Why should we participate

“Bridging the Gap through Cooperation”

In January of 1998 a group of public officials, administrators, and purchasing agents from agencies across the North Alabama region began discussing the idea of a purchasing cooperative. The goal of the group was to establish an arrangement similar to the Purchasing Association of Central Alabama in Jefferson County. Through the years, meetings were held periodically to hammer out the details of the North Alabama Cooperative Purchasing Association (NACPA). It was decided that an association would be formed and that the members would share the cost of a coordinator. NACPA began operation in 2003.

Why should we participate? Governments are increasingly asked to do more, but expected to do more with fewer resources. Un-funded mandates and an anti-tax sentiment, encourage governments to find innovative ways to become more efficient. One avenue towards more efficiency is intergovernmental cooperation. The purpose of NACPA is to jointly bid commodities and services in order to receive the benefits of intergovernmental cooperation. Benefits of membership in NACPA are lower prices due to increased volumes; the elimination of duplicate efforts, bidding the same items, usually from the same vendors; and access to professional purchasing expertise.

How does it work? The coordinator meets periodically with the advisory board and department heads from each member agency. The coordinator collects information from the members such as estimated quantities, specifications, and current vendors. The coordinator develops the bid solicitations and requests for proposals that are sent to vendors. The coordinator collects the bids, tabulates them, and determines the lowest responsible vendor on behalf of the members. The coordinator then notifies each member of the award and contract number. The members choose to use the cooperative bid through resolution or ordinance. The members use the contract number and deal directly with the vendor on delivery of the commodities and payment. Members are not required to use all cooperative bids, participation in each bid is voluntary. Members are not required to increase their volume of purchases; the lower prices come from the pooling of current volumes. Members reserve the right to bid any commodity on their own, use the state bid list or use any other cooperative bid authorized by law.

Who is in charge? An executive board, made up of the chief executives of each of the participating agencies governs NACPA. The executive board is responsible for approving the by-laws of NACPA; appointing representatives to the advisory board; and employing the coordinator. The advisory board is composed of individuals involved with purchasing from each agency. The advisory board is responsible for working with the coordinator to identify the commodities to be jointly bid and determine the specifications for those items. The cooperative is hosted and housed by the Top of Alabama Regional Council of Governments.

How much does it cost? TThe expenses of the cooperative are paid by the members. The members pay a flat fee plus a percentage of the cooperative's budget, based on the size of their budget relative to other members' budget. Annual charges for members range from $1,000 to $5,000, depending on the size of a member's budget. As more agencies join, the cost will decrease for each existing member due to spreading the operating costs over more participants.

How do we join? In order to join, the chief executive of your agency signs the intergovernmental agreement. This may require a resolution of the governing body to authorize the executive to enter into this agreement. If you have any questions or need assistance with a presentation to your governing body please feel free to contact NACPA Coordinator Larry Whitt larrywhitt@adss.alabama.gov (256)509-7950.