Cooperative Procurement: Today’s Contracting Tool, Tomorrow’s Contracting Strategy

Public procurement teams are tasked with the responsibility of connecting states, counties, and municipalities with low-cost goods and services. These officials operate in a context dominated by an overarching commitment to strict procurement compliance standards of competition, transparency, and ethics, with other officials and media standing ready to scrutinize their actions. While agencies maintain a variety of individualized goals and needs, there are several channels through which procurement professionals aim to optimize the value of government-issued contracts. Given that procurement represents one quarter of public spending, value achieved in this sector cascades across all levels of government.

A variety of obstacles can hinder procurement officials’ ability to obtain best value through the public procurement process. Budgets and internal customers place a premium on velocity, cost, and effectiveness in serving public need, but these factors can be inversely related; for instance, minimizing price can diminish service outcomes. Strict regulations may limit buying options or encourage risk-averse strategies. Severe penalties for infractions can reduce officials’ willingness to be innovative in trying new methods or products.