Skip to main content
Add as a preferred source on Google

Cooperative Purchasing Contracts Can Help Schools Stay Within Budgets

  • 11/01/17

Over the last several years there has been a proliferation of purchasing cooperatives in the education space and it’s easy to see why. Today’s procurement professionals continue to face the daunting challenge of spending less and getting more. Be it through increased efficiencies, aggregated knowledge or leveraging resources, cooperative purchasing contracts can help.

Strength in Numbers

The sheer volume of purchasing power aggregated by the size of the cooperative provides individual members with economies of scale — and pricing advantages — they would likely not be able to achieve on their own. Add to that the considerable time savings associated with researching new product categories, sourcing competitive quotes, and negotiating pricing. By eliminating time spent on these tasks, resources can be reallocated to focus on more strategic projects.

Cooperative contracts can also represent a revenue generating tool. On top of exclusive savings and rebates, a true member-owned cooperative typically shares its profits with members in the form of “patronage” refunds, which are based on a member’s annual purchases.

Time Efficiencies

“We average approximately 100 days from beginning to end, in terms of conducting an RFP,” said Rick Gay, Procurement Officer at Houston Independent School District. “Utilizing a contract that has already gone through a bid process means we have immediate access to an agreement that adheres to our board policies or state statutes. It also means we can quickly conduct a market trend analysis to ensure we’re in compliance with federal spend regulations.”

The procurement team at Houston ISD comprises 12 sourcing specialists that typically conduct 350-400 solicitations per year. That requires a significant amount of time and resources, and every measure of savings helps. “It’s all about ensuring that our end users get what they need, at the best price available, as quickly as possible,” Rick said. “If that means using a cooperative contract, I’m in!”

This article originally appeared in the issue of .

Featured

  • Building Beyond Simulation: Creating Immersive Ecosystems for Healthcare Education

    Health sciences education is one of the fastest-growing facility types in colleges and universities. The demand for medical, nursing, and allied health professionals is driving the creation and renovation of medical simulation training facilities that provide students with real-world experience through advanced simulation-based learning.

  • Back-to-School Playground Safety: 7 Common Hazards to Look for After Summer Break

    As summer break comes to an end, school administrators have plenty to prepare before students return. While classrooms, hallways and common areas often receive attention during all the back-to-school preparations, the playground should not be overlooked. Months of weather exposure, storms, and regular wear can leave behind hazards that may not be immediately noticeable.

  • Montclair State University Starts Construction on $120M STEM Building

    Montclair State University in Montclair, N.J., recently broke ground on a new $120-million Interdisciplinary Science Building, according to university news. The university partnered with HoK Architects for the project’s design, and it’s scheduled to open in time for the 2028–29 academic year.

  • DLR Group Hires Three for Higher Education Practice

    Integrated design firm DLR Group recently announced that it has brought three new hires on board to help shape its higher education practice in California and the northeast, according to a press release.