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Do agencies really pay more through cooperative contracts, and can I beat one with a direct bid?

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My company does HVAC work for local government, mostly school districts and county facilities. We watched our county replace a chiller through a national cooperative contract. The price looked really high. This was for a 238220 "Commercial and Institutional Building Construction" project.

My question is about how cooperative contracts work. The county used a cooperative purchasing agreement instead of putting out an IFB for the chiller replacement. We could have done that work. Can we ask the county to bid out a job instead of using a cooperative contract? And if we offer a lower direct price, does that change anything for them? Do agencies really pay more through cooperative contracts?

asked Tom B. Construction estimator, public works · Phoenix, AZ · 404 rep

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Agencies can pay more through cooperative contracts, and a direct bid might change things for them.

Cooperative purchasing agreements let agencies buy off contracts established by other entities, which saves them the time and cost of running their own solicitation. This means they are not required to put out an IFB for every job. The price on a cooperative contract includes the administrative fee for the cooperative, which can drive up the cost.

Your company can always ask a county to bid out a job directly. If you offer a significantly lower direct price, the county procurement department might consider it. They are generally looking for the best value, which includes price, quality, and delivery, and a lower price can be a strong motivator for them to conduct a direct solicitation. You would need to make sure your offer meets all their requirements and that your firm is registered in their state procurement portal.

answered Marcus T. Verified vendorOwner, janitorial and facilities firm · Columbus, OH · 752 rep
What is the typical administrative fee range for a cooperative purchasing agreement? Is it a fixed percentage or does it vary by contract? · Tom B. ·
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The county agency can always choose to bid out a job directly, even if a cooperative contract exists, because state and local procurement rules often prioritize competition and value. Marcus is right that cooperative contracts save agencies time, but those savings have a cost. State and local agencies follow their own procurement codes, not the FAR, and these codes typically include provisions for obtaining the best value for taxpayers. If your direct bid demonstrates a clear cost advantage for the same level of service, the county procurement officer may opt for a direct solicitation to meet their best value objectives. You should make sure your company is registered in the county's vendor system and any relevant state procurement portal.

answered Jo R. Freelance proposal writer · Denver, CO · 595 rep

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Sign up to answerCite the FAR clause or procurement code where you can.