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

  • Texas A&M Opens First Building at Fort Worth Campus, Breaks Ground on Research Facility

    The Texas A&M University System marked a major milestone in the development of its Fort Worth campus by opening its first completed academic building and breaking ground on a second facility designed to expand research and industry collaboration.

  • Carnegie Mellon University Receives $3B Gift to Launch New Campus

    Carnegie Mellon University in Pittsburgh, Penn., recently announced that it has received $3 billion—the largest individual gift in higher education history—from Citadel CEO and founder Ken Griffin, according to a news release.

  • Esports are Growing in Popularity

    Video games and esports are a popular social hobby, and it’s one that’s accessible to a wide variety of physical ability levels. Some esport student-athletes have started to earn scholarship opportunities, and high schools are beginning to form teams equipped with the same degree of resources as their physical sports teams. However, the two have very different needs.

  • UPenn Announces Completion of New Veterinary Education Facility

    The University of Pennsylvania in Philadelphia, Penn., recently finished construction on an 11,800-square-foot veterinary education building, according to a news release. The Gail P. Riepe Center for Advanced Veterinary Education is the first dedicated classroom facility at the New Bolton Center, a large-animal hospital and campus about 35 miles west of the campus proper.