When public education and government agencies are hiring a contractor to complete a project, they must receive several bids to find the most affordable option. Going through many bids can be a time-consuming process. Cooperative purchasing streamlines the purchasing process for the public sector.
What is Cooperative Purchasing?
Cooperative purchasing is a very effective tool that procurement managers can use to obtain effective, best-value solutions for the state and the taxpayer. Aggregated volume creates significant price breaks, sometimes in the double-digit figures. Partnering with a lead entity can reduce time, administrative overhead, and other costs, while leveraging the experience and expertise of those with specialized knowledge in a sector.
Benefits of Cooperative Contracts
Using cooperative contracts can save state and local governments time and money.
- Cooperative contracts lead to lower prices through the combined economies of scale of multiple organizations created by standardizing products and services and aggregating requirements
- Small governments benefit from the market share leveraged by larger government consumers
- Administrative costs are lowered because the preliminary work has already been done with one procurement process and one contract serving multiple governments
- Cooperative contracts save time and money by cutting out the need to seek quotes, bids, or proposals. Instead, customers select products from the cooperative contract catalog
- Customers can be assured that the contract has been done in accordance with state regulations
- Cooperative procurement benefits citizens through lower total cost of government, better application of resources, and more efficient government operations
Why Should Owners Use Purchasing Cooperatives?
- Allows public entities to negotiate with contract holders like Better Building Data as a strategic partner like private entities do.
- Greater efficiency and economy in acquiring goods and services.
- Provide Bulk purchasing that yields economic benefits unobtainable by individual entities.
- Provide quick and efficient delivery of goods and services by contracting with a “high performance” vendor – Better Building Data
- Equalize purchasing power for smaller entities.
- Maintain credibility and confidence in business procedures by maintaining open competition for purchases and by complying with purchasing laws and ethical business practices.
Using Cooperative Purchasing to Obtain Mechanical Services for Education & Local Government
Metropolitan Mechanical Contractors collaborates with TIPS-USA to simplify your procurement process. Local and state government agencies, K-12 school districts, higher education institutions, and nonprofit organizations can purchase MMC products and services through TIPS-USA. Our entire product and service portfolio are included in the TIPS-USA contract including:
- Heating, ventilation, and air conditioning systems
- Advanced controls
- Maintenance and service
Working with MMC through a cooperative contract with TIPS-USA will help make your building more comfortable, energy efficient, and sustainable at a cost-effective price point. Contact MMC today to learn more.