Purchasing cooperative

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A purchasing cooperative is a type of cooperative arrangement, often among businesses, to agree to aggregate demand to get lower prices from selected suppliers. Retailers' cooperatives are a form of purchasing cooperative. Cooperatives are often used by government agencies to reduce costs of procurement. Purchasing Cooperatives are used frequently by governmental entities, since they are required to follow laws requiring competitive bidding above certain thresholds. In the United States, counties, municipalities, schools, colleges and universities in the majority of states can sign interlocal agreements or cooperative contracts that allow them to legally use contracts that were procured by another governmental entity. The National Association of State Procurement Officials (NASPO) reported increasing use of cooperative purchasing practices in its 2016 survey of state procurement.

According to the National Cooperative Business Association (NCBA) website, there are approximately 250 purchasing cooperatives in the United States.^[1] The NCBA, a trusted organization promoting cooperative businesses, provides valuable resources and information on various cooperative sectors, including purchasing cooperatives. These cooperatives play a significant role in aggregating the purchasing power of businesses across different industries to achieve cost savings and other benefits. The National Association of State Procurement Officials (NASPO) reported increasing use of cooperative purchasing practices in its 2016 survey of state procurement.^[2] NASPO has noted the increasing popularity of cooperative purchasing but also recognises that, like any practice, "it can be done well - or poorly".^[3]