What is the main purpose of a joint purchasing agreement?

The main purpose of a joint purchasing agreement is to enhance individual purchasing power through collective action. By pooling resources, municipalities or other entities can leverage their collective buying power to negotiate better terms and prices with suppliers than they could achieve individually. This cooperative approach not only leads to cost savings but also streamlines the purchasing process for participating parties, reducing administrative burdens and fostering efficient procurement practices.

Other options do not effectively represent the main objective of such agreements. Eliminating the need for formal contracts would undermine the structured approach usually required in cooperative purchasing. Allowing any vendor without restrictions does not align with the purpose of joint purchasing agreements, as these agreements are typically meant to streamline vendor selection based on collective standards or requirements. Lastly, requiring each unit to independently negotiate terms defeats the advantage of cooperation that joint purchasing aims to provide, as it would lead to fragmented negotiations rather than unified bargaining efforts.