By Chris Mellis, Program Manager at U.S. Communities
June 7, 2010

Benefits of Collaboration

Cooperative purchasing has been around for a long time and this model continues to keep costs low and adapt to changes in the purchasing world. Rick Grimm, Chief Executive Officer of the National Institute of Governmental Purchasing, explains that cooperative purchasing is good business for cities of all sizes because it saves them time and money.

“It is doubtful that they would be able to obtain the same price by going out alone,” says Grimm. “A better price is achieved when the volume and scale of the contract is larger.”

“This is especially true for small and medium'sized agencies that do not always have the capacity to implement the best public procurement practices for their organizations,” adds Grimm. In these difficult economic times, agencies are laying off employees, he explains. With limited resources, public agencies can leverage cooperative purchasing programs by “piggybacking” on a lead public agency’s competitively bid contract, saving time and money. This approach allows public agencies to re-direct their precious resources to more complex procurements.

Cooperative purchasing also allows agencies to free up resources by reducing time spent on administrative activities while providing access to quality products and services from reliable suppliers. U.S. Communities is a purchasing cooperative that offers competitively solicited contracts to local governments throughout the country with no cost to participate and no minimum spend. An Advisory Board comprised of local and state procurement professionals from around the country oversees U.S. Communities.

In an effort to meet the growing demand for “greener” products and services, cooperative purchasing agencies are expanding their offerings to include “green” contracts. Greener playground equipment, office supplies, multifunctional digital copiers, furniture with environmental certifications and greener janitorial and sanitation products can currently be found through cooperative contracts.

Some cooperative purchasing agencies have even created dedicated programs for green contracts. For example, U.S. Communities’ Green Purchasing Program (www.gogreencommunities.org) gives public agencies access to a broad line of environmentally certified products and services. In addition to its green contract offerings, the Green Purchasing Program also provides access to green information and resources to help governments become greener.

It is no wonder that with the timesavings, cost-efficiencies and conveniences realized through cooperative purchasing, it is becoming increasingly widespread.

Grimm expects cooperative purchasing to grow with more participants joining networks and a wider offering of products. He reports that purchasing cooperatives are branching out into higher-priced product commodities such as turf, roofing, and classroom and office furniture. Expect continued focus on new products and lower prices.

For more information on U.S. Communities and how the program can help your city, contact Kathryn Kretschmer- Weyland with the Conference of Mayors at 301-460-5251 or send e-mail to kweyland@usmayors.org, Jeannie Fanning at 240-393-9672 or send e-mail to jfanning@usmayors.org, or contact Doug Looney with U.S. Communities at 314-210-8058 or send e-mail to Dlooney@uscommunities.org or visit the website www.uscommunities.org.