A Practical Guide to Using Cooperative Contracts: What Every Local Government IT Leader Should Know

If you work in state or local government or education IT, you’ve likely heard someone suggest, “Let’s use a co-op contract.” Depending on your experience, that either feels like a lifesaver… or a mystery. Cooperative contracts are powerful tools, but many IT professionals don’t fully understand how they work or how they can simplify technology purchasing. 

Here’s a clear, practical overview designed specifically for you!  

What Cooperative Contracts Actually Are

A cooperative contract is a competitively solicited agreement that multiple public agencies are allowed to use. A lead government entity (a city, county, school district, state, or consortium) runs the full bid process, awards the contract, and makes it available for others to “piggyback” under the same terms and pricing.  

This reduces duplicated work across jurisdictions and gives IT departments fast, compliant access to hardware, software, services, cloud solutions, networking gear, AV, and more. 

There are three main types of these contracts: 

  • Piggybackable contracts – Competed by one agency for its own needs; others may use it if the match is close because it is “piggybackable” or that agency allows it to be used by others. 
  • Regional cooperatives – Groups of local agencies jointly procure to increase buying power and support regional vendors. 
  • National/state-led cooperatives – Large, robust contracts competed by a lead agency with support from a cooperative organization, designed for broad use and strong legal compliance across the state or nationally. 

 

Why IT Leaders Should Use Co-ops 

  1. Faster project timelines
    Long RFP cycles can slow IT work for months. Cooperative contracts let you skip the full solicitation and move directly to scoping, quoting, and ordering. That means smoother fiscal-year planning, quicker deployment, and fewer delays caused by procurement bottlenecks. 
  2. More buying power, even for small jurisdictions
    Because pricing is based on aggregated national or regional volume, smaller agencies benefit from discounts typically available to much larger buyers. Co-op pricing is also the maximum price you will pay. Suppliers can (and often do, like in the case of SCW!) go lower on project-based discounts.
  3. Better vendor access and flexibility
    Most IT cooperatives include multiple manufacturers and resellers, giving you options while keeping you compliant. From endpoints and servers to AV systems, security tools, and cloud services, there is almost always a co-op contract that covers what you need, including brand-name equipment. 
  4. Reduced procurement and legal risk
    Because the contracts have already been publicly advertised, responded to by suppliers, evaluated, and awarded, procurement teams appreciate the audit trail. Legal teams appreciate the documented competitive process. You still maintain vendor choice, but within a compliant, pre-approved pool.

 

How to Use Cooperative Contracts Effectively 

  1. Engage procurement early. Ask which cooperatives your agency already uses and whether there are restrictions or membership requirements. 
  2. Share your project details up front. Share with your trusted supplier, like SCW, the timeline, scope, services needed, brand requirements: these determine which co-ops fit best. 
  3. Compare cooperatives (“co-op shop”). If your agency allows multiple contracts, request quotes from several vendors on the approved co-ops. Pricing, services, warranties, and lead times can vary. 
  4. Understand addendums and approvals. Your purchase order usually acts as the addendum tying your project to the co-op contract. Local rules still apply, such as council or board approval over certain dollar thresholds. 

Cooperative contracts aren’t just procurement tools, they are strategic accelerators for IT. They help you move faster, stretch budgets further, reduce risk, and get modern technology in place without unnecessary delays. 

For government IT leaders juggling growing demand, limited resources, and tight timelines, understanding and leveraging co-op contracts is one of the simplest ways to deliver more and stay in compliance with procurement