When a city buys from any of the following organizations, the purchase is exempt from the 1983 Municipal Purchasing Law:
- Agencies created by two or more cooperating governments such as those established under the Inter-local Cooperation Act (T.C.A. §§ 12-9-101 et seq.);
- Nonprofit corporations, such as the Local Government Data Processing Corporation, that provide goods or services specifically to municipalities; and
- Federal, state, and local governmental units or agencies when purchasing second-hand supplies, commodities and equipment.