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.