North Carolina

Plain-language summary

North Carolina's General Statutes §143-129 governs competitive bidding for public contracts and provides two distinct cooperative purchasing pathways. The first pathway, §143-129(e)(3), exempts from competitive bidding requirements any "purchases made through a competitive bidding group purchasing program" — defined as a formally organized program offering competitively obtained purchasing services at discount prices to two or more public agencies. The second pathway, §143-129(g), is the "waiver of bidding for previously bid contracts" provision — when the governing board determines it is in the best interest of the unit, the bidding requirements may be waived for purchases from any person or entity that has, within the previous 12 months, completed a public formal bid process and contracted with the U.S. government, the State of North Carolina, or another state or its political subdivisions. Either pathway requires governing body approval at a regularly scheduled meeting at least 10 days after publication of notice. Local governments also have separate interlocal authority under Article 20 of Chapter 160A of the General Statutes.

Key requirements

• →For §143-129(e)(3) group purchasing: the program must be "formally organized" and offer competitively obtained purchasing services at discount prices to two or more public agencies.
• →For §143-129(g) bidding waiver: the original contract must have been awarded by the U.S. government, the State of North Carolina, or another state or its political subdivisions, and within the previous 12 months.
• →The using vendor must be willing to furnish items at the same or more favorable prices, terms, and conditions.
• →The governing body of the purchasing political subdivision must approve the purchase at a regularly scheduled meeting.
• →Approval must occur no fewer than 10 days after publication of notice that a waiver will be considered.
• →Notice may be published in a newspaper of general circulation or by electronic means (or both); electronic-only must be approved by the governing board.
• →Local governments may also enter interlocal cooperation agreements under N.C.G.S. Chapter 160A, Article 20.

Construction services

North Carolina's group purchasing exception under §143-129(e)(3) and its bidding waiver under §143-129(g) are typically used for purchases of apparatus, supplies, materials, and equipment — and the statutory framework explicitly contemplates these categories. Whether either pathway applies to construction services depends on the specific structure of the underlying cooperative contract and the nature of the procurement. North Carolina maintains separate requirements for construction or repair work over $500,000 (formal bidding) and has specific provisions governing construction methods (separate-prime, single-prime, dual-bidding, or construction-manager-at-risk under §143-128). Agencies considering use of a cooperative purchasing contract for construction services in North Carolina should consult with counsel about whether the specific procurement structure satisfies both the cooperative purchasing requirements and the applicable construction-specific procurement rules.