Great idea for scouts that cannot afford the right gear.
Campmor: If you call them and set up your troop as a "certified buyer", and use a troop check, you get 10% off all gear, including sale items, a good deal. We have used Scout Direct stuff as well, same deal, set your group up, really good prices. Their stuff is heavy, but we have had good luck witht their Taurus tents with aluminum poles, 4 man ones.
For gear, depends on what kind of temp range you are going to camp in bag wise. If 30 degrees is not out of the question, IMO, the campmor brand 20 degree down bags are a great deal. You don't have to wash bags often at all, and these are very warm bags. But if you are not camping cool/cold, then maybe synth. bags are better. But bulkier and heavier. Tents, as noted above, Scout direct likely best bang for buck. Get aluminum poles thou. We have also had real good results from the Kelty Teton 4 models, which can in fact sleep 4 smaller scouts, with packs, 3 larger scouts with packs, and the weight is easy to split up.