Amarillo City Council members received a detailed presentation this past Tuesday on the differences between state-approved contractor bids and traditional competitive bidding processes, following discussions in May about the City’s use of these contracts.
During the May meeting, council members expressed a desire for more education on how state-approved contractor bids, also known as cooperative agreements or “co-ops,” operate. To address these concerns, Michael Lindley, Amarillo’s purchasing manager, presented an overview of both procurement methods during the most recent council session.
“In a traditional procurement, the City manages the full process: specs, bids, evaluations and awards. It provides full control, but requires significant time and internal resources. With a cooperative [agreement], it uses contracts that are already competitively bid by authorized co-ops organizations approved by the State to conduct bidding on behalf of local governments. It meets legal requirements while reducing administrative burden time,” Lindley explained.
Lindley said cooperative agreements are generally quicker and more efficient than the traditional competitive bidding process. Using co-ops can save the City money by reducing costs associated with advertising bids and streamlining contractor notifications. Contractors are notified of potential projects only if they are members of the co-op.
This aspect has drawn some concern from local contractors, who may feel disadvantaged if they are not part of the co-op. During the meeting, Councilmember Place 2 Don Tipps asked for clarification on this point. “Just to reiterate that local contractors have felt like this was unfair because they weren’t able to be chosen because they’re not on the co-op. But it’s up to them to be on that list?” Lindley confirmed that it is indeed the responsibility of contractors to join the cooperative in order to be eligible for bids.
The discussion highlighted the balance the City must strike between efficiency, legal compliance, and supporting local businesses. While cooperative agreements provide convenience and reduce administrative demands, they also create limitations for contractors who are not registered members.
Mayor Cole Stanley emphasized the need for clear guidelines in the future. He asked Lindley to collaborate with other City staff to draft a policy outlining when and how cooperative agreements should be used. This policy is expected to be presented to the council during an upcoming meeting.
The conversation reflects a broader trend in local government procurement, where municipalities increasingly weigh time and resource efficiency against opportunities for local businesses to compete. Council members have indicated that they want a transparent and educational approach to ensure all stakeholders understand the implications of choosing cooperative agreements versus managing the full bidding process internally.
For Amarillo, the next steps will include reviewing the proposed policy and considering feedback from council members and local contractors. The goal is to provide a framework that ensures compliance with state laws, maintains fiscal responsibility, and offers fairness and clarity to local vendors interested in serving the City.
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