Local Government Code, Chapter 271.102, authorizes a local government to participate in a cooperative purchasing program with another local government or a local cooperative organization. The Texas Local Government Code permits cooperative agreements between local governments for the purchase of goods and services and satisfies the requirement of local governments to seek competitive bids for purchase of such goods and services through supplier contracts. On March 1, 2006, the City of Allen executed an Interlocal agreement with US Communities.
Amazon is a leader in the online "Marketplace" for miscellaneous products. In January 2017, the US Communities National Cooperative Purchasing Program awarded a contract to Amazon, Contract R-TC-17006. In February 2018, the City of Allen announced a new Amazon Business Prime Account, utilizing the cooperative contract as awarded through the US Communities.
The City of Allen will utilize the Amazon Business Prime Account to obtain the best available pricing on a wide assortment of products. The Business Account has been established as a tax exempt account, provides access to specialized business only customer service team, free two-day shipping on qualified orders, procurement card payment and enhanced reporting and reconciliation capabilities.
The City of Allen Finance Team has slowly rolled out the program to a select group of end-users. The City currently has fifty-one (51) authorized department users and five (5) Finance Administrators overseeing and approving purchases. In a short time, benefits realized include increased business analysis tools, efficiencies in staff time by allowing purchases from desktop rather than off site, increased pooling of commodities to provide for even more competitive pricing, and stronger safeguards such as better restriction of certain items.
The current Amazon Business spend for Fiscal Year 2019 is $82,054.80. We anticipate growth in the program as all department spending is captured under one umbrella business account.