North Dakota

Plain-language summary

North Dakota's cooperative purchasing framework requires distinguishing state-level authority from local-government authority. At the state level, N.D.C.C. §54-44.4-13 governs cooperative purchasing for state agencies. The statute permits the Office of Management and Budget (OMB) director to participate in cooperative purchasing agreements with government entities or nonprofit organizations established on behalf of public entities — but the scope is explicitly 'commodities or services.' Construction is not named in this state cooperative purchasing provision. Architect, engineer, and land surveying services are addressed separately in Chapter 54-44.7. Before entering any state cooperative purchasing agreement, OMB must determine that the underlying contracts were awarded through 'full and open competition or source selection methods specified in section 54-44.4-05' and must send notice to approved vendors. This pre-determination requirement is procedurally meaningful. For political subdivisions, North Dakota provides separate and broader authority. N.D. Const. Article VII, Section 10 establishes that 'Agreements, including those for cooperative or joint administration of any powers or functions, may be made by any political subdivision with any other political subdivision, with the state, or with the United States, unless otherwise provided by law or home rule charter.' N.D.C.C. Chapter 54-40.3 (Joint Powers Agreements) implements this authority broadly, permitting counties, cities, townships, park districts, school districts, and other political subdivisions to enter joint powers agreements with each other AND with political subdivisions of other states or Canadian provinces.

Key requirements

• →For state cooperative purchasing under §54-44.4-13: scope is 'commodities or services' — construction is not named.
• →OMB must determine before entering any cooperative agreement that the underlying contracts were awarded through 'full and open competition' or specified source selection methods under §54-44.4-05.
• →OMB must send notice to approved vendors of intent to make a cooperative purchase under the chapter.
• →Architect, engineer, construction management, and land surveying services are governed separately by Chapter 54-44.7.
• →Constitutional authority: N.D. Const. Article VII, Section 10 permits political subdivisions to enter cooperative or joint administration agreements with each other, with the state, or with the United States.
• →N.D.C.C. Chapter 54-40.3 (Joint Powers Agreements) provides broad authority for political subdivisions to enter joint powers agreements — including with political subdivisions of other states or Canadian provinces.
• →Joint powers agreements between political subdivisions of different states require the power or function to be authorized by both states' laws.
• →Public works construction projects must comply with applicable bonding, prevailing wage, and competitive bidding statutes separate from cooperative purchasing authority.

Construction services

North Dakota's state cooperative purchasing provision (N.D.C.C. §54-44.4-13) is scoped to 'commodities or services' — construction is conspicuously absent from the operative authority. Architect, engineer, construction management, and land surveying services are governed separately by Chapter 54-44.7. The OMB's pre-determination requirement (full-and-open-competition finding before any cooperative purchase) adds procedural friction. For cooperative construction arrangements, North Dakota political subdivisions have broader authority through N.D. Const. Article VII, Section 10 and N.D.C.C. Chapter 54-40.3 (Joint Powers Agreements). Counties, cities, school districts, and other political subdivisions may enter joint powers agreements with each other and with political subdivisions of other states — and this is the more workable pathway for cooperative construction arrangements involving national cooperatives like OMNIA Partners or Region 14 ESC Texas. North Dakota public agencies should engage counsel to determine the appropriate statutory pathway for any specific use case and verify that the underlying cooperative contract satisfies applicable competitive procurement standards and any North Dakota public works construction requirements.