The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Cooperative Purchasing

Reference Number: MTAS-740
Tennessee Code Annotated
Reviewed Date: March 07, 2013
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A municipality may participate in a cooperative purchasing agreement with one or more other Tennessee local governments to procure supplies, services, or construction. This includes, but is not limited to, a multi-party contract. Where a city is required to advertise and receive bids, it is sufficient that the purchasing entity comply only with its own purchasing requirements.

A municipality may participate in a cooperative purchasing agreement with one or more out-of-state governmental entities to the extent allowed by the other state's laws for the procurement of goods, supplies, services, or equipment. Such goods, supplies, services, or equipment must be procured in a manner that constitutes competitive bidding and are advertised, evaluated, and awarded by a governmental entity and made available for use by other governmental entities. Not applicable to the purchase of new or used motor vehicles (unless manufactured for a special purpose) or for construction, engineering, or architectural services, or construction materials. 

A municipality may participate in a cooperative purchasing agreement with the Central Procurement Office and a public institution of higher education to procure goods and services. This type of cooperative purchasing must be awarded through full and open competition. T.C.A. § 12-3-512. 

A municipality may participate in a master agreement by adopting a resolution accepting its terms. If a participant to the master agreement is required to advertise and receive bids, it is sufficient that the purchasing entity complied with its own purchasing requirements. Not applicable to the purchase of new or used motor vehicles (unless manufactured for a special purpose) or for construction, engineering, or architectural services, or construction materials. T.C.A. § 12-3-1205.

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