COOPERATIVE PURCHASING

Bidding Authority Yields Savings for Members

Conducting formal bids can be a costly and time consuming process. As a service to our members, the Cooperative Purchasing Department at South Central Service Cooperative conducts bids, according to the Minnesota Bid Laws, for numerous products and services that are frequently purchased by members. This eliminates the need for members to solicit formal bids themselves, saving time and expense. In addition, due to the dedicated participation of members in the program and the size of membership, we receive greater discounts when compared to the pricing any single entity could obtain. Furthermore, members reap the benefits of lower prices which are a result of the cumulative purchasing power.

The authority for SCSC to conduct bids on behalf of members lies in two Minnesota Statutes. One of these statutes, Minnesota Statutes 2006 123A.2, 1Subdivision 7 allows service cooperatives to provide cooperative purchasing as one of their educational programs and services. Other programs and services include, but are not limited to, administrative services, staff development, risk management programs and community services.

The Uniform Municipal Contracting Law, Subdivision 15 allows members to participate in bids rather than going out for bid themselves. This law states:

“A municipality may contract for the purchase of supplies, materials, or equipment without regard to the competitive bidding requirements of this section if the purchase is through a national municipal association’s purchasing alliance or cooperative created by a joint powers agreement that purchases items from more than one source on the basis of competitive bids or competitive quotations.”

These two laws give SCSC the authority to administer a cooperative purchasing department and for members to purchase off the SCSC contracts while staying in compliance with the Minnesota competitive bidding requirements. Contact Cindy Ehlers, cehlers@mnscsc.org, or 507-389-5109 if you have any questions on Bid Laws or the bid process.