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Cooperative Purchasing: Effects Are Likely to Vary Among Governments and Businesses

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Report Type Reports and Testimonies
Report Date Feb. 10, 1997
Report No. GGD-97-33
Subject
Summary:

The National Performance Review reported in 1993 that consolidating government purchasing would benefit the taxpayer through greater volume discounts and simplified administration. The following year, Congress established a cooperative purchasing program to allow state and local governments, as well as Indian tribes and Puerto Rico, to purchase from federal supply schedules. However, Congress suspended the program in 1996 until its impact could be assessed. This report assesses the effects of the cooperative purchasing program on these nonfederal governments and federal agencies and on industry, including small businesses and dealers. GAO also assesses the preliminary implementation plan prepared by GSA. GAO concludes that although there is little risk to federal interests, the benefits for nonfederal governments and the consequences for industry will likely vary.

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