ART - Cooperative Purchasing Yields Improved Operating Results 2010

This document is an article from the February/March 2010 issue of GO prO, the official publication of the National Institute of Governmental Purchasing (NIGP). The article discusses how government agencies in the United States can achieve greatness by delivering efficient, effective, fiscally responsible, and innovative results. It highlights the challenges faced by governments in doing more with less due to budget shortfalls. The article emphasizes the concept of "improved operating results" (IOR), which includes new knowledge, ideas, methods, and innovations that can increase productivity, reduce costs, and improve the efficiency and effectiveness of operations, services, and programs. One way to achieve IOR is through cooperative procurement, which involves leveraging the purchasing power of multiple government agencies to drive deeper discounts on goods and services. The article provides examples of the savings achieved through cooperative procurement, such as Los Angeles saving $1.8 million on office supplies and Fairfax County achieving rebates of nearly $700,000 in fiscal year 2009. It also mentions other examples of cost savings through cooperative contracts for office supplies, furniture, auto parts, and equipment rental. The article concludes by highlighting that governments across the United States are demonstrating efficient and innovative ways of meeting their constituents' needs, and cooperative procurement is just one example of achieving IOR even during difficult times. The author, Steve Hamill, is the General Manager of the U.S. Communities Government Purchasing Alliance, a nonprofit government purchasing cooperative that assists local and state government agencies, school districts, higher education institutions, and nonprofits in reducing the cost of purchased goods through competitively solicited contracts.