Cooperative Purchasing Agreements
Pursuant to Section 22 of Chapter 30B, local jurisdictions may purchase supplies from contracts that have already been procured by an in-state or out-of-state public procurement unit. This is known as a cooperative purchasing agreement.
The “public procurement unit” administering the cooperative purchasing agreement could be a federal or state agency, or a political subdivision of the Commonwealth or any other state. The contract terms must state that the cooperative purchasing agreement is open to Massachusetts governmental bodies, and the contract must be the result of an open and fair competition.
Chapter 30B limits the use of cooperative purchasing agreements to the procurement of supplies only.
“A public procurement unit may participate in, sponsor, conduct or administer a cooperative purchasing agreement for the procurement of supplies with public procurement units or external procurement activities in accordance with an agreement entered into between the participants.” See M.G.L. c. 30B, § 22 (emphasis added).
A local jurisdiction may not use a cooperative purchasing agreement to procure services, unless those services are “incidental to the delivery, conveyance and installation of” supplies procured. See M.G.L. c. 30B § 2 (definition of “supplies”).
A jurisdiction should fully understand the terms and conditions of any cooperative purchasing agreement it uses. We further recommend the following best practices regarding cooperative purchasing:
- Verify eligibility and competition. Before purchasing supplies through a cooperative purchasing agreement, confirm that the public purchasing unit offering the contract used a competitive process and that the contract is open to Massachusetts jurisdictions.
- Understand contract pricing. Vendors generally offer their best prices when they have an actual quantity or a reliable estimate on which to bid. In cooperative purchasing, jurisdictions purchase supplies from a previously-awarded contract. This contract may not yield the lowest price available given the bidding parameters.
- Conduct market research. Multiple contracts may offer the supplies your jurisdiction needs, including out-of-state contracts, Massachusetts statewide contracts and other in-state contracts. Choose the contract that offers what your jurisdiction needs at the best price. If prices on existing contracts are too high, consider conducting a new procurement using a competitive process under Chapter 30B to obtain a lower price.
- Verify the terms and conditions in the contract, including delivery terms. Verify whether the contract includes shipping, warranty or other costs.
- Understand dispute resolution procedures before using a cooperative purchasing agreement. For example, how are disputes related to contract performance resolved? If a product is defective, where and how can the jurisdiction seek a remedy?
Collective Procurements
A collective procurement is different from a cooperative purchasing agreement. Section 1(c) of Chapter 30B authorizes collective procurements (also commonly known as collaborative procurements) where two or more local jurisdictions join together to procure supplies or services as a group.
In a collective procurement, one jurisdiction serves as the lead jurisdiction and acts on behalf of the others to solicit and award a contract for the benefit of the entire group.
The lead jurisdiction must comply fully with Chapter 30B, and each participating jurisdiction must accept sole responsibility for payment for its purchases and for compliance with all of the contract terms.
It is important to note that a local jurisdiction must be a member of the group before the contract solicitation. Local jurisdictions cannot “piggyback” onto an existing collective procurement.