Montana

Plain-language summary

Montana's cooperative purchasing framework requires careful attention to scope. The Montana Procurement Act, Part 4 (Mont. Code Ann. §§18-4-401 to 18-4-406), is the primary cooperative purchasing authority. Section 18-4-401(1) defines cooperative purchasing as 'procurement conducted by or on behalf of more than one public procurement unit,' and §18-4-402 authorizes cooperative purchasing arrangements. Critically, the operative provisions consistently reference 'supplies and services' rather than including construction. The Montana State Procurement Bureau's official cooperative purchasing program confirms this scope, describing it as enabling tribal governments and political subdivisions to purchase 'supplies and services' in cooperation with the State of Montana. Section 18-4-124 permits political subdivisions or school districts to adopt any or all parts of the Montana Procurement Act — including the cooperative purchasing part. Separately, the Montana Constitution Article XI, Section 7 provides broader intergovernmental cooperation authority for local government units, permitting them to cooperate in the exercise of any function or responsibility with any other governmental unit unless prohibited by law or charter. This constitutional authority is the more flexible pathway for cooperative construction arrangements at the local level.

Key requirements

• →Under the Montana Procurement Act Part 4: cooperative purchasing scope is 'supplies or services' — construction is not named in §§18-4-401 to 18-4-406.
• →Public procurement units include local or state procurement units of Montana or any other state, federal agencies, and tribal procurement units.
• →The State of Montana requires interested local governments, school districts, and tribal governments to sign a Cooperative Purchasing Memorandum of Understanding (MOU) before utilizing state contracts.
• →Political subdivisions or school districts may adopt any or all parts of Chapter 18 (the Montana Procurement Act) under §18-4-124.
• →Montana Constitution Article XI, Section 7 provides broader local government cooperation authority — local government units may cooperate in any function or responsibility unless prohibited by law or charter.
• →Construction-specific procurement requirements (including alternative project delivery contracts under Title 18, Chapter 2, Part 5) continue to apply to public works projects.
• →Montana public works construction projects must still comply with applicable bonding, prevailing wage, and bidding statutes.

Construction services

Montana's Procurement Act cooperative purchasing provisions (§§18-4-401 to 18-4-406) are scoped to 'supplies or services' — construction is not named in the operative authority. The Montana State Procurement Bureau's official cooperative program follows this scoping, supporting supplies and services purchases rather than construction. For cooperative construction arrangements, Montana public agencies typically rely on the broader local government cooperation authority under Montana Constitution Article XI, Section 7 — which permits cooperation in 'any function, power, or responsibility' unless prohibited by law or charter. National cooperatives like OMNIA Partners and Region 14 ESC Texas can be utilized through this constitutional intergovernmental cooperation pathway, but the participating Montana entity should verify with counsel that the specific arrangement complies with Montana's public works statutes including construction bidding requirements and prevailing wage rules. Montana public agencies considering cooperative construction procurement should engage counsel to confirm the appropriate statutory or constitutional pathway and verify that the underlying cooperative contract was competitively procured.