Purchasing and Bidding: Intergovernmental Purchases and 'Piggybacking'

Purchasing From Other Governments and on Other Governments' Contracts

Federal Government

The authority for cities to purchase from or through the federal government is found in RCW 39.32.070 - 090. The first statute states that cities are authorized to purchase equipment, supplies, materials, and other property, without advertising, giving notice, or inviting bids. RCW 39.32.080 suspends any charter provisions, ordinances, or policies that require bidding when dealing with the federal government. RCW 39.32.090 requires that an ordinance or resolution be passed before any particular purchase is made from the federal government or through a federal government contract.

Most purchases from the federal government are through the General Services Administration (GSA).  Note this information from the GSA Website:

Under the Cooperative Purchasing Program, state and local government entities may purchase a variety of Information Technology (IT) products, software, and services from contracts awarded under GSA Federal Supply Schedule 70, Information Technology, as well as from contracts under the Consolidated (formerly Corporate Contracts) Schedulecontaining IT special item numbers.

State and local government entities may also purchase alarm and signal systems, facility management systems, firefighting and rescue equipment, law enforcement and security equipment, marine craft and related equipment, special purpose clothing, and related services from contracts awarded under GSA Federal Supply Schedule 84, Total Solutions for Law Enforcement, Security, Facility Management Systems, Fire, Rescue, Special Purpose Clothing, Marine Craft, and Emergency/Disaster Response.

Intergovernmental Purchases and Bidding

As noted on preceding pages, RCW 47.24.050 and RCW 35.77.020 provide authority for cities to enter into agreements with the county in which they are located for repair or construction of any or all of the cities' streets or bridges. No bidding requirements apply to such projects. RCW 36.75.200 provides that a county may expend funds for the repair, maintenance, or construction of any bridges within a city if the bridge is essential to continuation of the county road system. A city may acquire surplus property from another government entity without regard to bid laws. RCW 39.33.010 authorizes such purchases "on such terms and conditions as may be mutually agreed upon by the proper authorities."

Chapter 39.34 RCW allows cooperative purchasing between public agencies (political subdivisions).  For the purposes of this chapter, the term "public agency" means any agency, political subdivision, or unit of local government of this state including, but not limited to, municipal corporations, quasi municipal corporations, special purpose districts, and local service districts; any agency of the state government; any agency of the United States; any Indian tribe recognized as such by the federal government; and any political subdivision of another state.  Public agencies which have filed an Intergovernmental Cooperative Purchasing Agreement (ICPA) with the each other may make purchases from each others contract awards, if the Vendor has agreed to such participation.  The awarding agency does not accept any responsibility for orders placed by other public agencies.  A public agency purchasing under another agency's contract accepts responsibility for compliance with statutes (including bid limits) governing purchase by or on behalf of itself.

Each participating agency must have the power to do individually what it agrees to do jointly.  Public agencies may purchase from contracts entered by other public agencies if the contract is determined to have been awarded in compliance with bidding requirements of the agency seeking to purchase ("No agreement made pursuant to this chapter relieves any public agency of any obligation or responsibility imposed upon it by law .." (RCW 39.34.030)  and there is no statutory provision prohibiting such a purchase.

RCW 39.34.030 (5)(b) continues:

          With respect to one or more public agencies purchasing or otherwise contracting through a bid, proposal, or contract awarded by another public agency or by a group of public agencies, any statutory obligation to provide notice for bids or proposals that applies to the public agencies involved is satisfied if the public agency or group of public agencies that awarded the bid, proposal, or contract complied with its own statutory requirements and either
                      (i) posted the bid or solicitation notice on a website established and maintained by a public agency, purchasing cooperative, or similar service provider, for purposes of posting public notice of bid or proposal solicitations,
                   or ii) provided an access link on the state's web portal to the notice.

Cities frequently use the authority granted in RCW 39.34.030 and in WAC 236-49-060 to make purchases through the Office of State Procurement (OSP) of the Department of General Administration. Cities may be able to realize savings through the OSP's quantity purchasing, although an annual subscription fee is charged to participate. In order to make such purchases, a municipality must enter into a written agreement (an intergovernmental cooperative purchasing agreement) with the state Department of General Administration, a copy of which is filed with the city clerk and the county auditor. The OSP then sends to the city lists of contracts that have been entered into by that department with suppliers (vendors) and that the city is eligible to use. These contracts are general in nature and are obtained by the department from the various vendors. The vendors agree to provide the same items to cities under the same terms and conditions as provided to state agencies.

If a city decides to make a purchase under one of the listed contracts, it notifies the department of its intent to do so, and the department sends the city a copy of the particular contract.49 The contract contains instructions on the procedures used to make purchases. Under most contracts, the city or town makes the purchase directly from the vendor. In some cases, such as the purchase of motor vehicles, the department requires the purchase to be made through its office.