What is the definition of a "joint purchasing agreement"?

A joint purchasing agreement is defined as an agreement that allows multiple agencies to combine their purchasing power to procure goods or services more effectively and efficiently. This type of agreement is particularly beneficial because it enables different agencies, often in the public sector, to leverage their collective buying power. By pooling their resources, these agencies can negotiate better terms, lower prices, and more favorable contract conditions than they would be able to achieve individually. This collaboration can lead to significant savings and enhanced procurement capabilities.

The focus on combining purchasing power is crucial, as it emphasizes the collective strength of organizations working together to enhance their procurement processes and achieve economies of scale. In the public sector, joint purchasing agreements can also streamline procurement processes and reduce administrative burdens for the participating entities.