U.S. Communities Government Purchasing Alliance pools the purchasing power of tens of thousands of public agencies in the U.S. and Canada. The alliance was founded in 1996 by the National Association of Counties (NACo), the United States Conference of Mayors (USCM), the National Institute of Governmental Purchasing (NIGP), the National League of Cities (NLC) and the Association of School Business Officials (ASBO).
The cumulative savings were immediate and have grown steadily since the purchasing alliance was implemented: $3 million saved in 1997; $8 million saved in 1998; $16 million saved in 1999; $29 million saved in 2000; $34 million saved in 2001; $48 million saved in 2002; $53 million saved in 2003; $74 million saved in 2004; $108 million saved in 2005; and $152 million saved in 2006. Officials estimate that U.S. Communities will generate $210 million in saving this year.
"Since the program's inception, counties, cities, schools, colleges, special districts, boroughs, townships, villages, towns, state agencies, and non-profit organizations have achieved more than $735 million in hard dollar savings on purchases of commodities through the contracts," said Rick Grimm, chief executive officer of the National Institute of Governmental Purchasing and chair of the U.S. Communities Board of Directors. "Total purchases have exceeded $5 billion over the 10 years of the program including 2007 estimates."
Grimm said U.S. Communities was born of the need for local agencies to find more efficient ways to purchase commodities and services. This was never more apparent than in 1996 when Congress decided to close Federal General Services Administration schedules to local agencies. In an effort to bring efficiencies and savings to local governments, the idea of a national buying cooperative took hold.
"While we suspected it would be successful, the savings, purchasing power and reach of the alliance has far exceeded our expectations," Grimm said. "In 2006 alone, savings of $150 million were documented on purchases exceeding $1 billion. Today more than 20,000 public agencies are registered and participating in the program."
Supervisor Gerry Hyland, Fairfax County, Va., a founding member of the alliance and an original member of the advisory board, said using the U.S. Communities program has "saved Fairfax County millions of dollars in purchases on a plethora of products including office and school supplies, computer products, office furniture, and industrial supplies."
Hyland cited the office and school supply program as a prime example of savings. "By using the existing contract under Los Angeles County, Fairfax County saved more than $1.6 million in fiscal year 2006 on these supplies," Hyland said. "That $1.6 million a year plus significant savings from other alliance contracts allows us to fund other vital county services without having to ask for additional taxpayer assistance."
Nancy Locke, purchasing manager of Seattle, said the city has taken full advantage of the number of offerings through U.S. Communities, including office supplies, technology solutions, janitorial supplies, maintenance and repair supplies, and playground equipment.
