Copurchasing

Copurchasing, or cooperative purchasing, is a procurement practice in which two or more organizations coordinate their purchasing of goods or services to leverage combined buying power. The goal is to obtain lower prices, better contract terms, and more efficient processes, while spreading administrative costs across participants. Copurchasing is common in government, education, healthcare, and nonprofit sectors. It often takes place through cooperative purchasing organizations or intergovernmental agreements, as well as through shared procurement platforms and joint requests for proposals (RFPs).

In practice, participating entities align requirements, issue a single or joint RFP, evaluate bids, and enter into shared contracts with suppliers. Benefits include volume discounts, reduced duplicate effort, improved compliance with procurement rules, and access to established contracts that a single entity might not secure alone.

Challenges include aligning diverse needs, which can complicate specifications and extend procurement timelines. Governance and accountability must be carefully managed to maintain transparency and fair competition. There is also a risk that a small number of suppliers dominates the contract pool, and data-sharing and confidentiality issues must be addressed.

Legal and regulatory frameworks in many jurisdictions recognize and regulate cooperative purchasing under public procurement laws. Participation typically requires compliance with competitive bidding rules, openness and transparency requirements, and contract management standards, with safeguards to prevent anti-competitive behavior. Governments often support copurchasing through formal consortia and approved contracting arrangements that simplify cross-organizational procurement while maintaining oversight.