Background Cooperative purchasing alliances have been established through collaborative efforts of public agencies across the United States for the purpose of leveraging volume to achieve a reduction in the cost of procuring goods and services. These purchasing cooperatives are driven by the creation of master agreements that are publicly solicited, awarded through an RFP process, and held by principal procurement agencies. While the make up of these alliances vary from those that serve educational institutions to those oriented more towards general government applications, all are established with one goal in mind – saving taxpayer money. State law specifically authorizes county governments to purchase supplies and equipment through one such purchasing alliance, the National Association of Counties Purchasing Alliance. However, state law does not expressly authorize municipalities to participate in this or any other purchasing cooperative. While the Tennessee Attorney General has opined (Attorney General Opinion 09-55) that purchases through the National Intergovernmental Purchasing Alliance could be carried out through the Intergovernmental Cooperation Act; seemingly providing an avenue for municipalities to participate in purchasing cooperatives, or at least the National IPA, municipalities lack specific statutory authorization. Problem The lack of explicit authority allowing municipalities to purchase through cooperative purchasing alliances creates legal uncertainty, leaves otherwise willing governing bodies reluctant to participate in these cooperatives, and precludes municipal taxpayers from realizing savings available to taxpayers in jurisdictions that participate in these cooperatives. Proposed Legislation Amend current law to allow municipalities to purchase through cooperative purchasing alliances, whether based in Tennessee or elsewhere. Benefits Providing municipalities clear authority to participate in cooperative purchasing alliances will eliminate the uncertainty surrounding the legality of participating in these cooperatives and allow municipalities to benefit from volume discounts.
