Closing the Technology and Procurement Gap with Cooperative Purchasing
State and local governments face mounting pressure to deliver modern, efficient, and secure public services. Yet, despite the rapid evolution of technology in the private sector, government procurement and budgeting processes often remain stuck in the past. This disconnect makes it increasingly difficult for public sector organizations to keep pace with the marketplace they operate in and to meet the expectations of their communities.
Procurement in government is notorious for being slow, bureaucratic, and very risk-averse. The rules and procedures that govern public purchasing were designed decades ago, at a time when the pace of innovation was much slower. Today, these processes require extensive paperwork, multiple layers of approval, and strict adherence to criteria that may not align with modern technology needs. As a result, acquiring new software, hardware, or cloud services can take a year or more-a timeline that is simply incompatible with the speed at which technology evolves. This slow pace often favors large, established vendors who are adept at navigating complex government requirements, while smaller, more innovative firms are left out of the process. Consequently, governments frequently end up locked into older legacy systems that are costly to maintain, less secure, and incapable of meeting current demands.
Budgeting presents its own set of challenges. Most state and local governments operate on annual budget cycles that are incremental and rigid. This structure makes it difficult to respond quickly to new technology opportunities or emerging threats, such as cybersecurity risks. IT funding must compete with other critical priorities like education, public safety, and infrastructure, which often leads to underinvestment in modernization efforts. Furthermore, budget decisions tend to focus on upfront costs rather than the total cost of ownership, resulting in short-term savings but higher long-term expenses as outdated systems become more expensive to operate and maintain.
The combined effect of these outdated procurement and budgeting processes is that state and local governments fall further behind the private sector. They miss out on the efficiency gains, cost savings, and improved services that new technologies can provide. Residents notice when government websites are clunky, when services are slow, or when data breaches make headlines. Meanwhile, the private sector continues to innovate, raising the bar for what citizens expect from their public institutions.
Some governments are starting to make progress by adopting e-procurement platforms, experimenting with agile budgeting, or piloting new funding models that prioritize outcomes over process. However, these efforts are still the exception rather than the rule. Real transformation will require not just new tools, but a fundamental shift in mindset. Procurement and budgeting should be seen as strategic levers for innovation, not just administrative hurdles to clear.
As one public sector leader put it recently, “Procurement isn’t glamorous, but it touches everything.” In fact, even if the budget process was its most efficient, it’s likely legacy procurement practices would ultimately get in the way.
Cooperative purchasing offers a practical solution for state and local governments struggling to keep up with rapid technological change. By allowing multiple agencies to leverage existing contracts created by a lead agency, cooperative purchasing streamlines the procurement process and delivers significant benefits.
Through cooperative purchasing, governments can save both time and money. Instead of each agency running its own lengthy solicitation and evaluation, they can “piggyback” on contracts that have already been competitively bid and awarded by experienced organizations. This approach reduces administrative burdens, speeds up technology acquisition, and ensures compliance with procurement regulations.
Cost savings are another major advantage. By aggregating demand, agencies can secure better pricing and terms than they could achieve alone. Smaller jurisdictions, in particular, benefit from the purchasing power of larger entities, helping them access technology solutions that might otherwise be out of reach. For example, cooperative contracts have helped some regions realize millions in savings, freeing up funds for other priorities.
Cooperative purchasing also opens doors to innovation. Agencies gain access to a wider range of vendors, including those offering cutting-edge technology, and can more easily identify best-in-class products by sharing research and contract information with peers. This collaborative approach helps governments keep pace with the private sector and deliver modern services to their communities. In fact there’s an entire professional association dedicated to cooperative procurement, the National Cooperative Procurement Partners or NCPP,which provides free resources and education to help you learn more about this modern procurement tool.
We at Fractional Source are deeply familiar with cooperative purchasing as an avenue to accelerate your acquisition objectives. By providing access to experienced procurement and budget professionals on a fractional, as-needed basis, Fractional Source empowers agencies to implement cooperative purchasing strategies without the cost or delay of hiring full-time staff. Our experts can help navigate the complexities of cooperative contracts, identify opportunities for aggregation, and ensure compliance with evolving procurement standards. This flexible support model is especially valuable for smaller to mid-size jurisdictions or those with limited internal resources, enabling them to harness the benefits of cooperative purchasing – such as faster technology adoption, better pricing, and increased innovation – while maintaining fiscal responsibility. With Fractional Source, public sector organizations can bridge the gap between outdated processes and the demands of the digital age, making modernization both practical and achievable.