Legal Structure

What is Sourcing Office’s Legal Structure?

Sourcing Office is a Council of Governments (“COG”) organized under Chapter 167 of Ohio Revised Code. Chapter 167 authorizes the governing bodies of any two or more counties, municipal corporations, townships, special districts, or other political subdivisions to enter into an agreement with each other for the establishment of a regional council of governments.

A COG may accept funds, grants, gifts, and services from the federal government or its agencies; from the State of Ohio or its departments, agencies, instrumentalities; from political subdivisions or any other governmental unit; and from private and civic sources. Any income generated by Sourcing Office is excluded from gross income under Section 115(1) of the Internal Revenue Code (the “Code”).

In addition, Sourcing Office received designation as an organization described in Code Section 501(c)(3) and exempt from federal income tax under Code Section 501(a). By obtaining classification as a public charity, Sourcing Office is able to pursue funding through charitable contributions including grants from foundations.

Can Participating Public Sector Entities Buy through Sourcing Office’s Contracts without Conducting their own Bid Process?

Yes. A key advantage that Sourcing Officeoffers its Participants is the ability to “piggyback” on Sourcing Office’s already-procured contracts, thereby saving both the individual Participant and the supplier the time, aggravation, and cost of conducting yet another Bid or RFP process on a one-off basis.

What is the Statutory Procurement Process that Sourcing Office Follows?

Sourcing Office’s procurement process follows the guidelines of the Ohio Revised Code, primarily the methodology outlined in Section 125. These are the same guidelines followed by the State of Ohio’s Department of Administrative Services, commonly referred to as the “State Bid” or “State Term Contracts.”

If my Organization Buys through a State Cooperative or State Contract, can we Buy through Sourcing Office?

Typically, the answer is yes. However, we encourage any organizations that are uncertain about their legal authority to consult their attorney.

Under what Legal Authority can Participants Bypass their own Bid Process & Utilize Sourcing Office’s Contracts?

Sourcing Office’s authority to conduct activities, including procurement, on behalf of its membership comes from Section 167 of the Ohio Revised Code. Understanding the authority Sourcing Office has on behalf of its Members and Affiliates requires a review and collective reading of several sections of O.R.C. 167. O.R.C. 167 states, in pertinent part, that "governing bodies of any two or more counties, municipal corporations, townships, special districts, school districts, or other political subdivisions may enter into an agreement with each other, or with the governing bodies of any counties, municipal corporations, townships, special districts, school districts or other political subdivisions of any other state to the extent that laws of such other state permit, for establishment of a regional council consisting of such political subdivisions." See O.R.C. 167.01 Establishment of regional councils of political subdivisions).

Membership in a council of governments such as Sourcing Office shall include the "counties, municipal corporations, townships, special districts, school districts, and other political subdivisions entering into the agreement establishing the council or admitted to membership subsequently pursuant to the agreement establishing the council or the bylaws of the council. Representation on the council may be in the manner as provided in the agreement establishing the council." See O.R.C. 167.02 (Membership, withdrawals, and representation). Once established, the council of governments has the power to engage in several actions set forth in O.R.C. 167.03, which include, but are not limited to:

Promote cooperative arrangements and coordinate action among its members, and between its members and other agencies of local or state governments, whether or not within Ohio, and the federal government. See O.R.C. 167.03(A)(2);

Make recommendations for review and action to the members and other public agencies that perform functions within the regions. See O.R.C. 167.03(A)(3);

Promote cooperative agreements and contracts among its members or other governmental agencies and private persons, corporations, or agencies. See O.R.C. 167.03(A)(4); and
By appropriate action of the governing bodies of the members, perform such other functions and duties as are performed or capable of performance by the members and necessary of desirable for dealing with problems of mutual concern. See O.R.C. 167.03(C).
In short, the authority of Sourcing Office, pursuant to O.R.C. 167, is that of the authority of its members. When a political subdivision enters into an agreement under O.R.C. 167 et seq. with a council of governments (i.e., Sourcing Office), whereby the council of governments assumes certain duties and responsibilities of the member political subdivision (e.g., conducting competitive solicitations), the council of government must comply with all statutory requirements imposed upon the member political subdivision in the performance of such duties and responsibilities. See OAG No. 82-103 (1982); see also O.R.C. 167.08 (Contracts for service to political subdivisions), which reads: The appropriate officials, authorities, boards, or bodies of counties, municipal corporations, townships, special districts, school districts, or other political subdivisions may contract with any council established pursuant to sections 167.01 to 167.07, inclusive, of the Ohio Revised Code to receive any service from such council or to provide any service to such council. Such contracts may also authorize the council to perform any function or render any service in behalf of such counties, municipal corporations, townships, special districts, school districts, or other political subdivisions, which such counties, municipal corporations, townships, special districts, school districts, or other political subdivisions may perform or render.