Government Fleet Logo
MenuMENU
SearchSEARCH

Debunking the Myths of Cooperative Purchasing in Public Fleets

Why cooperative contracts may be the key to leveling the playing field and responding faster when vehicle order banks open.

May 6, 2025
Debunking the Myths of Cooperative Purchasing in Public Fleets

Why cooperative contracts may be the key to leveling the playing field and responding faster when vehicle order banks open.

Photo: This utilizes an AI-generated image. Refer to our Terms of Use.

3 min to read


Ad Loading...

Cooperative purchasing continues to be one of the misunderstood tools in public fleet procurement. Despite its potential to streamline acquisitions and drive long-term savings, some agencies still believe that using a cooperative contract means bypassing required processes. 

In reality, these agreements are structured to fully satisfy competitive bid requirements while offering significant time and efficiency benefits. During NAFA I&E, Mike Domin, Associate Director of Cooperative Contracts – Fleet at Sourcewell, explained how cooperative purchasing can level the playing field for public fleets, reduce administrative burdens, and support smarter procurement decisions grounded in lifecycle cost analysis and operational efficiency.

Ad Loading...

Misconceptions About Cooperative Contracts

One of the biggest misconceptions about cooperative contracts is that using them means you're bypassing the formal procurement or competitive bid process. That’s just not the case. In the public sector, fleets understand how critical compliance is and how everything must follow a process. 

Cooperative contracts are structured to meet those same requirements. They’ve already gone through a competitive solicitation, which means when a public agency uses one, it’s still fully compliant with procurement rules. According to Domin, it's not skipping steps but leveraging a process that’s already been completed.

Speeding Up the Vehicle or Equipment Acquisition Process

“Any public fleet manager will tell you that one of the most frustrating parts of their job is actually competing against those private sector buyers,” Domin stated.

He explained that when order banks open, suppliers often prefer to sell to private buyers who can act immediately, while public agencies are still required to go through the bid process before they can cut a purchase order. 

“Any orders placed utilizing a cooperative agreement levels that playing field somewhat for public sector entities,” Domin said. “This is because they can now cut the PO the same day they make the decision to buy, and then they can receive a quote for that vehicle out there.”

Ad Loading...

Domin noted that public employees may not always acknowledge just how valuable their time is, but the cumulative effort spent on traditional procurement can be significant. 

“If you truly looked at how much time they spend creating bid documents, advertising, reviewing or evaluating those responses, waiting for the protest period, which nobody likes, you would find an incredible time savings by using a cooperative contract,” he said. “We all know that time equals money.”

Balancing Limited Budgets with Growing Operational Demands

When asked how fleets can manage tightening budgets while demands continue to increase, Domin didn’t hesitate.

“The word that comes to mind is efficiency, and I could probably say that ten times,” he said. “If your fleet isn’t leveraging management software and telematics, it’s almost impossible to make data-driven decisions and create those efficiencies.”

Domin emphasized that telematics stood out as the top cost-saving strategy discussed during the conference session he had just come from. For fleets under pressure to do more with less, he pointed to technology as the foundation for smarter resource use.

Ad Loading...

The Role of Lifecycle Cost Analysis in Procurement Decisions

Lifecycle cost analysis can be a hot-button topic between fleet managers and procurement professionals, according to Domin. “Procurement is often most concerned with the cost of acquisition,” he said. “But there’s a difference between cost and price.”

He pointed out that focusing solely on the upfront price doesn’t account for the total cost of ownership over the life of the vehicle or equipment. “Higher-quality, more reputable manufacturers might come with a higher initial price tag, but they usually cost less to maintain and have better uptime,” Domin explained. “You’re buying quality, and that makes a difference.”

He added that these assets often come from dealers with fully stocked parts and service availability, which also reduces downtime and contributes to lower overall lifecycle costs. “All of this leads to a decreased overall cost,” he said. “Easy enough.”

Subscribe to Our Newsletter

More Operations

Women working in technician roles and another woman leading a team.
OperationsMarch 3, 2026

Women in Fleet: Leadership, Innovation, and Industry Evolution

Fleet leadership has moved beyond the shop floor into a role shaped by higher expectations and constant change, and women have helped drive that evolution. But how has that shift happened, and what does effective leadership look like in operations today?

Read More →
image showing several awards with the Government Fleet logo.
Operationsby Nichole OsinskiMarch 3, 2026

Deadline Extended: Government Fleet Awards

Submissions for most awards close Monday, March 9; review award categories, confirm eligibility and requirements, and wrap up your entry before the deadline.

Read More →
SponsoredMarch 1, 2026

3 Ways Fleet Tech Builds Public Trust

Managing a state or local fleet comes with levels of accountability private companies don’t have. Read how modern fleet technology helps elevate visibility and safety to strengthen community trust.

Read More →
Ad Loading...
SponsoredMarch 1, 2026

Modernize Motor Pool Operations Without Increasing Cyber Risk

Still managing your motor pool with spreadsheets and manual approvals? Loyola University replaced outdated processes with automated fleet management, eliminating overtime and saving up to $50,000 annually. See how they did it.

Read More →
Operationsby Staff WriterFebruary 27, 2026

Insight and Advice from Past Winners | The February Dispatch

Revisit a handful of February pieces that still feel relevant, from what top fleet leaders kept consistent over time, to what electrification progress looks like when it’s built on coordination and buy-in, to why associations continue to be a real advantage for public sector fleets.

Read More →
Fleet manager of the year with text 'Leadership Insight.'
Operationsby Staff WriterFebruary 26, 2026

Reflection and Insight from Public Sector Fleet Manger of the Year Winners

This year's Public Sector Fleet Manger of the Year judges relfect on their own industry expereince and share some leadership insights.

Read More →
Ad Loading...
SponsoredFebruary 26, 2026

MOVING ON FROM DEBATE: A Guide for Fleet Managers Who Just Want To Get Electrification Done

Fleet managers are done with the debate—and focused on execution. Learn how to build a practical electrification strategy that aligns infrastructure, operations, and financing while keeping costs controlled and deployment scalable with support from Blink Charging. Discover how smart planning today positions fleets for long-term performance and ROI.

Read More →
Drone-in-a-box docking station with a quadcopter on top, branded SkyfireAI, positioned outdoors on a concrete surface.
Operationsby News/Media ReleaseFebruary 25, 2026

Ohio Advances Nation’s First Statewide Drone First Responder Program with Selection of Nine Public Safety Agencies

Ohio is moving forward with a first-of-its-kind statewide Drone First Responder pilot, giving nine public safety agencies new tools to improve emergency response times and situational awareness.

Read More →
The BBM logo and the Fleetsource logo.
Operationsby Staff WriterFebruary 25, 2026

Bobit Business Media Expands Fleet Technology Platform with Acquisition of Roadz Partner Portfolio

By combining media authority with marketplace enablement, BBM aims to create a more connected environment where fleets can confidently evaluate solutions and technology companies can accelerate responsible growth.

Read More →
Ad Loading...
Operationsby Jeanny RoaFebruary 25, 2026

Electrifying Progress and Building Community: Joseph Mattox's Road to the Public Fleet Hall of Fame

Driven by Community and Sustainability: Mattox’s Approach to Modernizing Municipal Fleet Operations

Read More →