The mechanisms for screening these vendors and deciding who gets a contract vary. When a department identifies a need, sometimes the government puts out a request for proposals, entertains bids, holds a public hearing and then chooses the vendor.
But there is another route that appears to be quite common, and it allows city and county officials to circumvent the local vetting process. It’s called “piggybacking,” a form of cooperative purchasing that means local governments can “piggyback” on contracts approved by other agencies.
The city and county each spend millions every year via piggyback contracts, meaning there’s less oversight before officials cut checks.
Piggybacking can save governments money and time by allowing them to bypass the sometimes protracted steps of negotiation and approvals. But, according to some critics, with fewer checks and balances built in, piggybacking contracts make it difficult to know if local governments are getting good deals and if they are being responsible stewards of taxpayer money. Critics also say the practice can open up governments to fraud.
Neither the county nor city government could provide comprehensive data on how much they spend on piggyback contracts each year. Despite the limitations, a PublicSource analysis of available information revealed the following:
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