Piggyback Contract
A piggyback contract is when one government agency uses another jurisdiction's competitively awarded contract to make a purchase, bypassing the need for its own solicitation.
What Is a Piggyback Contract?
A piggyback contract is when one government agency uses another agency's competitively awarded contract to make its own purchase. Instead of running a separate RFP, the piggybacking agency leverages the competitive process that the original agency already completed.
For example, if Houston ISD competitively awards a contract for network equipment, a smaller Texas school district might piggyback on that contract, purchasing the same equipment at the same negotiated price without conducting its own solicitation.
How Piggybacking Works
- Lead agency competitively awards a contract. The original solicitation was fully competed with published criteria and vendor evaluation.
- Contract includes piggyback language. Most government contracts include a clause allowing other public entities to use the contract terms.
- Second agency verifies eligibility. The piggybacking agency confirms that its procurement rules allow piggybacking and that the original contract covers what it needs.
- Agency places an order. The piggybacking agency issues a purchase order referencing the original contract.
Piggyback vs. Cooperative Purchasing
| Factor | Piggyback Contract | Cooperative Contract |
|---|---|---|
| Original purpose | Competed for a specific agency's needs | Competed specifically for multi-agency use |
| Scope | May be narrow (tailored to lead agency) | Broad (designed for diverse member needs) |
| Legal standing | Varies by jurisdiction | Broadly accepted in all 50 states |
| Vendor awareness | Vendor may not expect multi-agency orders | Vendor competes knowing orders will come from many agencies |
Both are legitimate procurement methods, but cooperative contracts from organizations like Sourcewell and OMNIA Partners are generally preferred because they were designed for multi-agency use from the start.
Why Piggybacking Matters for Vendors
- Expanded reach. A single contract award can generate orders from multiple agencies, multiplying revenue without additional competitive processes.
- Include piggyback clauses. When bidding on government contracts, always ensure the contract allows other agencies to piggyback. This expands your addressable market at no cost.
- Market the contract. Once awarded, proactively tell other agencies in the region that your contract is available for piggybacking.
Frequently Asked Questions
What is a piggyback contract?
A piggyback contract lets one government agency use another agency's competitively awarded contract to make purchases. The piggybacking agency avoids running its own solicitation by leveraging the original competitive process.
Is piggybacking legal for government agencies?
Yes, in most jurisdictions. Most states authorize piggybacking under their procurement codes. The original contract must include language allowing other public entities to use it.
What is the difference between piggybacking and cooperative purchasing?
Piggybacking uses a contract originally competed for one agency. Cooperative purchasing uses contracts specifically designed for multi-agency use. Cooperative contracts are generally preferred because they were built for broader access.
Should vendors include piggyback clauses in contracts?
Yes. Including a clause that allows other public entities to use the contract expands your addressable market at no additional cost. It turns one award into potential orders from many agencies.
How do vendors benefit from piggyback contracts?
A single competitive award can generate orders from multiple agencies. Vendors should include piggyback language in contracts and proactively market available contracts to nearby agencies.