Sourcewell is a self-sustaining government organization with over 40 years of dedicated service aimed at helping government, education, and nonprofit agencies operate more efficiently. It provides a variety of solutions, including:

• Contract Purchasing Solutions: Sourcewell offers over 400 awarded contracts that are competitively solicited nationally. These solutions are designed to streamline the purchasing process, enabling agencies to acquire goods and services more efficiently and cost-effectively.
• Technology Solutions for Schools: Through a specialized division called Sourcewell Technology, it provides technology solutions tailored for the educational sector. These solutions are developed to the unique needs of educators and students, ensuring that schools have access to the latest and most relevant technology.
• Regional Programs and Services: Sourcewell supports area schools and communities with shared professional services and training opportunities. These programs are designed to meet the needs of its five-county service region in Minnesota, offering localized support that fosters community development and efficiency.

Government or public procurement is how government agencies acquire goods, services, and works from the private sector. This process is fundamental for governments to function effectively. They often cannot produce all the inputs for their goods and services, such as public infrastructure and national defense. Public procurement accounts for a significant portion of the global economy, representing about 12 percent of global GDP in 2018​​.

The authority for the U.S. Federal Government to enter into contracts is not explicitly stated in the U.S. Constitution but is considered an incident to the general right of sovereignty. This means the government can enter into contracts as necessary to execute its powers, guided by various statutes, regulations, and the Federal Acquisition Regulation (FAR), which defines the procurement process in detail​​.

Government procurement is heavily regulated to prevent fraud, waste, corruption, and local protectionism. Laws in most countries, including the U.S., require government agencies to issue public tenders for procurement above a certain threshold. This ensures transparency and fairness in the procurement process, allowing businesses to bid on government contracts. The process typically involves evaluating the competency of businesses based on several criteria, including their operational ability, compliance with schedules, performance record, and legal eligibility​​.

The bidding process can be complex and is designed to ensure that the government acquires goods and services at fair and pre-negotiated prices. Historically, this process favored the lowest bids, but there has been a shift towards evaluating the best value, considering both price and quality. For high-value or highly technical contracts, the government may issue a Request for Proposal (RFP) or a Request for Quotation (RFQ) to solicit detailed proposals from potential contractors​​.

Government procurement policies have evolved, with significant legislation, including the Armed Services Procurement Act of 1947 and the Federal Property and Administrative Services Act of 1949, laying the foundation for today's system. Subsequent amendments have further refined the system and act to simplify and make the procurement process more direct.

Cooperative purchasing is a procurement strategy that allows multiple government agencies, educational institutions, and non-profit organizations to pool their buying power to obtain more favorable terms and pricing on products and services. This approach leverages the collective purchasing volume of these entities to negotiate better deals, which individual organizations might not be able to secure on their own.

In a cooperative purchasing agreement, a lead agency typically issues a competitive solicitation for a particular product or service on behalf of the participating members. Vendors submit their bids, and a contract is awarded to the chosen supplier(s) after a thorough evaluation. Once the contract is in place, member entities can "piggyback" on this agreement, purchasing goods or services directly from the awarded vendors at the negotiated prices without the need to conduct their bidding process. At its most fundamental level, cooperative practice takes two forms: “joint solicitation” and “piggybacking.”

1. Cost Savings: By consolidating their purchasing power, members can achieve significant savings compared to buying individually.
2. Time Efficiency: Members save time by eliminating the need to go through their own lengthy and complex bidding processes.
3. Compliance: Cooperative contracts are typically awarded through a competitive bidding process that complies with public procurement laws, ensuring transparency and fairness.
4. Access to Quality Products: With more buying power, cooperatives can attract bids from leading suppliers, ensuring access to high-quality products and services.
5. Simplified Procurement: Members can easily procure products and services through pre-negotiated contracts, streamlining the procurement process.
   

Cooperative purchasing is particularly beneficial for public safety agencies, government entities at all levels (federal, state, and local), educational institutions (K-12 to higher education), and non-profit organizations seeking efficient, cost-effective procurement solutions.

Advexure leverages cooperative purchasing agreements, such as our contract with Sourcewell, to offer drones and unmanned aerial systems (UAS) to eligible entities at discounted rates. This not only simplifies the procurement process but also ensures that these organizations have access to the latest technology to enhance their operations, all while adhering to procurement regulations and standards.

Please contact us for more information on leveraging cooperative purchasing through Advexure and our partnership with Sourcewell.

When multiple agencies consolidate their needs for products and services into a unified procurement effort, this is known as joint procurement. This collective approach binds each participating agency to the resultant contract, fostering a proactive and collaborative procurement method delineating clear requirements. Joint procurement offers suppliers a transparent view of the aggregate demand and service expectations, enhancing the bargaining power of the agencies involved. Typically, this method involves fewer agencies but requires a more concentrated effort at the outset to strengthen their negotiating stance.

"Piggybacking" or "Riding" is when one agency adopts the contract of another without being an original participant in the procurement process. Agencies that choose to piggyback are subject to the original contract's stipulations, including pricing and terms. Unlike joint procurement, piggybacking does not provide suppliers with upfront information on total purchase volumes, potentially limiting the ability to offer the best possible prices. This retrospective procurement strategy grows in relevance as the number and scope of cooperative programs expand, allowing for pricing and terms adjustments based on the contract's repeated use.

To check if you are a Sourcewell member, you can visit the Sourcewell website and look for an option to Lookup your account number or Register for an account. These options are typically found on the main page and provide a straightforward way for organizations to confirm their membership status or sign up if they are not already members

Sourcewell is located in Staples, Minnesota.

To find out more about Sourcewell, you can visit their website, or reach out to a member of our enterprise sales team.