Piggybacking (Piggyback contract)
Piggybacking stands for Piggyback contract. Piggybacking means one government agency uses a contract that another agency already competed and awarded. For example, a city might buy trucks off a county's contract at the same prices and terms. The original contract must usually include language allowing other agencies to use it.
Piggybacking is a form of cooperative purchasing, but it often happens directly between two agencies rather than through a cooperative organization. Many states limit it or require the buying agency to confirm the original competition was fair.
Why it matters to a small contractor
When you bid a city or county contract, check whether it lets other agencies piggyback. If it does, winning one contract may lead to orders from neighboring towns. Make sure your pricing works if the volume and delivery locations expand.
Example
A small janitorial supply company wins a county contract that includes a cooperative use clause. Two nearby school districts piggyback on it, and the company's order volume grows without another bid.
Piggybacking: common questions
Do I have to accept piggyback orders?
That depends on the contract language. Some clauses say the vendor may agree to extend pricing, which gives you a choice. Read it before you bid.
Is piggybacking legal everywhere?
Most states allow it in some form, but rules differ. Some require the original solicitation to have named or invited other agencies.
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