Cooperative Purchasing: What Is It & Why Should You Care?

From education to healthcare, there's a wide range of industries using cooperative purchasing to gain access to high-quality products and save on costs. If you are a part of one of the entities below, you’re likely eligible for cooperative purchasing.

• Municipality
• State and local government
• Tribal government
• Public higher education institution
• State agency
• Volunteer fire department
• Healthcare organization
• Religious institution
• Independent authority
• Nonprofit organization
• Public schools

Interested in learning more about your eligibility? Fill out this eligibility request form.

The cooperative purchasing process begins when a lead agency publishes a solicitation for a purchasing need. From there, they will receive and evaluate the responses before providing a contract with the solicitation’s requirements. After the contract is passed on, the cooperative connects members with the supplier. 

Cooperative purchasing involves a lot of moving parts. Typically, there are four main roles, all of which serve a specific function. Below, we’ve broken down the details of each role.

Lead agency. Responsible for soliciting, evaluating responses, and finalizing contract terms, the lead agency maintains ownership of the contract and its administration. 

Supplier. Entering the contract directly with the lead agency, the supplier is selected and responds to the solicitation.

Cooperative. Supporting the solicitation process, the cooperative markets the final contract to agencies across the country.

Members. Agencies that register to participate in the cooperative are called cooperative members. These members “piggyback” off of the lead agency’s agreement. 

Organizations choose to work with cooperatives because they offer several advantages. Continue reading to learn about the four main cooperative purchasing benefits you can expect if you decide to participate in a program. 

There are many opportunities for cost savings through cooperative purchasing. Some of these opportunities include: 

• Decreasing costs by purchasing in bulk
• Reducing administrative overhead
• Leveraging economies of scale when buying goods and services
• Accessing nationally leveraged pricing and savings tiers

These benefits also allow smaller agencies to enjoy the same pricing and service level agreements that only larger agencies typically receive. 

The cooperative procurement process saves time and resources by eliminating the need for each organization to conduct its own bidding process. Streamlining the procurement process also benefits procurement teams, allowing them to better balance their responsibilities. 

With cooperative purchasing agreements, organizations gain access to a wider range of products and services from reputable suppliers. Agencies are provided with a catalog of hundreds of vetted contracts, allowing them to receive high-quality goods and services. 

Compliance is the number one concern for most procurement professionals. Cooperatives help secure compliance with procurement regulations by providing standardized contracts and procedures. 

This transparency makes them more reliable, reducing the risk of legal issues and ensuring all participants adhere to the same standards.

Now that you’ve learned about cooperative purchasing benefits, you may be wondering how to pick a program that’s right for you. If you’re not sure where to start, consider following the steps we listed below. 

The first step in picking a cooperative purchasing program is considering your organization’s specific procurement needs. Think about the types of goods and services you would like to purchase and make sure they align with the cooperative’s contracts. 

Looking at the size and composition of the cooperative’s membership can also be helpful to see if it fits your needs and provides sufficient buying power. You should also determine if the level of support provided by the cooperative meets your standards. These could include access to customer service, training, and contract management assistance. 

If you find a cooperative that seems to meet your needs, you want to ensure they’re reputable and available. Look into the cooperative’s history, experience, and track record within your industry. 

Verifying the cooperative adheres to all applicable state and local procurement regulations is also imperative. This gives you peace of mind as you move forward in the process. Finally, review their range of available contracts so you can be certain they cover the products and services you’ll be needing. 

Earlier, we mentioned the benefit of cost savings through cooperative purchasing. When choosing the right cooperative for your organization, take time to analyze its pricing structure and potential cost savings opportunities. These factors could include volume discounts or member fees. 

Modular buildings offer unparalleled flexibility and efficiency in construction and procurement. By leveraging cooperative purchasing with BOXX Modular, you can streamline the procurement process, ensure compliance with procurement laws, and achieve faster project timelines while significantly reducing overall costs.

As a qualified vendor of several cooperative programs, BOXX Modular provides complete solutions for a wide range of applications and industries. Customizable to suit diverse needs, our structures can be outfitted for: 

• Offices
• Classrooms
• Medical buildings
• Laboratories
• And much more!

BOXX Modular buildings can be leased, purchased, or financed through cooperative purchasing or piggyback agreements. We have multiple purchasing cooperative contracts that can help you get your project up and running in no time, including the following:

• GSA Contract Holder
• National Cooperative Purchasing Alliance
• Texas SmartBuy Purchasing Cooperative
• TIPS-USA
• Sourcewell