of cooperative contracts is owned and overseen by the agencies themselves, guaranteeing transparency, compliance, and accountability.
At GovMVMT, every solicitation is built on the Lead Public Agency Model and each contract was solicited, evaluated, and awarded by true public agency.
What is 2 CFR 200?
2 CFR 200, often called the “Uniform Guidance,” is a federal regulation that sets the rules for how organizations must manage federal grant funds. It ensures that spending is transparent, fair, and compliant with all applicable laws. For public agencies, this means cooperative contracts must meet strict procurement standards—covering everything from competitive bidding to documentation—so that federal dollars are used responsibly.
At GovMVMT, our Advisory Council made up of Public Procurement Professionals from across the country helped us develop a compliance package for each lead agency solicitation to aid in 2CFR200 compliance. We strive to go above and beyond in our focus for compliance with every contract, giving agencies peace of mind.
What is a rider or participating agreement?
It is not uncommon for public agencies to have slightly different rules and regulations. In cooperative purchasing, a rider agreement (sometimes called a participating agreement or participating addendum) is a formal document an agency signs to join and use a cooperative contract. The rider ensures the agency’s use of the contract aligns with state and local procurement rules.
Should we use a Sole Award or Multiple Award contract?
In some cases, the lead agency will make a sole award—or single award—selecting one supplier as the exclusive contract holder. This can simplify purchasing, provide consistent service, and often yield the best value. In some cases, states have regulations that restrict public agencies from using anything but sole award contracts.
Other times, a contract may be awarded to any number of suppliers. A multiple award contract may allow flexibility and provide agencies with options for specialized needs. However, too many suppliers on one contract may diminish the competitive nature of the the award. After all, competition drives prices down and encourages suppliers to put their best offering on the table.
GovMVMT supports both approaches, depending on the category and the needs of participating agencies, but recognizes that sole awards are the gold standard of cooperative purchasing.
Are there limits on the types of goods and services we can purchase through cooperatives?
Certain states have restrictions on goods or services purchased through cooperative contracts, such as public works projects in New York or New Jersey. GovMVMT’s Program Managers can help agencies identify any complexities for each state’s applicable authorizing statutes, and it is always recommended for each participating agency to seek their own legal guidance for cooperative contract use and authority. While certain statutory restrictions exist in certain states, contracts available through GovMVMT are otherwise available nationwide and have proven to provide savings through best value and administrative efficiencies.
What are the advertising requirements for public bids?
Public agencies must give public notice of a Request for Proposals (RFP) to ensure open and competitive procurement in their communities. Notice is typically required to be published in an official newspaper or publication of record and an electronic procurement portal or agency website. Some States have different requirements and often require a minimum number of days between first publication and bid opening (commonly 14–30 days, though some states allow as little as 7 days for smaller purchases). Many states mandate at least two separate publication dates in a newspaper of general circulation.
GovMVMT advertises every Lead Agency solicitation in nearly 30 publications across the country to comply with state advertising regulations. You can find a full advertising report under the documents section of each contract.
How do I know which cooperative is right for me?
In the past decade, the cooperative market has exploded. You may be left wondering, “How do I know which cooperatives to use,” or “which cooperatives uphold the highest level of compliance and due diligence?” Here are some aspects of cooperatives to consider:
- Quality: Choosing a cooperative may not always be about the lowest price for a particular good or service. As the adage goes, you get what you pay for. In the medium-to-long term, choosing the lowest priced item may end up costing your agency more. Make sure to look for the best value, meaning fair prices for quality goods and services.
- Service: Cooperatives deliver widely disparate levels of customer service. You need to know that you can trust the teams working at the cooperative, that they have your best interests at heart, and that they are experienced and reliable.
- Compliance: Does the cooperative use the Lead Agency Model on only some of its contracts? Are they creating contracts that the lead entity is not even using itself? If so, this may be a red flag.
- For profit versus non-profit: You want a cooperative that puts public agencies first. Non-profit cooperatives have low administrative fees and are in business to provide a true public service to their partners. For-profit cooperatives are about their bottom line, with high administrative fees that suppliers may have to pass on to public agencies.
- The number of awarded vendors: If you see a contract with five or ten vendors, take heed. How competitive could the solicitation process be if it awards the contract to many of the vendors that submit a bid? Focus on contracts that have a lower number of vendors.
How do I know which contracts my agency can use?
In addition to many cooperatives, oftentimes, suppliers will have contracts with different cooperatives for similar goods and services. When examining the contract, ask yourself these questions:
- Can we meet our specific local regulatory requirements and needs? Does the cooperative contract allow for consideration to fit our agency’s specific needs?
- Is the contract current, and what are the renewal terms?
- Was the solicitation publicly advertised in all 50 states?
- Who is the lead agency for this cooperative contract, and did they follow a process we recognize as compliant?
- Are there state-specific terms and conditions?
The GovMVMT Difference
GovMVMT is a nonprofit cooperative purchasing organization driven by our mission to reinvest in the communities we serve. We work with trusted lead agencies to create high-quality, competitively awarded contracts that agencies can adopt with confidence. Every contract meets rigorous compliance standards, so procurement teams know they’re making sound, defensible decisions. In short, we strive for compliance overkill.
By combining the lead agency model with the efficiencies of piggybacking, we help public agencies save money, reduce procurement timelines, and focus their resources on delivering critical services—not paperwork.
