Group Purchasing Organization(GPO)

Overview

A Group Purchasing Organization (GPO) aggregates the purchasing volume of multiple organizations to negotiate better pricing, terms, and conditions from suppliers. In the public sector, GPOs serve state, local, and educational (SLED) entities by providing competitively solicited contracts that members can access without conducting their own procurements.

Why It Matters in GovCon

GPOs represent a significant channel for SLED market access. Contractors who secure positions on GPO contracts can reach thousands of government buyers simultaneously, bypassing the need for individual competitive procurements at each agency.

Key Details

• Cooperative Contracts: GPO contracts are competitively solicited and available to all member organizations.
• Membership: Government entities join GPOs voluntarily, typically at no cost to the buyer.
• Revenue Model: GPOs typically earn administrative fees from suppliers, not from member organizations.
• Compliance: GPO contracts must comply with state procurement laws, which vary by jurisdiction.
• Major GPOs: Examples include Sourcewell, OMNIA Partners, and the National Cooperative Purchasing Alliance (NCPA).

How GovCon Data Can Help

GovCon Data includes SLED opportunities sourced through cooperative purchasing vehicles, helping contractors identify GPO-related contract opportunities alongside federal solicitations.

Related Terms

• Cooperative Purchasing
• SLED (State, Local, and Education)
• National Cooperative Purchasing Alliance (NCPA)
• Federal Supply Schedule (FSS)