No one could accuse fleet procurement officers of having an easy job. Today, 81% of procurement officials say that they feel pressured by executives to respond to challenges more quickly, while one in three say that ongoing stress has forced them to cut corners.
Surviving the new normal of public fleet truck procurement requires a different perspective and a different approach to acquiring new vehicles. This includes the cooperative contract, a powerful driver of cost savings, expedited timelines, and procurement efficiency.
Let’s look at various considerations and explore how cooperative contracts can fulfill the bidding process and speed up the timeframe for fleet truck procurement.
What cooperative contracts mean in fleet truck procurement
Cooperative contracts are binding agreements between businesses and government bodies regarding the cost of specific goods and services. Their ultimate goal is to reduce time to acquisition, lower overhead costs, and increase access to high-value equipment for smaller institutions. Any public institution can access the leveraging power of cooperative contracts, including educational and government organizations.
Despite their relative uniqueness compared to traditional RFPs, cooperative contracts are not a rare, small, or closely guarded secret. In fact, these unique purchasing solutions are seen as the best and most efficient way to simplify fleet truck procurement for government agencies. Today, public organizations are using cooperative contracts two times more than in 2010.
Five ways that cooperative contracts can simplify fleet truck procurement
Cooperative contracts are seamless and accessible methods of procurement that serve public entities all over the US. Due to their specific features and benefits, these contracts can assist with the fleet truck procurement process in many unique ways.
1. Speed up acquisition
There are two types of speed afforded by cooperative contracts: speed in developing contracts and speed in acquiring goods.
First, cooperative contracts are efficient. There is no need to draft your own RFP, as the contract is pre-written and competitively solicited on your behalf. These time savings directly contribute to reclaimed time at work and enable you to focus on other, more mission-critical tasks.
Second, the fast-acting nature of cooperative contracts decreases the OTD time of your public fleet vehicle. Since you won't need to write your own contract, the procurement process may be as easy as “contact, sign, and pay.”
2. Reduce administrative costs
Funds are tight in the average public procurement office, especially in the wake of economic upheaval. The creation of manual procurement bids may only make matters worse, forcing the average CPO to do more with less.
Fortunately, the use of cooperative contracts can eliminate redundancy and unnecessary administrative spending. By leveraging the relevant work of other professionals via pre-made contracts, the procurement officer is free to source fleet vehicles in less time and with less interdepartmental labor. CPOs can focus on more high-priority tasks, while administrative personnel spend less time pushing paperwork, thereby saving money for their employers.
3. Get better overall prices
Administrative costs aren't the only price cuts provided by cooperative contracts. By leveraging purchasing agreements made between multiple buyers, suppliers can provide extensive discounts and economies of scale. This means smaller organizations can access rare pieces of equipment that may not typically be available for that price.
Small organizations may be unable to stir competition with limited needs for fleet vehicles. Cooperative contracts eliminate this problem by attracting a large number of competitive vendors willing to put their best foot (and best prices) forward.
4. Have transparency and confidence
Compliance is a critical concern for procurement officers in public agencies. Extensive documentation may be needed for meetings and audits, as well as the disclosure of valuable contracting data.
Cooperative contracts provide additional value as transparency-enhancing procurement solutions. For example, many cooperative contracts post their portfolios publicly, which enables fleet management officers to browse stipulations at a glance. Also, since cooperative contracts are agreements between multiple entities, they are likely already compliant with your locality and application.
5. Get value-added expertise
Cooperative contracts afford many privileges unavailable through traditional RFP methodology. You won't need to hire an expert or rely on internal resources. The contracts are written and available to everyone, with all documentation available to browse at a glance.
Additionally, cooperative contracts can partly alleviate the burden of consulting with industry experts. Cooperative groups like Sourcewell employ industry specialists who can guide institutions toward the right supplier for their application. Best of all, this value-added, industry-specific service is 100% free.
Why fleet truck procurement needs the cooperative contracts of Sourcewell
If the idea of cooperative contracts piques your interest for simpler truck fleet procurement, you'll be happy to know that getting started is fast, simple, and free. Sourcewell enables organizations all over the US to take advantage of cooperative contracts for their public institutions.
With Sourcewell, you can select from hundreds of contracts for education and government organizations. The industries covered for fleet management professionals currently include:
- Public works vehicles
- Public safety vehicles
- Grounds and agriculture vehicles
- Construction related vehicles
- Traditional fleet vehicles
You’re also welcome to browse any open, pending, and recently awarded competitive solicitations that may be of use to your specific application.
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!
