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

  • Preparing for the Next Era of Healthcare Education, Innovation

    Across the country, public universities and community colleges are accelerating investments in healthcare education facilities as part of a broader strategy to address workforce shortages, modernize outdated infrastructure, and expand clinical training capacity. These projects, which are often located at the center of campus health and science districts, are no longer limited to traditional classrooms.

  • Spaces4Learning Trends & Predictions for Educational Facilities in 2026: Part I

    We asked, you answered, and the results are in! Last year, we put out a call for submissions to collect our readership’s opinion on trends and predictions for K–12 and higher education facilities in 2026.

  • Houston-Area High School Breaks Ground on 117,000SF Multi-Use Facility

    North Shore Senior High School, part of Galena Park ISD in Houston, Texas, recently broke ground on a new multi-use facility for student extracurriculars, according to a news release. The North Shore Multi-Use Facility will include dedicated practice and training space for the school’s athletics and fine arts programs.

  • Photo credit: Elkus Manfredi Architects

    University of Virginia Selects Design-Build Team for New Residential Complex

    The University of Virginia in Charlottesville, Va., recently announced that it has selected a design-build team for a new upper-class residential development on campus, according to a news release. Capstone Development Partners—in partnership with Elkus Manfredi Architects and the Hoar Construction/Hourigan construction team—will move forward with the three-building, 310,000-square-foot housing facility.