The RFP has made a name for itself as a slow, frustrating, and convoluted aspect of public procurement. Studies show that the average RPF requires nine people to complete and multiple days (if not months) to write and solicit correctly.
Instead of relying on the dated methodology of traditional RFPs, organizations are quickly turning toward more productive models, like cooperative contracts. These solutions are proving to be powerful partners on the road to a faster and more efficient procurement process.
But what are cooperative contracts and how do they serve organizations? Here’s everything that you need to know!
What are cooperative purchasing agreements?
Cooperative contracts are purchasing agreements between two or more organizations that aggregate demand and lower costs from select suppliers. The purpose of these contracts is to assist organizations in purchasing supplies faster, easier, and at a more affordable price.
The idea behind cooperative contracts dates back to the 18th century. Unlike traditional RFPs, they are exclusively available to government institutions and educational organizations serving the public. They also remain popular among fleet procurement managers looking to save time, effort, and money.
The use of cooperative purchasing is growing with each passing year. Recent studies show that the sales from the thirteen largest cooperative organizations are growing three times faster than the broader market. When you look at the benefits that they provide, it's easy to see why.
The benefits of cooperative purchasing agreements
Cooperative purchase agreements help organizations procure exactly what they need to serve their audiences. Three unique benefits position them away from traditional RFPs.
Speed
Cooperative contracts have a higher time-cost benefit than traditional RPFs. For example, the average request for proposal can take anywhere from nine months to thirty-six months (three years) to fully complete. In contrast, cooperative contracts require no writing at all. All you need to do is select a contract, contact the supplier, and get going.
How much time could your organization save with cooperative contracts? Depending on your use case, it could be years. Experts state that completing the cooperative contracting process can take just thirty days (one month). That's a minimum of nine times faster than traditional RFPs, which could save up to thirty-five months’ worth of waiting for your organization.
Savings
Traditional RFPs could make it difficult to save money as a small organization. For example, if a local government body decides to put out bids, they may receive less competition from suppliers, which drives up the price of their desired goods.
Fortunately, this isn't the case for cooperative contracts. Partnering with a cooperative purchasing agreement allows you to leverage the buying power of multiple institutions, which drives costs down, increases healthy competition, and helps agencies pick the most cost-effective option for their needs.
This competition comes with additional benefits. For example, large suppliers may be able to offer their services to small organizations, which can then access rare equipment that is difficult to find at the reduced price point.
Simplicity
RPFs require strict adherence to compliance regulations and legal expectations. Failure to do so may result in fines or other consequences, which will lead to more problems for organizations and governing bodies.
A reliance on cooperative contracts reduces the likelihood of this situation. Since purchasing agreements are competitively solicited by other institutions and easily accessible to public agencies, they may be better suited to your organizational requirements and more in line with regulations and local statutes.
How to start using cooperative purchasing agreements
The process of cooperative purchasing agreements is easier and faster compared to that of the traditional RFP. If you partner with the professionals behind Sourcewell, you can start taking advantage of them almost immediately.
Sourcewell is a government organization designed to help other entities get started with cooperative contracts. It combines the buying power of over 50,000 organizations to save you time, money, and effort. If you are a school or government body, you can register for free and get added to the network in just a few minutes.
Once registered with Sourcewell, you can browse hundreds of available cooperative contracts based on supplier, contract type, or keyword. Hunt through the catalog at your leisure to find the right fit for your organization.
As soon as you’ve found a contract you like, you can begin moving toward procurement right away. Simply contact the supplier to get a quote and learn more about finalizing the sale. If you're concerned about moving forward on your own, let Sourcewell help. The organization employs dozens of professionals who can help you seamlessly navigate the cooperative contracting journey.
Here at Sourcewell, we help public agency buyers procure fleet vehicles faster by fulfilling the time-consuming bid process for them. Through cooperative contracts, we expedite the fleet vehicle procurement process so you can better serve your teams.
Want a faster procurement process? Contact one of our specialists today to buy the fleet solutions you need!
